CML: Re-mortgages fall in August
Thu 11th Oct, 17:42:25 BST
The number of householders re-mortgaging their home fell in August, according to mew figures released by the Council of Mortgage Lenders (CML).
Some 88,000 loans worth £10.5 billion were issued, representing a five per cent decline in re-mortgages compared to figures for July, with the average mover putting 17.2 per cent of their income towards paying interest on their mortgage alone.
Michael Coogan, the director general of the CML, said: "Affordability clearly remains challenging but there may be some relief for borrowers with expectations of an interest rate cut, perhaps as early as November."
"Mortgages are set to become more expensive for customers who have poorer credit histories. Now is the time for consumers to look to improve their credit status to keep their borrowing costs as low as possible," he suggested, adding that anybody worried about payment difficulties should consult their lender before they miss a payment.
Dennis Reed, director of mortgage broker Moneygate, recently warned that those with even slight financial indiscretions in their past could find themselves being classed as a bad risk when re-mortgaging.
"A mainstream borrower being shunted into the sub-prime market could face crippling interest charges of up to 2.5 per cent higher than average," he said.
Some 88,000 loans worth £10.5 billion were issued, representing a five per cent decline in re-mortgages compared to figures for July, with the average mover putting 17.2 per cent of their income towards paying interest on their mortgage alone.
Michael Coogan, the director general of the CML, said: "Affordability clearly remains challenging but there may be some relief for borrowers with expectations of an interest rate cut, perhaps as early as November."
"Mortgages are set to become more expensive for customers who have poorer credit histories. Now is the time for consumers to look to improve their credit status to keep their borrowing costs as low as possible," he suggested, adding that anybody worried about payment difficulties should consult their lender before they miss a payment.
Dennis Reed, director of mortgage broker Moneygate, recently warned that those with even slight financial indiscretions in their past could find themselves being classed as a bad risk when re-mortgaging.
"A mainstream borrower being shunted into the sub-prime market could face crippling interest charges of up to 2.5 per cent higher than average," he said.
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