With the property market fluctuating back and forth many people are growing concerned about a new figure – roughly 60% of all mortgages issued in July were for home purchases. While some may see this as a positive sign for home buyers at the same time it is somewhat concerning economists seeing a regular decline in re-mortgages both applied for and granted throughout the year.

A mere two years ago re-mortgages on homes throughout the country accounted for roughly 75% of all mortgages offered to home owners, though since that time the number has remained in a steady decline and its current figures of approximately 40% are somewhat unnerving for many lenders. This is seen to be caused by a number of factors, primarily the continued low mortgage rates offered by lending institutions thanks the continued record low interest rates helping both tracker and fixed-rate mortgages as well as the fact that most people have moved away from general spending and debt accrual this year towards debt repayment and elimination.

In some ways the current trend is beneficial in the long run as currently a large number of individuals have substantial debt accrued in their names, with a large portion of pensioners also still maintaining debt on their homes well into retirement. In the short-run, however, concerns over the lack of lending are making many financial establishments worried over their cash flows and whether or not they will be able to maintain some current attractive offers on the market and still retain profitability.

As of yet the interest rates established by the central Bank of England are keeping most lending agreements low, though if rates continue and inflation picks up (as is being seen more and more often in recent months) then it is highly probable that home buyers and sellers alike can expect to see a much more competitive and difficult to navigate market looming in the future.