You are here: Home - News -

Remortgages fall to record low: MAB

by: Mortgage Solutions
  • 26/10/2009
  • 0
Remortgages have fallen to record low levels, according to the latest figures from the broker Mortgage Advice Bureau (MAB).

September was the ninth consecutive month in which remortgage applications have fallen. Remortgages made up only 28.9% of mortgage applications in September, a drop from 59.3% of all mortgage applications in September 2008, as lenders continue to remain extremely reluctant about relaxing their criteria.

Brian Murphy, head of lending, Mortgage Advice Bureau, commented: “Many would be re-mortgage borrowers are unable to switch due to little or no equity in their properties.”

The research also shows the average loan to value (LTV) was 69% in September, a rise of 2% from August. The average loan amount increased from £111,589 in August to £121,159 in September, an increase of 8.6%. Fixed rate mortgages remain the overwhelming choice for buyers and remortgagers although there was a 6% rise in variable rate products compared to August.

Purchases were up by 15.3%, with first-time buyer applications increasing by 6.4% over the same period.

Murphy said the purchase market is likely to remain constrained due to a lack of appetite amongst lenders to engage the high loan to value sector.

“While these conditions exist, and with unemployment forecast to continue rising well into next year, activity in the market is likely to remain flat,” he explained.

 

 

Related Posts

Tags

There are 0 Comment(s)

You may also be interested in