Remortgages will provide bulk of lending for rest of 2008

05 2008
The editor of a leading independent mortgage website has claimed that the majority of lending during the remainder of the year will be through remortgages.

A report by the Financial Services Authority from June 2007 shows that 1.4 million people are due to come off cheap fixed-rate mortgage deals in 2008.

And in a statement that will vindicate anyone renting a property, Pauline McCallion, editor of Your Mortgage, has explained that many homeowners are also looking to switch deals voluntarily under the added financial constraints being imposed by the credit crunch.

She said: "You're seeing an increase in re-mortgaging as opposed to those who are looking to move house or first-time buyers.

"Probably the bulk of mortgage lending for the rest of this year will be in the re-mortgage sphere.

"Lenders are being quite picky at the moment about how much they lend and who they are prepared to lend to."

A survey by Moneyfacts.co.uk, published in March 2008, found that 60 per cent fewer mortgage deals were available compared to the equivalent time last year.

ADNFCR-1219-ID-18626252-ADNFCR

Related Articles
Property in Edinburgh falls 11%
House prices in Edinburgh have now fallen 11 per cent in a year, research...

NLA comments on 'reluctant landlord'
The National Landlord's Association (NLA) has commented on the phenomenon...

Rents tumbling as property supply rises
Research from the Royal Institution of Chartered Surveyors (Rics) Wales has...

Rent could drop as buy-to-let grows
Both interest rates and house prices are dropping at present, creating what...

Top London homes fall 11.5% in quarter
New homes in some of London's most sought-after locations have fallen by a...