According to the Council of Mortgage Lenders, gross mortgage lending during February fell to a level not seen since April 2003. The main reason for the drop-off has been because the number of people re-mortgaging has fallen. Fixed rate deals have apparently become unpopular as they have become less cost-effective, when compared to generally available variable rates.
Our View
There has been a visible slowdown in the housing market but that does not mean prices are falling. Fixed rate deals are less readily available at the moment and because everyone expects interest rates to rise, the fixed rate deals are taking this into account.