Remortgage applications rise to 2009 levels
Re-mortgage applications at highest level since January 2009.
- (1888PressRelease) February 22, 2011 - The volume of remortgage applications reached the highest level since January 2009; according to Countrywide, the UK's largest mortgage broker.
Speculation surrounding base rate rises saw remortgage applications make up 32 percent of all mortgage applications in January, a five percent increase on the previous month.
Three out of the Top 10 Mortgages applied for by customers through Countrywide's network of 650 mortgage consultants were remortgage products and customers provided an average deposit of 32 percent which gave them an average interest rate of 3.26 percent. Overall, the average deposit required for the Top 10 Most Popular Mortgages in January was 22 percent, with an average interest rate of 4.24 percent showing the difference between remortgage and house buying transactions.
Fixed rate products made up 84 percent of all mortgage applications in January - a 9 percent increase on the previous month, which saw fixed rate products reach their highest level since August 2009. A large proportion of remortgage customers also opted for fixed rate remortgage products making up 86 percent of all applications - an 8 percent monthly increase and the highest level since July 2009.
Grenville Turner, Chief Executive of Countrywide, the UK's largest property services Group, said;
"The growing popularity of fixed rate mortgage products is a telling sign that many are prepared to pay slightly more to give themselves peace of mind and stability with regards to their outgoings. Overall, the reality is that for the last 2 years only those that have had to move have done so. Discretionary movers, who typically make up somewhere around half of all transactions are beginning to evaluate whether this is now the time to make a move."
Grenville added: "The government has set targets to increase business lending to small and medium sized enterprises, it would be equally valuable to the economy if a deal could be struck with top lenders to help buyers gain affordable mortgage finance. I hope the government's First Time Buyer Summit held earlier this week addresses these key issues to incentivise and stimulate the market. An immediate move to remove stamp duty on properties up to £250,000 would be a positive start."
Market Insight - January 2011
Mortgages: (based on the activities of the UK's largest mortgage broker with approximately 650 mortgage consultants)
- Applications: The overall number of mortgage applications rose 43 percent in January compared to December 2010, a decrease of 2 percent compared to January 2010.
- Interest rates: The average interest rate of the Top 10 Most Mortgages Applied for by Countrywide customers fell by 0.11 percent to 4.24 percent compared to December 2010.
- Deposits: The average deposit required for the Top 10 Most Popular Mortgages was 22 percent. A decrease of 4 percent compared to December 10. In comparison, the average deposit in January 2010 was 19 percent.
- Early indications: Please view Countrywide's Most Sourced Products to see daily highlights of the most popular mortgage products being sourced by UKmortgage consultants.
Estate agency: (based on the activities of the UK's largest estate agency & lettings network, operating 1,300 offices)
- Property instructions: The number of homeowners putting their properties on the market increased by 100 percent in January compared to the December 2010. However the figure was down 5.8 percent compared to January 2010.
- Market appraisals: Homeowners considering putting on their property on the market rose 146 percent in January 2010, a decrease of 5.6 percent compared to January 2010.
Residential Lettings: (based on the activities of the UK's largest estate agency & lettings network, operating 1,300 offices)
- Tenant applications: There was a sharp increase in new tenant applications in January with over 19,500 applications registered - a 139 percent increase on the previous month and a 12 percent increase on January 2010.
- Available properties: The number of rental properties available fell by 3 percent in January compared to the previous month - a 6 percent fall compared to January 2010.
###
space
space
Satisfied Users & 
Approved Press Releases
Print
Email
Report Spam