Mortgage market to recover, according to John Charcol

The mortgage market could be recovering as property buyers are now taking out a new mortgage on their new properties instead of changing the deal on their existing property.

Research from John Charcol revealed that there has been an increase in the number of home buyers opting for a new mortgage as more Brits begin to purchase new properties.

According to the research, the number of new loan purchases were higher in May compared to the number of remortgages for the first time since 2007.

Ray Boulger from the independant mortgage firm stated that the findings could indicate positive signs of recovery.

He said: "In 2008 purchases made up an average of 25 per cent of our business, however 2009 is a very different story. Purchases have taken an increasing share over the course of the year to date."