The re-mortgage market has bottomed out, according to Legal and General Mortgage Club.
Managing director Ben Thompson pointed out that there have been a number of re-adjustments in mortgage market pricing in recent weeks.
Lenders such as Santander, Halifax, the Co-operative Bank, Yorkshire Bank and Clydesdale Bank have all increased SVRs and the government has made an attempt to prompt banks and other lenders to make more money available to homeowners.
Thompson said: “By offering to lend banks and building societies money at below-market rates via the Funding for Lending Scheme (FLS) it has increased pricing and product activity in the mortgage market which is certainly a good thing.”
He added that one immediate and positive impact is that it “seems to have brought about further re-mortgage opportunities for many homeowners”.
Figures from the Council of Mortgage Lenders (CML) show that re-mortgage activity peaked at 51 per cent in the third quarter of 2008.
“However, since that time and in the wake of the financial crisis numbers have declined steadily to a low of 23 per cent in Q3 2010,” he said.
“In the last 12 months quarterly figures have held steady at 29 per cent, showing that this area of the market is starting to get back on its feet.
“With the prospect of increased market stimulation from FLS and a price war getting in to full swing we may see the number of re-mortgages in the UK start to climb once again. Although these figures will not filter through into CML stats until Q4 2012 the hope is that the relief will be felt far sooner by borrowers.”
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