Purchases outstrip remortgages by 9 to 1
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House purchase loans continued to outweigh remortgage activity during September with one remortgage case for every nine purchase deals.
Data from the financial services arm of estate agency group Spicerhaart shows that 89% of mortgages given to customers last month were for purchases with just 11% going to remortgages.
Steve Cox, operations director of Spicerhaart Financial Services, says many borrowers remain happy to stay on low SVRs rather than remortgage.
He says: “The upward trend for house purchase loans is extremely encouraging and shows that people will continue to move despite the current climate.
“First-time buyer activity remains strong despite larger deposits being required by lenders.
“This could well be a sign that we are at a tipping point in the market in that those able to supply the necessary deposit are choosing to buy rather than rent.”
The data also found that some 23% of Spicerhaart’s customers took out variable mortgages in September compared with 77% of who opted for a fixed rate deal.
The number of repayment mortgages has also crept up 9% since the start of the year as borrowers look to pay down their debt, the company says.
Readers' comments (2)
Anonymous | 6 Oct 2009 2:42 pm
Not surprising really
It's not surprising that the financial services arm of an estate agency chain is arranging the majority of mortgages for customers buying a property! The wider industry view is more like 2 to 1 purchase to remortgage, not 9 to 1.
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Anonymous | 6 Oct 2009 6:48 pm
not at the moment...
Historically, re mortgages would account for far more of my activity as an IFA than purchases. This is simply not the case right now. As the article says, mortgage business is for purchases not remortgages, as alternatives to the default SVRs are just not attractive for most. Remortgage fees have risen as well as lender mark-ups so it is far from attractive to move lenders.
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