Rise in home loans as remortgaging dives

A two-speed mortgage market has developed as lending for house purchase improves but remortgaging remains subdued, figures showed today.

The number of people taking out a mortgage to buy a property dipped slightly during August to 52,700, 5% lower than in July, although it was 29% higher than in the same month of 2008, according to the Council of Mortgage Lenders.

But remortgage figures dived by 22% compared with the previous month to just 32,000, 57% down on a year earlier.