View more on these topics

Slump in remortgages continues

The slump in remortgage lending continued in July, with volumes down 15 per cent year-on-year, according to figures published last week by the Council of Mortgage Lenders.

A total of 25,100 remortgage loans were advanced in July compared with 28,900 loans a year earlier. The value of remortgage loans reached £3.9bn, down 5 per cent from £4.1bn a year earlier.

A total of 30,200 loans were made to borrowers purchasing their first home in July, representing a 25 per cent rise from the 24,160 first-time buyer loans advanced in July 2013. First-time buyer loans totalled £4.6bn in July, 39 per cent higher than the £3.3bn advanced in the same period last year. Home movers also saw an increase in gross lending, with 37,500 loans advanced in July, up 19 per cent from 31,500 last year. By value, home mover loans totalled £7.2bn last year, 31 per cent higher than July 2013’s total of £5.5bn.

Total gross lending in July grew to £19.7bn up by 18 per cent on July last year, when £16.6bn was advanced.

Legal & General Mortgage Club director Jeremy Duncombe says: “For many existing mortgage borrowers remortgaging needs to be high on the agenda. While it is encouraging to see lending to first-time buyers increase, there is a rate rise around the corner and so we would expect to see remortgage volumes rising too. Attractive deals may now be coming to an end and borrowers should move quickly to secure the best rates. Speaking to an adviser is a good first step in the right direction.”  

Anderson Harris director Jonathan Harris says: “Given rates are so competitive, it is surprising remortgaging continues to be muted. This may be down to borrowers fearing they won’t be able to remortgage as a result of the new mortgage rules or simply enjoying such good SVRs that they don’t see the point. Until a rate rise is imminent, many borrowers who are reluctant to remortgage are unlikely to feel the urge to do so.”

Recommended

Justice-Fine-Ban-Court-Gavel-Judge-700x450.jpg

Property buyer in £2.5m fraud ordered to pay £110,000

A property buyer convicted for his role in a £2.5m mortgage fraud has been ordered to pay £110,690 under the Proceeds of Crime Act. Jason Omar, 43, was sentenced to two-and-a-half years imprisonment last April after Teesside Crown Court found him guilty of using fraudulent methods to obtain £2.5m in mortgage finance to purchase properties […]

John-Penn-Intelliflo-700.jpg

Analysis: Get smart with business systems

Mortgage advisers can be divided into three types: smart business creators, business managers or traditionalists. Business managers develop their own in-house point-of-sale IT system. This can be quick and cheap but it rarely integrates the whole business process and the system starts to age from the point of development.  Traditionalists are held back by paper-based, […]

CML - 700

CML to publish BTL statement of practice

The Council of Mortgage Lenders is to publish a statement of practice for buy-to-let in the coming weeks following the Treasury’s consultation on the EU mortgage directive. In its latest news and views publication, published last week, the CML again expressed its disappointment at the Government’s U-turn on the buy-to-let sector’s inclusion in the directive. […]

House-Property-Ladder-Rising-Prices-640.jpg

Halifax reports slight dip in house price inflation rate

The rate of house price inflation dipped slightly in August, according to the latest Halifax house price index. Figures show the average UK house price reached £186,270, 9.7 per cent higher than the £170,224 average recorded in August 2013. This compares with 10.2 per cent annual growth reported in July. With minimal wage inflation in […]

Sub-Saharan Africa Near-Term Outlook

By Paul Caruana-Galizia, Neptune Economist

Sub-Saharan Africa’s economic renaissance continues. After growing at an average rate of five per cent over the past decade, the IMF projects an acceleration to 5.5 per cent growth among Sub-Saharan economies in the next two years, as developed economies emerge from the crisis. We expect this growth to be sustainable for three broad reasons.

Newsletter

News and expert analysis straight to your inbox

Sign up