Demand for fixed rate mortgage loans is reaching fever pitch, according to the latest index from Mortgage Advice Bureau.  Rates are continuing to fall and have done so now for four months straight.  Almost 90% of all those seeking a way to the first rung of the property ladder are opting for a fixed rate loan.

Attractive deals for both original loans and remortgages are in no short supply as lenders continue to compete with the New Year closing in fast.  A modest spike has occurred in housing over the past few weeks, including higher activity in both original mortgage lending and remortgage lending.  The Funding for Lending scheme is also expected to continue improving.  This has caused many to feel 2013 could be a much better year than previously estimated.

Brian Murphy of the Mortgage Advice Bureau commented on the near future in housing, saying: “The fact a number of high street banks lent significantly less than they expected earlier in the year means it is a great time for prospective buyers and those refinancing their property to secure a fantastic rate on their mortgage. It is therefore no surprise to see fixed rates being the default choice for the overwhelming majority of borrowers.”

Murphy added: “Looking ahead, we expect the Funding for Lending Scheme gain momentum into the New Year and prompt more banks to follow the lead of the early adopters by increasing their total lending. Competition for business can only be a good thing for consumers, who stand to benefit as rates continue to fall.”