According to the Financial Times Mortgage lending has increased at its fastest rate since the financial crisis as homeowners rush to lock in cheap deals amid fears the Bank of England may soon raise interest rates.

According to figures from British Bankers’ Association, there has been competitive offers from high street banks have helped spur the largest rise in mortgage lending for seven years.

Gross mortgage borrowing amounted to £12.2bn in August, a 14 per cent increase from a year ago and the biggest jump since 2008. Net mortgage borrowing reached £2bn, the highest monthly rise since August 2010.

Figures have also shown that the number of mortgage approvals in August was 23 per cent higher than a year ago. Remortgaging rocketed up by 38 per cent — the highest level in four years.

Chief economist at the BBA, Richard Woolhouse,  said people were putting their cash into bricks and mortar to take advantage of record low interest rates, which have been anchored at 0.5 per cent since 2009.

 

Source: http://www.ft.com/cms/s/0/4b1985d2-62b3-11e5-a28b-50226830d644.html#axzz3mkG1k1CQ    25/09/2015