 Conveyancing online is rising month-on-month according to a conveyancing distributor which deals solely on the internet.
The firm which revealed these findings says that it has seen a significant increase in purchase instructions throughout the second half of 2009; however, it has now witnessed an upturn in remortgage activity. The number of remortgage instructions increased by 28 per cent from October to November.
While the firm expects December to be slightly down in comparison to November due to the Christmas and New Year breaks, its weekly run rate for the first two weeks is the same as it was for the corresponding weeks in November.
Purchase activity continues to dominate however, with the conveyancing distributor showing a marked improvement with this type of instruction up 45 per cent between October and November.
Homeowners show increasing interest in the market
The firm believes the increase in remortgaging is a healthy sign for the overall mortgage marketplace, and suggests that the second half of 2010 will deliver a considerably healthier remortgage market.
To capitalise on both the purchase and remortgage business increase, and to also allow larger adviser firms more control over the conveyancing instructions of their sales force, the firm is now actively creating bespoke white-label solutions for individual businesses.
Harpal Singh, Managing Director of the online conveyancer, said: "Given the way the market has gone in 2009 it is perhaps no surprise to see our purchase instructions continuing to dominate overall business levels.
"What is particularly exciting is that our remortgage activity has shown a significant increase between October and November.
"We should point out that this is from a low level and that we should not take every month in isolation, however, this is an encouraging sign and is perhaps evidence of a more competitive remortgage market with higher LTVs on offer and better pricing on those products."
Mortgages on the move up
"For most of 2009, the remortgage market has been a dead duck, however, we suspect it will show continued signs of recovery into next year, particularly picking up in the second half when many borrowers will be coming off deals they signed up to in the second half of 2008 which do not have particularly attractive reversion rates."
Mr Harpal concluded by saying: "It would be in the best interests of advisers to contact those clients who will be coming off their special rates throughout 2010 to ensure they are in the best position to offer the most competitive and suitable remortgage products available from a hopefully ever-improving marketplace."
In addition to the findings from the online conveyancer, reports from Countrywide Mortgage Services, the UK's largest mortgage broker, stated that they have seen mortgage loan applications rise by 43 per cent in October and November.
Grenville Turner, Countrywide's group chief executive, said: "Competitive pricing from lenders is making a huge difference to the market with interest rates now much closer to current standard variable rates, which may further boost both the purchase and remortgage markets."
Mr Turner also said: "Mortgage applications are increasing as lenders are no doubt vying for business in the run up to the year end, which is great news for new and existing mortgage customers who will benefit from reduced repayments."
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