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More mortgage choice for borrowers

More mortgage choice for borrowers

Category: Mortgages

Updated: 16/12/2009
First Published: 16/12/2009

MONEYFACTS ARCHIVE
This article was correct at the time of publication. It is now over 6 months old so the content may be out of date.

Mortgage finance appears to be becoming more readily available after a drop in the proportion of cash home buyers was revealed.

According to LSL Property Services, a rally in mortgage-backed house purchases is underway, with just a third (33%) of residential property bought in September being paid for in cash, compared with 37% in October last year.

Meanwhile, Countrywide Mortgage Services has attributed a 43% increase in mortgage applications in November to the ongoing fall in interest rates.

Although fixed rate mortgages remained most in demand, the number of applications for tracker mortgages were found to have increased for the fourth consecutive month, rising by 8% in November alone.

Activity in the remortgage market was also up, showing a 5% increase from the previous month.

The figures support data recently revealed by Moneyfacts.co.uk which showed the number of residential mortgages available to borrowers had increased by 34% over the last eight months.

At the start of December, the average two year fixed rate mortgage deal was also found to have fallen below 5.00% for the first time since June. It stands at 4.89% today.

A quarter of all two year fixed rate deals are now available at a rate below 4.00%.

"Lenders finally appear to be putting the 'open for business' sign back in the window and bringing competition back to the mortgage market," said Michelle Slade, spokesperson for Moneyfacts.co.uk.

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