Remortgaging rises again in the United Kingdom

BNP Paribas Team BNP Paribas

Remortgaging is a mechanism allowing creditors to reuse a mortgage initially registered in support of a first loan, usually a real estate loan, in order to take out a new loan. Now banned in France on behalf of individuals, this market represents nearly GBP 104 billion (over a 12-month period) in the United Kingdom according to the latest figures from the Bank of England for the month of October 2018.

After fading in 2008, the market is on an upward trend since 2013, but avoids the runaway seen in the early 2000s. The increasing unbinding between volume and value data observable since 2013 can be attributed to the housing price growth (+17% according to ONS between January 2013 and October 2018). Remortgaging now accounts for more than a third of personal loan growth.

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BNP Paribas Team

BNP Paribas

BNP Paribas Economic Research Department is a worldwide function, part of Corporate and Investment Banking, at the service of both the Bank and its customers.

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