Re-mortgage lending continues downward trend, figures show

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Re-mortgage lending to homeowners has been on a downward path since the start of the year, according to banks and building societies.

Some 32,500 re-mortgage loans were handed out to homeowners in May, down 2% month-on-month. The figure has edged down every month after 39,400 loans were handed out in January.

The figures were released by new trade body UK Finance. The data was previously released by the Council of Mortgage Lenders (CML).

Mark Harris, chief executive of mortgage broker SPF Private Clients, said that while there could be an upward pressure on mortgage rates, there was no need for borrowers to panic.

He said: "Swap rates have been creeping up and that will affect the pricing of fixed-rate mortgages.

"The markets are factoring in a rise in base rate later this year.

"However, we don't expect a rise to be anything more than a return to 0.5%, a rewinding of the cut last August, and medium to long-term rates are going nowhere.

"There are great opportunities out there for borrowers but there is no need to panic. They will be around for a good while yet."