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The Co-operative Bank and Britannia have seen a 31% increase in mortgage applications in the first half of the year, as the housing market shows signs of recovery. But what does this mean for those looking to make mortgage applications?
The figures also show a 13% increase in the proportion of customers who are remortgaging, suggesting people are taking advantage of the historically low mortgage rates.
“Throughout the credit crisis our strong financial position and responsible lending approach has attracted more and more customers to us and is an approach we will continue to build on,” said the Co-operative Financial Services Chief Executive Neville Richardson.
“Increasing numbers of people want to be with a business that they trust and in our case – a business they can have a say in.”
This year has seen The Co-operative Bank and Britannia launch a range of best buy products to tempt consumers and have included a five year capped tracker product, a mix and match proposition for one application fee, and they led the way with the return to 90% lending earlier this year.
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Experts have predicted that house prices will grow by around 4% during 2010 but not due to the increasing movement in the housing market but because of a continued lack of supply and housing shortages.
Disproving those who predicted a double dip, the findings from the latest Consumer and Housing prospects report, by the Centre for Economics and Business Research suggests that the forecasted prolonged period of very low interest rates will continue to stimulate demand for housing over the coming years.
The low interest rates are leading many a homeowner with sleepless nights as economic uncertainty leaves them unsure about what to do when they need to remortgage.
“In general, we believe trackers still offer better value, but the best longer term fixed rates are now offering good value for those who want, or need, interest rate security,” says Ray Boulger from Mortgage Brokers John Charcol.
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