19
Aug
More homebuyers took out mortgages in July
Homeowners looking to sell their properties have been given good
news after it was revealed that more homebuyers are taking out
mortgages.
The Council of Mortgage Lenders (CML) announced earlier this week
that the amount lent to borrowers in July 2010 rose by five per
cent, up from £12.9 billion in June.
While this figure of £13.6 billion is still down three per
cent from the £14 billion that was lent to homebuyers in July
2009, this is a positive sign for the industry as it suggests that
more people are entering the property market.
CML economist Paul Samter said there could have been more activity
last year as people rushed to buy a house for sale in the UK before
the end of the stamp duty holiday.
He added that homeowners should not be worried as the situation "is
not that bleak".
Recent figures from the CML revealed that despite the low interest
rates, more people are opting for fixed-rate loans compared with
tracker ones.
It showed nearly half of the borrowers in June chose to have the
security of a fixed-rate mortgage.