Increasing numbers of homebuyers are looking to fixed-rate mortgage deals as the interest rate seems to have hit a floor, one industry body states.
According to figures from the Council of Mortgage Lenders (CML), more than two-thirds of borrowers took out fixed-rate mortgages in April, the highest proportion since June 2008.
The average rate for these products was 4.83 per cent, the statistics show, with many taking out a fixed-rate deal for longer periods of five to ten years.
With rates expected to remain low, short-term fixed options are becoming less attractive, explains CML head of research Bob Pannell.
First-time buyers had an average 25 per cent deposit and borrowed 2.96 times their income, showing a slower rate of decline and suggesting that criteria may ease.
"There are tentative signs of house purchase lending stabilising, but we need to see considerably higher transaction levels to underpin house prices," Mr Pannelll added.
Earlier this month, the CML predicted further modest rises in mortgage approvals in the coming months.
See Also: Property News (5994)
Date Published: 11 June 2009
Related News
