View more on these topics

Remortgage activity up 30% year-on-year in August

Remortgage activity increased more than 30 per cent in volume and value year-on-year in August, according to the Council of Mortgage Lenders.

In August, there were 34,100 loans taken out, worth £4.2bn, compared to 25,700 loans, worth £3.2bn, the year before.

House purchase lending rose from 51,000 loans, worth £7.7bn, in August 2010 to 52,000, worth £7.9bn, in August 2011.

The number of loans to first-time buyers was 19,000, 5 per cent up on August last year, when there were 18,100 loans advanced. The value of lending to first time buyers increased from £2.2bn in August 2010 to £2.4bn in August 2011.

Home movers took out 33,000 loans in August, worth £5.5bn, a 1 per cent increase, and 2 per cent by value, from August 2010. Lending to both first-time buyers and home movers was at its highest for over a year.

First-time buyers continued to put down on average 20 per cent of their property’s value as a deposit and borrowed 3.2 times their income, slightly up from 3.17 times in July.

Typical deposits for home movers stayed at 31 per cent for a second month but in August home movers on average paid 9.4 per cent of their income on mortgage interest payments – the lowest since monthly records began in 2002.

CML director general Paul Smee says: “Even though it is impossible to ignore the knocks to confidence emanating from the Euro zone, August lending showed welcome signs of life.

“With those moving house experiencing a record low in the proportion of their income needed to pay their mortgage interest, it is clear that the low rate environment is a benefit to those with mortgages, even against the backdrop of the gloom in the wider economy.”


News and expert analysis straight to your inbox

Sign up


    Leave a comment


    Why register with Money Marketing ?

    Providing trusted insight for professional advisers.  Since 1985 Money Marketing has helped promote and analyse the financial adviser community in the UK and continues to be the trusted industry brand for independent insight and advice.

    News & analysis delivered directly to your inbox
    Register today to receive our range of news alerts including daily and weekly briefings

    Money Marketing Events
    Be the first to hear about our industry leading conferences, awards, roundtables and more.

    Research and insight
    Take part in and see the results of Money Marketing's flagship investigations into industry trends.

    Have your say
    Only registered users can post comments. As the voice of the adviser community, our content generates robust debate. Sign up today and make your voice heard.

    Register now

    Having problems?

    Contact us on +44 (0)20 7292 3712

    Lines are open Monday to Friday 9:00am -5.00pm