New data reveals that £17.5 billion worth of remortgages were approved in the first quarter of 2023, a £10 billion decrease from the previous year.
Confused.com Mortgages have analysed the most recent data on remortgages in the UK, uncovering significant statistics and trends that shed light on the current remortgage landscape.
According to the Financial Conduct Authority (FCA), the first quarter of 2023 witnessed a total of £17.5 billion in remortgages, representing a significant decline of over £10 billion compared to the same period the previous year. This decline may be attributed to various factors affecting consumer behavior and the economic landscape.
In 2022, a total of 539,591 remortgages were issued to UK homeowners, with a cumulative value of £113 billion, according to the Building Societies Association (BSA). However, by August 2023, the number of remortgages had decreased substantially to 253,782, amounting to roughly £51 billion. This considerable drop suggests a significant transformation in the remortgage market within a short timeframe.
The Bank of England reports that the average 2-year rate for a 75% Loan-to-Value (LTV) mortgage in June 2023 stood at 5.5%, marking a noticeable increase from the previous year’s rate of 2.87%. This surge in mortgage rates can impact homeowners’ affordability and influence their decisions to remortgage.
The Office for National Statistics has revealed that 818,489 mortgages with fixed terms below 2% are set to come to and end in 2023. As these mortgages transition to higher interest rates, homeowners who initially borrowed £100,000 at a 2% rate will see their monthly repayments rise by £104.
According to data from UK Finance, gross remortgage lending in the UK reached £93 billion by the end of 2021. This figure provides a broader context for understanding the evolving landscape of remortgages and the trends observed in 2023.
