"Buyers are now in a stronger position to secure mortgages"
The mortgage market is resilient enough to endure any temporary political uncertainty caused by the upcoming general election, according to Jonathan Samuels (pictured), chief executive of Octane Capital.
The specialist lending firm’s latest research indicates that mortgage rates have decreased across the board in the past six months, while product availability has increased.
Octane Capital’s recent analysis examined current rates and product availability across various sectors of the mortgage market, assessing changes over the past six months. The findings suggest that buyers are now in a stronger position to secure mortgages for property purchases.
The average mortgage rate for remortgaging has dropped by 0.68% in the last six months. Home movers have experienced a 0.49% reduction in average mortgage rates, while first-time buyers have seen a decrease of 0.43%. Despite this reduction, first-time buyers still face the highest mortgage rates, averaging 4.62%.
Landlords are benefiting the most from current market conditions, with the average buy-to-let mortgage rate falling by 1.11% to 3.33%, the largest reduction across all market segments.
In addition to lower rates, an increase in the number of available mortgage products has also bolstered market activity, offering borrowers greater choice. The number of mortgage products available to home movers has increased by 3.7% in the past six months, while remortgagers have seen a 6.6% rise. First-time buyers now have 8.3% more mortgage products available, and landlords have enjoyed a 10% increase in product availability.
“We’ve seen six consecutive monthly increases with regards to mortgage approval figures, and it’s fair to say that buyers today are in an even stronger position with both mortgage rates having fallen, while the range of products available has increased,” Samuels said.
“So, while some buyers may now act with a momentary degree of hesitation with a general election on the horizon, it’s unlikely to be significant enough to stall the momentum that has been building in recent months.”
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