Mortgage market approvals increase – should you take mortgage advice?

Wednesday 31 January, 2024

Data from the Bank of England (Money and Credit information) shows that mortgage approvals for house purchases rose in the final few months of 2023 as more people had confidence in the mortgage market. 

Get mortgage advice before you house hunt

Is now a good time to buy a property or move house, and what is the interest rate outlook?

In this article, Amy Kadir, mortgage consultant in St Albans explains why you should take local mortgage advice and why it’s important to speak to your Lonsdale Mortgages mortgage broker as early as possible, so you are ready to proceed when you find your dream property.  Call us now on 01727 845500 for more information.  We offer a free initial consultation before offering mortgage advice.

Mortgage approvals rise

In the last few months of 2023 mortgage approvals for house purchases rose from 49,300 in November 2023 to 50,500 in December 2023.  This increase shows an improving sentiment as more houses are sold across the UK.  Net approvals for remortgages also rose from 25,700 in November 2023 to 30,800 in December 2023.

Confidence returns to the mortgage market

Amy Kadir, Mortgage broker, St Albans, Hertfordshire said:

‘These figures released recently from the Bank of England suggest buyers now have more confidence in the UK mortgage market.  This will have been helped by the recent positive inflation data which led the Bank of England to keep base rates unchanged in December 2023 for the third month in a row.  Many experts are now predicting that interest rates will fall in 2024 which is excellent news for anyone who is buying their first home, moving house, looking for a commercial mortgage or remortgaging.  At the start of January 2024, we saw some mortgage lenders reduce their mortgage rates on some fixed rate products, especially products that are fixed for several years.’

How can you quickly get a mortgage agreed?

Amy Kadir, Mortgage broker, St Albans, Hertfordshire continued:

‘We are beginning to see confidence return to the mortgage market ourselves as we are getting customer enquiries from first time buyers and families looking to move house who have waited because of the recent uncertainty in the mortgage market.  They have been concerned about inflation and the cost-of-living crisis, which has pushed mortgage rates up, but they don’t want to wait any longer before they purchase their home.  We recommend anyone wanting to buy a property in 2024 contact us before they go house hunting.  We can review your income and expenditure and savings information, so you are confident that you are looking for homes in your price range.  We can also check your credit rating and advise you about the different products available, for example the advantages and disadvantages of fixed rate mortgages or tracker products.  As we have access to a general mortgage market database we can compare different mortgage lenders products, so once you know what type of mortgage you want, we can find the best mortgage deal for your circumstances.  Then you will have an idea of how much you will be paying each month before you find your dream property, and you can have your mortgage application ready before you put in an offer on a property.  Our mortgage brokers can also help you complete your mortgage application form and liaise with the mortgage lender, so you get an agreement in principle.  This will save you time when you have secured a property, and you want to exchange contracts quickly.  We often recommend you speak to your local Lonsdale Mortgage broker at least six months before you want to move so we can source a mortgage product and agree a mortgage in principle.  Most mortgage lenders will honour any mortgage deal agreed in principle for up to six months.  If interest rates fall in 2024, we can organise another mortgage deal for you but at least if you have a mortgage deal agreed in principle you have the certainty of a mortgage option which is ready to go if you need to proceed quickly on a property.  If you want mortgage advice from a local mortgage advisor, call us now on 01727 845500.’

In Summary…

If you are looking for local mortgage advice our St Albans mortgage broking team will work with local customers in Hertfordshire, Bedfordshire, and North London.  We have arranged mortgages and offered protection advice to customers in Watford, St Albans, Harpenden, Luton, Bedford, and North London.  You can also contact our other mortgage brokers in Lichfield.

As a mortgage is secured against your home, it may be repossessed if you do not keep up the mortgage repayments.  The information contained in within this article is for guidance only and does not constitute advice which should be sought before taking any action or inaction.

 

 

 

 

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