Mortgage applications through Knight Frank Finance climb 75% in June as borrowers seek to lock in low rates

New mortgage applications submitted through our mortgage brokers soared in June, underlining the strength of the market rebound as borrowers sought to capitalise on record low rates offered by lenders competing for new business.

New applications for purchase and remortgage were 75% higher in June than a month earlier, Knight Frank Finance said yesterday. Borrowers have been enticed by 2 year fixed rates as low as 1.09% and 5 year fixed rates of 1.36% 60% LTV on loans up to £10 million.

Simon Gammon, Managing Partner at Knight Frank Finance said: “Pent up demand was naturally going to build through lockdown as people were forced to put important decisions like moving home on hold, but the availability of rock bottom rates has acted as a powerful incentive for borrowers to dust of purchases, or cut their outgoings by remortgaging amid so much economic uncertainty.

“It remains the case that lenders are overhauling product lines and lending criteria at such speed that the market has become tricky to navigate, driving more borrowers to seek out professional advice in order to access the best deals.

“So far, those deals have been targeted at borrowers with deposits of at least 15% as lenders have shied away from those they deem as vulnerable to the wind down of government support schemes during the autumn, including the self-employed. anybody that relies on commission or bonuses to make up their income and first time buyers.

“Nationwide’s resumption of lending at 90% LTV this week might be the beginning of a wider shift in sentiment among the lenders that will enable a more evenly distributed property market recovery.”

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