Around one in four homeowners planning to move in the next six months are citing mortgage rate reductions as the main driver, according to research from the Nottingham Building Society, however brokers warn that cuts may have ended.
Research by the Nottingham amongst a nationally representative sample of 96 mortgage brokers by Pollright Research in April warned that these rate cuts may have ended.
Only 16 per cent of brokers questioned expect any further reductions, while 23 per cent are forecasting slight increases and 56 per cent expect rates to stay where they are.
Meanwhile the lender also commissioned Consumer Intelligence to survey a nationally representative sample of 1,115 adults aged 25+ during April, which found that 20 per cent of homeowners are considering moving property over the next six months.
A quarter of these said the main reason is the fall in mortgage rates which means buyers have more equity and can afford more expensive properties.
June started with several bigger banks and building societies lowering rates across a range of mortgage lengths and loan-to-values, adding to previous cuts across the market in recent months.
On a regional basis, Nottingham’s research found that 27 per cent of people in the east of England are considering moving in the next six months, the highest of any region. This is followed by south west and Wales (26 per cent), Yorkshire and Humberside (24 per cent) and the south east and London (23 per cent).
In terms of the mortgages people are looking to take out, the research suggested that many people believe that mortgage rates may rise, because half of those planning to move home intend to take out a fixed mortgage.
Just 8 per cent plan to opt for a standard variable rate mortgage, 5 per cent favour a tracker and 2 per cent intend to have an offset.
Ian Gibbons, the society’s mortgage services senior mortgage broking manager, explained that as mortgage rates have fallen, finding a good deal is possible if you search the whole market. “In the first three months of this year, we saw a 49 per cent increase in mortgage enquiries compared to the fourth quarter of last year.”