(Newswire.net — February 2, 2013) Doncaster, UK — Surprisingly, given the number of excellent remortgage rates that are now available, remortgage approvals were down in December to 28,196 but still kept ahead of the previous six month average of 27,301.
However, the number of loan approvals for house purchases increased to 55,785 in December which was higher than the previous six month average of 50,058.
The mortgage market in 2012 did finish strongly with loan approvals for house purchases climbing in the last six months of the year to December.
Banks have a long way to go before they are really open for business and are still struggling with billions of pounds of bad debts in the background, but are still trying to sustain efforts to encourage cheaper mortgage finance in their quest to helping people get on the housing ladder in 2013.
The amount of credit availability increased towards the end of the year as banks developed products like the “Funding for Lending Scheme” which is expected to bring further benefits to households and businesses in 2013.”
Even though the numbers were still higher than the previous six-month average indicating an upwards trend. Some borrowers, no doubt are waiting to see whether mortgage rates fall further before making the decision to remortgage.
With the continuation of low base rates, mortgage rates were continuing to hold their position at the bottom end of the scale.
The traditional way to finance home improvements or consolidate debt is to remortgage many people are on mortgage rates so low that they are not prepared to jeopardise those rates.
A critical factor in all of this, is the loan to value (LTV) people are aware that if they remortgage, their LTV will also rise, which could potentially push them into a more unattractive higher rate mortgage, which in turn can make other forms of credit more attractive.
Overall total lending to individuals, excluding student loans, rose by £1.7bn in December compared to the previous six-month average increase of £0.5bn.
Consumer credit increased by 0.6bn in December compared to the last six-month average of £0.2bn resulting in a 12-month growth rate of 0.9%.
Credit cards increased by £0.2bn and other loans and advances rose by £0.4bn.
Taking “Whole of Market” remortgage advice is essential to finding the best remortgage rates, an independent mortgage broker will search the market and recommend a suitable product.
UK Mortgage Advice website has a contact form where individuals who are looking to remortgage in Doncaster and surrounding areas can apply to receive a no obligation quote from a qualified Mortgage Adviser.
For more information visit, http://ukmortgageadvice.org.uk/uk-mortgage-advice-doncaster