As is often the case with the financial markets – which, let’s face it, are essentially the economic equivalent of a rollercoaster – it doesn’t take too long before you’re blindsided by a new piece of information that has the potential to change the course of the next few months.
Take last week, for example. We published an article entitled Things are FINALLY looking up, which covered mortgages in 2024 and provided our take on why we think 2024 is going to be a better year than 2023.
However, news this week suggests that 2024 could, in fact, be a tricky time for mortgage lending.
A different perspective
Everyone’s entitled to their own opinion, of course.
And a predicted fall in mortgage lending by 8 per cent is the opinion of UK Finance*, a trade association that represents the banking and finance industry.
In a forecast they released on Monday, the organisation acknowledged that affordability pressure appears to be easing off – but that stated that it may take until 2025 to filter through.
As a Maidenhead mortgage broker, we’re not entirely convinced. Based on the areas we explored in our last article – and our own experience of seeing lending increase over recent weeks – we still believe that 2024 will be a year of recovery.
But it could depend on what happens this Thursday.
Up or down (or neither)
On Thursday, the Bank of England will make an announcement with regards to the base rate of interest.
After holding it at 5.25 per cent in November, which reassured the markets (and pretty much every mortgage holder in the UK), we’ll find out if it’s going to go up, down or remain at 5.25 per cent.
Like you, our team of Berkshire mortgage brokers have no idea as to what the outcome will be. If it remains at 5.25 per cent, then we believe that our 2024 mortgage predictions still stand. If it goes down, then even better. However, if it does go up then this is likely to have a knock-on effect on 2024 mortgage rates – and yes, maybe next year’s mortgage lending will slow down.
If you are considering a move in 2024, then our advice is to speak with a mortgage broker before the close of 2023. By securing a deal now, just in case mortgage rates do increase in January, you might not only save yourself money but also ensure that you get a mortgage before any rate increase (if it happens) impacts your affordability. Remember, any mortgage offer you receive today lasts for six months – even if rates do go up.
Whilst the majority of people begin to think about Christmas parties and mince pies, why not use the next two weeks to get the best UK mortgage deal in place for the New Year.
Looking to get a head start on your 2024 mortgage application? If you’ll be applying for a mortgage in 2024 contact our team of mortgage brokers in Maidenhead on 01628 560820 or by emailing enquiries@altonmortgages.co.uk.