UK Mortgage Applications Up by 20% in March

A recent report by the Mortgage Advice Bureau and Coreco Group revealed that the number of mortgage applications was up by 11.6% and 20% in March 2011 compared to February 2011 and March 2010 respectively. The number of remortgage applications, on the contrary, fell by 1.9%.

Interestingly enough, 80% of those who applied for new mortgages, were interested in fixed rate deals. The average loan size increased by 3.3% from February 2011 (£127,546 vs. £123,508). The loan-to-value ratio decreased from 71.4% in February to 69.9% in March.

Activity on the market differed significantly from region to region, with mortgage applications increasing by 30% in the South-West and decreasing by 6.3% in the North-West.

The survey by the Mortgage Advice Bureau and Coreco Group did not track mortgage approvals, which means that it is still unclear whether increased demand from borrowers faced positive reaction from UK banks.

Consider using comparison websites to see what mortgages deals are currently available from British banks and building societies.