MAB: 90% of borrowers chose fixed-rate mortgages in July

John Hewitt Jones

August 22, 2016

row of houses

Over 90% of mortgage applicants took out a fixed-rate mortgage in July, Mortgage Advice Bureau’s National Mortgage Index reveals today.

Fixed-rate lending remained buoyant last month with 93.2% of consumers choosing this type of product.

The Index suggests the lending market has remained buoyant, despite Brexit, with consumers continuing to benefit from rates which remain close to all-time lows

Remortgagers reap the rewards

Brian Murphy, head of lending at Mortgage Advice Bureau, said: “Although many had expected activity in the market to pause or drop significantly in July due to the referendum result in June, overall the data would suggest that, whilst there has been a slight cooling in purchase activity, it’s been ‘business as usual’, with an increase in demand for remortgages.”

The total number of mortgage applications decreased by 0.38% in July compared with June, although remortgage applications rose by 4.24% month-on-month and 29.8% year-on-year.

Murphy added: “The last time there were over 20,000 mortgage products was March 2008, which was pre-financial crisis, when 23,802 products were available.

“The wealth of product availability, coupled with rock bottom rates has led to the overwhelming majority of people fixing their mortgage; those remortgaging and fixing dropped slightly in July to 88.4%, down from 90.7% in June, with 93.2% of purchase applicants opting for a fixed deal.”

Mortgage Advice Bureau is a mortgage network with over 850 advisors. It processes over £12bn loans annually and is the only mortgage intermediary floated on the London Stock Exchange.