UCB Home Loans has increased the capital available to clients wishing to remortgage. Limits have increased to £70,000 of additional borrowing, or 75% loan to value (LTV), a move the lender believes will benefit brokers.
Figures were initially set at £50,000 for additional borrowing, or 60% LTV.
Tony Jones, head of business development at UCB Home Loans, said: ‘Brokers will benefit from the increase in capital limits as 30% of the mortgage market is about remortgaging. This gives them an opportunity to generate business.
‘We have increased the capital limits for two reasons. First, we looked at the growth of equity as house prices have increased, and more equity is available. Second, there is a demand from customers for this. Both customers and brokers want a more relaxed approach.’
With regards to the economic outlook, Jones said there may be a period of uncertainty which could spur people to improve their home rather than move.
‘People have more freedom to choose what they want to do. If they choose to improve their home rather than move, for example,’ he added.
Statistics from the Council of Mortgage Lenders (CML) have shown the number of people remortgaging their home has increased form 18% of all remortgages in 1994 to 30% in the third quarter of this year.