Rob Clifford Comments on the Mortgage Market ahead of Brexit

17th December 2018

Speaking ahead of the Bank of England’s base rate announcement on 20th December, Rob Clifford SDL Group commercial director and chief executive of SDL Mortgage Services believes the mortgage market will remain stable, in spite of Brexit.

“It’s my view that we won’t see any further interest rate rises this year. Any change is likely to come in the middle of next year, depending on the outcome of Brexit, and even then, it is not going to be dramatic – probably another 0.25 per cent increase to curb inflation.

“Despite the speculation around Brexit, most homebuyers are getting on with their lives and their decision to move is normally based on personal factors such as divorce, changing family size or relocation for work. They can’t sit on their hands forever, so many are prepared to apply for a mortgage even if they wonder whether it is a sub-optimal time to do so.

“We should remember too that, amidst the macro-economic uncertainty, mortgages are perfectly affordable for most people. There is also more competition in the lending market, with growing numbers of new entrants and challenger banks developing innovative products for applicants with complex financial circumstances, lower deposits and/or who are buying non-standard properties.

“Nobody believes that interest rates are going to rocket in the coming year and they are likely to remain predictably low. We can’t, however, rule out other scenarios where the Bank of England cuts rates following a disorderly Brexit, or is forced to hike them to prevent a run on the pound.

“The mortgage market is currently in good shape, fuelled by a rise in remortgaging as consumers continue to switch to fixed and/or better rates. Many of those facing affordability challenges have already addressed these and locked into safer deals, so I don’t anticipate a surge in activity ahead of a further rise. While lending volumes won’t race ahead, they certainly won’t drop off a cliff Over the coming quarter, the market should remain predictable and stable with no significant year-on-year growth.”

 

© Copyright 2019 SDL Property Services Group Limited

SDL Group is a trading name of SDL Property Services Group Limited, registered in England and Wales under company number 06055271 and SDL Group Services Limited, registered in England and Wales under company number 10663384. Registered office: 3-4 Regan Way, Chetwynd Business Park, Chilwell, Nottingham, NG9 6RZ

Cookie Policy | Privacy Policy | Modern Slavery Statement | Gender Pay Gap Report