As a Maidenhead mortgage broker, there are very few things more pleasing to the ear – and probably the ears of our clients, too – than news that the housing market is on the up. After all, if the housing market is doing well (and homeowners’ property equity is growing in the process), then so too is the mortgage market.
So, when this week’s news that mortgage approvals were at an all time high since Liz Truss’s fateful mini-budget, our entire team of Berkshire mortgage brokers were all smiles.
As featured in the Bank of England’s Money and Credit report for September, net mortgage approvals for house purchases rose from 62,500 in July to 64,900 in August – the highest level since August 2022, when mortgage approvals stood at 72,000.
Why is this important, then?
Well, first and foremost, it highlights that confidence is building, both in terms of lenders’ willingness to lend and the UK public’s willingness to borrow. And, as we’ve seen over almost two decades as a mortgage broker in Maidenhead, the more confident both sides are, the more mortgage deals are done. As a result, there becomes less friction when applying for a mortgage. Or, to put it another way, getting a mortgage becomes easier.
The downside to the upside
Well, there aren’t really any downsides to a more fluid mortgage market – except possibly one. And that’s that there’s generally an influx of people wanting to apply for a mortgage at the same time.
In the last two months, we’ve seen new mortgage enquiries increase by 12 per cent, which would suggest that homeowners and would-be homeowners are ready to make their move after a prolonged period of waiting (in some cases, for two years!).
Now, for our team of Berkshire mortgage advisers, that’s very much a nice problem to have. However, as we operate on a first come, first served basis, it could mean that those late to apply might be waiting slightly longer than those who are quick to ride the wave of a reinvigorated housing market.
Domino effect
And it’s not just the housing market that’s moving in the right direction. The base rate fell in August and fixed rate mortgage rates are also coming down, too.
With this positive domino effect, in which multiple variables associated with getting a mortgage in the UK are all moving in a positive direction, we expect the remainder of 2024 to be an exceptionally active time for those looking to apply for a mortgage. Whether it’s those looking for a new first-time buyer mortgage or simply remortgaging to evade falling onto the expensive and avoidable standard variable rate, the run up to Christmas is going to be busy.
Whilst nobody knows what will happen to the base rate during the first week in November, when it’s next scheduled to be reviewed, a further drop (should that happen) is likely to generate additional levels of interest in applying for a mortgage.
On that basis, and as we begin to move towards the end of the year, we would urge those looking to apply for a mortgage, or those who are considering remortgaging, to get in touch sooner rather than later.
For the best UK mortgage deals and to speak with award winning Berkshire mortgage advisers, contact our team of Maidenhead mortgage brokers on 01628 560820 or by emailing enquiries@altonmortgages.co.uk.