Navigating the mortgage market in today’s challenging climate
As it has dominated political and economic discourse for the best part of three years, it can be difficult to find anything new to say about Brexit. The undeniable truth is that the UK’s impending departure from the EU has created uncertainty, which has impacted the financial decisions of consumers, investors and businesses.
At Butterfield Mortgages Limited (BML) we have seen this uncertainty transfer into hesitancy. Many of those with intentions to buy or sell prime real estate in London and the South of the country have put plans on hold in the hope of gaining better clarity on what Brexit will mean for their finances and the performance of different investment markets.
But it is important not to let uncertainty trigger more serious concerns, nor to allow it to taint our views of all financial markets, some of which have responded resolutely to the challenges posed by Brexit. The property sector falls into this category.
Between the EU referendum (June 2016) and the start of this year, the average price of a house in the UK rose from £214,000 to £228,000, according to the Office for National Statistics.
Meanwhile, UK property transactions statistics for January 2019 showed that on a seasonally adjusted basis, the number of transactions on residential properties was up 1.3% year-on-year.
It would seem many of the doom and gloom predictions have been exaggerated, with data suggesting that demand for property remains high while prices continue to rise. So, for those individuals who are still keen to pursue real estate purchases, the question is: how do they navigate the mortgage market and select an appropriate lender?
Mortgage products on the rise
The number of mortgage products available on the market has increased notably over recent years. In fact, data from Mortgage Brain suggests that between 2016 and 2018, an additional 4,214 products were introduced into the residential mortgage market.
There are two reasons for this trend: firstly, existing lenders are diversifying their products and services to cater for a broader range of clients; secondly, new lenders are entering the market all the time.