Remortgagers dominated the home loan market throughout January – a period of subdued activity for the rest of the mortgage industry.
People remortgaging residential properties at a low loan-to-value (LTV) and with low income multiples were far more common on mortgage broker and lender customer lists as 2008 began.
And the remortgage market proved buoyant in the buy-to-let sector, particularly in February which saw more people looking to renew deals than in January.
That is according to information unveiled by broker, John Charcol, which said the withdrawal of high loan-to-value mortgages of 100 per cent and more made a difference to the number of new loans being taken out.
Katie Tucker, technical manager for John Charcol, said: "January was made up almost entirely of the 'bread and butter' mortgages – the ones for which demand rarely falls.
She added: "Remortgages for buy-to-lets were up in February compared to January, but new purchases for buy-to-lets remained low.
"Britain will be reluctant to fall out of love with amateur landlordship however – buying-to-let should be boosted this year, as first-time buyers who were stalled at the starting line, continue renting, thus improving rental yields."
The broker revealed first-time buyers were continuing to take out large mortgages with the average borrowing 80 per cent of the property's value. This compared to other purchasers, including remortgagers, whose average LTV was 74 per cent.
Ms Tucker added: "High loan amounts will be held down now, as first-timers with little or no deposit are nudged out of the market altogether, mortgages above 90 per cent are nigh on extinct.
"Fewer than one per cent of borrowers took mortgages above 100 per cent in February, and they will be the last."
Source-: http://www.myfinances.co.uk/news/mortgages/remortgage/
remortgage-rush-hits-market-$1210002.htm
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