Remortgaging ‘strong’ in first quarter

Posted 12/05/2011

The number of people looking to remortgage their properties in 2011 may have increased, as one organisation has reported strong activity in the sector so far this year.

According to the Council of Mortgage Lenders, this accounted for 37 per cent of all transactions in the first quarter of 2011, up from 30 per cent a year earlier.

The group suggested that the increases are likely to be partly down to people anticipating a hike in interest rates from the Bank of England in the near future.

“Although any significant rise in rates is unlikely, recent increased sentiment in favour of remortgaging looks set to be reflected in a strengthening of remortgage lending over the next few months,” the company said.

The CML’s figures revealed that the value of these transactions in March stood at £4.1 billion, an increase of 17 per cent from the previous month.

Recently, it was stated by Hometrack that people looking to purchase new homes may have found that prices have been largely static recently, as extra supply presents buyers with greater choice.