Remortgage applications reach record highs for 2010

Countrywide

Tuesday, January 4, 2011

Countrywide's Market Insight for November 2010                                      

 

Nov 10 v Oct 10

3 month trend

Year to date [1]

New rental instructions

7.75%

11.9%

5.2%

Sales Viewings

(12.5%)

(8%)

(4.8%)

Remortgage applications

24%

17.8%

(11.8%)



[1] Jan-Nov 2010 vs. Jan-Nov 2009

Grenville Turner, Chief Executive of Countrywide, the UK's largest property services Group, said;
Despite the subdued market conditions, our mortgage applications rose 5.8 percent in November compared to the previous month. The largest increase in mortgage applications came via remortgage customers, with the total number of cases jumping 24 percent to make up 29 percent of all mortgage applications in November.

Three out of the Top 10 Mortgages   applied for by Countrywide customers in November were for remortgage products, pushing the average deposit up to 26 percent, a five percent increase on October when only a single remortgage product featured in the Top 10 Mortgages listing.

November's steep increase in remortgage activity also had a strong impact on the average interest rate for November's Top 10 Mortgages applied for, which fell by 0.31 percent to 4.30 percent - the lowest since December 2009.

The buy-to-let mortgage market continues to grow with applications increasing by 4 percent in November, which is partly driven by lenders to competitively price products.

The increased buy-to-let mortgage lending activity over recent months reflects the growth of new properties entering the private rental sector. The number of new properties entering the rental market rose by 7.75 percent in November but despite this, the total volume of available properties to rent is still in short supply with over 14,000 new tenants registering for rental accommodation in November alone.

During the final months of 2009, the market saw a surprise uptick in activity but the economic challenges facing the housing market this year are gathering pace and look set to continue in 2011. Our research confirms industry fears that restricted lending is creating a two tier market so only buyers with deposits in excess of 25 percent can access the best rates, which is forcing many first time buyers out of the market.

Key Facts - November 2010
Mortgages: (based on the activities of the UK's largest mortgage broker with approximately 650 mortgage consultants)

Residential Lettings: (based on the activities of the UK's largest estate agency & lettings network, operating 1,300 offices)

Estate agency: (based on the activities of the UK's largest estate agency & lettings network, operating 1,300 offices)


                                          

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