Remortgaging up 11% year-on-year in July

Remortgage lending in July was up 11% both by volume and value compared to the same month last year, data from the Council of Mortgage Lenders shows.

There were 31,500 loans for remortgage worth £4bn in July, up 1% by volume and 5% by value compared to June.

The figures also reveal there were 48,800 loans for house purchase worth £7.3bn in July, up 2% by volume and 6% by value compared to June and the highest level since August 2010.

However, the figures represent a decline of 12% by volume and 13% by value when compared to July 2010.

Lending to first-time buyers reached its highest level by value in a year in July.

There were 18,200 loans worth £2.3bn in July, down 2% by volume but up 5% by value on June, but down 7% by volume and 4% by value compared to July 2010.

The average LTV lent to first-time buyers slipped from 80% in June to 79% in July, while the average income multiple edged up from 3.22 to 3.23.

And there were 30,600 loans worth £5bn advanced to home movers in July, up 4% by volume and 6% by value compared to June, but down 15% by volume and 17% by value compared to July 2010.

The popularity of fixed-rate mortgages began to fall in July, with 60% of borrowers taking out a fixed-rate product, down from 62% in June.

Paul Smee, director-general of the CML, says: “The UK mortgage market is currently holding steady, but August saw global financial turmoil and unrest closer to home and recent Bank of England approvals figures do not necessarily suggest a continuing upturn in lending in coming months.

“However, it is likely that this reflects weak consumer appetite for borrowing, more than any additional constraints on the availability of mortgages.”