Remortgage Levels Suppressed According To Latest Reports

Remortgage levels in the UK still remain under pressure whilst Bank of England interest rates remain low. The low rates are helping decrease the incidence of arrears but remove the incentive to remortgage because property values are also held lower.

Figures from the council of mortgage lenders show that remortgage business is down 5% month on month and 10% down year on year. This is reflective of the increased activity in the latter part of 2009 in th run up to the end of the stamp duty holiday and the expect slow down in the first quarter of 2010.

It is to early to tell what effect government announcements of drastic measures due to a worse national fiscal situation than expected.

From the Council of Mortgage Lenders “Although we accept the government has limited room for manoeuvre, we urge it to use the forthcoming Budget to prioritise support for home-owners.”

With uncertain times ahead for UK homeowners only time will tell when the housing markets will rally.