Remortgage levels drop in 2012 - Mortgages - News - Moneyfacts

News

Remortgage levels drop in 2012

Remortgage levels drop in 2012

Category: Mortgages

Updated: 25/02/2013
First Published: 25/02/2013

MONEYFACTS ARCHIVE
This article was correct at the time of publication. It is now over 6 months old so the content may be out of date.

Levels of activity in the UK's remortgage market remained in a rather subdued state during last year, according to a new report by Lloyds Banking Group.

The number of borrowers taking out remortgage products dropped by 12% during 2012 compared with the previous year. Remortgage activity during December last year was 24% less than in 2008, with 28,200 loans advanced compared with 116,600 in January 2008.

The remortgage market has suffered as a consequence of the credit crisis, with figures revealing that between November 2008 and July 2011, the number of loans approved fell to an average of 30,000 per month, down from a monthly average of 86,800 during January and October 2008.

Despite the sector experiencing an overall slump during 2012, activity began to pick up in the latter months, increasing by 7% during quarter three and four last year.

This recent slight revival in activity is thought to be a result of the Funding for Lending Scheme (FLS), introduced by the Government last August to encourage lending from banks and building societies to individuals and small non-financial businesses.

A number of lenders participating in the scheme have reduced mortgage rates and launched highly competitive deals.

What next?

Search all mortgages
Remortgage calculator
Compare the best remortgages

Disclaimer: Information is correct as of the date of publication (shown at the top of this article). Any products featured may be withdrawn by their provider or changed at any time.

Related Articles

Remortgaging bounces back

Remortgaging has been enjoying a welcome boost in recent months, despite September’s slight dip, with many homeowners capitalising on record low mortgage rates to boost their finances.

Bank of Mum and Dad holds the (house) key

The Bank of Mum and Dad is an important source of finance for many young adults, and it seems that they still hold the key – in more ways than one.

Fee-free mortgages on the rise

Mortgage rates may be at record lows, but for some people, the extra costs associated can make switching deals a financial impossibility. It’ll come as welcome news, then, that the number of fee-free deals has more than doubled over the past year!
 
Close