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Remortgages up 20% in October

Remortgage applications in October were up 20% on September, reaching their highest monthly level since November 2008, the latest figures from the Mortgage Advice Bureau/Coreco National Mortgage Index show.

But purchase applications, after rising 14% in September, dropped off dramatically in October, down 11.4% on September.

Despite this drop off in purchases, total mortgage applications, purchase and remortgage, are actually up 25% for the year to date compared to the same period in 2009.

The average LTV on purchase mortgage applications remained at 70.4%, the same level as in September, while the average loan size for purchase mortgage applications fell again, from £127,591 in September to £123,982 in October, a drop of 2.8%.

The average deposit put down by a purchase mortgage applicant in October was £36,699 compared to £37,767 in September.

The average LTV on remortgage applications rose from 53.1% in September to 55% in October, while the average remortgage application loan size dropped by a substantial 12.1% in October to £130,913 compared to £148,934 the previous month.

The majority of purchase and remortgage applicants continued to chose fixed over variable rates, with 63.6% choosing fixed products compared to 62.8% in September.

This is the highest percentage of applicants choosing fixed rates since September 2009.

Regionally, the West Midlands saw a massive 29.6% rise in applications for October compared to September, while Wales saw total mortgage applications fall by 41%.

Despite the West Midlands witnessing an increase in mortgage applications in October, eight out of the ten regions saw total mortgage applications fall last month.

The oldest mortgage applicants were in East Anglia , at 42 years and two months with the youngest in the West Midlands at 35 years and seven months.

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