Despite rising mortgage rates demand is on the increase.
Despite rising mortgage rates and the re-introduction of stamp duty, house purchase and demand for remortgage continues to remain strong.
Lenders rising standard variable mortgage rates are being cited as a possible reason for an increase in mortgage demand because many home-owners are choosing to search out a more competitive deal.
Mortgage applications recorded for March this year were 5 per cent higher than for the same period last year. The average LTV for mortgage applications fell slightly by 1.3 per cent from February to March although it has remained relatively stable over a 12 month period having been 69.9 per cent in March last year.
During the last year average deposit levels have risen by almost 13 per cent which follows closely a 14.5 per cent increase in average mortgage size which rose from £126,647 in March last year to £145,005 in March this year.
Bank base rate has remained static at 0.5 per cent for 3 years with no sign that this will rise any time soon. However SVRs have risen and other rate increase announcements are likely to be made in the coming months in reaction to rising funding costs.
Presently now is a good time to search for a deal before average mortgage rates begin to climb further.
We are already seeing an increase in some fixed rate costs and a tightening of lending criteria therefore we recommend that you call Deal Direct to source a competitive mortgage for you.
