Mortgage market 'still buoyant despite credit crunch'

The mortgage market is still buoyant despite the recent financial turmoil brought on by the credit crunch, according to Bestinvest.

Bestinvest, which is an independent financial advisory firm, also said that there are still plenty of people looking to buy houses and they should ensure that they understand exactly what they are entering into.

Peter O''Donovan, mortgage manager for Bestinvest, said: "I still think things are pretty buoyant because there''s plenty of remortgage business which is now getting even harder because of the fees that the lenders charge."

He added that a couple of years ago it was "very easy" to swap mortgages across for "a couple of hundred pounds" but now the average fee is £1,000.

The Council of Mortgage Lenders has said that the credit crunch has resulted in funding difficulties for numerous mortgage lenders and has reduced their capacity to lend.

It has also said that mortgage approvals have decreased because of rising interest rates and the tightening availability of mortgages.

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