The number of remortgages in June was 1% up on May but 8% down on June last year, although the value (£3.7 billion) was up 6% on both.
In the Q2, there were fewer remortgages than in either the previous quarter or Q2 2014. By value, remortgaging was 2% down on the first quarter but 5% up on Q2 2013.
Remortgage lending has not seen the same growth trajectory as house purchase lending to home-owners. However, while volumes have been modest, value has risen.
Home-owner remortgage lending in June totalled 23,600 loans advanced in the period, which was a slight increase of 1% on May but a decrease by 8% on June 2013. These loans totalled £3.7bn in value, an increase of 6% month-on-month and also 6% up compared to June 2013.
In the second quarter of 2014, remortgage lending saw a decrease in the number of loans totalling 74,600, down 5% on the previous quarter and a year-on-year decline of 8% compared to the second quarter of 2013. By value, the loans totalled £11.3bn this period, down 2% on the previous quarter, but up 5% in comparison to the second quarter of 2013.
Paul Smee, director general of the CML, commented:
“For the second month running since new FCA rules took effect, lending characteristics remain similar to the market beforehand. We now feel confident that, as we would hope, the MMR effect is more gentle dampener than hard brake. As we recently suggested in our revised forecasts, lending levels should continue to increase modestly over the course of the year, driven mostly by house purchase but with remortgaging also recovering.”
