Remortgage deals hit a new low

Remortgaging has sunk to its lowest level since 2001 with approvals falling over 27% in a single year.

Figures from the British Bankers’ Association reveal that app-rovals for remortgages in August sank to 47,765 from 52,911 in July and 66,199 in August 2007.

Mortgage lending in August plummeted 46% compared with the same month in 2007 and was 1bn down on the July figure. The BBA says the figures were affected not only by a sharp drop in gross lending but also by larger than usual repayments.

David Dooks, statistics director at the BBA, says: “Falling property prices, the economic pressure on households, tighter lending criteria and anticipation of the government’s announcement on Stamp Duty suppressed or delayed de-mand in August. Many of these factors will continue to have an effect in the months ahead.”

Also last week, Revenue & Customs reported a decline in transactions from 69,000 in July to 62,000 in August. This represents a decline of more than 50% compared with the 141,000 seen in August 2007 and brings property transactions for 2008 to 559,000.