Landlords could benefit from cheaper mortgages after a drop in interest rates was announced.

Countrywide Mortgage Services announced a 43 per cent increase in applications for mortgages after interest rates dropped by 0.36 per cent since October.

But managing director of Landlord Mortgages Lee Grandin said that this has not necessarily made the market "bloom again".

He said that the change is still positive and there has been improvement in the market, but it can only really change pace when mortgage lenders reduce deposit requirements.

Countrywide announced on December 14th that the drop in interest rates was a result of competition between lenders and improved conditions.

It noted that the average interest rate in November was 4.77 per cent and that fixed rate mortgages are most in demand.

Chief executive of Countrywide Grenville Turner said: "Mortgage applications are increasing as lenders are no doubt vying for business in the run up to the year end, which is great news for new and existing mortgage customers who will benefit from reduced repayments."

Written by Mark GarnerADNFCR-2002-ID-19517005-ADNFCR

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