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The re-mortgage market within the UK has seen a great improvement over the course of the past year. In fact, mortgage brokers nationwide have been reporting that re-mortgages were amongst the most sought after requests that they have received between July and September 2012. It has been revealed that refinancing a home loan equated to over one third of new business for these lenders within this short time frame. The FACT survey from Paragon Mortgages confirms these findings, with figures showing that 37% of cases dealt with in the third quarter of 2012 were for re-mortgage transactions. Transactions for next-time buyers came in just behind this figure at 25% of the total number of transactions, with buy to let mortgages contributing to 19% and first time buyers accounting for as little as 17% of total mortgage applications. With the housing market in the UK remaining flat it is perhaps no surprise to see that re-mortgages were the most popular type of high value mortgage application in the third quarter of 2012, as home owners stay put in their existing homes and seek out better repayment deals in the meantime. There has also been some extremely competitive pricing of mortgage deals over the last few months, particularly for high net worth clients who have a substantial amount of equity at their disposal. With the opportunity in the UK to fix mortgage payments at under 3 per cent for a medium term period, many high net worth finance clients have elected to take advantage of some of the lowest large mortgage rates to be seen for a long time. Brokers say buy to let lending improving The Paragon Mortgages research also found that over a third of mortgage advisers currently believe that funding for buy to let mortgages has improved over the last three months, perhaps in response to the government Funding For Lending scheme introduced earlier in the year. Overall mortgage brokers have reported a very interesting quarter; whilst business in some areas of the mortgage market, such as buy-to-let, have been growing other areas are relatively stagnant and mortgage advisers are appearing to be cautious about predicting how things will change over the coming months. It is expected that the mortgage market will continue to see buy-to-let cases increasing at a steady level but transactions handled by independent advisers for first-time buyers will remain at a relatively low level. Islay Robinson from Enness Private Clients, a London-based mortgage adviser, who specialise in high value mortgage finance said: “I expect to see a small growth in large mortgage business in the final quarter of 2012 as the Government’s Funding for Lending scheme begins to have an effect. There are signs that mortgage rates are falling thanks to this initiative, particularly for low loan to value remortgages. If the scheme starts to result in more competitive deals at higher loan to values we may well start to see the number of high value mortgages for house purchases pick up as we approach 2013.” This article has been written on behalf of Enness Private Clients, who offer an expert and focussed service specifically for clients requiring large mortgages. As a specialist London mortgage broker they work with people from all walks of professional life: from lawyers, hedge fund managers and board directors to entrepreneurs and self-employed business people.
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