14 May 2008
The remortgaging market in Britain remains "relatively resilient" and active in spite of slowing housing markets, new data reveals.
According to figures from the Council of Mortgage Lenders (CML), remortgaging activity increased in the first quarter of 2008 to 33.3 billion, or 44 per cent of gross lending, up from 35 per cent in the fourth quarter of 2007.
However, the CML report also revealed that mortgage lending to home buyers fell in March to just 47,000 mortgages, down one per cent from February, as the market continues to slow.
The council predicts that lending and house sales will dip over the next few months as a result of the credit crunch and the current economic slowdown. The Bank of England has announced that it is making extra funds available to banks in a bid to facilitate lending.
The Bank of England's monetary policy committee opted to maintain interest rates at five per cent this month, despite calls for a cut. Many economists are predicting a rate cut in June, though high consumer inflation data could prevent this.
© 2008 Adfero Ltd
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