229,000 remortgage loans were seen during May, accumulating to £3.6 billion. This was a 11% increase in number and 9% increase in monetary terms from the number of remortgages obtained by individuals within the UK looking to remortgage in May 2010.
Fixed rate remortgages also seem to continue to be the most popular remortgage loan sought by mortgagees, although with the news that the Bank of England base rate unlikely to increase for some time, there may start to be a rise in tracker rate remortgages in the near future. 62% of borrowers continued to opt for the fixed rate remortgage solution, whilst 22% went for trackers.
In other positive news within the market, there was also an increase in the number of first time buyer mortgages advanced within May 2011. Although there was only a small increase in 15,900 offered compared to just over 15,000 the previous month, there are consistent signs that the first time buyer mortgage market is improving monthly after the lows experienced throughout 2009 and early 2010.
It is believed that seasonal factors are likely to boost lending for house purchase and further encourage remortgaging over the coming months. Michael Coogan, director general of the Council of Mortgage Lenders has today claimed: “There is no evidence of any drastic changes on the horizon or any significant shifts in direction for the mortgage market. These stable conditions are expected to continue for the rest of the year.”
Coogan adds: “Funding market conditions appear a little more positive; for example, recent securitisation deals suggest confidence has returned as investors regain their appetite to invest in bonds backed by mortgage assets. Overall this is a positive influence on mortgage market conditions.”
It is hoped today’s news increases consumer confidence within the wider mortgage market. Cost effective remortgage, first time buyer mortgage and other forms of house purchase loans can still be found within the market. However, the advice of a mortgage broker continues to be required through testing economic times.
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