Only a quarter of all new home loans in August were remortgages

Remortgaging accounted for 25 per cent of loans in August, the lowest proportion in over ten years, according to the latest Council of Mortgage Lenders CML survey.

August saw 25,000 remortgage loans, worth £3 billion, advanced by lenders which is a 13 per cent decrease from July.

Some borrowers are unable to access the best mortgage rates as continuing tight credit conditions have made refinancing difficult, meaning there is little prospect of a significant rise in remortgaging in the near future.

The mortgage industry is waiting to find out the impact of the upcoming government spending review, with many experts believing austerity measures will dampen consumer appetite to borrow.

CML director general Michael Coogan, said: "We would expect lending to sow more significantly, year on year, as we head towards the end of the year, and it is unlikely that the uncertain environment will encourage a tick up of mortgage activity in 2011."

Lloyds TSB and Northern Rock have recently released new mortgage rates which are accessible for borrowers looking to remortgage.
 

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2010-10-12 13:34:00 © Moneyextra.com