View more on these topics

Remortgage slump continues with 16% annual decline

The remortgage slump continued in November with the volume of loans advanced falling by 16 per cent year-on-year.

Around 24,000 remortgage loans were advanced in the month, down from 28,000 a year earlier – the seventh consecutive annual fall. The value of remortgage loans decreased by 14 per cent from £4.1bn in November 2013 to £3.6bn a year later. 

Purchase loans also fell sharply in November, with a volume of 55,600 marking a 12 per cent decline from a year earlier. In value terms, purchase loans amounted to £9.2bn in November, down from £9.3bn year-on-year. On a monthly basis, purchase loans also suffered a 12 per cent fall. 

CML director general Paul Smee says: “The easing-back of activity is not unexpected as there is usually a seasonal lending dip in the winter and the major industry changes and more restrained market sentiment have inevitably caused month-to-month fluctuations over the past 12 months.”

LMS chief executive Andy Knee says: “Remortgaging… is down by 16 per cent from November last year, which may be attributed to a number of factors: general market perceptions that acquiring a mortgage has become tougher after April and expectations that interest rates are set to remain low.”

Recommended

mole

The Mortgage Mole: Danced off the floor

Danced off the floor As the New Year kicked off, Mole thought it only right to call his friends in the mortgage world to see how they had all spent their festive period. On the whole, there were reports of fun with the family, trips abroad to warmer climes and the odd burnt turkey. However, […]

Leader: Rate war set to continue

A story we published last week caused an obvious division in the industry. We reported fears that the steep slump in oil prices would lead to uncertainty in the money markets, which would result in an increase in swap rates and therefore in fixed-rate mortgages. While some commentators supported the idea of falling oil prices […]

Sign-Signing-Letter-Contract-Business-700.jpg

Letters: Use of seasonally adjusted figures in lender press releases is misleading

Star letter: Use of seasonally adjusted figures in lender press releases is misleading Last week’s Halifax house price index press release was shamefully misleading. One of its three bullet points said: “House prices grew by 0.9 per cent between November and December,” which is not what its data shows. The data shows a fall of 1.1 […]

Guide cover

Guide: Johnson Fleming produces auto-enrolment checklist

For a job as big as managing the auto-enrolment changes, it’s important to know what has been completed and what still lies in front of you to give you the reassurance that everything is in hand. Getting the planning and project management right at the outset can help you see the path ahead and ensure everyone knows their roles and responsibilities. To help with this, Johnson Fleming has produced a checklist outlining every step that needs to be taken when preparing for auto-enrolment.