Remortage rates continue to fall in Q2

28th August 2015

New research from Paragon Mortgages has revealed a decline in the number of owner-occupied remortgages during the second quarter.

Remortgage levels fell from 35% of mortgages during the first quarter to 32% during the second. This represents a 50% decline in remortgage business compared with pre-financial crisis levels.

The number of buy-to-let (BTL) remortgage cases has also dropped from 34% during the fourth quarter of 2014 to just 29% during the second quarter of 2015. This reversed the increase reported six months ago but mirrored the 4% decline recorded during the second quarter of 2014.

Overall, the mortgage market remains stable, with intermediaries reporting a small rise in new business from 22.6 to 22.7 cases during the second quarter.

Around 46% of intermediaries expect to do more mortgage business during the next 12 months.

John Heron, managing director at Paragon Mortgages, said: “Although it is disappointing to see a drop in the number of remortgages, it is important to note these are incremental fluctuations and, as whole, when viewed from a broader perspective, the figures remain well within the average range.”

*2 year fixed with TSB 1.09% then 3.59% - APRC is 3.3% Max LTV is 60%. Quoted on 27th May 2020.