More than 90% of borrowers are fixing their mortgages, according to the National Mortgage Index from Mortgage Advice Bureau – the UK’s best known broker brand.
The Index, which includes post referendum data, gives an early indication of borrower behaviour following the 23rd June decision to leave the EU. Anecdotal evidence would indicate that the lending market remains buoyant, with consumers continuing to benefit from rates which remain close to all-time lows.
Whilst the total number of mortgage applications slightly decreased 0.38% in July compared with June, remortgage applications rose 4.24% month on month and 29.8% year on year.
Mortgage Advice Bureau’s Head of Lending, Brian Murphy comments:
“Although many had expected activity in the market to pause or drop significantly in July due to the referendum result in June, overall the data would suggest that, whilst there has been a slight cooling in purchase activity, it’s been ‘business as usual’, with an increase in demand for remortgages.”
TrigoldCrystal data also revealed that there are now more than 23,000 mortgage products available, with the total number of products having risen for the eighteenth consecutive month, now standing at 23,478.
“The last time there were over 20,000 mortgage products was March 2008, which was pre-financial crisis, when 23,802 products were available.
“The wealth of product availability, coupled with rock bottom rates has led to the overwhelming majority of people fixing their mortgage; those remortgaging and fixing dropped slightly in July to 88.4%, down from 90.7% in June, with 93.2% of purchase applicants opting for a fixed deal.”