Tuesday, July 12, 2011

Rising house purchases and remortgages CML reports

CML reports rising house purchases and remortgages

Category: Mortgages
Date: 11/07/2011

The number of loans for house purchases and remortgages both increased in may, a mortgage market that will stabilize to reflect.

Figures from the Council of the mortgage (CML)-Kreditgeber showed that advanced there 41,500 loan of valued at £ 5.9 billion for house purchases in may up from 40,800 (5.9 billion GBP value) in April.

Despite the monthly increase in home purchase activity is still below the level seen in May last year (43,800 progress worth £ 6.3 billion).

Refinancing loans in may easily picked up. 29,000 Debt restructuring loans were worth £ 3.6 billion, compared to 24,700, worth 3 billion pounds in April extended.

Compared to may last year, refinancing loans rose by 9% in value, but remains below the recent peak in March (4.1 billion £).

Fall back in activity of earlier in the year can the ability to reduce the Bank of England, due to increase in interest rates; a rise seemed on the cards in the first months of the year, but poorer than expected economic data has changed expectations.

Still, that the majority of borrowers opt for fixed rate mortgages may (62%), reflect preference for security to borrowers if the economy is still in the balance.

Just over one-fifth (22%) all borrowers selected Tracker have mortgages in may, a significant change in May 2010 as a fixed popular interest rates of less with 46% and Tracker mortgages on 36% were popular.

Loans to first buyer was virtually unchanged in may, when 15,900 first-time buyers were loans compared to 15,800 in April.

The value of these loans remained unchanged in may for £ 1.9 billion. Compared to may last year, activity to 2.5% by volume (of 16,300) and value (from £ 2 billion) at 5% is declined first-time buyers.

First-time buyers borrowed on average 80% of the value of the property in may for the second month in a row.

This is still far below the 90% that borrowed only buyers before 2008, but has eased somewhat from the 75% experienced in the whole 2009 and early 2010.

"In the coming months seasonal factors of expected to push up loans for house purchase,", said Michael Coogan, Director general of the akzelerierten

"There is no evidence of any drastic changes to the horizon or significant shifts in direction for the mortgage market." "These stable conditions are expected to continue for the rest of the year."

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Source: moneyfacts.co.uk

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