Worldwide record rise in mortgage business
By mpad_mark | Friday, July 20, 2012, 13:41
A Cornish firm of independent financial advisers has seen an increase in its mortgage business during the last quarter.
Worldwide Financial Planning's mortgage expert, Ronan Marrion
Covering March 1 to May 31, Worldwide Financial Planning, which has offices in Truro and Wadebridge, has reported a 15 percent rise in activity.
The company found that mortgage deals for residential purchases had fallen by 17 percent, but there had been an increase in the number buy to let arrangements.
Worldwide's mortgage expert, Ronan Marrion, said: "It's great that there has been a 15 percent increase in the mortgage business we have done, and obviously it has positive effects for the wider economy.
"What is interesting is what people are using the mortgages for.
"We have seen a 29 percent rise in remortgages as people look for a better rate or to change their terms, while refinancing, which is about borrowing more money or consolidating debt, has fallen by 15 percent.
"The key one for me though is the rise in buy to let mortgages. It's small at the moment, but I think it is a trend that will continue upwards."
Mr Marrion puts the rise down to people who want to move but are unable to sell their current homes refinancing to a buy to let mortgage which allows them to let their current home while freeing up money for a deposit on a new property.
David Sanderson, partner at St Austell-based estate and lettings agents, Liddicoat Sanderson Potter, backed Mr Marrion claims.
Mr Sanderson said: "We've seen a huge surge in the lettings side of our business and it is continuing to grow.
"Many of our clients have refinanced in order to let their current home out, get a residential mortgage and buy a new property.
"People seem prepared to own two properties and rent one, especially as the rentals market is so strong at the moment."
Mr Marrion also believes that the changes will provide an opportunity for investors.
He said: "With houses prices lower than last year and strong rental returns investors are seeing a much more positive yield from property than ever before."
For more information please contact Ronan Marrion at Worldwide Financial Planning on 01208 816667 or visit www.wwfp.net.
For more information on Liddicoat Sanderson Potter please contact David Sanderson on 01726 69933 or visit www.moveincornwall.co.uk