12 Oct

Remortgaging levels fell in August, report says

Remortgaging levels fell in August, report says

A report has shown that the number of people remortgaging their properties in order to raise money to purchase houses for sale in another area or gain finance from their assets fell in August 2010.

According to findings from the Council of Mortgage Lenders (CML), remortgaging accounted for only a quarter of loans during the summer month, down by 13 per cent from July.

This represents the lowest proportion of home loans in more than ten years.

The value of the loans taken out also fell by 14 per cent from the previous month, while the quantity and value were both 19 per cent lower than they were during the same period in 2009.

Director general of the CML Michael Coogan said: "While we do not know what the impact of the comprehensive spending review will be on our sector, it will clearly contain austerity measures that will likely further dampen consumers' appetite to borrow."

Despite this, earlier this week, Barclays revealed it has lent out £100 billion for mortgages and over the last three years, the value of loans it provides has increased by 42 per cent. ADNFCR-1222-ID-800111945-ADNFCR

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