Study find cheaper mortgages and stable house prices in wake of Brexit vote
A new study has found that predictions of disaster for the housing market in the wake of the Brexit vote seem to have gone largely unfulfilled.
Research by Which? Mortgage Advisers has found that in the 100 days since the vote to leave the EU, there are more mortgages available, rates are cheaper and house prices are relatively stable.
In June 2016 there were a total of 4,736 mortgage products available. By the end of September, that figure had risen to 5,266 deals on offer from banks in the UK.
For first-time buyers there was good news as the number of deals offering 95 per cent mortgages grew from 238 to 245. The number for those with a 20 per cent deposit rose more significantly, up from 516 to 609 between June and September
As well as more packages being available and despite pre-referendum warnings that rates could rise, deals have also become cheaper - thanks in part, at least, to the Bank of England’s decision to cut the base rate to 0.25 per cent.
The average mortgage rate fell from 2.99 per cent at the start of June to 2.85 per cent at the end of September, meaning deals are more affordable for buyers across the board.
According to the Which? study house prices, too, seem to have avoided the worst predictions and remained largely stable. Between June and August the average property price in the UK saw a modest increase from £211,231 to £215,008.
David Blake of Which? Mortgage Advisers said: “Lower interest rates and an increase in the number of mortgages on the market is excellent news for house hunters. In a complex property market it’s important to get yourself into the best possible position before applying for a mortgage. Seeking independent advice from a reputable mortgage adviser can help with this and ensure you get the best possible mortgage deal.”