Remortgaging increases in August

Remortgaging has increased as homeowners look for the best mortgage deals around.

New figures from the Council of Mortgage Lenders CML revealed that remortgaging in August was 30 per cent higher than last year.

Some 34,100 loans were taken out in the month, worth around £4.2 billion, showing that both volume and value of remortgages increased.

Both homemovers and first-time buyers also contributed to a rise in house purchase lending in August, which increased by ten per cent on July 2011 and three per cent on August 2010.

"With those moving house experiencing a record low in the proportion of their income needed to pay their mortgage interest, it is clear that the low rate environment is a benefit to those with mortgages, even against the backdrop of the gloom in the wider economy," said Paul Smee, director general of the CML.

Mortgage lender Kensington recently suggested that credit scores are the key barrier people face when trying to obtain cheap mortgages.

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2011-10-11 14:16:58 © Moneyextra.com