Remortgaging 'dominates market'

The amount of people remortgaging has increased and is set to rise further in the near future, according to new figures.

Research by the Intermediary Mortgage Lenders Association (IMLA) found that 49 per cent of all mortgage cases in recent months have been remortgages, which was an increase of 48 per cent since the previous survey.

The study also found that intermediaries believe that they will do two per cent more remortgages in the next two months, with lenders also expecting such activity to grow over the next quarter.

Peter Williams, IMLA''s executive director, said that remortgaging business has increased due to the number of fixed rate and discounted deals up for renewal, but warned that some borrowers may end up paying more when switching.

He added: "Lenders and brokers need to work together closely, not just to support new borrowers looking for a suitable mortgage, but also to help mitigate the repercussions of payment shock for existing borrowers who reach the end of their current deal."

The IMLA promotes and represents the interests of lenders that generate business through professional intermediaries.

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