16 Dec

Mortgage market 'has improved' as average rates have fallen

Mortgage market 'has improved' as average rates have fallen

The mortgage market has experienced an improvement as lenders move to reduce their borrowing rates, however, more needs to be done to reduce deposit levels, a mortgage specialist has said.

While Lee Grandin, managing director of Landlord Mortgages, welcomed the positive change in prices in the market, he said that there is still a long way to go before it improves significantly.

Mr Grandin commented: "The only thing that will get momentum going is when the mortgage lenders start to reduce deposit requirements. That's not happening to a large degree at the moment."

A report published on December 14th by Countrywide Mortgage Services found that average interest rates on mortgage products have fallen substantially, resulting in a 43 per cent increase in applications from borrowers.

The organisation also noted that applications for tracker mortgages were up by eight per cent in November, representing their fourth consecutive monthly rise.

However, it is fixed-rate mortgages that remain most popular – both with new borrowers and those looking to remortgage their property.

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