Commenting, John Charcol’s Ray Boulger said: “In 2008 purchases made up an average of 25% of our business, however 2009 is a very different story. Purchases have taken an increasing share over the course of the year to date, hitting 53.4% in May. Furthermore enquiries for new business have risen sharply over the last few months, particularly for purchases, and in May the proportion of mortgage enquiries for a purchase was up to 59.7%, compared to 49.0% in April. This suggests that as these enquiries translate into actual business the proportion of purchases in our business written will continue to rise over the next few months. It seems that the market is continuing to show positive signs of recovery.”
Fixed rates are still the product of choice, according to Boulger: “Although the take up of fixed rates is very slightly down from last month, they still accounted for some 79% of all mortgages arranged through John Charcol in May. This highlights that people are keen to seek refuge from the stormy economy and ensure they know exactly what they are paying each month for the foreseeable future. However, with the recent dramatic move north in fixed rates, next month’s figures will be particularly interesting.”
