Home loan activity in the UK remains relatively strong despite the volatile economy and mortgage rate increases, according to the National Mortgage Index by the Mortgage Advice Bureau (MAB).
The index shows that mortgage activity remains strong with year-on-year figures rising 16 percent, even though mortgage applications declined 13 percent in April from March.
“The month on month growth in mortgage applications we’ve seen this year has come to an end, but the mortgage market is still stronger than it was this time last year,” said Brian Murphy, Head of Lending at the MAB.
“Despite the uncertain economy and lenders withdrawing upfront discounted deals, borrowers are still putting their confidence in the market.”
Meanwhile, the average deposit on applications to buy homes rose 18 percent to £61,537 (S$123,126) in April, while the average income of borrowers applying for mortgages climbed seven percent to £35,815 (S$71,640). At the same time, the average purchase price climbed 20 percent to £211,536 (S$423,044) for the month while average mortgage application values grew by 19 percent to £148,437 (S$296,917).
“The percentage of applicants seeking to protect themselves from further rate rises by applying for fixed rate deals remains high at 79 percent, but overall affordability remains good,” noted Murphy.
“There may be fewer products available in coming months but a good whole of market mortgage broker will be able to find the best deals currently available.”
Related Stories:
BofA to buy back S$330m of loans from Freddie Mac
More Aussie borrowers switching lenders
UK mortgage holders feeling the squeeze