Remortgages still strong

Data released by the Bank of England shows that in April, loans for the purchase of homes fell by around 8%, and is now around 50% lower than this time last year. However, in the same period, remortgages grew by around 8%, and volumes are now over 7% higher year on year.

Gary Styles, strategy, risk and economics director at Hometrack said: “The contrasting fortunes of the remortgage and house purchase market reflect several factors including the reduced risk appetite of lenders to lend to new borrowers, low levels of house move activity and the need for borrowers to refinance existing fixed rate mortgage deals"

With the credit crunch forecast to continue for some time yet, overall lending volumes may have further to fall, and the availability of mortgage products will remain restricted. It is in such times that the value of independent impartial mortgage advice becomes essential to finding the best solution.

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