An increase in lending is due in part to cheaper remortgage deals.
An increase in demand for cheaper remortgage deals has increased gross remortgage lending by 13%.
In June the gross remortgage lending level was £3.1 billion, one month later in July this figure had increased to £3.5 billion.
Despite this increase in lending market analysts advise that remortgage lending remains low when reviewed on an historical basis.
A £400 million increase in remortgage lending is positive, however at just £3.5 billion it is down on levels recorded in July 2011.
Earlier this year remortgage deals were less competitively priced, the rates offered were not priced low enough to persuade home-owners to switch.
This situation changed after the announcement of the funding of lending scheme. Lenders costs have now fallen and so have their remortgage rates.
Various lenders have also increased their SVRs. The latest to announce an increase is Santander whose rate will rise by 0.5% from October.
In response many UK lenders are releasing cheap remortgage deals specifically targeted at home-owners on SVRS with rival lenders.
As the best remortgage rates tend to be on offer only a short period of time until they become fully subscribed, home-owners are recommended to act without delay and source a new deal now to avoid disappointment.
If you are looking to switch - now is the time while rates are low.
Call Deal Direct for a cheap remortgage deal.
