Remortgaging remains robust in September

Published: November 13, 2007

While the total value of mortgages lent to consumers in the UK in September declined, remortgaging activity remained strong, a new study has shown.

The Council of Mortgage Lenders (CML) published data which showed that higher borrowing costs contributed to a decline in gross mortgage lending in the month.

In fact, September's total of £30.6 billion was lower than August's (£34 billion), but still higher than mortgage lending a year ago (£29.2 billion in September 2006).

However, remortgaging remained popular during the month - accounting for £11.1 billion. This was £100 million higher than in August.

"The data shows that higher interest rates are now beginning to slow the housing market, in line with our recently published forecasts," explained CML director general Michael Coogan.

"Looking forward, we expect remortgaging to continue to hold up as borrowers coming off fixed-rate deals look to re-finance."

"Rates have now reached their peak and a move downwards will help ease some of the pressure on household finances."

According to the CML, the average mortgage rate was 6.02 per cent in September, compared to 5.91 per cent in August.