LONDON (Reuters) - The number of mortgage approvals in Britain rose in July to their highest level in 17 months, the British Bankers' Association said on Wednesday, the latest sign that Britain's housing sector is rebounding.
British banks approved 46,033 mortgages for house purchases, the highest number since February 2014. That was up from 44,802 in June and up 11 percent from a year ago.
The number of mortgages approved for remortgaging jumped 29 percent and was its highest in four years.
"Savvy homeowners are snapping up competitive deals before an expected increase in interest rates," said Richard Woolhouse, chief economist at the BBA.
The Bank of England has said it getting closer to an interest rate hike after more than six years of record-low interest rates.
But economists remain unsure about the timing of such a move, especially as a rising pound and falling oil prices, exacerbated by turmoil in China, are keeping British price pressures in check.
The BBA data is generally a good precursor to the more comprehensive BoE lending figures but does not include lending by mutually owned building societies, which account for almost a third of mortgages.
BoE Deputy Governor Ben Broadbent said this month that the central bank was comfortable about price gains in Britain's housing market which have picked up a bit more speed this year.