Mortgage market remains unpredictable
The mortgage market is “robust but subdued” following a period of house price uncertainty in the wake of the Brexit vote. According to the Council of Mortgage Lenders (CML), gross mortgage lending edged down to £21.4bn in July. This was 1% lower than the same month last year and almost identical to June.
Interests rates at new record low
The Bank of England cutting interest rates to a new record low of 0.25%. The cuts have been a part of their post-Brexit economic strategy. There has been a reduction in mortgage costs for many thousands of borrowers. This cut is also expected to push down rates for new borrowers.
It had previously been reported that housing activity would undergo a lull in the aftermath of the Brexit vote. However, it is now widely believed there will be a rebound when the outlook is reassessed in a year’s time.
Less positive backdrop for house purchase activity
CML Chief Economist Bob Pannell said “The subdued nature of property transactions and mortgage lending in July are consistent with a less positive backdrop for house purchase activity post-referendum.”
However, as mortgage market commentator Henry Pryor said, though “the market has not yet suffered the predictions made as part of Project Fear, there is still plenty of time for them to come true.”
“The housing market, like the wider economy, has much to deal with. We are clearly a long way from the promised end to boom and bust” he added.
If you would like some Independent Financial Advice about your mortgage, and how the Brexit vote or changing mortgage market could affect you, then please get in contact with our Hove office on 01273 208813. We have an in-house mortgage and protection specialist, Stefan Olingschlager, who will give you an initial consultation at our cost and with no-obligation. You can email Stefan at [email protected]
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