Experts have blamed the mortgage market review (MMR) for remortgage levels falling by eight per cent year on year in August. LMS has revealed that fewer than 25,000 (24,863) people took out the new loans last month, down from more than 27,000 (27,100) in the corresponding month in 2013. Compared to July, this August`s volume was down one per cent, while the average value was down three per cent at a little over £155,000 (£155,589).
The organisation`s chief executive, Andy Knee, explains that `the hangover from MMR accounts for lower remortgage volumes, as those who could remortgage for a better rate or to educe monthly payments are put off by the time consuming and intrusive checking process`. However, he`s confident that prices will come down by the end of the year once lenders regain their appetite and drive down prices. In the meantime though, homeowners who want to remortgage or home buyers looking to move up or get on the property ladder before the base rate potentially goes up may choose to get some qualified mortgage advice to help to find the most suitable deal for them... and that`s where First Choice Finance comes in.
After providing our in house mortgage advisers with some key details, you can relax, as your dedicated adviser will scour our remortgage lenders portfolio to find the best remortgage offer for you. Whether you are after a fixed rate, variable or tracker we will have multiple providers for each type. If you like what you hear all the facts and figures regarding your mortgage recommendation will be passed to you to consider in your own time before you go ahead...or not.
If you decide that the mortgage chosen fits your requirements, we`ll get to work straight away through our processing team to sort out your remortgage and get the funds releases to you as soon as possible, so if you`re keen to switch, move or get on the home owner ladder, get in touch without obligation. You can visit firstchoicefinance.co.uk or call on 0333 003 1505 from a mobile or 0800 298 3000 from a landline and speak directly to our finance team.
It certainly seems it may be a good time to remortgage, judging by recent CML figures, which show that the average interest rate increased to 3.2 per cent in July, while mean household incomes rose by 4.9 per cent to £46,145 during the same period. Based on that, LMS reckons that repayments for a remortgage would now come down to a fifth of total income, the smallest amount since the start of the year. By comparison, for people seeking a purchase mortgage, the ratio is a little higher at 22.2 per cent but not a vast difference. The August fall in remortgaging numbers isn`t the first time it`s dipped lately, with July`s figures from the CML showing that volumes were down 15 per cent year on year for that month too, with the total value down from £4.1 billion to £3.9 billion.
As this shows that the most recent figures aren`t a one off blip, lenders may need to consider to start bringing down their prices in order to keep the market moving and there are limited signs that some may already be taking that step. Which? notes that some of the biggest lenders have already dropped their interest rates in recent months, with mortgages fixed for five years now on offer for less than three per cent and the remortgage market likely to follow suit.
Overall, LMS`s Andy Knee is...
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