This reflects the fact fixed rates have become more expensive, with the average new fixed mortgage rate reaching 4.68 per cent, compared with the average new variable rate of 4.41 per cent. When fixed-rate popularity peaked at 47 per cent last August, the average fixed rate was 0.35 per cent lower than the average variable rate.
Gross lending during January fell, amounting to £21.5 billion compared with £23.9 billion in December, a 10 per cent drop. But, gross lending was still 11 per cent higher than last January’s figure of £19.3 billion.
The CML said the fall in lending figures was entirely the result of the seasonal lull after the pre-Christmas rush to complete.
The familiar plight of first-time buyers continued, with the proportion of first-time buyers remaining at just 27 per cent for the third month running.
However, there is no apparent relaxation of credit standards, with both percentage advances and income multiples falling slightly for both first-time buyers and movers.
CML, director general, Michael Coogan, said: “Once again, the figures illustrate just how price-sensitive consumers are to the up-front costs they face. This suggests that consumers continue to be swayed more by current price comparisons than by the desire for future price certainty.”
