Applications for new mortgages were up by 21 per cent in 2011
The total number of applications for mortgages in 2011 was up 21.2 per cent on the previous year, according to data from the Mortgage Advice Bureau. MAB data also reveals that the average age of home buyers applying for a mortgage has risen to 39, which is the highest since the MAB index was launched. The reason stated for this average age increase is believed to be continued economic uncertainty.
Latest national mortgage index figures show that although, compared with the previous month, applications for mortgages fell 43.1 per cent in December 2011, they were up 20.2 per cent on the corresponding month in 2010. The MAB described this as 'typical annual phenomena', as in December people tend to concentrate on the festive period rather than their finances. The average salary of applicants in December 2011 was £35,352 which is up from £34,789 in December 2010.
Brian Murphy who is head of lending at the MAB, has said that borrowers who are committed to buying a property, are tending to gravitate towards fixing their monthly mortgage payments. Figures show three out of four borrowers are accepting a fixed rate mortgage deal.
He advised that lenders are continuing to support the market, particularly with mortgages for first-time buyers. Lenders such as the Woolwich and Nationwide are offering 90 per cent loan-to-value deals which are adding further competition and choice to the first-time buyer sector. In 2012 both first-time buyers and those with smaller deposits should see an opportunity to enter the property
