Mortgage customers are rapidly shifting towards remortgaging over home purchase loans as concerns about the UK property market grow, according to the Mortgage Advice Bureau (MAB).
Research by MAB also found growing demand for 100% mortgages, despite lenders totally pulling out of the 100% market. The number of borrowers looking for remortgage loans has grown by 27% in the first quarter of 2008, which MAB says is largely due to the effects of the credit crunch. The change in the market means MAB’s business is now split equally between remortgage and home purchase loans. In the first quarter of 2007, around 64% of loans were for purchase while 36% were for remortgaging. Brian Murphy, head of lending at MAB, comments: “The ongoing credit crunch cyclone is continui...
To continue reading this article...
Join Professional Adviser for free
Signup and gain exclusive members-only insights
- Unlimited access to real-time news, industry insights and market intelligence
- Stay ahead of the curve with spotlights on emerging trends and technologies
- Receive breaking news stories straight to your inbox in the daily newsletters
- Make smart business decisions with the latest developments in regulation, investing retirement and protection
- Members-only access to the editor’s weekly Friday commentary
- Be the first to hear about our events and awards programmes
