There is likely to be a decline in remortgaging activity in the near future, it has been suggested.
Ray Boulger, senior technical manager at John Charcol, said it is not likely to see an improvement in the short-term at least, as people look to stay on the mortgage product they already have.
"A lot of them are choosing to stay on SVR [standard rate variable] because in many cases that is quite a cheap rate. I don’t see any rush to get on a fixed [rate]," Mr Boulger observed.
He predicted a "modest increase" in purchase activity, although expected those on loan-to-value (LTV) products to remain on them as finding a remortgaging deal "because most lenders are charging much higher rates once the LTV goes above 75 per cent".
The Council of Mortgage Lenders reported in May 2009 that 40,000 remortgages were taken out in March and the value of remortgage loans increased by four per cent compared to the previous month.
Furthermore, first-time buyers accounted for 40 per cent of all house purchase loans, up from 38 per cent in February.