Great news for buyers (& Sellers) as mortgage rates drop and mortgage choice increases.
Data from Moneyfacts suggests that Mortgage borrowers now have the greatest choice of home loan products since February 2022. Which is great news for buyers who have been plagued by high mortgage rates this year.
In an article by ‘Estate Agency Today’ it was reported that Moneyfacts data shows there are 5,338 mortgage products on the market as of early September, the highest count since February 2022 when there were 5,356. It is also more than double the availability seen in October 2022.
Within the individual loan-to-value (LTV) tiers, following month-on-month rises, options within the 85% LTV tier are at their highest levels on Moneyfacts’ records.
It is positive to hear that average rates are also falling despite expectations of a further interest rate rise from the Bank of England.
Bank of England data showed the value of new mortgage commitments - lending agreed to be advanced in the coming months – during the second quarter of 2023 was 26.2% greater than the first three months of the year but 26.6% less than a year earlier, at £61.7bn. This was the first increase and highest value observed since the third quarter of 2022.
The figures showed that 54% of gross advances were for house purchases, a rise from both the previous quarter and year. Gross advances for remortgages constituted 32%, while borrowing for buy-to-let purposes fell to its lowest since the fourth quarter of 2010 at just 8.1%. – not surprising as we see Landlords in Gravesend leaving the sector due to increased costs. Not only from mortgage rates but the burden of increased legislation adding to outlay (see are article: Renters Reform Bill for more details).
In Gravesham it is positive to see that whilst interest rates have increased, they are still at an affordable level. Whilst there are less buyers those we have are serious and offers are being made and properties being sold. The publics mindset is shifting – this is the new cost of borrowing money!