Remortgage activity begins to fall

The fall in remortgage activity was accompanied by a slight rise in loans for house purchase. Overall, 71,000 remortgage loans were taken out in May, a 14% fall since April and 23% lower than May 2007. The value of remortgage business fell by a similar amount, down 13% to £9.6bn. Loans for house purchase picked up slightly, rising 4% since April to 52,700, while total value reached £7.9bn, a 2% rise. However, both volume and value of house purchase loans are 44% lower than a year ago. The CML report suggests fixed-rate popularity has increased, despite average fixed rates now being price...