Whilst fixed rate mortgages remain most in demand, tracker mortgages saw a 10% increase in the number of applications in October from the previous month.
The return of competitive tracker products to the market caused a rise in activity amongst Countrywide’s 800 mortgage consultants with applications increasing for the sixth consecutive month.
The last four weeks have also seen a fall in the average interest rate in Countrywide’s Top 10 Most Mortgages applied for in October. Competitive pricing from lenders has seen the average interest rate fall by 0.31% to 5.13%, the largest monthly change since January 2009.
While high loan to value (LTV) products dominate the top two spots on Countrywide’s Top 10 Mortgage Applications, greater confidence in the property market is leading to more people willing to invest in property and take out mortgages. This has been evident in the types of mortgages applied for in October by Countrywide mortgage consultants with 5 out of 10 Countrywide’s most popular written mortgages requiring at least a 25% deposit.
Grenville Turner, Countrywide’s group chief executive, said: “The competition between mortgage providers is increasing and as they react to the changes in the economy and monitor each others’ pricing, we are seeing mortgages being adjusted on almost a daily basis. This level of competition can only be a good thing for customers.”
