Purchase activity on the rise
Figures for Q2 2010 show a 33% increase in purchase instructions up from Q1 this year, a 53% year-on-year increase from Q2 2009. Purchase completions for the second quarter of 2010 are 21% up on the previous three months, delivering a 47% increase on the same period a year ago.
Remortgage activity in quarter two for both instructions and completions has remained broadly static, continuing at the low level it has been at for the past 18 months. Conveyancing Alliance said it does expect remortgage activity to rise as more borrowers find themselves on increasingly uncompetitive standard variable rates.
Harpal Singh, managing director of Conveyancing Alliance, said: “We are particularly pleased to see both our purchase instruction and completion figures continuing to rise throughout last year and into 2010.
“At the end of quarter one this year we had noticed a slight increase in remortgage instructions and anticipated that this may well translate into an increase in quarter two. It is disappointing to see that this hasn’t been the case and it still seems that many borrowers are still happy to sit on their current SVR deal, particularly if their lender is unable to increase their rate by more than 2% over BBR.
“However, there are an increasing number of borrowers who now find themselves on SVRs 4 or 5% above BBR and this is clearly where advisers should be urging at the very least a reconsideration of remortgaging.
“It is still our belief that remortgaging activity will rise from this low base over the next six to twelve months, particularly if BBR is increased during that period.”