Remortgage instructions on the up

The remortgage market showed signs of recovery after the Conveyancing Alliance reported a 48% increase in mortgage instructions, over the last quarter.

The improvement follows a period of static activity after the CML reported remortgages making up a quarter of all new home loans in August – the lowest proportion in ten years.

Despite this, a recent report from global consulting firm, Simon-kucher and Partners, has suggested that the remortgage market is on the verge of a “major chum driven by customers” who purchased remortgage products during the early months of the credit crisis.

Managing director of Conveyancing Alliance, Harpal Singh, said: “To say the remortgage market has been depressed would be a gross understatement however our quarter three increase in remortgage instructions shows a welcome improvement and some proof that this type of business is being conducted.”

He added: “We believe that many brokers are choosing not to give advice on conveyancing which seems to be an odd decision, given the low levels of both remortgage and purchase business currently being written.”