The Address / Mortgage...

Posted on Wednesday, January 31, 2024

decorative curve for layout selling property

The number of mortgage approvals hit a six-month high in December as falling mortgage pricing and renewed buyer confidence injected the property market. Lenders have engaged in a mortgage price war in which they have cut the costs of new fixed-rate deals to try to remain at the top of the best-deal tables.

The Bank of England data shows there were 50,459 mortgage approvals for home purchases in December, up 2.3% on a monthly basis and 25.6% annually.

These mortgage approvals offer a comprehensive snapshot as they cover not just the data of individual lenders but the wider marketplace and are a reliable indicator of future activity. 

A third consecutive monthly increase in mortgage approvals demonstrates that market momentum continues to build and not even the usual lull of the Christmas period was enough to deter buyers from pushing forward with their plans to purchase.

As a result, the new year market has set off with with a very promising start and pent up demand means buyers are acting with a greater degree of urgency than we’ve seen in recent times, encouraged by sub 4% mortgage opportunities and a keenness to secure them. While the hope is that interest rates will start to fall this year, the expectation is that the Bank of England will keep them held at 5.25% this week.

Coupled with the ever-increasing costs in the rental market, those who are looking to purchase, the best course of action is to instruct an experienced, specialised broker to ensure you secure the best rates currently available and don’t pay over the odds in the long run. If you're looking to take advantage of a new mortgage offer, get in contact with your nearest branch to arrange a call with our independent brokers who offer a whole-of-market view.