Remortgaging remains top choice for mortgages

09 May 2005
The latest survey from Paragon Mortgages has confirmed that remortgaging is the number one reason for taking out a mortgage.

The first quarter 2005 survey found that more than half (54 per cent) of all mortgages handled by financial advisers and brokers in that period were remortgages.

Whilst this figure is down on the previous quarter's figure of 56 per cent, it still marks a resounding preference for remortgaging within the mortgage market.

"Remortgaging remains by far the most important reason for arranging a loan, but a large proportion of borrowers - almost four in ten - do so to reduce outgoings," said John Heron, managing director of Paragon Mortgages.

Paragon also discovered that an increasing number of borrowers were remortgaging in order to reinvest their capital in a second property.

Mr Heron commented: "This quarter has seen an increase in the number of borrowers remortgaging to purchase a second property, reflecting the fact that landlords are taking advantage of a weaker housing market in order to buy properties at lower prices."

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