Remortgage market to see an increase in 2011

The remortgage market is likely to have passed its lowest point and will see an increase in activity this year, according to mortgage adviser John Charcol.

Those looking for the best mortgage rates will be interested to hear that Ray Boulger, senior technical manager at the firm, believes that 2010 was the nadir for the remortgage market.

The comments follow predictions from Hometrack that the total mortgage market is set to remain steady in 2011 with around 1.2 million mortgage approvals and 355,000 remortgages.

However, Mr Boulger added that a lack of funding is likely to restrict mortgage activity for the foreseeable future.

"I would certainly expect the level of lending to remain very depressed for at least the next two or three years, it is quite hard to see there being [increased activity] in the housing market this year – in fact I suspect we will struggle to see activity at the same level as last year," he stated.

The Bank of England recently reported that the number of loan approvals for house purchases increased in November 2010 to 48,019.
 

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2011-01-14 13:16:06 © Moneyextra.com