Homeowners ‘remortgaging rather than moving’

Due to “considerable uncertainty” in the housing market, homeowners are more likely to remortgage than move house, it has been claimed.

Michael Coogan of the Council of Mortgage Lenders stated that despite gross mortgage lending rising from £23.9 billion to £26.5 billion last month – a growth of 11 per cent – the trend is unlikely to continue.

The current unstable financial climate will lead many homeowners to restructure their borrowing habits, he said.

“It is likely that demand will be stronger for remortgaging than for house purchase in the short term,” Mr Coogan added.

David Black, principal consultant at Defaqto, confirmed Mr Coogan’s sentiments, claiming that the remortgaging sector is the only aspect of the market to “show any signs of life”.

He explained that tighter credit conditions and a subdued housing market had contributed to the trend.

According to Mr Coogan, if the government cut the rates of stamp duty in next month’s Budget, homeowners may be more likely to consider moving.

© Adfero Ltd

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