Paragon sees rise in mortgage activity

04 February 2005
Paragon Mortgages has reported a rise in mortgage activity over the last three months.

The quarterly index of new home loans shows a rise from 26.8 to 27.8.

"This quarter sees the first rise, after three quarters of dwindling volumes," said Paragon Mortgages' managing director, John Heron.

"Borrowers are typically adopting a cautious approach, wanting to keep a tight rein on their finances and taking advantage of the low interest rates that were available in the market in 2004," he added.

Much of the growth was driven by remortgages, Paragon found.

Remortgages now represent 56 per cent of total home loans, up from just over 50 per cent 12 months ago.

Other types of mortgage have apparently declined slightly over the same period.

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