"The figures announced by the Council of Mortgage Lenders reveal that purchasing is currently the dominant driver in the market, accounting for 51% of the total arranged, with remortgaging falling quite significantly, accounting for just 33% - the lowest total since September 2002.
"This highlights that the purchasing market continues to push ahead with buyers undeterred by the ongoing speculation of a downturn in the market. It is also worth noting that rising rates should not deter remortgagers. There are still plenty of very attractive deals in the market that, at the very least, those paying a standard variable rate of around 6.25% would do well to take note of."
First timers fall away
"Recent months have seen the proportion of first time buyers entering the market rise, albeit at a very moderate rate, but today's figures highlight that previous months may well have been just a glitch. First timers accounted for just 28% of the market, down from 31% last month - which perhaps reflects the ongoing concerns about rising property prices. Again though, first time buyers should not despair as there are many solutions out there which aim to help them get onto the property ladder."
Fixed rates more popular, but price does drive the market
"Fixed rate lending became more popular in April, but still only made up 30% of new lending – up from 25% in March. This upturn is likely to be the result of 3 Base Rate rises in 7 months and borrowers looking to mitigate against rising monthly payments. However, variable rates still continue to be the most popular choice demonstrating that price is still the dominant factor in choosing how to repay a mortgage.
"That said, during April, the differential between fixed and variable pricing was as much as 1%, but this has shrunken somewhat and today stands at nearer 0.7%. We may therefore see that fixes rates become more popular in next month's figures."
The MarketPlace at Bradford & Bingley has produced a booklet "Helping you buy your first home" which offers first time buyers some invaluable information on the range of specialist mortgages available and details of the key things to think about. Borrowers can request a copy by phoning The MarketPlace free on 0800 11 33 33.
