In the fourth quarter, it was more than double that of a year earlier,” he said. “Approvals outstanding are 30 per cent higher than a year ago, suggesting that consumers continue to see good value in building society mortgages.”
According to Council of Mortgage Lender (CML) figures, the gross value of remortgaging was 50 per cent higher than the year before, or nearly £121 billion compared with almost £81 billion in 2002.
Remortgaging has been the key driver of the mortgage industry during 2003, with gross lending for house purchases only 3 per cent higher than the previous year. It took until December before house purchase finally accounted for 51 per cent of the market, ahead of remortgages for the first time all year.
Affordability continued to hold the first-time buyer market back, with only 29 per cent of all loans in 2003 going to first-time buyers, compared with 38 per cent in 2002.
Michael Coogan, director general of the CML, said: “The December figures complete the picture of a truly extraordinary mortgage market in 2003. Total lending managed to increase by nearly a quarter compared with the previous year and has more than doubled in three years.”
