Remortgages dropping, say CML

Wed, 15 Nov 2006

People in the UK are choosing to remortgage less, following the start of increasing interest rates, according to new data from the Council of Mortgage Lenders (CML). The level of remortgaging has apparently fallen to its lowest for five years, making up just 30 per cent of mortgages in September.

According to CML experts, the trend is a reaction to the climate of higher interest rates. Michael Coogan, director general of the CML, said: "The downward trends in remortgaging illustrate how lenders are reacting to competitive conditions, and offering attractive retention products and policies to their customers. Today's figures show that slowly but surely the market is cooling as we approach the end of the year in an environment of higher interest rates ."

The number of people choosing fixed-rate mortgages is declining, as rates soar above five per cent. The trend does not just influence remortgage customers – first-time buyer levels are also down. According to CML figures, just over 30,000 mortgages were lent to first-time buyers during September – an overall decline. Housing affordability continues to be dire.
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