But would it really be a bad thing if we were to see market figures of £200bn or £205bn come the end of 2015, especially while brokers are still increasing their market share? That all depends on whether the market remains at the current size as a result of people choosing not to get another mortgage or having their application turned down.
There have been mutterings of increased activity in the remortgage market for some time now, but with no sign of the Bank base rate moving any time soon it could well be that this remortgage activity does not materialise.
In fact the remortgage market is looking increasingly difficult. Many people are prevented from remortgaging either due to the lack of implementation of the transition rules or because they are now too old to remortgage as their current mortgage extends into retirement.
The Financial Conduct Authority agreed with lenders that they should have transitional arrangements in place for people remortgaging for the same or less money, but few lenders seem to be implementing this. While some do implement it for their own borrowers but not those moving from elsewhere, the implementation of the Mortgage Credit Directive from March 2016 will remove even these transitional arrangements completely.
The greatest concern lies with those in their 50s and early 60s who have become mortgage prisoners because they are no longer permitted to remortgage unless they shorten the term of their mortgage to end at retirement age. The shortened term becomes unaffordable, meaning they become trapped due to their circumstances.
While the size of the market in terms of pure numbers really gives us very little to worry about, for those in their 50s being told they are too old to remortgage, the consequences and cost implications can be rather more significant.
David Copland is director of mortgage services, LSL Property Services
