Remortgage approvals started inching upwards during the middle of last year and have only slightly eased in recent months, according to UK housing market data. The most recent figures paint a confirming picture. The British Banking Association reports which came out Friday indicate remortgage numbers and original mortgage loan approvals fell modestly during the month of February, easing back into the average numbers seen during last year.

Mortgage approvals dropped to 42,613 during the month which is almost 3.5% lower month on month, and almost 5% lower than the same month last year. Figures such as these are putting pressure on the housing market which it has not experienced in some time.

Eric Leenders with the BBA commented on the latest figures to surface, saying: “Elevated approval volumes for house purchases and re-mortgaging experienced during the winter months fell back in February, to average levels seen throughout most of last year.”

Low interest rates continue to make remortgages quite attractive for any house owner looking to potentially save money off the cost of the monthly mortgage. Lenders remain in a competitive mood and are offering deals which are beneficial for many different types of budget situations.

Howard Archer with IHS Markit commented on the data as well, saying: "The February slowdown in mortgage approvals reported by the BBA reinforces our suspicion that housing market activity and prices will come under increasing pressure over the coming months from weakening fundamentals.”

Archer added: "Markedly weakening consumer fundamentals, likely mounting caution over making major spending decisions, and elevated house price to earnings ratios are likely to weigh down on house prices. However, a shortage of supply is likely to put a hard floor under prices."