Mortgage market growth boosted by those looking to switch deals

Posted: 09 Jun 2008 13:17:59 GMT

Despite reports of tighter lending criteria leading to a dip in loan approvals, latest research shows that there has been a growth in the mortgage market.

Despite reports of tighter lending criteria leading to a dip in loan approvals, latest research shows that there has been a growth in the mortgage market.

Pauline McCallion, editor of Your Mortgage, said that there has been an increase in re-mortgaging as homeowners coming to the end of fixed rate mortgages search for competitive deals.

Ms McCallion commented: "Essentially lending has dropped and while growth, in terms of mortgage lending, is still happening, it is at a slower rate."

According to Your Mortgage, the "availability of funding to banks and building societies for mortgage lending" plays an important part in what deals they can offer to consumers.

The latest report from the British Bankers Association showed that the mortgage market rose seven per cent in April 2008 to £17.8 billion compared to £16.6 billion in March.

Re-mortgaging, however, obviously does make up a large percentage of that increase as the number of people switching deals increased by 24 per cent in April.

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