Remortgage approvals took a slight dip in the month of April, indicating the slowdown in the UK housing market is happening just ahead of the general election. According to data from the British Banker’s Association, remortgaging fell 10% compared with the same month of 2016. The total for the month of April was 23,074. The average each month for the last six months is 26,569.
The UK housing market has seen unpredicted days so far this year and April data regarding mortgage lending demand is yet another example. The month saw a significant drop in the amount of mortgage lending demand compared with March. According to data from the Council of Mortgage Lenders, mortgage lending dropped off more than 10% month on month. Mortgage loans totaled £18.4bn for the month.
Remortgage activity in the capital city has now surpassed many forecasts for the first quarter of the year. Interest rates remain at the lowest point in some time which is giving lenders the ability to offer deals to help save money on the cost of the monthly mortgage payment. According to the latest figures from the Council of Mortgage Lenders, home owners borrowed more than £4 bn in the first quarter which is a 13% increase over the fourth quarter of last year. It is also a 7% increase over the same quarter of 2016.
Forecasts of UK housing market home mortgage lending span a wide range for the first part of the year, and this is proving to be a safe bet. Mortgage lending within the capital city of London is down for the first quarter of the year, but remortgage is flying high. Low supply and few affordable homes are available which is adding to the mix of the wide range of data dripping out of the housing market
The UK housing market remortgage lending tool has had quite a year to now. As we turned the page and 2016 became the New Year, many experts expected house owners to remain loyal to obtaining a new deal and reap the rewards of a remortgage. Many have done that and many others have followed in their footsteps and done the same. Remortgage is now a popular item in the lending arsenal of mortgage products.
General elections typically impact the UK housing market in a significant way. Sellers usually hold off on the selling decision and wait until more subdued times to put their property on the market. Buyers also pause. Property tends to sit on the market longer than normal as buyers wait until after an event as large as a general election to run its course. The market is now seeing a different trend as many are participating in the buying and selling process.