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Over a quarter of brokers expect remortgage market to grow in H2

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  • 05/09/2018
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The second remortgaging spike in a decade closely followed the latest interest rate rise, with over 25% of brokers expecting the market to grow even further in the second half of the year.

 

 

An Intermediary Mortgage Lenders Association (IMLA) poll suggested 11% of advisers also expect another rate rise before the end of the year.

Over three quarters of remortgage applications via intermediaries resulted in a completion during Q2 2018 – up from 70% in the previous quarter – as activity spiked ahead of the Bank of England’s widely-anticipated rate rise to 0.75%.

A similar spike in activity occurred in Q3 2017 – ahead of the first rate rise in a decade in November, from 0.25% to 0.5%.

The IMLA research, which harnesses data from BDRC Continental, revealed almost nine out of 10 mortgage offers involving cases placed through brokers led to offers.

 

Progress of remortgage applications to offers and completions

 

 

 

Borrowers spurred to action

 

The volume of remortgages in June also increased by 8.4% compared to a year earlier, as homeowners prepared for the Bank of England’s decision.

Kate Davies, executive director of IMLA, said: “While customers who remain on tracker and standard variable rates are having to adjust to a second increase in monthly loan repayments in twelve months, competition in the market remains strong and should ensure keen and competitive pricing.”

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