Mortgage lending to increase in the coming years

There will be an increase in the number of people looking for the best mortgage rates in the coming years and mortgage lending will increase, according to MyMortgageDirect.

Cath Hearnden, director at MyMortgageDirect, said: "The market is never going to stagnate, there is always going to be some movement."

She added that with inflation expected to be high next year and talk of increased interest rates people are already beginning to think about coming off their variable rates and onto fixed-rate mortgage products.

Recently-released data from the Mortgage Advice Bureau MAB found that the percentage of fixed-rate mortgages taken out increased from 63.6 per cent in October to 65.7 per cent in November.

The figures for fixed mortgage rates show a significant increase from the 46.3 per cent of applicants choosing a fixed-rate in January 2010.

Ms Hearnden noted that those with a small deposit, the self-employed or first-time buyers are struggling to get on the property ladder.
 

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2010-12-21 13:44:27 © Moneyextra.com