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Purchase mortgages outstrip remortgage deals

"The upward trend for house purchase loans is extremely encouraging and shows that people will continue to move despite the current climate."

The percentage of mortgages taken out by first-time buyers has remained strong over the course of the last nine months, a positive sign that those able to find a sufficient deposit continue to take advantage of lower house prices. 

Cox said: "First-time buyer activity remains strong despite larger deposits being required by lenders. This could well be a sign that we are at a tipping point in the market in that those able to supply the necessary deposit are choosing to buy rather than rent. Indeed monthly mortgage payments in many parts of the country on a typical first-time buyer property will be similar to – if not lower than – equivalent monthly rent."

Figures released by Spicerhaart also reveal that fixed-rate mortgages continue to be strong, despite the low bank base rate, as many people look to budget through the recession, and are concerned that rates may increase over coming months. Just 23% of the group’s customers took out variable mortgages in September compared with 77% of who opted for a fixed rate deal.

The number of repayment mortgages also increased by 9% from the beginning of the year to September as borrowers look to pay down their debt and take advantage of lower rates, making a repayment loan more affordable than in recent years.  

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