Mortgage activity rose again in February, according to Countrywide and its 700 mortgage consultants.
The number of mortgage applications at Countrywide in February increased by 34 per cent on January, and 6.6 per cent on February 2009.
The average interest rate of Countrywide’s Top 10 mortgage applications for February fell by 0.26 per cent to 4.52 per cent compared to January 2010 – a fall of 0.79 per cent since February 2009.
The findings also reveal that customers paying bigger deposits, which are now 22 per cent on average - 3 per cent up on January 2010 and an increase of 2 per cent compared to February 2009.
Applications for tracker mortgages faltered for the first time since April 2009 with February seeing a 4 per cent increase in applications for fixed rate mortgages compared to January 2010, which represented 57 per cent of applications overall.
Two year mortgage terms generated the highest volume of applications in February – a decrease of 4 per cent compared to the previous month but an increase of 23 per cent on February 2009. Overall, 90 per cent of mortgage applications made in February were for two and three year products – an increase of 1 per cent from January 10 and a 26 per cent increase on February 09.
Grenville Turner, Countrywide’s group chief executive, said: “It is encouraging to see the average interest rate of our most popular products fall as customers gather up larger deposits. This shows more commitment from major lenders to competitively price their products and provide the best rates for those with the biggest deposits.
“We may also be seeing a return of home movers entering the market as larger deposits typically come from home movers using the equity from their property to fund their move.
“As speculation mounts over house prices and inflation it is interesting to note that we’ve seen a marginal uplift in the volume of fixed mortgage applications. Tracker products have enjoyed a significant resurgence in popularity over the last nine months and now make up around half of all new mortgages. However, the forthcoming election could unsettle the market and impact any economic recovery and customers are increasingly looking for the certainty of a fixed rate mortgage.”
Mortgage activity rose again in February, according to Countrywide and its 700 mortgage consultants.
The number of mortgage applications at Countrywide in February increased by 34 per cent on January, and 6.6 per cent on February 2009.
The average interest rate of Countrywide’s Top 10 mortgage applications for February fell by 0.26 per cent to 4.52 per cent compared to January 2010 – a fall of 0.79 per cent since February 2009.
The findings also reveal that customers paying bigger deposits, which are now 22 per cent on average - 3 per cent up on January 2010 and an increase of 2 per cent compared to February 2009.
Applications for tracker mortgages faltered for the first time since April 2009 with February seeing a 4 per cent increase in applications for fixed rate mortgages compared to January 2010, which represented 57 per cent of applications overall.
Two year mortgage terms generated the highest volume of applications in February – a decrease of 4 per cent compared to the previous month but an increase of 23 per cent on February 2009. Overall, 90 per cent of mortgage applications made in February were for two and three year products – an increase of 1 per cent from January 10 and a 26 per cent increase on February 09.
Grenville Turner, Countrywide’s group chief executive, said: “It is encouraging to see the average interest rate of our most popular products fall as customers gather up larger deposits. This shows more commitment from major lenders to competitively price their products and provide the best rates for those with the biggest deposits.
“We may also be seeing a return of home movers entering the market as larger deposits typically come from home movers using the equity from their property to fund their move.
“As speculation mounts over house prices and inflation it is interesting to note that we’ve seen a marginal uplift in the volume of fixed mortgage applications. Tracker products have enjoyed a significant resurgence in popularity over the last nine months and now make up around half of all new mortgages. However, the forthcoming election could unsettle the market and impact any economic recovery and customers are increasingly looking for the certainty of a fixed rate mortgage.”
Date: 9th, March, 2010
ADVICE TO READERS
While this website is checked for accuracy, we are not liable for any incorrect information included. We recommend that you make enquiries based on your own circumstances and, if necessary, take professional advice before entering into transactions.
Enter your postcode here to find out how much your property is worth, based on Land Registry data.
RSS Feed
Delicious
Digg
reddit
Facebook
StumbleUpon