View more on these topics

71% of all mortgages taken out in April fixed, says CML

Fixed rate mortgages accounted for 71% of all house purchase loans and remortgages in April, research out from the Council of Mortgage Lenders has revealed.

This figure is 2% higher than in March, and 17% more than in April 2005. It says the increasing popularity of fixed rate products reflects attractive deals being offered by lenders, coupled with consumers wanting to lock into low-rate long-term deals.

The CML’s survey also found that loans for house purchase accounted for 46% of all loans in April – up from 43% in March, but slightly lower than the 45% achieved in the same month last year.

Remortgaging accounted for 36% of all loans, and this is slightly lower than in March, but down by 5% on April 2005.

Loans to first-time buyers totalled 30,700 in April and the survey reveals that the average first-time buyer loan size is now 106,400, up from 103,839 in March and significantly higher than the 94,995 in April last year.

In April, first-time buyers borrowed 3.21 times their income to get a mortgage, up from 3.15 times in the previous month. However, mortgage interest payments as a proportion of income have actually fallen to 16.2%, from a peak of 17% in June 2005.

Michael Coogan, director general of the CML, says: “Today’s data confirms that the market is in good shape. The strong take-up of fixed rate deals is encouraging because they give consumers confidence in their mortgage payments and allow them to plan ahead financially.

“It is also interesting to see that while both first-time buyers and movers are borrowing a greater multiple of their income to get a mortgage, their payments as a proportion of income are lower than in the same period last year. This is potentially due to the higher take-up of attractive fixed-rate products over the past year.”

Recommended

BMW and MINI launch into personal finance

BMW Financial Services and Money by MINI are launching a range of personal finance product ranges including house insurance. The products include BMW and MINI eSaver savings account, to save towards a vehicle, home insurance, a guaranteed performance bond, 50:50 bond and two co-branded credit cards – BMW Card from American Express and the MINI […]

MoneyQuest chooses LMS

MoneyQuest, which offers telephone and internet financial services, has chosen LMS to create and manage its on-line conveyancing service for customers. Staff at the brokerage and their clients can also track the progress of the conveyancing process online and there is a no completion no fee guarantee.Dominic Toller, director of marketing and new business at […]

Accord joins M2000 panel

Mortgage 2000 Design & Processing has added Accord Mortgages to its lender panel.

Friends of the Earth slams government development plans

Friends of the Earth has slammed government plans to tackle climate change through micro-generation in development plans as only a modest step in the right direction. In a speech, the housing and planning minister Yvette Cooper says many local authorities are now adopting new requirements in their plans for on-site renewable energy in new developments. […]

Default image

Health Shield announces strong results

Health Shield, a corporate health cash plan provider, has announced that it has increased gross annual premium income to more than £25m in another year of strong organic growth.

Newsletter

News and expert analysis straight to your inbox

Sign up