Mortgage affordability at lowest point since '92

The CML’s data also reveals borrowers are moving away from fixed rate mortgages in expectation of further rate cuts. The CML’s data showed 68% of new mortgages were fixed rate deals in October, down from 72% in December, indicating many borrowers believe interest rates have peaked and they no longer need the security of a fixed rate. Lending volume increased by 9% from £30.6bn to £33.5bn. However, the CML says many of these mortgages would have been approved before the problems at Northern Rock became apparent and lending is expected to be more subdued in the coming months. Affordabilit...