Intermediaries have seen a revival in interest in the housing market accompanied by an increase in house purchase mortgage applications since the Bank of England cut Bank Rate, according to a survey from the Family Building Society.
But there has been less of a rise in the number of homeowners seeking to remortgage while most borrowers are applying for 5-year fixed rate mortgages.
Of those surveyed nearly two thirds (64 per cent) reported an increase in mortgage enquiries and there was a 56 per cent increase from those wanting to move. However, three quarters of the intermediaries who took part said clients were looking at 5-year fixed rather than 2-year fixed mortgages.
The survey carried out in late September compares intermediary business levels and borrowers’ attitudes on a six-monthly rolling basis.
Among other findings are an increase in enquiries about using the support of the Bank of Mum and Dad and other family members with young people still keen to get on the housing ladder and the most popular properties are individual homes with the least popular being flats, bungalows and maisonettes.
Alistair Nimmo, Director of Marketing at Family Building Society, said: “Intermediary sentiment could well be affected by measures in the forthcoming Budget, but they do show that if the Bank of England continues to cut interest rates the revival in the housing market should continue.
“What’s more, young people are still keen to get on the housing ladder but continue to rely on wider family help, viewing renting as an expensive option with nothing to show for it. In addition, borrowers want the comfort of knowing exactly what their monthly mortgage repayments will be, opting for 5-year fixed over 2-year products”.
