What's happening in the mortgage market in 2024?

While much of the last few years has been categorised by major disruptions within the mortgage market, 2024, so far, has seen a greater sense of calm.

But, what trends are presently influencing the market? Mortgage Introducer reached out to several brokers to find out.

Are buyer preferences changing?

Chris Schutrups (pictured left), founder at The Mortgage Hut, said within the mortgage market landscape, he has observed a notable surge in demand across all sectors.

“As a business, our clientele predominantly comprises residential homeowners, constituting approximately 91% of our customer base, with the remaining 9% invested in buy-to-let properties,” he said.

One discernible trend, Schutrups said, is a shifting preference among customers towards fixed-rate mortgage options, a departure from the previously favoured tracker rates.

This change, Schutrups believes, is primarily due to the significant drop in interest rates since last year, prompting clients to seek stability amid the fluctuating economic climate, even though the Bank of England is expected to reduce rates later in the year.

In fact, he noted there is a growing sentiment among consumers that substantial reductions in rates are unlikely, prompting a reassessment of their mortgage preferences.

“Furthermore, there has been a noticeable uptick in activity among prospective property buyers, particularly first-time purchasers,” he said.

Schutrups said that the initial shockwaves of the economic downturn have subsided, leading individuals to reevaluate their financial outlooks and explore viable homeownership options.

This renewed confidence in the market, he said, has translated into increased inquiries and commitments from potential buyers, indicating a gradual return to normalcy in consumer behaviour.

“Over the past three months alone, we have facilitated more than double the number of mortgages compared to the previous year, for example,” he said.

What other trends in the mortgage market seeing?

Jake Stott (pictured right), founder at Mondo Mortgages, said the property market in 2024 has proven to be both intriguing and dynamic, with a trend emerging of investors seeking rapid returns.

“What I have observed is a growing appetite for quick wins within the investor community,” Stott said.

Rather than adopting a traditional approach of long-term rental investments, he said that investors are increasingly drawn towards acquiring properties, renovating them swiftly, and flipping them for profit. This shift in strategy, Stott believes, can be attributed to various factors, including the current interest rate environment and the escalating challenges faced by landlords.

“With interest rates at their current levels, the appeal of rental income may be diminished, especially when weighed against the potential hassles and risks associated with property management,” he said.

Consequently, Stott said investors are opting for a more streamlined and agile approach to property transactions, focusing on maximising short-term gains.

As a result, he believes that brokers’ role in facilitating bridging loans for clients has become increasingly crucial.

“These investors seek quick and hassle-free financing solutions to seize lucrative opportunities in the market,” he said.

Therefore, Stott added that by providing expedited access to capital, brokers can enable them to swiftly acquire properties, execute necessary renovations, and capitalise on favourable market conditions to realise profits efficiently.

In essence, Stott said the evolving landscape of the property market underscores the importance of agility and adaptability.

“As investors seek to capitalise on emerging trends and market dynamics, brokers’ role as a trusted financial partner remains steadfast,” he said. By providing flexible and responsive financing solutions, coupled with personalised support and expertise, Stott said, brokers can empower investors to seize opportunities, achieve their goals, and thrive in an ever-changing environment.

How has the mortgage market performed so far in 2024? Let us know in the comment section below.