Mortgage market strong enough to weather election uncertainty

Falling rates and rising availability of products over the last six months are keeping the market on a firm footing ahead of July 4th.

Related topics:  Finance,  Mortgages,  General Election 2024
Property | Reporter
6th June 2024
General Election 2024
"While some buyers may now act with a momentary degree of hesitation with a general election on the horizon, it’s unlikely to be significant enough to stall the momentum that has been building in recent months"
- Jonathan Samuels - Octane Capital

The latest research by Octane Capital analysed both current rates and product availability across each sector of the mortgage market, looking at how both have changed over the last six months.

The figures show that buyers are in a far better position today when it comes to securing a mortgage to fund their property purchases.

In fact, the average mortgage rate for those looking to remortgage has reduced by -0.68% in the last six months. Home movers have seen a -0.49% cut in the average mortgage rate while first-time buyers have seen a cut of -0.43% - although with an average rate of 4.62%, they still face the highest mortgage rates when it comes to borrowing.

However, it’s landlords who are benefitting from the most favourable mortgage rates in the current market. Not only has the average rate of a buy-to-let mortgage dropped by -1.11% in the last six months - the largest reduction of all market segments - but at 3.33% landlords are also benefiting from the lowest rates.

But it’s not just a fall in rates that will have helped strengthen mortgage market activity, the number of mortgage products available has also increased, providing borrowers with greater choice.

The number of mortgage products available to home movers is up 3.7% in the last six months, while remortgagers are benefitting from a 6.6% jump.

There are now 8.3% more mortgage products available to first-time buyers compared to six months ago, however, it’s landlords who again have benefitted the most, with a 10% increase in mortgage product availability.

CEO of Octane Capital, Jonathan Samuels, commented: “We’ve seen six consecutive monthly increases with regards to mortgage approval figures and it’s fair to say that buyers today are in an even stronger position with both mortgage rates having fallen, while the range of products available has increased.

"So while some buyers may now act with a momentary degree of hesitation with a general election on the horizon, it’s unlikely to be significant enough to stall the momentum that has been building in recent months.”

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