The 700-strong national broker said 2-year mortgage deals made up 77% of applications last month and remortgage activity was at its highest level since June 2009 for the third consecutive month at a fifth of total applications.
The research also showed buy-to-let mortgages were 13% of overall mortgage applications – up 4% on September 2009.
The average interest rate of Countrywide’s Top 10 Mortgage Applications was 4.66%, up 0.12% from August 2010 and a 0.78% decrease on September 2009.
Nearly three out of four (72%) of borrowers opted for a fixed rate in September, up considerably from the 53% in January this year.
Grenville Turner, chief executive of Countrywide, said: “Overall mortgage applications rose 1 percent in September, which demonstrates that the purchase mortgage market is still active with a new wave of buyers entering the market. While the third quarter is a traditionally quieter period for the market, mortgage applications are broadly in line with overall house sales.
“General stability in the current market should be seen as a good thing but we need to be mindful that the economy is still in a fragile state. The next few months will be crucial as we await the full impact of the government’s spending cuts on buyer confidence.”
The housing market was also busier said Countrywide with its estate agency business seeing 16% more new properties coming on to the market in September than August. Year on year new instructions were up 10%.
Viewings increased by 23.7% to the highest level since June 2010 and the number of homeowners requesting valuations on their properties rose by 13% to its highest level since June 2010.
Turner said: “Activity across the UK property market in September provides some positive signs, particularly in areas which have slowed down in recent months.
“Figures from our estate agency network show that there is still a strong appetite from buyers and sellers. Countrywide’s national open house event in September resulted in strong increases in both the number of new properties entering the market and buyers viewing but only those properties that are realistically priced to sell are doing so.”
The research also recorded the number of new properties entering the market as rising a further 1.7% in September to its highest level since November 2008. The number of new tenants has grown 19% over the past three months despite a 3% drop in September, an increase of 43.3% increase on September 2009.
There was a 29% difference between the number properties let in September compared to the number of new instructions entering the market, fuelling concerns over supply and demand.
Turner added: “The rental market continues to go from strength to strength with the number of new rental properties increasing for the fifth consecutive month, which are now at their highest level since November 08. However tenant demand continues to outstrip supply, which is an ongoing concern but also an opportunity for lenders as buy-to-let mortgages continue to be the strongest growth area for our mortgage consultants.”
