Mortgage market opening up?

Posted: 16 Sep 2010 10:41:42 GMT

The mortgage market is loosening, but there are still concerns about the availability of funds for those who want to remortgage, one specialist has observed.

Director of the Association of Mortgage Intermediaries Robert Sinclair said it is good news providers are ensuring there is significant funding into the sector during these difficult times.

"At the moment the vast bulk of that lending is purchase or home mover, first-time buyer or home mover mortgages and very little remortgage market," he remarked.

However, Mr Sinclair explained if the remortgage sector comes back, there will be a significant squeeze on the availability of funds.

The Bank of England's Monetary Policy Committee recently voted to maintain the official bank rate paid on commercial reserves at 0.5 per cent.

It revealed it will continue with the stock of asset purchases financed by the issuance.

Mr Sinclair also stated he does not think a rise in interest rates, will have a massive affect on the mortgage market, unless economic circumstances change significantly.
 

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