Reports emerging from industry insiders suggest that remortgage lending will sharply increase in the next two years. Suggestions emerging from these reports seem to highlight how a combination of rising house prices and improved job prospects will encourage homeowners to switch their home loans, no longer held prisoner by the same financial fears of the past.
According to official figures, remortgaging levels have remained largely flat since 2009. The Council of Mortgage Lenders recently reported “the number of loans to homeowners in July was up 4 per cent on June but down 15 per cent on July 2013”, which illustrates the reluctance to navigate away from homeowners oft-accepted status quo.
The Financial Times highlighted the scale of a possible upsurge in a recent article, “Researchers predicted that lending in the niche would rise from £55bn in 2013 to £80bn in 2016. It identified three million “silent prisoners” – 27 per cent of all mortgage holders – who have been unable to take advantage of better deals for a variety of reasons: negative or minimal equity, unemployment or tighter lending constraints.”
Reports suggest that actual evidence of an upward turn beyond analysis of favourable circumstance has appeared, with the Mortgage Advice Bureau experiencing a 21 per cent spike in remortgage applications, which would appear to support the previously made claims. If figures are to be measured as an indicator of future activity in the remortgaging marketing, then we would expect to remortgage lending dramatically rise in the next two years.
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