Market Comment

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Prime leading the market

2011 has seen an encouraging start with plenty of activity, particularly at the top end of the market. More Lenders have come to the market, a number of whom are focusing on clients wishing to borrow over a million (£)

Our average mortgage arranged in this period has increased to over £750,000 and despite the much publicised talk of base rate increases the majority of borrowers are electing to take advantage of the low variable interest rates available. 

Base rate will undoubtedly rise but when? The market is factoring in a rise in May but I am not convinced the economic recovery is quite so well established and would not rule out base rate remaining flat for the remainder of 2011. Whatever happens, everyone is agreed that any increases will be gradual.

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