Increase in mortgage applications recorded by Co-op

The Co-operative Financial Services has recently reported that there has been an increase in the number of mortgage applications, and this comes despite the continued difficulties and challenges that are being faced by the property and mortgage markets.

According to officials from the financial institution there has been an increase of 31 percent in mortgage applications in the first six months of this year. According to the company the reason behind the increase in its level of mortgage applications is the quality of its products, its financial strength, and the quality of its service. It maintains that even in the current difficult climate this has helped it to enjoy success with its financial products.

The company also said that it had seen a significant increase in the number of people that were applying for fixed rate mortgages through its branches, and this was sparking speculation over whether people are now concerned that the base rate may start to increase even though it has been at a record low of 0.5 percent for the last eighteen months and many officials believe that it will remain at its record low for some time to come.

The Co-op also said that another reason behind the increase in fixed rate mortgage applications could be that many would now be happy to lock in their interest rate at this stage because the rate was already at rock bottom and would therefore be unlikely to go any lower than this.

The restrictions on mortgage lending are still in place with many lenders, resulting in increased difficulties for those looking for mortgages. However, the Co-op said that it has shied away from this trend, and hope to continue healthy lending levels in the future, thus further boosting its application levels.