Mortgage applications up 43% at Countrywide

The UK's largest mortgage broker, Countrywide Mortgage Services, has reported a 43% rise in the number of loan applications it received between October and November.

The broker attributed the huge rise to improved competition between lenders pushing interest rates down.

The average interest rate charged on Countrywide’s 10 most popular mortgage deals fell in November for the third month in a row, to 4.77% - a decrease of 0.36% on October and 0.89% lower than November 2008.

Applications for tracker mortgages increased for the fourth month in a row, up 8% in November alone, 22% since August and a 20% rise on November 2008. This reflects the fact the tracker rates are now priced more competitively than they were, and that more people now believe that Bank Base Rate will remain low for some time to come.

Remortgaging levels have also increased, up 5% in November – 40% of remortgage applications were for tracker deals.

Grenville Turner, Countrywide’s group chief executive, said:

“Competitive pricing from lenders is making a huge difference to the market with interest rates now much closer to current standard variable rates, which may further boost both the purchase and remortgage markets.

“Mortgage applications are increasing as lenders are no doubt vying for business in the run up to the year end, which is great news for new and existing mortgage customers who will benefit from reduced repayments.”