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Struggling mortgage holders `should seek advice` Remortgage enquiries `rise in June` Mortgage approvals `up in June` UK mortgage market remains weak, CML says Consumers `should avoid lying on mortgage applications` BoE releases Trends in Lending report Brits `prioritising debt repayment` "Sensible lending" needs to be restored for home buying Many households `to miss mortgage payments` Homeowners `increasingly paying off mortgage debt` Booklet produced for those facing mortgage repayment problems Local authority defends decision to offer 100% mortgages Mortgage lending levels `still low` CML welcomes campaign on repossessions Consumers `increasingly offsetting savings against mortgages` Banks `should be encouraged to provide more mortgages` Younger and richer people `benefiting more from mortgage reductions` Bank of England cuts base rate Negative equity `concerning UK mortgage holders` Interest rate cuts `were not anticipated by consumers`

Remortgaging `up in May`

21/06/2007

Remortgaging increased during the month of May, according to new research.

Data from Moneyextra indicates that the average remortgage is currently worth £122,541, a figure which is 7.19 per cent higher than one year ago.

Robin Amlot, senior editor of Moneyextra.com, said that the rise suggests that many people may be using their home`s equity to pay off other debts.

He commented: "Recent reports from the retail sector, including disappointing sales growth figures from both Tesco and Sainsbury, would suggest that we`re not spending this money on goods and services but using it to reduce other debts.

"It seems many people are opting to switch expensive credit card debt and overdrafts into long term low-interest-rate mortgage debt," he added.

Although this tactic reduced monthly outgoings in the short-term, he added that homeowners run the risk of paying more in the long-term.

Separate research by Spicerhaart Financial Services also pointed to a rise in remortgaging, perhaps prompted by recent increases in the base rate.

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