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Struggling mortgage holders `should seek advice` Remortgage enquiries `rise in June` Mortgage approvals `up in June` UK mortgage market remains weak, CML says Consumers `should avoid lying on mortgage applications` BoE releases Trends in Lending report Brits `prioritising debt repayment` "Sensible lending" needs to be restored for home buying Many households `to miss mortgage payments` Homeowners `increasingly paying off mortgage debt` Booklet produced for those facing mortgage repayment problems Local authority defends decision to offer 100% mortgages Mortgage lending levels `still low` CML welcomes campaign on repossessions Consumers `increasingly offsetting savings against mortgages` Banks `should be encouraged to provide more mortgages` Younger and richer people `benefiting more from mortgage reductions` Bank of England cuts base rate Negative equity `concerning UK mortgage holders` Interest rate cuts `were not anticipated by consumers`

Record fixed-rate mortgage take-up `due to rising interest rates`

22/08/2007

Consumers are said to be "erring on the side of caution" when it comes to choosing mortgages, according to the Council of Mortgage Lenders (CML).

Figures from the CML show that a record number of first-time buyers are taking out fixed-rate home loans as rising interest rates are putting people off taking up variable rate mortgages.

The CML reports that the number of first-time buyers entering the market in June 2007 was the lowest for that month for three years, at 35,600. In June last year, 39,800 loans were arranged for first-time buyers.

CML spokesperson Christopher Dean said: "Clearly people are anticipating further rate rises and want to lock into the certainty that a fixed-rate mortgage provides. It allows first-time buyers or home movers to actually know exactly how much they`re paying out each month on their mortgage, so it gives them that payment certainty."

In early July the Bank of England increased interest rates to 5.75 per cent, the fifth such rise within 12 months.

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