The number of people remortgaging in the UK dropped to a five-year low at just 30 per cent of the mortgage market in September, according to research from the Council of Mortgage Lenders.
Approximately 79,000 people re-mortgaged in that month, 13 per cent fewer than in August
Analysts suggest the lowered rate, which matches that of August 2001, reflects a cooling market.
Director general of the Council of Mortgage Lenders (CML) Michael Coogan commented: "Today's figures show that slowly but surely the market is cooling as we approach the end of the year in an environment of higher interest rates".
However, the CML also noted fewer customers could be remortgaging because their original lender was offering improved incentives not to switch.
Fixed-rate, as a proportion of all mortgages, has also fallen with the cost of fixed-rate mortgages rising in line with interest rate increases making them less competitively priced than better value variable rate products.
According to the CML, the average interest rate on a fixed-rate mortgage rose to 5.24 per cent in September, from 5.18 per cent in August.
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