16 April 2010

35,000 house purchase loans, worth a combined £5billion, were taken out in February this year according to the Council of Mortgage Lenders (CML). This is a 12% rise when compared with January and this indicates a continued recovery in the mortgage market during a dip at the start of 2010.

The mortgage market remains relatively strong when compared with a year ago, with 49% more borrowers receiving approved loans than in the same month in 2009. The value of the mortgages drawn was 67% greater.

Due to the rush of consumers looking to beat the end of the stamp duty holiday on December 31st, when the
threshold for which the tax is applicable returned to £175,000 from £125,000, the number of mortgages taken out in January was 50% down on those approved in December last year.

Remortgaging activity remained quiet, with the figures from February signalling that the number of people taking out this type of loan had only risen by 2%. The CML has predicted that this market will remain weak for some time, as rates have become too expensive for homeowners that do not hold significant equity.

Source: The Times

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