Levels of remortgaging activity have increased, says John Charcol

The remortgage market has returned to strength during the first two months of 2010, it has been reported.

According to the John Charcol Index, purchases took only 47.3 per cent of mortgages sold by the firm February, down from a peak of 58.5 per cent in November.

Ray Boulger of John Charcol said that both purchase and remortgage activity has increased this year, but remortgages have increased to a greater extent.

"However, detailed analysis of the figures shows that all of the increase in remortgage activity over the last two months is due to a particularly sharp increase in buy-to-let remortgages," he added.

Mr Boulger said increased competition, the availability of cheaper rates and higher standard variable rate prices had led to higher levels of remortgaging activity.

"The bounce in property prices since the low nadir early last year has increased some borrowers' equity sufficiently to make remortgaging worthwhile," he claimed.

Last month, the Children's Mutual reported that almost a third of parents are remortgaging their homes to raise the money needed to support their adult children.

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2010-03-11 13:36:23 © Moneyextra.com