Remortgaging levels ‘remain low’

Remortgaging levels in the UK are low, despite the number of new home loans rising, new figures have shown.

And there are several reasons why people may not be able take out a remortgage, according to one spokesperson.

Sue Anderson, head of member and external relations at the Council of Mortgage Lenders, said that many consumers may not meet the criteria of providers or have enough equity in their homes to be approved for finance.

This may pose a problem for them if they need to remortgage as a form of debt solution.

In addition, Ms Anderson noted, some homeowners may be coming to their end of their fixed-rate deal and will wish to remain on their lender’s standard variable rate, as these remain low at present.

“It is a question of different circumstances for different people,” she commented.

Figures from the Bank of England have revealed that there were 32,000 remortgage approvals in April, down from the previous six-month average of 41,000.

By Jamie Price