The January mortgage market was dominated by subdued mortgage activity, low LTVs and low income multiples, says John Charcol.
Katie Tucker, technical manager for Charcol, says: “January was made up almost entirely of the ‘bread and butter’ mortgages: the ones for which demand rarely falls. However, according to the Charcol Mortgage Monitor, in February; all mortgagor types are more active.”
The broker says 52% of all borrowers took fixed rates in February which is high compared to the more recent norm of around 33%.
Remortgages for buy-to-lets were also up in February compared to January, but Charcol says new purchases for buy-to-lets remained low.
Tucker adds: “First time buyers bounced back, and made up 10% of mortgage applicants this month, as they took advantage of the last of the high loan-to-value deals. This more than doubled the 4.5% of buyers that were first-timers in January.
“First-time-buyers continue to have to take large mortgages, and the average first time buyer borrowed 80% of their property value, compared to other purchasers whose loan to value was 74%.”