Sharp increase in house purchase activity

| June 19, 2009 | 0 Comments

John Charcol claims there has been a “sharp increase” in house purchase activity so far this year year.

The broker says that in May, mortgage applications for house purchases were higher than for remortgaging for the first time since 2007.

The firm’s Monthly Mortgage Index shows that business connected to house purchases hit 53.4% last month, compared to an average 25% during 2008.

Furthermore, May saw the proportion of mortgage enquiries for a purchase rising to 59.7%, compared to 49.0% in April.

According to the broker, the figures suggest that enquiries are translating into business and the trend is expected to continue over the next few months.

Fixed-rate loans remain the products of choice, accounting for 79% of all mortgages arranged through John Charcol in last month.

However, fixed rates have probably bottomed out and are now rising, so June’s figures may tell a different story.

John Charcol points out that its Mortgage Index is based on mortgage applications submitted to lenders and is therefore ahead of the field.

Figures reported by the Council of Mortgage Lenders and the Bank of England are based on completions, which typically take place two to three months after the mortgage application is submitted.

Tags: , fixed rates, , , mortgage index

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