View more on these topics

Mortgage choice often linked to region, says Abbey National

More than 20% of London borrowers have opted for fixed rate mortgage deals in 2002, compare to only 8% in the Midlands and 12% in the North.

The news comes from Abbey National, whose most recent research suggests people&#39s borrowing preferences vary widely according to the part of the country they live in

While mortgage choice depends on financial circumstances, the majority of UK borrowers are making the most of discounted mortgages. However, financially stretched Londoners living in the most expensive region of the UK are showing a desire for stability in their mortgage.

Home improvement loans have also proved popular, particularly in Greater London which has seen a growing trend of people enhancing their existing home. 55% took out a home improvement mortgage either for their own sake or to help add to their home&#39s market value. In the Midlands, 57% have also been reinvesting in their current home rather than upgrading to a bigger property, which is perhaps an indication of the rapid house price increases experienced in the region.

Cashback and capped mortgages are in demand north of the border with 3% of Scottish home-buyers taking these mortgages, compared to just 1.4% in London and 1.25% in the North.

Guy Aldwinckle, head of mortgage marketing at Abbey National, says: &#39&#39Different areas of the country have been through different housing market trends in the last year and therefore we are seeing differing borrowing patterns.

“With interest rates at a 40-year low and so many good mortgage deals available, it&#39s no surprise that the discount mortgage is currently the most popular among homeowners overall. The home improvement loan seems to be a real alternative for people who are keen to maximise the value of their existing property.”


FSA releases Practitioner Panel report

The Financial Services Authority said yesterday that an independent survey of industry views about the financial services regulatory regime provides a valuable insight which will help the FSA as it continues to develop the system of financial regulation. FSA Chairman Howard Davies says: “The FSA was officially launched at a time when the profitability of […]

Equity release on the increase

Equity release is on the increase in the UK, says new research by Norwich Union. The data reveals that nearly one in ten (8%) of homeowners in the 55-70 age bracket are actively looking to equity release as a means of funding old age. And despite repeated warnings about the Pension Timebomb, four out of […]

Halifax reveals five-fold increase in Stamp Duty since 1990s

Tax revenue raised from both Stamp Duty on residential property and inheritance tax attributable to housing wealth is estimated to have risen almost five-fold since the early 1990s. According to research by Halifax, Stamp Duty takings have increased from £735m in 1992/93 to £3.63bn in 2001/02. The Government announced on Wednesday that it is going […]

Coping with the mortgage frenzy

As we are all aware, the property market has rarely experienced so much frenzied activity as it has in recent months.But even when interest rates are finally raised and the property market does cool down, it will still remain pretty buoyant as consumers continue to take advantage of competitive remortgaging deals and historically low interest […]


News and expert analysis straight to your inbox

Sign up