Figures from Leadbay showed that demand for remortgages had grown by 25 per cent in the past four months, exceeding FTB numbers for the first time since its records began in January 2005.
Typically, Leadbay had found FTB leads were 5 to 10 per cent higher than remortgage leads, but this trend switched over for the first time in September 2007. While there was a return to greater FTB enquiries in October, remortgage leads have since continued to rise and exceed purchase enquiries.
Simon Baker, commercial manager at Leadbay, commented: “It appears that borrowers are really astute at the moment in terms of looking to lower their mortgage rate, as the number of people looking for remortgage advice has risen by 25 per cent since October.
“On the other hand the number of FTBs has dropped, indicating a ‘wait and see’ attitude as they look to see if the housing market goes down any further.”
Rob Clifford, chief executive of Mortgage Force, said: “Our experience throughout last quarter of 2007 and Q1 2008 is that FTB volumes are diminishing. With mortgage lenders pulling back loan-to-values, that has serious consequences.
“In terms of direct comparison, remortgage volumes are healthy, though not dramatically spiking, but FTB volumes are receding. 2008 will be the year of looking for the next mortgage. We know lots of people are facing payment shock and less product choice, but that won’t quell demand.”
