28 Sep

Lower money market rates 'could lead to more FTBs'

Lower money market rates 'could lead to more FTBs'

A lowering of money market rates on the part of lenders could "definitely" lead to an increase in first-time buyers, one property expert has asserted.

Peter Cowell, mortgage broker at Click n go Mortgages, said that although the Libor rate has declined to a very low figure, lenders are still refusing to reduce their fixed-rate mortgage rates.

His comments follow the release of the John Charcol Monthly Mortgage Index, which showed that fewer homeowners are choosing to take out fixed-rate mortgages and the volume of lending has fallen to 35.6 per cent.

"People have got used to the lower tracker rates and the variable rates, so when they look at the fixed rates, it's a big jump for them," stated Mr Cowell.

He added that interest rates are currently extremely high.

This news comes after the Residential Landlords Association recently reported that some mortgage contracts allow lenders to change their borrowing rates if the loan-to-value ratio varies significantly.

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