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.”