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75% of mortgage applications are for fixed-rates

Fixed-rate products were chosen by three quarters of all mortgage applicants – excluding remortgages – in January, Mortgage Advice Bureau’s latest National Mortgage Index shows.

The figure is up from 45% of borrowers in the same period last year.

Furthermore, the data reveals the average LTV on mortgage applications was 72% last month, an increase on December’s ratio of 70.9%.

The report notes this rise is partly a result of an increase in the availability of LTVs above 80% in the past three months.

Brian Murphy, head of lending at Mortgage Advice Bureau, says it is not surprising to see consumers retreat to the safety of fixed-rate products.

He says: “With a variety of fairly negative economic news, rising inflation and an increase in unemployment levels, borrowers who are active in the market are erring on the side of caution and increasingly opting to fix their repayments.

“Furthermore, fixed-rate deals still offer extremely good value relative to historic levels and therefore we are seeing more people taking advantage of current pricing.”

The index also reveals the average loan size on mortgage applications increased by 6.6% in January compared to the previous month to £128,887, while the number of mortgage applications was up by 23.3%.

Murphy attributes much of the rise in volume to the treacherous weather conditions of December, which caused many transactions to be carried over into January.



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Guide: day-to-day tasks ​— can your system manage?

This guide from Johnson Fleming will take you through the required communication and also give ideas for additional actions that will ensure your auto-enrolment project is a success. As well as highlighting what is required from a system to ensure it is up to the tasks, an overview of the following is also provided: data validation; data categorisation; employee communication; opt-in process; opt-out process; produce contribution schedule; contribution reconciliation process; upload of member data to pension provider; upload contribution to pension provider; manage salary sacrifice process; enrolment process; re-enrolment process; and management of increased employee queries.


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