Fixed rate
mortgages have now become the most popular type of
mortgage selected by borrowers. The council for
Mortgage Lenders (CML) showed that of all the new
home mortgages taken in July 2005, around 50% were
fixed rate mortgage deals, the trend is up by 4% from June 2005.
The Council for Mortgage Lenders also showed that the overall
lending in July fell by 2% to £25bn, this is 13% lower than in 2004. Michael Coogan, Director General of CML, said that 'the housing market has started to stablise at a new level'
The BBA (British Bankers Association) also confirmed that lending to individual's has slowed down in July 2005 and was below average for the proceeding six months. A reason for this may be that
consumers are expecting an
interest rate cut. In anticipation fixed
mortgage rates have already started falling.
Figures from The Council for Mortgage Lenders (CML) also showed that the average rate of a fixed rate mortgage has fallen consistently for nine months, it fell from 5.36% in June to 5.31% in July. CML figures showed that variable rate mortgages have also become cheaper, with average rates dropping from 5.76% in June to 5.68% in July.
