Fixed mortgages are popular choice amongst borrowers Fixed rate mortgages have increased for the eighth consecutive quarter, according the Bank of England and FCA’s Mortgage Lenders and Administrators Statistics (MLAR). The data shows that the number of people choosing to fix their mortgages has risen to 82.6 per cent in Q3 of this year – an increase of 5.3 per cent on the same time last year. The total value of residential loans within the UK in Q3 also rose by 0.5 per cent from Q2 to £1,255.6 billion, which is the highest quarterly amount in seven years. Managing Director of APH Financial Steve Biggs, commented on the data, explaining that the results prove that there is plenty of life left in the market following the introduction of the Mortgage Market Review (MMR). “With lenders firing on all cylinders to record the largest total advances in any third quarter since Q3 2008, this is a positive sign for consumers, who are benefiting from improved access to mortgage finance despite tougher affordability checks. “Lenders are currently tripping over themselves to win business, with many of the major providers locked into a mortgage rate war. “This is providing consumers with historically low pricing: it’s therefore unsurprising that so many are choosing to lock into preferential deals, with MLAR statistics showing the proportion of advances at fixed rates is at its highest since tracking began in 2007. “This preference for fixed rate deals is likely to increase as consumers seek to protect themselves from an expected interest rate hike in 2015. “The signs certainly look positive as we approach the end of what has been a restorative year for the UK mortgage market. “While there are still a number of economic uncertainties on the horizon, and we may be yet to see the full impact of regulatory changes, consumers are now in a better position to access affordable mortgage finance than they were a year ago.”
Posted on: Thu, 11 Dec 2014 10:59:34 +0000
Trending Topics
Recently Viewed Topics
© 2015