The Money Stop

With fewer people applying for mortgages for new homes, an expert has predicted that the “bulk” of this year’s mortgage lending will be in the re-mortgaging area.

Pauline McCallion, editor of Your Mortgage, said that the level of lending in the mortgage market has dropped since last year but, while the number of first-time buyers securing mortgages for new homes has fallen, those re-mortgaging their houses are growing in number.

Ms McCallion also pointed out that many people will see their fixed-rate deals come to an end this year and may have trouble finding equally attractive mortgages.

According to the Financial Services Authority, 1.4 million people are due to come off fixed-rate mortgage deals this year.

“People are coming off quite cheap initial periods and are going to be looking to get as competitive a rate as they can but obviously they are going to come into problems in terms of mortgage rates being a good bit higher than they have been in the past decade,” said Ms McCallion.

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