CML: Remortgaging demand has fallen

Date:Monday 12th October 2009
Author: Max Freedman

The number of remortgages has fallen again while house purchase loans are stabilising, according to the Council of Mortgage Lenders (CML).

Chief economist at the organisation Paul Samter made his comments following the release of CML lending statistics for August, which indicated that 32,000 remortgages took place during the month.

This figure is 22 per cent lower than in July and 57 per cent less than in August 2008.

Mr Samter claimed that remortgaging has fallen as a result of the current low interest rate lending environment.

However, house purchases dropped only five per cent compared to July and are up 29 per cent from last August, with 52,700 completed.

"It will be a drawn out recovery process with seasonal ups and downs, but house purchase activity is now on a firmer footing," Mr Samter explained.

Last week, the CML stated that it is unlikely that the Bank of England's Monetary Policy Committee will increase the base interest rate in the near future.