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Remortgaging rockets in just 12 months

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The rate of remortgaging in the UK continued to soar this summer, with 34,100 loans worth £4.2 billion taken out in August alone.

However, despite the continued nuisance of remortgaging, new figures released this week by the Council of Mortgage Lenders (CML) show that house purchase lending also rose in August, as 52,000 loans were advanced, worth £7.9 billion. That figure rose from 48,700 in July and from 51,000 in August 2010.

Paul Smee, Director General of the CML, believes that while remortgaging remains an issue, August lending figures showed some welcome “signs of life”.

“Even though it is impossible to ignore the knocks to confidence emanating from the Euro zone, August lending showed welcome signs of life,” said Mr Smee. “With those moving house experiencing a record low in the proportion of their income needed to pay their mortgage interest, it is clear that the low rate environment is a benefit to those with mortgages, even against the backdrop of the gloom in the wider economy.”

CML figures show that 96% of first-time buyers in August took out a repayment mortgage, while of the 33,000 home movers in the, 82% followed suit, up from 80% in July.

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Written by Andrew Hodges

October 24, 2011 at 10:17 am

Posted in Comment, LinkedIn

Tagged with ,

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