Commenting, Drew Wotherspoon, director of marketing at John Charcol, said: “With renewed fears of further house price reductions and more than a whispering of an overall double dip in the economy, it seems that buyers are currently thinking long and hard before committing to purchasing a new property.
“Consumer confidence plays a huge part in the housing market and, put simply, it appears to be wobbling. As well as shrinking considerably as an overall proportion of transactions, in pure numbers terms purchase business fell by almost 20%.
“Yet, at the same time remortgages appear to be making a comeback. Of course, the very nervousness that is keeping purchasers away from the market is arguably convincing those who have held off remortgaging for some time to both literally and metaphorically get their house in order.
“In just one month, the number of remortgages arranged with John Charcol has increased by a fairly dramatic 35%. Whether this is a mere blip, or a sign of things to come will only be seen in the coming months.”
Fixed rates made up just 27.5% of business in September, with variable rates still the most popular products by some distance. With the prospects of interest rates remaining low for some time to come, consumers are continuing to stay away from the slightly more expensive fixed rates on the market.
After seeing a sharp leap in August, the number of first timers entering the market came down to its normal level, around the 7% mark. Of course, with much negative talk around the market, and a continued lack of first time friendly products, it is little surprise to see this figure so low.
