Mortgage applications up 43% at Countrywide
Share
Competition between mortgage providers and improved lender confidence has resulted in a 43% increase in mortgage applications in November, says Countrywide Mortgage Services.
Its figures, based on 800 mortgage consultants show the average interest rate on Countrywide’s top 10 mortgage applications fell for the third consecutive month.
In November the average interest rate was 4.77%, down by 0.36% from October and 0.89% compared to the same period last year.
Applications for tracker mortgages have also increased for the fourth consecutive month – up 8% in November alone.
Whilst fixed rate mortgages remain most in demand, the strong return of competitively priced tracker products has seen the total number of tracker applications rise by 22% since August 09, and 20% compared to November last year.
Activity in the remortgage market is also up with a 5% increase from the previous month. Fixed rate mortgages remained most popular with re-mortgage applicants but there was a sharp increase in the number of applications for tracker products during November – an increase of 12%, making up 40% of the total re-mortgage applications.
Short term mortgages generated the highest volume of applications in November – for both fixed and tracker mortgages. Some 86% of applications made in November were two and three year products – an increase of 6% from October 09.
Two year mortgages are also steadily regaining their popularity with a 10% rise in applications during the month of November.
The average minimum deposit required Countrywide’s Top 10 written mortgages was 78% – a 3% increase from October 09. Buyers now need 22% deposit on average.
Grenville Turner, group chief executive, at Countrywide Mortgage Services, says: “Competitive pricing from lenders is making a huge difference to the market with interest rates now much closer to current standard variable rates, which may further boost both the purchase and remortgage markets.
“Mortgage applications are increasing as lenders are no doubt vying for business in the run up to the year end, which is great news for new and existing mortgage customers who will benefit from reduced repayments.”
If you enjoyed this article, sign up here to receive daily email updates from Mortgage Strategy and Follow @mortgagestrat
