Based on its data for October, Countrywide found that:
• Applications: Overall mortgage applications fell 1.4% – cancelling out the rise of 1% seen in September while remortgage applications made up 25% of all applications.
• Buy-to-let: Applications for fixed rate buy-to-let mortgages increased by 14% in October, reaching its highest level since December 2009, making up 71% of all buy-to-let applications in October 2010.
• Interest rates: The average interest rate of Countrywide’s Top 10 Mortgages Applied For was 4.61%, down 0.10% from September. (This is a 0.52% decrease on October 09).
• Fixed vs. Tracker: The overall percentage of purchase customers opting for fixed rate mortgage products has increased by 1%, with fixed products making up 73% of all applications in October 2010.
Commenting on the data, Grenville Turner, chief executive of Countrywide, said: “Remortgage activity picked up pace in October, making up 25% of all applications and reaching its highest level since March 2009. Consumer confidence has played a key role in this development as a growing number of customers shift from the uncertainty of a Standard Variable Rate (SVR) mortgage to a new raft of competitive remortgages with interest rates lower than the SVR rates being offered by a number of leading high street lenders.
“However, our latest indicators suggest that there is still a growing number of customers that are unable to remortgage, which makes our new agreement with MarketGuard timely. This new agreement will enable Countrywide consultants to recommend the rate capping insurance product RateGuard to customers who cannot or do not wish to remortgage. RateGuard will protect the policyholder’s monthly mortgage payments from rising interest rates and help the thousands of ‘mortgage prisoners’ trapped in their current arrangement.
“The latest figures from our network of 1,300 estate agency and lettings branches suggest that while the number of new rental properties entering the market increased for the sixth consecutive month, tenant demand remains strong with over 16,000 new applicants registering for rental accommodation in October. Overall there were 4.5 tenants vying for available rental properties in October, fuelling further concern over tenant demand and rental supply.”
