However, mortgage applications are still up 21.7% for the year-to-date, compared to the same period in 2010.
According to MAB’s Index, the percentage of applicants choosing fixed rate deals in October was 69.6%, compared to 73.3% in September.
The average loan size on mortgage applications in October was £129,237 compared to £140,113 in September, while the average loan to value on mortgage applications in October was 69.7% compared to 71.8% in September.
The average deposit put down by a mortgage applicant in October was £56,182 compared to £55,030, in September.
October saw a 9.3% rise in remortgage applications according to MAB. This follows a 12% increase in applications in September.
Of those homeowners who remortgaged in October, 62.9% chose fixed rate deals compared to 62.1% in September. The average loan size of remortgage applications in October was £150,490 compared to £143,213 in September.
The average LTV on remortgages in October was 59.8% compared to 59.6% in September.
Commenting, Brian Murphy, head of lending, independent mortgage broker Mortgage Advice Bureau, said: “Overall mortgage activity reduced slightly in October, down by around 4% on the previous month.
“Mortgage applications for house buyers reduced by 9% but this was partly offset by an increase in the number of borrowers remortgaging which increased by 9%. Remortgaging as a proportion of total business increased to more than 31%, its highest share this year.
“Borrower preference for fixed or variable rates has seen something of a mixed picture in recent months. In the year to date, approximately 28% of all borrowers have opted for variable rates, but the last three months has seen a small increase with almost a third (32%) of borrowers choosing variable products. However, the majority of borrowers continue to opt for both the relative safety and excellent value that many fixed rates continue to afford.
“With mortgage rates remaining, in almost all loan to value sectors, at effectively all time low rates, it is no surprise to see more borrowers taking advantage of these opportunities and in so doing, for many, taking control over one aspect of their committed spending where they can provide a degree of certainty in what are very uncertain economic times.
“The ongoing Eurozone crisis appears to show no signs of stabilising, although as yet it doesn’t appear to be having any direct effect on lender appetite or the number, range and price of products. Average rates on two year fixed rate deals rose slightly in October versus September, while five year products fell back a little further and two year trackers rose although have fallen back subsequently.
“Product numbers actually rebounded in October rising to 7,300 intermediary deals from around 6,800 in the previous month. Direct deals also increased to more than 1,700 up from 1,600 in September.”
