More mortgage applications so far this year than for whole of 2012
Wednesday 16th October 2013
There have already been more mortgage applications this year than for the whole of 2012, the Mortgage Advice Bureau has reported.
MAB says that September was its second busiest month of the year so far, with 58% more mortgage applications than the same time last year.
As a result, more people have now applied for a mortgage in the last nine months than in the whole of last year. Buyer activity has grown by 61% since September 2012 while remortgaging activity is up by 52%.
MAB, which operates largely from its network of 800 estate agents, has also reported falling mortgage rates.
For example, a three-year fix hit a record low of 3.92% last month, dipping below 4% for the first time since before 2007, while two-year fixes are at a record low of 3.56%.
Almost all MAB customers (93%) are currently opting for fixed deals.
The falls in rates equate to a £90 saving on monthly capital and interest repayments for the average two-year fixed deal, an £89 saving on a three-year deal and a £66 saving on a five-year deal.
Brian Murphy, head of lending at MAB, said: “Thanks partly to government funding and support, affordable mortgages have now been in vogue for much of the year, and the competition to win over the house-buying public should mean that conditions continue to improve in borrowers’ favour.
“It means that Help to Buy is coming on-stream at a time when confidence and momentum have already resurfaced in the market.
“This is one reason why lenders are treading carefully with their opening offers under the mortgage guarantee, which are sure to improve as the scheme finds its feet during the remainder of this year and into 2014.
“Help to Buy will be a godsend both for aspiring first-time buyers and first-time sellers who have been held back by a lack of savings or equity as well as mortgage finance.
“The good news is that homebuyers and movers won’t be left with a choice between Help to Buy or nothing – there are plenty of attractive offers with and without government support.”
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