The Council of Mortgage Lenders (CML) has revealed in its latest survey that a large number of Britons are opting for remortgaging.

The latest figures by CML show that remortgage is one of the most popular loans in UK

As compared to the previous year, the figures for May 2006 show that there has been a significant 17 per cent rise in remortgages. Precisely, around 99,000 people opted for remortgages in the month of May.

Remortgaging alone accounts for around 38 per cent of all home loans in the UK. According to the CML, the expiry of a large number of fixed-rate deals in the month of May has made people to switch mortgage deals and get the deals re-financed.

CML director general Michael Coogan said that the robust growth of remortgaging and lending for house purchase in May reflect a stable and growing market.

Mr. Coogan also admitted that lending to first-time buyers and home-movers was strong, and that today's data has reversed the dip in lending to these groups, as witnessed in April.

However, remortgaging is not the only scheme to experience a boost in May. As compared to May last year, a 13 per cent increase has been observed in the number of mortgages taken by people to move houses. In all, about 8,200 more mortgages have been availed by people this year.

Also in the case of first time buyers, the number of mortgages has considerably risen up by as much as 7 percent.

In spite of the fact that fixed-rate mortgages have gradually become more expensive, they still continue to gain much ground amongst people. Fixed-rate mortgage accounted for about 72 per cent of all the home loan deals in May, thus showing a 16 percent rise as compared to May last year.

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