Mixed reports on remortgage market

Mixed reports on remortgage market

According to data from the Council for Mortgage Lenders (CML) monthly gross remortgage lending fell by £404m in December to £2.7bn.

This represents a fall of 13.0% from November reversing a strong September and October.

The figures also showed a fall of 9.3% in total gross mortgage lending in December, to £11.7bn.

This meant as a percentage of total gross lending remortgage lending only fell only slightly to 23%.

LMS estimates that the total number of remortgage loans advanced fell by 14.2% to 19,279 in December, down from 22,470 in November.

However, the average remortgage loan amount increased by £1,980 to £140,553.

Despite the increases business remained strong for some in the market with Broker Conveyancing, announcing an increase in the amount of remortgage business it saw during the fourth quarter of 2012.

Remortgage business accounted for 45% of all their instructions during the final quarter of last year, up from 33% in the previous three months.

Harpal Singh, Managing Director of Broker Conveyancing, said: “Our remortgage business levels certainly showed a significant upturn during the last three months of 2012 and this could be down to a number of reasons.

“Anecdotally brokers are telling us that a more competitively priced remortgage market is helping but we also believe that remortgage specialists have sought out our product in this area because it is one of the best available in the marketplace.

“Certainly, as a percentage of our total business levels, remortgage instructions have improved considerably and now represent 45%, up from a third on the previous quarter.

"Purchase instructions continue to remain solid in the region of 55% of total business.”

This was backed up by specialist buy-to-let broker Mortgages for Business, who said more and more landlords are remortgaging compared to 12 months ago.

In particular they reported increases in the number of landlords remortgaging complex buy-to-let properties.

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