The main findings are:
Mortgage interest rates in the UK have fallen in the past year by more than any other European country – apart from Greece. Based on the latest available figures from the European Mortgage Federation, the average mortgage rate in the UK has reduced by 0.8 per cent during the past 12 months. This compares to interest rate reductions in Spain and the Netherlands (0.6 per cent), Germany (0.4 per cent) and Italy (0.2 per cent). Interest rates in Sweden, Ireland, Belgium and Austria have all risen during the last 12 months.
UK consumers have a far greater choice of mortgages to choose from than their neighbours on the Continent. Also the UK benefits from innovative products – variable rate loans, discounted, fixed, tracker, capped, and ‘cap and collar’ mortgages. In contrast, over two-thirds of mortgages in Europe are fixed-rate loans.
Gross lending levels in the UK during the first six months of 2001 were three times those of any other European country.
Spain (78 per cent) and Italy (78 per cent) have the highest rates of owner-occupancy with the UK coming in at 67 per cent.
UK homeowners liven in an environment with a less advantageous tax regime than many of our EU neighbours. Owner-occupiers in France and Spain receive more favourable tax treatment than UK homeowners.
Increased competition during the past two years has helped the UK property market to become more balanced between owner-occupation and the rented sector.
Commenting, Shane O’Riordain, director of communications, said: "This research underlines the fact that the UK has got one of the most competitive mortgage rates in the EU even though we will not be in the Eurozone. UK consumers also benefit from a wider range of products and product providers than anywhere else in the EU."
