Mortgage lending has increased to a level that is now above that of what was seen prior to the economic crash and recession. Home buyers are seeking the low interest rate mortgages available while trying to out maneuver the rising house prices. Homeowners are showing strong demand for remortgages in the hopes of securing a low interest rate before they begin to rise. It seems that borrowers have taken to heart the warning messages that have forecasted rising interest rates in the months ahead.

According to the British Bankers’ Association (BBA), homeowners borrowed £4.1billion in October which was up from the September level of £3.7 billion. The demand from remortgaging homeowners helped push the overall total for mortgage lending close to a more normal level in line with pre-crisis levels.

Home buyers sought £9.3 billion in lending in October up from the £8.6 billion in the previous month.

Some reports are showing that first time buyers are slowing down on their purchases and it could very well be due to the momentum of house prices rising. Despite the availability of low interest rates and programs to assist first time buyers the rising prices are closing many out of the opportunity of home ownership. There is also a supply shortage of properties on the market, a key factor in the rising prices.

Howard Archer from IHS Global Insight said, “While housing market activity has clearly picked up appreciably overall during 2015, the slight easing back in mortgage approvals for house purchases from August’s peak levels could possibly reflect reduced expectations of a near-term rise in interest rates.

“It is also possible that housing market activity is being constrained by a shortage of properties on the market.”