View more on these topics

Remortgage sector continues its slump with loans down 16%

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

Some 24,000 remortgage loans were advanced in the month, down from 28,000 a year earlier – the seventh consecutive year-on-year fall. The value of remortgage loans decreased 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 59,800 a year earlier. In value terms, purchase loans amounted to £9.2bn in November, down from £9.3bn 12 months earlier. 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 completely unexpected as there is usually a seasonal lending dip in the winter months and the major industry changes and more restrained market sentiment have inevitably caused month-to-month fluctuations over the last 12 months.

”Our forecasts are for gross lending to continue to grow over the next two years and this reflects our belief that there are more stable conditions in the market than a year ago.”

LMS chief executive Andy Knee says: “Remortgaging follows similar patterns, and while it’s easy to attribute the month-on-month fall to seasonality, remortgaging is down by 16 per cent from November of 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 until a more robust economic recovery is established.

”Looking at the lender perspective, with MMR now bedded in, they are keen to increase business levels in 2015 and with the purchase market falling back, many lenders are providing an added emphasis to their remortgage offering.”



Ami appoints Aileen Lees as senior policy adviser

The Association of Mortgage Intermediaries has appointed Aileen Lees as its new senior policy adviser. Lees joins the broker trade body from consumer website, where she served as external affairs and campaigns officer for seven months between June and December 2014. Prior to this, Lees worked in the corporate pensions sector, most recently as […]


Santander launches its lowest ever two-year fix

Santander has launched its lowest-ever two-year fixed rate. The product, available to 60 per cent LTV, is priced at 1.59 per cent and is available to remortgage customers only. It has a £1,495 fee. Santander has also made substantial reductions to its two Help to Buy mortgage guarantee products. Its two-year fix has been cut […]

China tech and Global Alpha: a new great leap forward

By Robin Geffen, Fund Manager and CEO

Internet giant Alibaba is exactly the type of entrepreneurial company that the high-conviction, top-performing Neptune Global Alpha Fund seeks to invest in. Established just 14 years ago in an apartment in Hangzhou, today Alibaba is larger than Amazon and eBay put together and is challenging some of the most powerful internet companies in the world…

Read more 

Important information

Investment risks

The value of an investment and any income from it can fall as well as rise and you may not get back the amount originally invested. Forecasts and past performance are not a guide to future performance. Some information and statistical data herein has been obtained from sources we believe to be reliable but in no way are warranted by us as to their accuracy or completeness. These are Neptune’s views and as such this document is deemed to be impartial research. We do not undertake to advise you of any change to our views.


News and expert analysis straight to your inbox

Sign up
  • Post a comment
  • Mortgage Insights 15th January 2015 at 4:26 pm

    It is blindingly obvious that MMR is the reason. Without the regulators getting involved lending would surely be up with rates as low as ever. This will feed into lower growth in the economy and make it impossible to normalise BBR without mass problems for those unable to remortgage or restructure their finances.

  • Dick Sprinkler 15th January 2015 at 8:43 am

    Come on all you regulatory theorists and experts explain why the REMORTGAGE market is in a long term slump ? when anyone who can actually do the job and actually knows what they are talking about could tell you in the blink of an eye !

    I’ll give you a clue its not seasonality or interest rates !