London mortgage applications up 88.6% last year

Published on

Purchase mortgage applications in London almost doubled in 2010 compared to 2009, according to the latest Mortgage Advice Bureau/Coreco National Mortgage Index.

Although the total number of mortgage applications in 2010 was low relative to pre-Credit Crunch levels, mortgage applications were up 88.6% compared to 2009.

The average LTV on purchase mortgage applications in 2010 was 66%, down from 67.6% in 2009, while the average purchase mortgage loan size increased 18.4% from £217,419 in 2009 to £257,491 in 2010.

In 2010, 52.9% of borrowers chose variable over fixed rate purchase mortgages during 2010, although last month, 57.9% of purchase applications were for fixed rate deals, suggesting that borrowers are less confident that interest rates are going to remain at their current level during 2011.

On the remortgage side, the average LTV on remortgage applications in 2010 was 51% compared to 48.8% in 2009, while the average loan size dropped from £321,302 in 2009 to £303,795 in 2010, a 5.4% fall.

The average age of a purchase mortgage applicant in London in 2010 was 36 years 10 months, compared to 40 years in 2009.

Andrew Montlake, director of Coreco Group, said: “A lacklustre start to 2011 is likely following the softening market towards the end of 2010

COMMENT ON MORTGAGE SOUP

We want to hear from you!
Leave a comment and get the conversation started.
You need to register to post, so please login or sign up below.

Latest articles

Teachers for Intermediaries raises new-build LTV limit to 95%

Teachers for Intermediaries has increased its maximum LTV on new-build houses and flats to...

Cambridge BS opens applications for deposit-building Rent to Home scheme

The Cambridge Building Society has opened applications for its Rent to Home property in...

Life changes could create new wave of accidental landlords

Changes in personal circumstances rather than investment plans could push more homeowners into the...

Remortgage searches jump 40% as borrowers return after summer

Remortgage activity drove a sharp rise in mortgage searches during September, with Twenty7tec recording...

Step One Finance adopts OMS origination platform

Step One Finance has introduced a bespoke loan origination system developed with One Mortgage...

Latest publication

Other news

Teachers for Intermediaries raises new-build LTV limit to 95%

Teachers for Intermediaries has increased its maximum LTV on new-build houses and flats to...

Cambridge BS opens applications for deposit-building Rent to Home scheme

The Cambridge Building Society has opened applications for its Rent to Home property in...

Life changes could create new wave of accidental landlords

Changes in personal circumstances rather than investment plans could push more homeowners into the...