Home movers weak link in purchase chain
A total of 21,500 loans were advanced to borrowers who moved in February down by 4% compared to January and a fall of 3% on February last year.
But overall house purchase lending remained resilient in February with a total of 37,900 loans advanced which represented a 5% increase on the same period last year but a dip based on month by month figures.
And remortgage lending remained subdued in February which had declined compared to both the previous month and February 2012.
Peter Williams, executive director of the Intermediary Association of Mortgage Lenders, said: “The overall total number of loans at 37,900 was down on 38,200 recorded in January despite the Funding for Lending Scheme. The number of home movers and remortgagers have both fallen in February so we are still not seeing a general recovery.
“However the overall mood is more positive at present and it is important we see strong March figures to back this and give further momentum to the market. Today’s Item Club forecast is upbeat in terms of both prices and transactions on the back of continued government support. With prices still flat in most parts of the UK and low mortgage interest rates there are some grounds for optimism but clearly many would be buyers/movers are still in wait and see mode.”