Do you need to remortgage?
24 June 2008
Remortgaging activity remains strong despite falling lending figures elsewhere, according to the British Bankers' Association (BBA).
In its latest set of statistics, the industry body reveals a £1.2 billion drop in the amount approved for mortgage lending during May when compared with the previous month.
However, the need to remortgage means that those with existing borrowing continue to look to new deals, a spokesperson claims.
BBA Statistics Director David Dooks says: "Remortgaging business is holding up, where people need or want to take advantage of deals with other lenders."
He adds: "People spent more on credit cards, but repayment levels were lower than expected in May."
Responding to the data, market analyst Capital Economics suggests that significant property price falls could materialise in the coming months.
The organisation forecasts that, by the end of 2010 and moving into 2011, house prices could be down by more than a third on their 2007 high point.
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