What to expect from the mortgage market in 2018

This year has been a pivotal turning point for many of those within the mortgage sector. There has been a continued focus on the market because of interest rates, property prices and the overall level of demand for housing across the UK.

It’s fair to say it has been a year of big economical changes. The snap election, revised to buy to let laws and the pressure of home-ownership on a younger generation may have played a part in many mortgage decisions. While mortgages may now be more accessible than they have been for a number of years, what does the future hold for those looking to borrow in 2018?

Having continued to fall for a number of years, November saw the Bank of England base rate rise from 0.25% to 0.5%*. It was an increase that was to be expected, with mortgage rates resting at record lows for several years. However, for the best part of the year, many aspiring home-owners and second steppers took advantage of the low rates in order to get the best deal suited to them.  With the Bank of England generally only increasing/decreasing the base rate at 0.25% at any one time, it’s likely that anyone considering a mortgage for their property purchase will still be able to utilise low rates well into 2018.

With a number of changes implemented over the last few years, most recently the mortgage review for landlords with four or more buy to let properties, lenders are beginning to offer more attractive rates to investors*. While some independent lenders have already dropped minimum rental income to benefit those looking for a buy to let mortgage, it could be a tactic many other lenders adopt as we enter 2018, making mortgages a cheaper option for landlords looking for a buy to let purchase.

As a result of growing interest rates, it’s understandable that the number of remortgages will also increase as home-owners make use of the cheaper deals available*. Those concerned with future rate rises will most likely to be remortgaging to secure a longer-term fixed deal for future security. Remortgaging is also a popular method to release equity to fund home-improvements*, purchase a second property or for other lifestyle choices. With rates still low but gradually rising, it could be a likely outcome to see more UK residents remortgage their homes over the course of 2018.

The Chancellor announced a number of government changes on 22nd November that will affect the property and finance sector. This year’s Budget had a firm focus on the housing market, with the biggest takeaway being the abolition of stamp duty for first time buyers*. This, along with the continued support of schemes such as Help to Buy, may mean that over the next 12 months, there’s likely to be an increase in buyers looking to get a mortgage for their new property.

Here at Expedite Finance, we’re here to help you every step of the way of your property purchase. From your initial enquiry to post-completion, we’ll provide you with regular updates and all the in-depth knowledge you need in order to make an informed decision regarding your mortgage. Not only that, but we can help you find the best deal to suit your needs from a wide range of lenders, so you don’t have to spend your time shopping around. To find out more about our services, call Expedite today on 0800 2012 100.

 

YOUR PROPERTY MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE.

*https://www.theguardian.com/business/2017/nov/02/interest-rate-rise-bank-of-england-homeowners-savers

*http://www.thisismoney.co.uk/money/buytolet/article-5088689/Buy-let-lenders-relax-mortgage-rules-landlords.html

*https://www.standard.co.uk/business/rate-rise-sparked-remortgage-surge-a3700976.html

*https://www.theguardian.com/lifeandstyle/2017/oct/26/new-house-diy-are-you-ready-for-a-fixer-upper

*https://www.ft.com/content/74d7485c-cf97-11e7-9dbb-291a884dd8c6

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