View more on these topics

Remortgages soar by 50% in 2003

Remortgaging was the main driver of the lending market in 2003.

Figures from the Council of Mortgage Lenders show gross remortgaging leapt by 50 per cent to £120.8bn from £80.6bn in 2002 while gross lending for purchases was up by only 3 per cent to £121.8bn from £118.2bn.

December was the only month in 2003 when lending for purchases passed the 50 per cent mark, reaching £12bn or 51 per cent of total lending. In April, it fell to 40 per cent of the total, the lowest level for 10 years.

Only 27 per cent of loans in December were to first-time buyers compared with an average of 29 per cent during 2003 and 38 per cent in 2002.

The CML says the Government has a tightrope to walk in terms of its housing policy. It points out that incentivising the development of long-term fixed rates to stabilise the market could reduce the availability of other special deals that are popular with borrowers.

Building Societies Association figures show gross advances reached £3.99bn last month, up from £3.39bn in December 2002. Net advances rose to £1.49bn from £1.12bn. Approvals fell to £3.62bn from £3.72bn.

CML director general Michael Coogan says: “In the run-up to David Miles&#39 recommendations to the Chancellor on fixed-rate mortgages, it would be difficult to argue that the active remortgage market is a cause of detriment to most consumers. Indeed, it has enabled many to take advantage of better deals although most people are currently choosing variable rates.”

Recommended

Sarasin launch structured investment product

Sarasin Investment Management have launched a new structured investment product for investors seeking exposure to the growth prospects of world stock markets, the availability of periodic income and the protection of what it calls a &#39cast iron&#39 repayment guarantee in five years time. The Sarasin Guaranteed Portfolio is a five-year fund-linked ivestment note that offers […]

&#39Regulation will mean death of loan clubs&#39

Mortgage regulation will bring the death of mortgage clubs, claims Whitechurch Network chief executive Kean Seager. Seager says mortgage clubs are in a frenzy, trying to come up with a unique selling proposition post-regulation and the solutions they are coming up with will not be attractive for most advisers. He believes that in an attempt […]

Room with a phew

Room for Improvement? The Diary hopes this is no longer the case for MM columnist Keith Popplewell who let builder Dave and designer Angus into his house last week to convert his utility area. Keith seems to have acquired the taste for fame – readers may remember him from such shows as The Big Breakfast […]

Skipton takes long view

Type: Flexible fixed-rate mortgage with discount Discounted term: Until March 31, 2005 Discount: 0.25% Payable rate: 5.99% Fixed term: Until March 31, 2014 Fixed rate: 6.24% Minimum loan: £5,000 Maximum loan: Up to 95% of valuation subject to a maximum of£200,000, up to 90% of valuation subject to a maximum of £300,000, up to 85% […]

A tough start for 2017 consensus trades

By Kacper Brzezniak Every year, starting around November, investment banks (and fund managers) begin to drip out their outlooks for currencies, rates, economies, you name it, for the following year. The consensus has been largely wrong for the past four or five years; those multiple rate hikes never came, the bond market is still alive […]

Newsletter

News and expert analysis straight to your inbox

Sign up

Comments

    Leave a comment