Landlords considering remortgaging their properties may be interested in claims that interest rates will not rise until 2011.

Strategy, risk and economics director at Hometrack Gary Styles said that house purchase volumes have steadily grown recently, but mortgage activity has fallen.

Businesses have decided to focus on house purchase lending for existing customers due to government targets, rather than trying to recruit new clients, he added.

When interest rates start to rise "clearly the competitiveness of individual mortgage deals will come to the fore and that's when lenders will start to potentially offer more competitive remortgage products", Mr Styles said.

The comments follow figures published by the Council of Mortgage Lenders, which reported that there was a seasonal dip in lending volumes in November 2009.

However, this was an increase of 66 per cent from the previous year, it was noted.

A drop was also recorded in the number of loans for remortgage, which fell to 31,000 in November last year.

Written by John WeeksADNFCR-2002-ID-19562940-ADNFCR

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