The countdown to Brexit has begun and while all markets are showing an impact of the anticipation of a deal or no-deal Brexit, perhaps the lending market is the most obvious. Lenders are becoming more competitive in the lead up to the deadline. The reason is because borrowers are expected to turn out in strong numbers to take advantage of opportunities to secure a low interest rate remortgage or mortgage.

The current government report on the housing market revealed that UK house prices rose in the twelve months to June 2019 by 0.9%. It held steady and was unchanged from May. There were, however, fewer transactions between buyer and sellers when compared to June of last year. The drop in transactions was 16.5% and there was a 9.7% decrease from May 2019 to June 2019.

According to a recent report, home sellers are becoming more aggressive to find buyers by lowering their asking prices and it might be working because home buyers are finding properties worth buying in their price range. Home sellers and home buyers are coming together to bring a final boost to the property market according to the website Rightmove, which is an online property lister.

Many homeowners are shopping for remortgages for savings prior to the Brexit deadline. They are also looking to escape the higher rates attached to many lender’s standard variable rates (SVR). According to experts, the interest rate level attached to some SVRs could be double or more the level homeowners would have been used to paying before their mortgage deal ended. Rather than pay more on a repayment than needed, a savings could be found with a remortgage and that is why the demand is high.

No one would ever believe that a negative interest rate mortgage could exist. If it did, what would that mean? Since interest is the way that lenders make money, then how could they possibly offer a negative interest rate on a mortgage? In the event there is a negative interest rate, then the lender would in effect be offering a deal in which the borrower at the end of the loan paid back less than what they borrowed.

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.