IMLA: 67% of remortgage applications completed in Q3

Posted on Wednesday, December 7 by Joy Tibbs

The third quarter offered particularly favourable conditions for remortgage customers, according to the Intermediary Mortgage Lenders Association (IMLA).

Despite the fallout following the Brexit vote, a higher ratio of remortgage applications resulted in lender offers during the quarter. IMLA figures showed that 80% of remortgage applications resulted in an offer compared with 77% during the third quarter.

The proportion of lender offers that resulted in a completion rose to 83% during the quarter, up from 77% during the second quarter. As a result, 67% of remortgage applications completed during the third quarter.

IMLA’s figures show that remortgage enquires increased by 26% during the third quarter, while data from the Council of Mortgage Lenders (CML) revealed that remortgage lending increased by 4% in value from £16.7 billion during the second quarter to £17.5 billion during the third.

Executive director of IMLA, Peter Williams, said: “IMLA’s latest tracker shows that conditions in the mortgage market were particularly good for remortgagers in Q3, with noticeable increases in the number of applications resulting in offers and subsequent completions.

“The low interest rates available to borrowers almost certainly contributed to this increase, with borrowers able to switch on to very attractive deals.

“Rates are unlikely to fall much further, given that they are priced against swap rates, but the sustained 0.25% base rate means they are also unlikely to rise, which should encourage further remortgage activity.

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