25 Aug

Mortgage business 'shifting towards house purchases'

Mortgage business 'shifting towards house purchases'

There appear to be ever-increasing signs of a shift in the mortgage business towards house purchase transactions and away from remortgage business, one property expert has asserted.

Stephen Smith, director of housing at Legal and General, which is responsible for investing £280 billion worldwide on behalf of investors, policyholders and institutions, said that the average broker predicts that house purchases will make up 43 per cent of their overall mortgage business, up from 40 per cent last quarter and the highest figure since the firm's records began in 2008.

His comments accompany the release of the Mortgage Adviser Confidence Index for Q3, which shows that remortgage transactions are predicted to drop to 40 per cent from 43 per cent last quarter.

"So it seems the pendulum is swinging towards house purchase business but this will not gather momentum until housing transactions pick up, funded by an improved flow of good mortgage deals from lenders," he stated.

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