There were 88,000 loans given for house purchase in the month of September, a fall from 101,300 in August. This figure is 4.5% below the 92,100 given in September 2005.
Loans to first time buyers decreased to 31,100 in September, down from 35,200 in August. This figure was 34,700 in September 2005.
Loans to home movers continued along the same trend, going from 66,100 in August down to 56,700 in September. The figure was 57,300 in September 2005.
Those taking out fixed rate mortgages fell sharply. Fixed rate mortgages maintained a 59% share of the market, accounting for 60% of all loans in the third quarter of 2006, compared to 70% in the second quarter.
Fixed rate mortgages are more expensive, making them less attractive than variable rate mortgages . The average interest rate for a fixed rate mortgage went up to 5.24% in September, up from 5.18% in August.
Remortgaging is at its lowest levels for five years. It accounts for 30% of the market by value. This is the lowest it has been since August 2001, down from 42% in September 2005.
This sharp drop in remortgaging is likely to reflect the fact that mortgage lenders are retaining more customers for a longer period of time, thus decreasing the incentive to remortgage to other mortgage lenders .
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