19 Aug

More homebuyers took out mortgages in July

More homebuyers took out mortgages in July

Homeowners looking to sell their properties have been given good news after it was revealed that more homebuyers are taking out mortgages.

The Council of Mortgage Lenders (CML) announced earlier this week that the amount lent to borrowers in July 2010 rose by five per cent, up from £12.9 billion in June.

While this figure of £13.6 billion is still down three per cent from the £14 billion that was lent to homebuyers in July 2009, this is a positive sign for the industry as it suggests that more people are entering the property market.

CML economist Paul Samter said there could have been more activity last year as people rushed to buy a house for sale in the UK before the end of the stamp duty holiday.

He added that homeowners should not be worried as the situation "is not that bleak".

Recent figures from the CML revealed that despite the low interest rates, more people are opting for fixed-rate loans compared with tracker ones.

It showed nearly half of the borrowers in June chose to have the security of a fixed-rate mortgage.ADNFCR-1222-ID-800032043-ADNFCR

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