High levels of remortgaging in the second quarter suggest that borrowers are actively taking steps to limit the impact of rising Bank Rate on their mortgage payments over the coming few years. While that bodes well for mortgage arrears, higher interest rates will weigh on demand from new buyers, keeping overall lending activity and price pressures subdued for the foreseeable future.
Become a client to read more
This is premium content that requires an active Capital Economics subscription to view.
Already have an account?
You may already have access to this premium content as part of a paid subscription.
Sign in to read the content in full or get details of how you can access it
Register for free
Sign up for a free account to:
- Unlock additional content
- Register for Capital Economics events
- Receive email updates and economist-curated newsletters
- Request a free trial of our services