It seems remortgaging is the most common type of mortgage approved today, as statistics reveal that remortgaging accounts for 49 per cent of the mortgage market.
This figure, based on data from the Intermediary Mortgage Lenders Association, represents growth of one per cent since the previous quarter.
Despite this growth in the remortgage sector, further data from the Intermediary Mortgage Lenders Association revealed that home mover mortgage businesses have suffered , falling from 23 per cent to 20 per cent in just two months.
The Intermediary Mortgage Lenders Association also found that the amount of first time buyer loans had increased slightly according to their advisors.
Executive director for the Intermediary Mortgage Lenders Association, Peter Williams, said that “With the current rebalancing of the market, it is becoming more difficult for non-standard borrowers to secure a loan to meet their circumstances“.
He continued in his discussion of the situation, saying "As a result we have seen standard status mortgages grow as a proportion of the total and a slight decline in non-conforming and self certification business".
Mr Williams stressed that "It is important that such borrowers turn to an adviser who has the expertise and knowledge of the market to help them find a suitable product.”
He went on to say "With home-buying activity currently depressed and many fixed rate and discounted deals up for renewal, there has been an increase in remortgaging business. “
Finally, he concluded that "In some cases, however, borrowers will struggle to remortgage and may end up paying significantly more once they switch to the lender’s standard variable rate."
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