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CML: Fixed-rate revival continues
13 August 2008 10:30
Fixed-rate mortgages continued to grow their share of a depressed market at the expense of trackers in June, according to new Council of Mortgage Lenders (CML) figures.
The volume of fixed-rates lent out in June was down by 1.8 per cent from May and by 44.1 per cent year-on-year at 83,500, but the proportion of the market these mortgages accounted for rose from 66 to 69 per cent, having fallen to 52 per cent in February.
By contrast, the number of trackers lent out in June fell by 9.2 per cent from May but by just 4.5 per cent year-on-year to 25,600, yet their share of the market, which had risen as high as 33 per cent in February, decreased from 22 to 21 per cent in June.
Rates on both types of these products showed signs of creeping upwards in June, rising from an average of 5.82 to 5.86 per cent for fixed-rates and from 5.67 to 5.75 per cent for trackers, although both still remain below the levels reached at the tail end of 2007.
Commenting on the sector as a whole, CML head of research Bob Pannell warned that lending would continue to decline over the months ahead due to funding constraints and falling demand, with most mortgages going to people with relatively sizeable deposits.
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