25
Aug
Mortgage business 'shifting towards house purchases'
There appear to be ever-increasing signs of a shift in the mortgage
business towards house purchase transactions and away from
remortgage business, one property expert has asserted.
Stephen Smith, director of housing at Legal and General, which is
responsible for investing £280 billion worldwide on behalf of
investors, policyholders and institutions, said that the average
broker predicts that house purchases will make up 43 per cent of
their overall mortgage business, up from 40 per cent last quarter
and the highest figure since the firm's records began in
2008.
His comments accompany the release of the Mortgage Adviser
Confidence Index for Q3, which shows that remortgage transactions
are predicted to drop to 40 per cent from 43 per cent last
quarter.
"So it seems the pendulum is swinging towards house purchase
business but this will not gather momentum until housing
transactions pick up, funded by an improved flow of good mortgage
deals from lenders," he stated.
