Countrywide has reported that the volume of remortgage applications last month reached the highest level since January 2009.
The broker claimed speculation surrounding base rate rises saw remortgage applications make up 32% of all mortgage applications in January, a 5% increase on the previous month.
Three out of the top 10 mortgages applied for by customers through Countrywide’s network of 650 mortgage consultants were remortgage products and customers provided an average deposit of 32% which gave them an average interest rate of 3.26%.
Overall, the average deposit required for the top 10 most popular mortgages in January was 22%, with an average interest rate of 4.24% showing the difference between remortgage and house buying transactions.
Fixed rate products made up 84% of all mortgage applications in January – a 9% increase on the previous month, which saw fixed rate products reach their highest level since August 2009. A large proportion of remortgage customers also opted for fixed rate remortgage products making up 86% of all applications – an 8% monthly increase and the highest level since July 2009.
Grenville Turner, chief executive of Countrywide, said: “The growing popularity of fixed rate mortgage products is a telling sign that many are prepared to pay slightly more to give themselves peace of mind and stability with regards to their outgoings. Overall
