View more on these topics

Remortgages boost lending in return to fixed rates

Lending volumes rose by 8 per cent in April although activity remains weaker than a year ago, says the Council of Mortgage Lenders.

The monthly increase in gross mortgage lending to 26.1bn from 24.1bn in March, comes after two months of decline, although the figures are 5 per cent down on April 2007.

Remortgaging accounted for 42 per cent of gross lending and proving more resilient than purchase as large numbers of borrowers come off fixed-rate mortgages.

There was a rise in the proportion of borrowers taking out fixed-rate products, increasing to 59 per cent from 54 per cent in March.

Director general Michael Coogan says: “House purchase lending volumes continue to be lower than last year’s levels and there will be a further weakening in coming months as recent approvals data has shown.

“Tighter criteria make it more difficult for some borrowers to get a mortgage but they also reduce risk in a slower housing market. There has been a resurgence of fixed-rate lending as borrowers are seeking certainty. This trend is likely to continue as the anticipation of future bank base rate cuts has diminished.”

Recommended

Police swoop on 5m cheque gang

Police in West Yorkshire believe they have uncovered a sophisticated 5m fraud involving cheques stolen from financial institutions.

Newsletter

News and expert analysis straight to your inbox

Sign up

Comments

    Leave a comment

    Close

    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

    Email: customerservices@moneymarketing.com