View more on these topics

Borrowers increasingly taking out fixed rates


The proportion of loans taken out at fixed rates is increasing as borrowers look to lock in before base rates rises.

Figures published jointly by the Bank of England and the FCA today show 80.7 per cent of gross advances in Q3 were fixed rates. This is up from 78.9 per cent in the previous quarter.

Mortgage Advice Bureau head of lending Brian Murphy says: “More and more borrowers have been fixing their rates in order to secure the best possible deals, with the proportion opting to fix climbing above the 80 per cent mark for the first time this year.

“Such attractively priced rates won’t be around forever, but those in a position to take on a long-term fix will benefit from a longer period of savings.”

Gross advances totaled £62.1bn in Q3 – up 18.2 per cent on Q2 and 11.1 per cent year-on-year.

The overall average interest rate on gross advances decreased by 7 basis points to 2.76 per cent in Q3 – the lowest rate on record.

First-time buyer lending was up 4.9 per cent year-on-year at £12.7bn, while buy-to-let lending was up 21.2 per cent at £9.7bn.

The proportion of gross advances over 90 per cent LTV decreased 0.7 percentage points to 2.8 per cent between Q2 and Q3.

The proportion of gross advances to borrowers with a single income multiple of more than 4 increased by 1percentage point to 10.3 per cent in Q3 2015.


FCA logo new 2 620x430

FCA’s compliance guarantees in doubt after lack of action

Regulatory experts have questioned the effectiveness of compliance guarantees used by the FCA after a Freedom of Information request revealed not one has resulted in enforcement action in the past two years. An FoI submitted by Mortgage Strategy’s sister title, Money Marketing, has found that no investigations have been opened in the past two years […]


Tread carefully with lifetime lease options

Following the growing coverage of so called sell-and-rent-back deals, I’ve been approached by a number of colleagues who have come across similar plans.


Age limits

The credit crunch has put paid to the plentiful supply of lending into retirement products and now older people are facing a rapidly shrinking market as providers cut the maximum age on their standard mortgage ranges 


News and expert analysis straight to your inbox

Sign up