Remortgage activity up 30 per cent year-on-year
After what seemed like an endless black hole, the world of remortgage is finally basking in some light with news that both volume and value of remortgage loans are up 30 per cent against August 2010.
34,100 remortgage loans, worth £4.2bn collectively, were taken out in August, and remortgage is not alone in its increased activity.
Conveyancing also increased in August, with both first time buyers and home movers contributing to the increased activity. This has resulted in both first time buyer and home mover loans are at it highest in over a year.
The volume of first time buyer loans increased by 5 per cent month-on-month and year-on-year, while the value too increased; 4 per cent month-on-month and 9 per cent year-on-year.
Meanwhile, home movers took out 8 per cent more loans than they did in July 2011 and 1 per cent more than they did in August 2010.
Paul Hunt, Managing Director of Phoebus Software, is encouraged by these latest figures:
“By pre-recession standards, August wasn't a bumper month for mortgage lending, but by any more contemporary measure, it was very strong indeed.
“Lending increased for remortgagers, home movers and - most importantly - first-time buyers. It is all based on growing lender confidence as a result of the prospect of ultra-low interest rates for the foreseeable future.”¹
Content correct at time of publication