Remortgages grew in popularity last month in relation to other mortgage products, new figures have indicated.
Search statistics from moneysupermarket.com showed that while there were more queries about moving home loans than remortgages in August and September, the gap between the different forms of credit decreased.
Hannah-Mercedes Skenfield, who manages the price comparison website’s mortgage channel, stated that the change coincided with the release of a number of major new products.
“The implication … is that borrowers are being tempted off their SVR (standard variable rate) if an exceptionally low rate becomes available but not that they are returning to the market in fear of the base rate increasing just yet,” she commented.
Ms Skenfield’s remarks followed the latest figures from the Council of Mortgage Lenders (CML), which she said are backed up by her company’s statistics in showing that new home mortgages are more popular than remortgages for the first time this year.
Bestinvest head of mortgages Peter O’Donovan also gave his opinion on the CML report this week and indicated that he expects remortgages to remain at relatively low levels in the coming months.
By Chris Trimble