13 Oct

Mortgage lenders are 'relaxing'

Mortgage lenders are 'relaxing'

Estate agents will be pleased to learn that there is now some evidence of "relaxation" among mortgage lenders, according to one property expert.

Peter O'Donovan, head of mortgages at independent financial adviser Bestinvest, said the fact that Northern Rock is the latest lender to offer its best loan-to-value rate at 70 per cent from 60.

His comments follow the publication of statistics from the Council of Mortgage Lenders, which revealed that new mortgage approvals were up by 29 per cent in August compared to the same month of 2008.

"Certainly the recent changes downwards on fixed-rates suggest that [lenders] might be looking for a bit more business," stated Mr O'Donovan.

This news comes after HSBC recently announced an extension of its two-year 1.99 per cent mortgage deal until the end of this month.

However, Mr O'Donovan remarked that many homeowners on two-year low variable rate contracts are probably best off staying where they are.

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