Private Finance comments on UK Finance Mortgage Lending Trends, August

Shaun Church, a Director at Private Finance, comments on the August mortgage lending trends that have been published by UK Finance.

“First-time buyers are feeling empowered by the current housing market. Easing house price growth, stamp duty exemptions, relaxation of lending criteria and near record low mortgage rates are all giving new buyers a much-needed boost onto the property ladder. Those in a position to do so have heeded advice to take advantage of favourable market conditions, with mortgage lending to first-time buyers in August reaching levels not seen in more than a year.

“But existing homeowners could well feel paralysed. As political and economic uncertainty takes hold, many homeowners are choosing to bide their time and see what 2019 brings. This uncertainty – and a lack of incentives for homeowners to move – means the home mover market continues to remain flat. This gives all buyers less choice when it comes to finding a new home.

“While August may have brought a base rate rise, mortgage rates continue to remain incredibly competitive. Borrowers nearing the end of their term should lock into these competitive deals to safeguard against rising rates in the future. Those set to be transferred to a Standard Variable Rate stand to gain the most from remortgaging, potentially saving thousands over the long term.”

Kindly shared by Private Finance