Lending for remortgaging is on the mend
Commenting on the December CML lending figures, Andy Knee, chief executive of LMS, said:
“Despite a dip in remortgaging activity in December – which can be attributed to a seasonal lull – the overall trend suggests remortgaging is gradually on the mend. Total 2015 lending for remortgaging, while still far short of levels witnessed before the recession, has bounced back and is at its highest value since 2008. We therefore start 2016 cautiously optimistic, but remain aware that there is still more to be done before it is back to full health.
“It’s been a volatile start to 2016 and there are a number of challenges facing the remortgage market. The global financial markets in particular are causing mounting speculation and concern. The early part of this year will also be dominated by the topic of a potential Brexit and what that could mean for the UK economy. This uncertainty looks set to impact activity and confidence in the property market, with fluctuating lending expected until the outcome appears more certain.
“Although a base rate rise looks further and further off, this is no reason to become complacent since remortgaging can provide homeowners with substantial savings to reduce their outgoings.”