CML: Mortgage rates now at 2004 levels

People seeking mortgages are reaping the benefits of the cheapest homeowner loan rates that have been recorded since 2004, a report has suggested.

However, it remains difficult for those without a sizeable deposit to obtain finance, the Council of Mortgage Lenders (CML) noted.

“There is a sharp dividing line in the housing and mortgage markets between those who can raise a substantial deposit and those who can’t,” stated Bob Pannell, head of research for the organisation.

But for people who can afford a large downpayment, the “burden of debt” is quite low, he said.

The average home mover uses 11.4 per cent of their income to meet mortgage interest payments, the CML reported.

It added that there were 18,900 home mover loans in March and around 40,000 remortgages.

In related news, chief economist for the Royal Institution of Chartered Surveyors Simon Rubinsohn has forecast that property prices will stabilise later this year.

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