Intermediaries have seen a revival in interest in the housing market since the Bank of England base rate cut, according to a survey from the Family Building Society.
However, the survey found there was less of a rise in the number of homeowners seeking to remortgage, while most borrowers were applying for 5-year fixed rate mortgages.
Of those surveyed, nearly two-thirds (64%) reported an increase in mortgage enquiries and there was a 56% increase from those wanting to move.Â
However, three-quarters of the intermediaries who took part said clients were looking at 5-year fixed rather than 2-year fixed mortgages.
The survey carried out in late September compares intermediary business levels and borrowers’ attitudes on a six-monthly rolling basis.
Among other findings were an increase in enquiries about using the support of the ‘Bank of Mum and Dad’ and other family members.
In addition, the survey revealed that the most popular properties were individual homes, with the least popular being flats, bungalows and maisonettes.
Alistair Nimmo, director of marketing at Family Building Society, said: “Intermediary sentiment could well be affected by measures in the forthcoming Budget, but they do show that if the Bank of England continues to cut interest rates the revival in the housing market should continue.
“What’s more, young people are still keen to get on the housing ladder but continue to rely on wider family help, viewing renting as an expensive option with nothing to show for it.
“In addition, borrowers want the comfort of knowing exactly what their monthly mortgage repayments will be, opting for 5-year fixed over 2-year products.”
