Increased levels of competition between lenders and improved lending conditions have seen the average interest rate of Countrywide’s Top 10 Mortgage Applications fall for the third consecutive month. In November the average interest rate was 4.77%, down by 0.36% from October and 0.89% compared to the same period last year.
Applications for tracker mortgages have also increased for the fourth consecutive month – up 8% in November alone. Whilst fixed rate mortgages remain most in demand, the strong return of competitively priced tracker products has seen the total number of tracker applications rise by 22% since August 09, and 20% compared to November last year.
Activity in the remortgage market is also up with a 5% increase from the previous month. Fixed rate mortgages remained most popular with remortgage applicants but there was a sharp increase in the number of applications for tracker products during November – an increase of 12% (making up 40% of the total remortgage applications).
Grenville Turner, Countrywide’s group chief executive, said: “Competitive pricing from lenders is making a huge difference to the market with interest rates now much closer to current standard variable rates, which may further boost both the purchase and remortgage markets.
“Mortgage applications are increasing as lenders are no doubt vying for business in the run up to the year end, which is great news for new and existing mortgage customers who will benefit from reduced repayments.”
