Rates of remortgaging shot up among home movers in July, according to new data.
The Council of Mortgage Lenders (CML) has reported an 13 per cent monthly increase on June's figures in the number of loans advanced to movers.
Loans have also gone up by 15 per cent in value since June, with £6 billion being lent in total to movers.
Lending to this sector of the market has gone up by a fifth in the past 12 months.
However, the average deposit has again risen, reflecting a return to tighter loan conditions following eased restrictions earlier in the year.
Movers paid a 35 per cent deposit in July, as opposed to 33 per cent in June.
This is balanced out by historically low interest rates, which have seen lenders only paying 9.6 per cent of their income towards repayments.
However, almost three-quarters (72 per cent) of this group took out full repayment mortgages.
Commenting on the rise, CML's economist Paul Samter said: "The increase in the prevalence of repayment mortgages is likely in part to reflect the anticipation of regulatory changes by the Financial Services Authority to limit the availability of interest-only mortgages.
"More generally, lending criteria remain tight, underpinned by caution on the part of both borrowers and lenders in the light of continuing economic uncertainty."
See Also: Property News (6701)
Date Published: 13 September 2010
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