Mortgage Market Sees Boost in Confidence and Activity

The mortgage market is experiencing a surge in confidence and activity, with intermediary confidence reaching its long-run norm. Business volumes continue to grow, with mortgage brokers processing an average of 102 cases in the year to June.

Mortgage Market Sees Boost in Confidence and Activity

The mortgage market is experiencing a surge in confidence and activity, with intermediary confidence reaching its long-run norm, according to the latest Mortgage Market Tracker report from the Intermediary Mortgage Lenders Association. Business volumes continue to grow, with mortgage brokers processing an average of 102 cases in the year to June, an annual figure last reached in 2021.

Pent-up Demand Drives Jump in London Prime Property Sales

London’s prime property market is seeing a significant increase in sales, driven by pent-up demand following 12 months of high inflation. The number of exchanges in London in June and July was 8.4% above the five-year average, according to Knight Frank. However, the market is expected to be affected by VAT taxes on private schools and tightening non-dom rules in the UK.

Rental Price Growth Falls Below Three Percent

Rental price growth in prime central London has fallen below 3% for the first time in three years, with rents rising by an average of 2.5% in the year to July. This is attributed to the re-balancing of supply and demand in the market, which is putting downward pressure on rents.

Innovative April Mortgages Cuts Rates in Simplification Exercise

April Mortgages has reduced the interest rates on its range of five to 15-year fixed-rate mortgages by up to 0.10 basis points. The lender is committed to bringing peace of mind to mortgage borrowers and brokers, and has recently expanded its distribution through partnerships with leading mortgage brokers.

Image: London skyline

London’s prime property market is experiencing a surge in activity

Intermediary Confidence Booms as Business Volumes Continue to Grow

Intermediary confidence has now recovered to its long-run norm, with 29% of advisers describing themselves as ‘very confident’ and 65% ‘fairly confident’ about the future. The proportion of advisers who said they were ’not very’ or ’not at all’ confident remained marginal.

Image: Mortgage broker

Mortgage brokers are experiencing a surge in confidence and activity

Conclusion

The mortgage market is experiencing a significant boost in confidence and activity, driven by pent-up demand and a re-balancing of supply and demand. With interest rates falling and lenders cutting rates, now may be a good time for borrowers to consider their mortgage options.