8
Apr
'Rise' in tracker-rate deals
Fixed-rate mortgages have dropped in popularity as tracker deals
are taken out by more homeowners, according to new figures released
by the Council of Mortgage Lenders (CML).
The number of people opting to take out tracker deals increased
from 33 per cent to 25 per cent during February, it said, while the
volume going for fixed rates fell to 52 per cent.
Director general at the CML Michael Coogan claimed that this
development is taking place because people believe the Bank of
England will cut rates again soon.
"More recently, there has been consistent evidence of tightening in
lending criteria which will lead to shrinking pipelines of new
business as the recent Bank of England's credit condition survey
made clear," he commented.
He added that a number of service providers are having to deal with
a high number of mortgage application as lending criteria has been
tightened.
The Royal Institution of Chartered Surveyors has this week said
that the government should make more land available so that more
properties can be built.