Remortgage and mortgage lending is expected to gain demand in the coming months despite there being a lack of demand through September.  Most of the blame is placed on the distraction of the Olympics.  Some experts believe that there will be a renewed focus on taking advantage of the present low interest rates available from Lenders. 

The Council of Mortgage Lenders (CML) reported an overall decline in mortgage lending in the month of September.  The total value of mortgage lending amounted to £11.6 billion which was down from the August level of £12.9 billion.  In a year to year comparison there was a 15% decline from September 2011.

CML chief economist, Bob Pannell, remarked, “There have been hints of demand softening over recent months, but monthly patterns may have been distorted by the Olympics.

“House purchase demand failed to lift significantly in the third quarter, despite much better mortgage availability. Remortgage activity continued to languish, in contrast to relatively strong levels a year ago."

Hopeful homebuyers do not seem to be taking advantage of the low interest rates or the offers from lenders with higher loan to value mortgage loans.  Whether the demand for purchase mortgages will rise in a seasonal time when demand tends to be low is yet to be seen.  Homeowners seeking remortgages are more likely to rebound the demand for lending than those seeking to buy property. 

Richard Sexton, director of e.surv chartered surveyors, said, “The mortgage market is at a low ebb. High loan-to-value lending accounted for less than one in 10 of all house purchase loans in September. Funding for Lending has yet to jump-start first-time buyer lending – historically the beating heart of the housing market.”