New data published by the Council of Mortgage Lenders shows that levels of remortgaging have reached their lowest figure for five years.
Figures for September show that remortgaging accounted for 30% of the market by value, which is the lowest figure since August 2001. Figures for the third quarter of this year reflect this trend, with remortgaging accounting for just 31% of the market.
The sharp drop in the popularity of remortgaging over recent months probably reflects the fact that lenders are managing to retain more customers for longer by reducing the incentive to remortgage to other lenders.
Michael Coogan, director general of CML, says: “The downward trends in remortgaging illustrate how lenders are reacting to competitive conditions, and offering attractive retention products and policies to their customers.
“Today’s figures show that slowly but surely the market is cooling as we approach the end of the year in an environment of higher interest rates.”