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Mortgage Approvals Decline by Double Digits After Mini Budget

Mortgage Approvals Decline by Double Digits After Mini Budget

The UK lending market faltered during the month of October and likely due to the mini budget. An amazing 10% fewer mortgage approvals than in September occurred. The Bank of England reported 59,000 down from the previous month’s 66,000. According to data, more than 40% of the housing market activity disappeared as home buyers were left without the ability to buy due to affordability and pulled out of their deals.

UK Housing Market Shows Signs of Change as Buyers Begin Their Exit

UK Housing Market Shows Signs of Change as Buyers Begin Their Exit

The UK housing market is showing signs of cooling off. Since the pandemic’s race for space buying frenzy, house prices have been growing. There were numerous times last year when the average house price would reach a new high with each month. The rising house prices have helped push home values to quick gains, but it also pushed many hopeful home buyers out of the market. As interest rates began to rise, the combination of both the rate hikes as well as high priced properties was expected to put off buyers. 

New Homeowners at Risk of Being Out of Reach of a Remortgage Safety Net

New Homeowners at Risk of Being Out of Reach of a Remortgage Safety Net

As interest rates rise, many homeowners are at risk of going into negative equity. It is thought there are almost 90,000 homeowners that could find themselves owing more on their property than the value of it. Home values are expected to decline as the housing market loses home buyers. New homeowners that purchased their properties when the Bank of England’s standard base interest rate was at an historic low, namely in 2020 and 2021, are likely the most at risk.

Time Bomb Warning to Homeowners Could Be Defused with a Remortgage

Time Bomb Warning to Homeowners Could Be Defused with a Remortgage

The warning has been issued to homeowners of upcoming repayments that are likened to a “ticking time bomb.” Many could be facing interest rate payments possible of doubling each month according to research. The Liberal Democrats have released data analysis confirming that mortgage holders will be facing the largest increase in interest payments ever on record. The warning leaves little in way of preparing or finding a solution, but a remortgage could be quite helpful to homeowners seeking to defuse the bomb.

Homeowners Encouraged to Remortgage as Economy Faces Uncertainty

Homeowners Encouraged to Remortgage as Economy Faces Uncertainty

The UK housing market is facing factors that could hold it back and make more problems for the economy. It is a critical part of our economy, and a struggling market will only further hinder our economy as it struggles against inflation and a deep recession. It was hoped the Autumn Statement would announce more to help the housing market, but experts are remarking about the lack of support. Mainly there was little put into place to bring more supply to the market that could bring back first-time buyers and the minimal stamp duty reductions will only be left in place until March 2025.

Housing Market to Weaken and Homeowners Encouraged to Remortgage Shop Now

Housing Market to Weaken and Homeowners Encouraged to Remortgage Shop Now

The Office for Budget Responsibility (OBR) has issued a forecast for UK house prices. A decline is due to occur in 2023 until the autumn 2024. The end of the year is expected to reveal growth of 10.7% followed house prices down by 1.2% in 2023 and an additional 5.7% in 2024. Homeowners should go on alert and prepare with this information because with declining house prices might come lower property values which could put a homeowner into negative equity.

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