Tim Guest’s Post

The latest mortgage lending statistics from the FCA and the Bank of England shine a revealing light on the impact of rising rates on the mortgage market. The value of outstanding mortgage balances with arrears rose to £21.9 billion in Q2 2024 - an increase of 32% compared to a year ago and the highest recorded level since 2014. Read the thoughts of Tom Cuppello in Daily Mail News on why trends in arrears cases and the macro-economic environment may be the light at the end of the tunnel. He also discusses the steps lenders should take to look after their customers here: https://lnkd.in/ecpzGMJa

Mortgage rates have seen their biggest drop since 2022 following a January pricing war. But rate cuts are now starting to slow. What's going on with mortgage rates? The mortgage price war appears to have slowed so borrowers need to act fast to find the best deal if they want to remortgage or get a home loan to buy a property. Even the best deals aren't sticking around for long as borrowers rush to snap up lower rates. Nationwide, HSBC, Santander and NatWest are among lenders who have trimmed rates this year. For further information you can read this article by MoneyWeek.

New data from the FCA reveals a 67% surge in the popularity of tracker mortgages over the past three years, with numbers rising from 118,818 in 2021 to 198,044 by early 2024. The data also highlighted a noteworthy trend within specific types of tracker mortgages. Particularly, those with a two-year incentivised rate experienced an 87% rise. While shorter-term incentives can offer immediate financial benefits, it is crucial for borrowers to consider the long-term implications and potential fluctuations in interest rates. Our mortgage expert, Charlotte Nixon: "The substantial increase in tracker mortgages, especially those with two-year incentivised rates, highlights a shift in borrower behaviour towards more flexible options and away from the popularity of fixed-term mortgages. (However), the benefits of a tracker must be weighed against the security of knowing how much you will pay each month.” Read the full article 👇

Between March 2009 and March 2022, the Bank of England base rate remained below 1 per cent. This kept mortgage rates predictably low for a long time. For example, according to Moneyfacts, in the six years between the start of 2016 and 2022 the average two-year fixed rate mortgage remained between 1.99 per cent and 2.58 per cent. Now, with mortgage rates far higher and the market more erratic, it will be proving much more of a headache for borrowers. So what should you do? Here is what I would do based on my circumstances, along with some other fabulous brokers on there's in This Is Money #johncharcol #mortgageindustry #mortgagebroker #mortgageadvisor #mortgagerates #mortgageadvice #mortgagelending #mortgagebrokeruk #mortgagerate #fixedrate #fixedrates #trackers #tracker

UK mortgage demand has returned to growth, according to the Bank of England's latest survey. The proportion of lenders reporting an increase in demand for home loans rose to 35.9, compared to minus 31.6 in the final quarter of last year. This marks only the second time in seven quarters that the index has been positive. The survey also revealed that demand expectations for the next three months rose to 23.2, the highest score in a year, while demand for remortgages was the highest in more than two years. These findings provide further evidence of the property market stabilizing, which is great news for the industry. #ukproperty #ukpropertymarket #interestrates #BOE #Demand https://lnkd.in/evYcDTg4

The mortgage market has been much more positive in recent weeks following a host of rate reductions and better economic! Find out what Aaron Strutt of Trinity Financial has to say in our latest blog: https://lnkd.in/eDhrucX4

Today’s rate cut means that the average homeowner on a variable rate deal should see their monthly mortgage payments drop by an average of around £32 per month. And while it’s not a huge amount, it will add up over the course of the year, and especially if we see further cuts. More from us, on what it means for borrowers in The Telegraph.

An interesting article in Property Industry Eye. The latest ‘Money and Credit’ figures from the Bank of England offer a moderately encouraging picture of mortgage lending in February 2024 even though the volumes still have some way to go in order to recover to pre-Covid levels. Net mortgage approvals for house purchases rose from 56,100 in January, to 60,400 in February. Net approvals for remortgaging also increased, from 30,900 to 37,700 during this period. Gross lending rose from £17.1 billion in January to £18.0 billion in February, while gross repayments decreased from £18.5 billion to £16.7 billion over the same period. The ‘effective’ interest rate – the actual interest paid – on newly drawn mortgages fell by 29 basis points, to 4.90% in February. https://lnkd.in/ePifUUf2 #propertymarket #mortgages #interestrates #bankofengland #buyingagent #ukpropertymarketanalysis

While the mortgage market has calmed down compared to the volatility seen in the last couple of years, knowing what move to do next is still as prevalent as ever. Advice in The Telegraph on consideration and expectations for 2024. #johncharcol #mortgagebroker #mortgagebrokers #mortgagebrokerage #remortgage #remortgaging #fixedrates #fixedrate #producttransfer #pt #switchlenders #advice #mortgageholders #lenders #mortgage #mortgagelending #mortgagebrokeruk #mortgages #mortgageadvice #mortgageadvisor mortgage #mortgagelending #mortgagebrokeruk https://lnkd.in/dR3rHdEn