Remortgages expected to fall

The number of people remortgaging will decrease in the coming months, a leading industry figure has claimed.

Ray Boulger, senior technical manager at independent mortgage advisor John Charcol, said: “I think we will see a modest increase in purchase activity, but a decline in remortgage activity over the new few months.”

He explained that the indication the Bank of England interest base rate would stay low in the next couple of years meant that people had the perception they did not need to rush to remortgage on a fixed rate.

The Council of Mortgage Lenders (CML) reported earlier this month that 40,000 remortgages were taken out in March 2009, an increase of eight per cent from the previous month.

However, this was a decrease of 45 per cent compared to March 2008.

First-time buyers accounted for 40 per cent of all house purchase loans in March 2009, the highest proportion since April 2005.

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