Looking at activity in the housing market the Ntionwide Building Society sees that the most popular type of property for a first time buyer is the traditional terraced house.
Figures show that approximately 38 percent of people looking to get on the property ladder go for a terraced house, preferring these over other types of accommodation. In the housing market as a whole just over 25 percent of houses bought are terraced so the preference for terraced houses for first time buyers is considerable.
Logically it makes sense that this is the case since terraced properties tend to be both smaller and less expensive to buy than larger places. This means they can be better suited to a first time buyers requirements and also easier to get a mortgage for since the cost is less. The Nationwide Building Society has seen that prices for terraced houses are rising quickly though.
According to just released industry figures the number of mortgage approvals is down by a massive 20 percent compared with last month and almost 60 percent less than the same time last year.
There were just 28,000 mortgages approved last month, the lowest number since the records began in 1997. Bank of Scotland, for which mortgages are a core part of their business confirmed the validity of these numbers, saying they had seen similar, though not as extreme, results.
What the Bank of Scotland have seen though is a continuation in the level of remortgage business, something that they have been pleased with since this shows that there is still interest in the rates as they stand.
The Abbey National has announced rate cuts on their two and three year fixed rate mortgages of up to 0.15 percent, the second round of cuts in the last 10 days.
The lowest 2 year fixed rate Abbey National mortgage can now be had at 6.34 percent, with a fee of GBP999, while the equivalent three year offer is just 6.29 percent. These mortgages require at least a 25 percent deposit to qualify.
Soon to be breaking the 6 percent barrier is a new Abbey National mortgage with a 5.99 percent rate, though the maximum loan to value will be 70 percent rather than the usual 75 percent. This will be for a three year fixed term and has a fee of GBP1,695, with a maximum loan value of GBP250,000.
