Buyers becoming ‘more cautious’
Home buyers are beginning to take a more cautious approach to borrowing, according to the Council of Mortgage Lenders (CML).
Statistics released by the CML showed that 90 per cent of first-time buyers and 76 per cent of home movers opted for fixed-rate mortgages during June.
Both figures are records and CML spokesman Christopher Dean believes they indicate that people are taking into account potential future interest rate decisions when they decide what sort of mortgage to take out.
"Clearly people are anticipating further rate rises and are wanting to lock into the certainty that a fixed-rate mortgage provides," he explained.
Mr Dean added that the payment certainty fixed-rate products offer is useful for people who want to avoid the "affordability difficulties" that can accompany interest rate rises.
Meanwhile, a new report published by the National Association of Estate Agents has revealed the numbers of sales, registered buyers and properties on agents' books all fell during July, providing clear evidence of a slowdown in the property market.
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