Menu
12/06/2009
Borrowers Switch Back To Fixes
Take up of fixed-rate products increased further as the interest rate cycle has now reached its floor, according to new data from the Council of Mortgage Lenders (CML).
In April, 69% of borrowers took out fixed rate mortgages with an average rate of 4.83%, the highest share since June 2008.
There was a modest improvement in the number of loans for house purchase. However, activity is still very low by historical standards with 35,600 house purchase loans in April, compared to an average of 88,000 loans in April over the last seven years.
The number of loans for remortgage continued to decline as low reversion rates and stricter credit criteria for the best deals make refinancing less attractive. There were 31,000 remortgage loans in April, 22% down on March and 65% down on April last year. Gross mortgage lending in April was £10.5 billion, down from £11.5 billion in March.
There were 22,100 loans to home movers worth £3.1 billion, compared with 30,600 loans worth £5 billion in April last year. Lending criteria continued to edge down with a typical home mover putting down a 33% deposit and borrowing 2.63 times their income, compared with 30% and 2.69 in March.
CML Head of Research, Bob Pannell said: "With the interest rate cycle now at its floor, an increasing proportion of borrowers are taking out fixed rates, including for longer term periods of 5-10 years. With expectations for rates to remain low in the near future, shorter term fixed-rate deals are less appealing than attractively priced variable rate deals.
"There are tentative signs of house purchase lending stabilising, but we need to see considerably higher transaction levels to underpin house prices."
(CD/JM)
In April, 69% of borrowers took out fixed rate mortgages with an average rate of 4.83%, the highest share since June 2008.
There was a modest improvement in the number of loans for house purchase. However, activity is still very low by historical standards with 35,600 house purchase loans in April, compared to an average of 88,000 loans in April over the last seven years.
The number of loans for remortgage continued to decline as low reversion rates and stricter credit criteria for the best deals make refinancing less attractive. There were 31,000 remortgage loans in April, 22% down on March and 65% down on April last year. Gross mortgage lending in April was £10.5 billion, down from £11.5 billion in March.
There were 22,100 loans to home movers worth £3.1 billion, compared with 30,600 loans worth £5 billion in April last year. Lending criteria continued to edge down with a typical home mover putting down a 33% deposit and borrowing 2.63 times their income, compared with 30% and 2.69 in March.
CML Head of Research, Bob Pannell said: "With the interest rate cycle now at its floor, an increasing proportion of borrowers are taking out fixed rates, including for longer term periods of 5-10 years. With expectations for rates to remain low in the near future, shorter term fixed-rate deals are less appealing than attractively priced variable rate deals.
"There are tentative signs of house purchase lending stabilising, but we need to see considerably higher transaction levels to underpin house prices."
(CD/JM)
Related UK National News Stories
Click here for the latest headlines.
09 December 2004
Ofcom reviews controls on premium rate calls
Telecoms regulator Ofcom has published its findings aimed at improving consumer protection following a review of the regulation of premium rate telephone services in the UK.
Ofcom reviews controls on premium rate calls
Telecoms regulator Ofcom has published its findings aimed at improving consumer protection following a review of the regulation of premium rate telephone services in the UK.
05 February 2009
Mortgage Lenders Vow To Pass Further Interest Rate Cuts
Four of the UK's biggest mortgage lenders have vowed to pass on the interest rate cuts, which were today announced by the Bank of England (BoE). The bank said the rate cuts, and government measures to boost the economy, "would provide a considerable stimulus to activity as the year progressed".
Mortgage Lenders Vow To Pass Further Interest Rate Cuts
Four of the UK's biggest mortgage lenders have vowed to pass on the interest rate cuts, which were today announced by the Bank of England (BoE). The bank said the rate cuts, and government measures to boost the economy, "would provide a considerable stimulus to activity as the year progressed".
10 April 2008
Interest Rates Reduced to 5%
The Bank of England's Monetary Policy Committee have cut interest rates from 5.25% to 5% to stabilise the economy as the global credit crunch reaches UK shores. The British Chambers of Commerce warned that the cut was "no longer sufficient".
Interest Rates Reduced to 5%
The Bank of England's Monetary Policy Committee have cut interest rates from 5.25% to 5% to stabilise the economy as the global credit crunch reaches UK shores. The British Chambers of Commerce warned that the cut was "no longer sufficient".
13 February 2012
First-time Buyers Numbers Increase
The number of first-time buyers, who are currently exempt from paying stamp duty on properties up to £250.000, increased in December, according to data released today by the Council of Mortgage Lenders. There were 18,700 loans advanced, worth £2.3 billion, up 7% by volume and 10% by value, from November.
First-time Buyers Numbers Increase
The number of first-time buyers, who are currently exempt from paying stamp duty on properties up to £250.000, increased in December, according to data released today by the Council of Mortgage Lenders. There were 18,700 loans advanced, worth £2.3 billion, up 7% by volume and 10% by value, from November.
16 January 2007
Cooling house prices after interest rate hikes
The latest figures on house price rises show that the market has cooled following the November interest rate rise.
Cooling house prices after interest rate hikes
The latest figures on house price rises show that the market has cooled following the November interest rate rise.
-
Northern Ireland WeatherToday:A showery start with outbreaks most frequent north of Lough Neagh and through the morning, before dwindling during the afternoon as the northwest breezes ease and brighter spells of weak sunshine prosper. Maximum temperature 8 °C.Tonight:A dry night, save for a few light showers around the coasts, with prolonged clear spells and light winds bringing a frosty dawn for many in central and southern parts. Minimum temperature -3 °C.
