The findings show that high loan to value (LTV) products are in strong demand as consumers struggle to raise large deposits required by many lenders.
The results stem from the activities of nearly 800 mortgage consultants acting for the UK’s top high street lenders across England, Scotland and Wales.
As speculation over the recovery of the economy continues, Countrywide’s research also indicates that more customers are opting to pay a premium for longer term fixed rates in order to shelter themselves from the risk of any sudden changes to the mortgage market. Six out of 10 mortgages in June were 3-5 year fixed rate products and this trend appears to be continuing in July.
In the month of June, the average interest rate of Countrywide’s Top 10 most sourced products was 5.27% (taking into account both transactional and remortgage customers).
Grenville Turner, Countrywide chief executive, said: “We’re seeing a rising number of applicants approach our consultants with similar mortgage requirements. Few purchasers can afford to save 20 or 30% deposits. The last few months have caused many to seek comfort in longer-term fixed interest rates before the tide changes and the base rate begins to rise.
“Now, as house prices appear to stabilise and attract new buyers to the market, there’s a changing mood among mortgage customers with many wanting to move up the property ladder and querying when they should fix their mortgage and how long for. Homeowners and new purchasers are preparing themselves for a quick succession of interest rate rises and are locking themselves in before it is too late.”
