November’s small fall of 0.7% in the number of loans to owneroccupiers (OOs) masks a more pronounced change when refinanced loans are excluded. Refinancing accounts for around 32% of monthly loans (by value). It remains high by historical standards, possibly because of the combination of low interest rates and intense competition between the lenders. As the chart shows, once refinancing is excluded there is a marked plateauing in OO borrowing since early 2014.
Read the full report: Economic Research