Remortgaging to see most business

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The remainder of 2008 is to see lending activity focused mostly on remortgaging, it has been claimed.

Pauline McCallion, editor of mortgage information resource Your Mortgage, explains that the current market conditions are to result in a drop in new lending.

"Youre seeing an increase in remortgaging as opposed to those who are looking to move house or first-time buyers," she asserts.

"Probably the bulk of mortgage lending for the rest of this year will be in the remortgage sphere," she adds.

However, Ms McCallion notes that there is still growth in mortgage lending as a whole, but that the market is now expanding at a slower rate.

The comments follow the publication of figures from the British Bankers Association showing a seven per cent increase in mortgage lending from March to April.

Remortgaging outpaced this growth, however, with 24 per cent more loans arranged over the month for such a purpose.

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