UK house market picks up - with sharp regional differences
Good news for UK homeowners. It’s unlikely Brexit will dampen UK house price growth and mortgage rates are increasingly favourable. Will the upward trend last?
Brexit unlikely to dampen further UK house growth
Russell Quirk, chief executive of online estate agents eMoov, said the ONS data provided the most compelling evidence yet that the UK property market had now shaken off the downturn experienced after last year's general election.“The rate of growth during this period is higher than previously reported by Halifax and Nationwide, which is impressive given that this price data usually lags slightly behind other industry sources that base their figures on mortgage approvals rather than sales completions," he said.“A sustained level of growth can now be expected and it is unlikely that any further developments in the Brexit process should dampen this.“Although the market has taken a wobble, UK homeowners should rest assured that the worst is now behind them and we won’t be seeing a repeat of the 2007 crash.”Re-mortgaging rates excellent because of increased competition between providers
Mark Harris, chief executive of mortgage broker SPF Private Clients, said that, with the purchase market still relatively quiet because of a lack of stock, lenders were turning their attention to re-mortgaging with some excellent rates on offer.“Santander is the latest lender to cut pricing on its two- and five-year fixed-rate re-mortgage deals, while other lenders have also been tweaking pricing - HSBC scrapping standard valuation fees and First Direct halving fees and increasing rates - as they jockey for position in the market," he said.Related news:
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- Central England 'defying property price slowdown'
- Halifax finds ‘some buoyancy’ returning to property market
“This is encouraging as it means other lenders must be forced to offer borrowers incentives so as not to be at a competitive disadvantage.”His view was supported by a report from the financial sector body UK Finance, which showed that the amount of re-mortgaging had bounced back in July to reach its highest level since the beginning of the year.July saw 36,800 home owners re-mortgaging in July, up seven per cent on June and 10 per cent higher than a year earlier. The report said that, over the past year, the total of re-mortgages was the highest since 2009.
The number of homeowners re-mortgaging at highest levels since 2009
June Deasy, head of mortgages at UK Finance, said, "Re-mortgaging strengthened in July and reached its highest level since January, with customers attracted by borrowing rates that are at or close to their historic low point."The increase in activity in July means that, over the last year, the number of people re-mortgaging has been at its highest since 2009."Brian Murphy, head of lending at the Mortgage Advice Bureau, added, "It's highly likely that the increasing competitive market, with rates at historic lows, is finally starting to tempt consumers off their SVRs (standard variable rates) and encourage them to review their borrowing, either due to the monthly savings that are potentially available, or the opportunity for some to reduce the overall term of their mortgage by switching products or lenders."For related news and features, visit our Residential Property section.Access hundreds of global services and suppliers in our Online Directory Get access to our free Global Mobility Toolkit©2024 Re:locate magazine, published by Profile Locations, Spray Hill, Hastings Road, Lamberhurst, Kent TN3 8JB. All rights reserved. This publication (or any part thereof) may not be reproduced in any form without the prior written permission of Profile Locations. Profile Locations accepts no liability for the accuracy of the contents or any opinions expressed herein.