Competition is hotting up in the remortgage market, which is helping to drive activity in a positive direction, it has been claimed.
According to independent mortgage advice firm Alexander Hall, lenders are trying to outdo each other and this is helping customers.
Recent Council of Mortgage Lenders figures show that the number of loans for remortgages was up 17 per cent in May in comparison to April’s figures.
Furthermore, the data showed an 11 per cent year-on-year rise and Alexander Hall chief operating officer Andy Pratt explained that this is good news for the market.
He said that the rise in remortgages was a result of lenders introducing deals with rates that are either competitive with or lower than other lenders’ standard variable rates .
“We have got past the conservative part of the post- credit crunch and lenders are now keen for more business,” the expert noted.
“If the market is stagnant or only increasing slightly, then it is down to being competitive in terms of getting more market share, so they have dropped their rates considerably from where they were a year ago in order to be able to gain more business.”