Ironically, despite the recent run of bad mortgage news published pretty much continuously by the media over the last few months, it transpires that the number of people getting a mortgage across the UK is actually on the up.
A piece published in The Guardian revealed how mortgage approvals in June topped 54,700 – up 3,600 compared with May. A surprising statistic, you might think, given the number of stories that have focused on the dreaded combination of increasing mortgage rates and decreasing property values.
This is further compounded by the Bank of England (BoE) also revealing how the number of remortgages rose by 5,000 to 39,100 during the same period.
As a Guildford mortgage broker, we saw the same trend throughout June.
So, what is actually happening? And why is the actual data on mortgages at odds with rolling news coverage surrounding the property market?
Acceptance is key
Our team of Guildford mortgage advisers are hearing one thing pretty consistently at the moment, and that’s that those applying for a mortgage are now accepting of the fact that this challenging period is going to last for a little while – at least longer than hoped.
So, if you think that UK mortgage rates are going to continue increasing what might you do? Whether you’re coming close to the end of your current mortgage deal, or are currently on your lender’s standard variable rate or tracker rate mortgage, then you might want to lock in the best UK mortgage deal today.
After all, whilst rates are not as good as they were a year ago, there’s the chance that today’s rates might be much better than they are one year from now.
And this is what lies behind the surge in mortgage applications.
Hedging your bets
Sadly, there is no way of predicting the mortgage rates of tomorrow (and as little as two weeks ago, they really were changing on a daily basis!).
However, as it stands, the reality is that the mortgage market has become more dynamic. Talk of a UK recession, in parallel with a wider expectation that interest rates are going to continue rising for a little while yet, doesn’t help either. As a result, people are beginning to think that getting a new mortgage today could be a more cost-effective strategy than waiting to see what happens tomorrow.
Of course, it all depends on a manner of things, not just how long you have left on your mortgage. And it’s here where mortgage brokers add value.
Whether you’re considering remortgaging, or you need to get a first-time buyer mortgage but are unsure of how the current economic landscape affects you, then it’s worth arranging to speak with one of our Guildford mortgage experts.
Looking for a trusted Guildford mortgage broker? If so, contact our team of Surrey mortgage advisers on 01483 238280 or e-mail info@complete-mortgages.co.uk.
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