The anticipated slowdown – which is typical for April – was largely put down to the month’s public holidays and school breaks, which was exacerbated by recent travel disruptions and the lead up to the election.
New mortgage applications grew by 20% in March but fell back by 18% in April. Overall year-to-date applications grew 6%.
The findings are based on the activities of more than 700 mortgage consultants, which reveal that other key market indicators remained broadly positive with average interest rates and deposits showing marginal changes.
The average interest rate of Countrywide’s Top 10 Mortgage Applications fell by 0.08 to 4.57% compared to March 10 - a fall of 0.66% in April 09.
The average deposit placed by home buyers was 20%, 1% less than in March 10 and 1% more than in April 09.
The split between fixed and tracker product sales changed slightly with 60% of customers opting for fixed products, a 1% fall on March. The percentage split has changed dramatically over the last year as tracker products represented just 3% of mortgage applications in April 09, reaching 47% at their peak in December 09.
Grenville Turner, Countrywide’s group chief executive, said: “April is traditionally a quieter month with school breaks and bank holidays affecting market activity. What we've experienced has followed the typical pattern of recent years.
“However, the contrast between applications in March and April shows how fragile any market recovery can be. That said; in April, we saw one of our best weeks for mortgage appointments in 2010, which suggests an improvement in buyer interest during May and June.”
