Remortgage drive increases in UK

reMortgage lending is being driven more by remortgages than new buyers due to a lack of supply in the current housing market. According to the Council of Mortgage Lenders, It has reached an estimation of £20.6 billion but is 5% lower than October last year when it was £21.8 billion.

Mohammad Jamei, CML senior economist: “Housing market sentiment is holding up well, with demand still strong. This has led to a pickup in approvals, as expected. The more pressing issue is on the supply side, where the lack of private sellers continues to be an obstacle for would-be borrowers, for this reason, we expect lending in the months ahead to be driven more by remortgaging activity and less by house purchases. Remortgaging will be helped by competitively priced mortgage deals, which are encouraging borrowers to refinance.

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