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Remortgaging Figures Up
Considering specialists had predicted that the housing
market was set to burst its bubble, no-one could have predicted
the surge in the number of people remortgaging. This was said
to be because of the cut in interests from the Bank of England
and the fixed rate mortgage price war between lending companies.
This led to an overall rise in mortgages of up to nine percent.
A percentage hike analogous to the height of the property market
boom a year ago.
So the question remains as to why finance specialists and economists
got it so wrong. Probably because competing lending companies
refused to go down without a fight as they continued to grow even
stronger over the summer months. However this is not to say that
the market is in particularly spectacular form, with housing prices
and transaction numbers are still not what they were this time
last year.
Although during the month of August in particular lending was
rising, it was remortgaging that stood out from the crowd.
According to economists there was a 15% rise in remortgaging,
which is its’ highest level since October 2003.
People have been well aware and taking full advantage of the
price war going on between major lending companies. The price
war was initiated by lending companies in order to gain market
share to prepare themselves for the possible slump in the housing
market.
There are many more eye-catching deals to be had due to the price
war. This benefits consumers greatly due to the recent low interest
rates offered by the lending companies over the last two years.
Buyer interest is definitely on the increase helped by realistic
housing prices and the cut in interest rates.
As transactions within the housing market increase the threat
of falling house prices dissipates, especially over the coming
months. But the good news is that house prices are unlikely to
rise given the motionless stretched affordability ratios.
Mortgaging was said to have rose by about six percent in August,
which accounted for 45% of total lending last year.
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