Approvals up by a quarter
Remortgage and house purchase approvals rose by 40% and 14% over the 12-month period.
Richard Woolhouse, chief economist at the BBA, said: “Borrowing figures in the mortgage market remain strong as customers take advantage of record low interest rates.
“In particular, remortgaging remains high as savvy customers secure attractive deals ahead of a possible rate rise.”
Gross mortgage borrowing was £12.1bn in August, 17% higher than a year ago.
Jonathan Harris, director of mortgage broker Anderson Harris, said: “With Mark Carney, governor of the Bank of England, now suggesting that rates rises are a ‘possibility not a certainty’, it remains to be seen whether borrowers will lose the urge to remortgage.
“Mr Carney did urge households to prepare for tighter monetary policy regardless and with fixed rates likely to remain competitive over coming months, there will be plenty of deals to tempt borrowers.
“Lenders are keen to lend and have plenty of funds to do so – as we move towards the end of the year it is possible that we could see some exceptional deals as banks look to meet their targets for the year. Borrowers who are coming up to remortgage should therefore consider taking the plunge as some of these fixed-rate deals will be almost too good to miss.”