Aim mortgage expert issues note of concern regarding remortgagers

Date:Tuesday 14th September 2010
Author: Susanna Kavka

There are currently not that many remortgagers securing new deals, according to an Association of Mortgage Intermediaries (Aim) mortgage expert.

Robert Sinclair, director of the institution, suggested there could be a "significant squeeze" on funding if remortgagers re-enter the market.

He claimed mortgage lending is currently dominated by first-time buyers and home-mover arrangements.

"We are looking at a situation where £140 billion of gross mortgage lending doesn't always make you think that that is going to be enough when the base rate begins to go upwards," remarked Mr Sinclair.

In his opinion, the challenge for banks is to ensure their level of lending is sustainable.

The Aim mortgage expert made his comments in response to Council of Mortgage Lenders figures showing gross mortgage lending dropped by 43 per cent in 2009, following a 30 per cent fall in 2008.

Mr Sinclair also highlighted how the five largest lenders in the UK accounted for 82 per cent of market activity and said it is good news they are providing funding in such difficult times.