Remortgage activity still improving
This is according to Conveyancing Alliance Ltd, the online conveyancing distributor, which revealed an ongoing improvement in remortgage instructions for quarter four 2010.
Remortgage instructions were 10% higher in quarter four 2010 compared with quarter three; quarter three had seen a 48% increase over quarter two.
Conveyancing Alliance’s own experience, in terms of remortgage activity, chimes with recent data from the Bank of England for November last year which revealed a significant increase in remortgage approvals.
The firm puts its own improving remortgage figures down to this overall market improvement alongside its decision to launch a specific remortgage product, the ‘Rapid Remortgage’.
Commenting, Harpal Singh, managing director of Conveyancing Alliance Ltd, said: “This is the second consecutive quarter we have seen an increase in the number of remortgage instructions we receive. There is no doubting that news of the death of the remortgage market has been greatly exaggerated and there are clear stirrings in the sector albeit from a low level.
“The good news, from an intermediary point of view, is that clients are now actively considering their remortgage options no doubt prompted by increased speculation about a Base Rate rise and the knowledge that when this increase does occur there will be a flood of interest in remortgage products and potentially not enough funding to cover demand.
“All our remortgage instructions come through the broker channel and while we are showing a 10% increase this quarter, given the recent low rate of remortgaging, in real terms this figure is nearer to 20%. This is despite many advisers continuing to recommend free legals deals. With so many cashback products available there is no need to choose the free legals products.
“Conversely, the number of purchase instructions we receive from brokers remains flat however estate agent instructions in this area have shown a considerable 50% quarterly increase. We would recommend that any intermediary looking to maximise their conveyancing income levels come and speak to us about how we can help them achieve this.”