Mortgage News
Applications return to pre-crunch levels
Mortgage applications have returned to pre-recession levels, according to Countrywide.
The property services group reported a 20% increase in applications in March, making it the third consecutive month when volumes have increased and also representing a 9% improvement from the first quarter of 2009.
Countrywide attributed the recovery to renewed consumer confidence as a result of more choice, citing an 8% product volume hike in March.
The research also revealed that two-year mortgage terms remained the favoured length and that the average deposit required was 21%.
Grenville Turner, chief executive of the Countrywide Group, said: “Widespread uncertainty surrounding the economy and election does not appear to have deterred mortgage customers, which might partly be due to the number people who have sat tight during the recession and are now ready to move regardless.
“While the longer term outlook is unknown, the forthcoming election is not deterring buyers, and mortgage applications always provide a good indication of consumer confidence.”
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The good news for brokers was compounded by figures from the Council of Mortgage Lenders (CML) which revealed that the number of loans for house purchase increased by 12% in February.
The number of first-time buyer loans rose by 13%, home mover loans increased by 12% and remortgage levels showed a modest 2% improvement.