Re-mortgaging falls to record low - MAB

Re-mortgages have fallen to record low levels, according to figures from broker Mortgage Advice Bureau (MAB).

Re-mortgages made up only 28.9% of mortgage applications in September - down from 59.3% in the same month last year - as lenders continue to remain reluctant to relax their criteria.

MAB figures show September was the ninth consecutive month in which re-mortgage applications have fallen.

Head of lending Brian Murphy says: "Many would-be re-mortgage borrowers are unable to switch due to little or no equity in their properties."

The research also shows purchases were up by 15.3%, with first time buyer applications increasing by 6.4% over the same period.

But Murphy says the purchase market is likely to remain constrained due to a lack of appetite amongst lenders to engage the high loan-to-value sector.

"While these conditions exist, and with unemployment forecast to continue rising well into next year, activity in the market is likely to remain flat."