Remortgage business jumps up by 21%

Wednesday 20th June 2012

Mortgage activity climbed to its highest level this year in May, up 25% on January, says the Mortgage Advice Bureau.
 
Using data from more than 500 brokers and 800 estate agents, MAB says the total number of mortgage applications so far this year is up 16% on the same period in 2011.

This increase is being largely driven by a surge in remortgage business, with remortgage applications 21% higher than this time last year.
 
Brian Murphy, head of lending at MAB, said: “With average two-year fixed rate mortgages having risen month on month since September 2011, and three and five-year fixes also both having risen month on month from December 2011, and with several lenders recently raising their Standard Variable Rates, it is not surprising we have seen an uplift in the number of remortgage borrowers.
 
“With the average loan-to-value of remortgage borrowers reducing significantly during May, it appears that a number of borrowers with high levels of equity, who have until now refrained from remortgaging, are now entering the market and taking advantage of what are still – by historic levels – extremely attractive rates.”