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People Looking for Bigger Mortgages
Borrowers are looking to take out larger mortgages, following the Bank of England's decision to cut interest rates last month, new data reveals.
Moneyextra today reports that the average mortgage being sought was £126,654 in August, up 0.89 per cent on July and 3.26 per cent higher than three months ago.
At the same time the average value of loans completed was up sharply at £153,354 - more than five per cent up on July and £37,755 more than in June.
"The continued strength of the bounce upwards is more likely to reflect a number of high value deals rather than a substantial market trend," Moneyextra said today.
But the firm adds that, following the first drop in interest rates for two-years, confidence - not to mention affordability - is bound to improve.
"The next cut in interest rates may well be some way off," Moneyextra said in a statement.
"However, the potential prospect of further reductions in mortgage costs continues to provide stability to house prices and boost market activity in mortgages after the lows seen in late spring."
The firm revealed that the values of mortgages being sought by all sectors, first-time buyers, movers, and remortgagers, all showed small increases in August despite average property prices slipping on the Moneyextra index.