Remortgage activity picking up as consumers seek advice

A 33 per cent hike in the number of consumers looking for advice on re-mortgaging was recorded in June, according to data from the professional advice website Unbiased.co.uk.

Requests from those seeking whole of market re-mortgage advice maintained second place, a five per cent growth since May 2009, while first-time buyers held their position at the top despite a slight drop from May.

Interest from first-time buyers for whole of market mortgage advice made up 41 per cent of all consumer requests on Unbiased.co.uk's Find a mortgage adviser search.

Advice on the residential property market came in third in June with 24 per cent of all requests, followed by Buy-to-let mortgages, self-employed, high loan-to-value, equity release, flexible, sub-prime and right to buy.

Commenting on the figures, David Elms, chief executive of Unbiased.co.uk, said that they suggest growing confidence among those thinking about re-mortgaging, following a two month period in which the enquiries dropped.

"More of those looking to re-mortgage are now seeking a whole of market mortgage adviser who can give whole of market advice and start to unravel the confusion of the current mortgage market," he explained.

"It is also clear from these new figures that first time buyers remain baffled with the mortgage maze, and are continuing to seek whole of market advice to get guidance and help on the right mortgage decision for them."

He noted that it was not surprising to see people seeking advice given the conflicting news on whether there is any growth in the property market and the ever changing mortgage options and deals.

The news comes amid revelations from the Treasury Committee that the majority of lenders are going out of their way to support consumers in mortgage difficulties.

According to the Council of Mortgage Lenders (CML), first quarter repossession figures were not as high as feared because of "significant forbearance to borrowers" shown by lenders.

Noting that repossession should be a last resort as stipulated in Financial Services Authority legislation, the CML welcomed the committee's position for tougher action to be taken in "the small minority of cases" where poor practice is highlighted.

"The industry is fully engaged to help its customers through the recession where they have a good prospect of being able to get back on track and sustain their home-ownership in the long term," said CML head of policy Jackie Bennett.

She went on to say that lenders have put in place management measures to ensure that customers are treated fairly and if any charges are slapped on them, they will be "a reasonable reflection of costs", which will be applied in a way that will not result in more financial problems for the borrower.