Mortgage lending has slowed as the housing market is showing a cooling off. The housing market is slowing down according to experts due to the nearing of the Brexit deadline which is Halloween on 31 October. Not surprisingly, though mortgage lending has slowed there is a boost in remortgage lending. Homeowners are seeking remortgages, especially fixed rate remortgages, to save money.
The housing market may be feeling the weight of Brexit finally. There are signs in the recent collected data on the market that is revealing a slowdown. It may have been a one off, but it could be the start of a stalling that could last until after the beginning of next year according to some experts. Then again, the housing market could surprise once again and show resilience as it has in months past.
Experts are trying hard to get the word out to homeowners, yet their message could fall on deaf ears as it appears there are more homeowners than not that do not understand the benefits when they are told to remortgage. Many homeowners could believe that with a remortgage they could be putting more debt onto their loan or they could be taking on a source of stress that would be equal or worse to that of obtaining their mortgage. Few realize that there are opportunities to put cash into their hands, to save money, and to secure a low interest rate for years to come and the process to learn what benefits there are is easy.
Opportunity is revealing itself in the mortgage lending market as the days tick off the calendar to the Brexit deadline of 31 October. Lenders are still in a competitive mode and home buyers and homeowners are finding low interest deals that offer substantial savings. There are also long terms available with one lender entering the market with a 15 year fixed product.
Homeowners are expected to show strong demand for remortgages over the next few months. There are a high number of mortgages that are going to end their term in October, the same month of the Brexit deadline. There is also an expectation that many homeowners that are close to having their mortgage term end and those that already have ended and are now on their lender’s standard variable rate (SVR) are watching the lending market closely and waiting for the right moment.
The deadline to Brexit is less than three months away. It is less time to the deadline of Brexit than is often measured to give reflection on the state of the housing market, as most data will reveal a month to month comparison, year to year, and at times the three months leading to the close of the collection of data. To those that study and work in the housing market, the fact that there is less than three months is like knowing that time is drawing near to pulling a tarp off of a piece of artwork and finally revealing what no one has yet seen.