The Council of Mortgage Lenders (CML) revealed mortgage lending in October declined, despite the competitive offers available to homeowners and first time buyers.
The figures show there were 46,000 loans for house purchase in October down by four percent in number and six percent in value from September this year. This was 16 percent down from October 2009.
There were 26,000 loans advanced in October for remortgages in October, down nine percent by number from September and 21 percent lower than the same time last year.
“Consumer confidence has also been affected by October’s spending review, despite the relative affordability of monthly mortgage payments,” commented Michael Coogan, CML director general.
Latest Mortgage Offers
Leeds Building Society has launched a two year discount mortgage with a rate of 2.54 percent.
This offer is available for those with 70 percent Loan to Value (LTV) with the flexibility of allowing 10 percent capital repayments each year.
There is a £199 booking fee but no higher lending charge.
“The very low interest rate will appeal to customers with larger loan sizes due to the benefit it will have on their monthly mortgage payments,” said Martin Richardson, Leeds Building Society’s general manager for marketing.
Tips for Comparing Mortgages
If you are keen to remortgage or obtain a mortgage for the first time while house prices are low, now is a good time to take advantage of low interest rates.
The Bank of England base rate remains low so those on tracker mortgages are feeling the benefits.
This rate however has nowhere to go but up, so it may be better to seek out a low fixed rate mortgage deal now to safeguard against future interest rate rises.
Compare Mortgages with Moneyexpert.com