According to data released by the British Bankers Association (BBA), remortgage approvals by the high street banks have jumped 28% in January 2011 over the same period, last year.
In January, banks approved a total of 26,106 remortgage applications, 5% higher than recorded in December 2010. However, the January 2011 numbers are much lower than the 75,799 approvals witnessed in January 2008.
Home purchase approvals in January remained equal to December numbers but were down 29% over January 2010 numbers and were recorded at 28,932.
Approvals for equity withdrawal also dropped by 7.8% over January 2010 to 15,207 during the period.
Gross mortgages written by high street banks rose by 2% over January 2010. Banks approved mortgages worth £8.15 billion in January, marginally higher than £8.05 billion approved in December 2010.
“We are seeing little change in the borrowing environment for households or businesses at the start of 2011. The high street banks have seen more remortgaging activity of late as people look to fix costs. The banks’ mortgage lending growth continues to exceed the rest of the market”, said David Dooks, statistics director at BBA.
The leading banking groups including Barclays, HSBC, Lloyds Banking Group, RBS, Santander UK and Northern Rock accounted for more than two thirds of all mortgage lending in the UK.