Commenting on the figures, Ben Thompson of independent, no-fees mortgage advisers, Clear Cut Mortgages said:
"Obviously, the impact of the July 2003 rate-cut is reflected in the buoyancy of the September statistics -- allowing for the time-lag as the change filtered through to consumers.
"Today's data also shows the remortgage message is getting through to borrowers, with this sector making up a substantial proportion of lending. Those with mortgages are using the low-rate climate to shop around and find themselves a better deal for their homeloans. With an expectation that the next interest rate move will be up, many borrowers are seeking shelter in fixed-rate deals or are taking this window of opportunity to switch to better deals.
"We would expect levels of remortgaging to grow as just one-in-three remortgaged in 2002, meaning there are plenty of homeowners out there who should be shopping around if they aren't already. Clear Cut's research suggests that a further £7.5 billion a year could be saved on homeowners' mortage repayments were they all to switch from their current rates to a better deal. There is an "apathy gap" when it comes to this area that consumers could be doing more to bridge."
"The data also shows that first time buyers have begun to return to the market, accounting for 31% of the £11.9 borrowed for home purchase. It is likely that this trend will continue as the impact of future potential interest rate rises and a requirement for increased affordability at the bottom end of the market combine to steady prices for these buyers.
"For those getting into the market at this uncertain time as far as rates are concerned, we would urge borrowers to ensure they are getting the best deal for their loans and are certain that they will remain affordable should a rate-rise occur in the coming months."
