Following the release of the latest Bank of England Money and Credit data and property transactions data, which showed a rise in both net mortgage approvals and monthly property transactions respectively, industry experts have shared their thoughts with IFA Magazine.
John Phillips, CEO of Spicerhaart and Just Mortgages, said: “The positive momentum we’ve been seeing in the market certainly continued in March with the highest number of net mortgage approvals since September 2022. This in spite of the fact of another disrupted month with an early Easter and half terms across the country. It certainly mirrors our own experiences on the ground with strong demand for both appointments, but also bookings for valuations within our estate agency branches.
“The wheels of the mortgage market are certainly moving, as evidenced by a further increase in monthly property transactions – also released today. This is all hugely positive – we just have to hope the recent unsettling on swap rates and subsequent rise in mortgage rates across the market doesn’t upset the apple cart. This could certainly impact the downward trend on the ‘effective’ interest rate paid by borrowers, which improved further in March.
“Nonetheless, it further proves the point as to why brokers are so important when trying to navigate the market. Maintaining this growing consumer confidence and positive momentum requires brokers to remain proactive and continue to offer that five-star service. While we cannot influence swap rates or the monetary policy of the Bank of England, we can continue to throw our arms around our clients and provide all the necessary support to help them push ahead with plans.”
CEO of Octane Capital, Jonathan Samuels, commented: “Stability is key when it comes to mortgage market health and while we’re yet to see interest rates fall, a freeze since September of last year has certainly steadied the ship and provided the nation’s homebuyers with the confidence required to re-enter the market.
“As a result, we’ve now seen the level of mortgages being approved climb consistently for the last six months and this is a significant sign that the market is slowly, but surely, returning to full health.”
Founder and CEO of easyMoney, Jason Ferrando, commented: “Over the last six months buyer interest has been cautiously climbing and mortgage approval levels have now returned to their highest since September 2022, before the property market started to stagnate.
“This is particularly impressive given the fact that we’ve not yet seen a base rate reduction and, when it does materialise, this will bring a further boost to a property market that is now poised for a far more positive year.”
Clare Beardmore, Director of Distribution and Mortgage Club, Legal and General Mortgage Services comments: “We have definitely seen the mortgage market move up a gear in 2024, after a slightly slower 2023. Gross lending and product transfer activity are holding strong, and it’s also been fantastic to see first-time buyers leading the charge, with lending to this group doubling year-on-year in February compared to the same month last year.
“Whether you are ready to begin your homebuying journey, coming up for remortgage, or considering a property purchase in the future, seeking support from a mortgage adviser is a really sensible first step. An adviser will have access to the skills, tools, and products to help you navigate the complexities of the current market and find the best solution, no matter your circumstances.”
Tony Hall, Head of Business Development at Saffron for Intermediaries, comments: “It certainly feels like the mortgage market recovery is underway as gross lending and mortgage approvals continue to rise. All eyes are now on when we might see that first base rate cut since the onset of the pandemic, which should drive more consumers back to the market.
“The economy still faces a number of challenges, with inflation falling at a slower rate than many expected, and this could delay a rate reduction by the Bank of England. Wage inflation and a more timid approach to rate cuts in the US are also leading some analysts to predict that the base rate may stay put until Q4. However, it’s refreshing that the debate about the Bank of England’s position has clearly shifted to when, and not if, rate cuts will happen. This speaks volumes about where the market is now compared to even six months ago, and we look forward to helping advisers and borrowers take advantage of the opportunity this provides.”
Co-founder and CEO of GetAgent.co.uk, Colby Short, commented: “While mortgage market activity has been building for some months now, we’ve seen a notable improvement in market sentiment this side of the Christmas break and there’s no doubt that 2024 is already shaping up to be a far stronger year for the UK property market.
“Despite mortgage rates remaining far higher than in recent years, the stability that has come due to a static base rate has allowed buyers to act with greater confidence and without fear that their lender will have moved the goalposts on their mortgage offer by the time they come to make an offer.”
Ruth Beeton, Co-Founder of Home Sale Pack, says: “A continued increase in buyer activity is, of course, a positive sign for the property market as a whole. However, it’s not without its pitfalls and as market activity continues to increase, buyers and sellers alike should anticipate longer selling times and a greater threat of the dreaded fall through.
“Such setbacks need to be considered when planning your home moving timeline, not to mention the potential costs you are likely to incur. And while the market continues to find its feet, a pragmatic approach to pricing is key when minimising such risks.”
Nathan Emerson CEO Propertymark comments: “Our member agents reported there was an 18 per cent increase in new properties coming to the market. Also, the number of mortgage approvals made to home buyers increased from 56,100 in January to 60,400 in February, according to recent Bank of England figures. These numbers prove that 2024 is a far better year to be making a home move.
“The Bank of England’s next announcement on interest rates is eagerly awaited and we now hope the next phase of reducing borrowing rates will help better the affordability of prospective or current homeowners happens soon.”
