The mortgage market is in a strong enough position to weather any momentary period of political uncertainty spurred by the upcoming general election. This is according to the latest research from Octane Capital which shows that over the last six months, rates have dropped across the board, while product availability has increased.
The latest research analysed both current rates and product availability across each sector of the mortgage market, looking at how both have changed over the last six months.
The figures show that buyers are in a far better position today when it comes to securing a mortgage to fund their property purchase.
In fact, the average mortgage rate for those looking to remortgage has reduced by -0.68% in the last six months. Home movers have seen a -0.49% cut in the average mortgage rate while first-time buyers have seen a cut of -0.43% – although with an average rate of 4.62%, they still face the highest mortgage rates when it comes to borrowing.
However, it’s landlords who are benefitting from the most favourable mortgage rates in the current market. Not only has the average rate of a buy-to-let mortgage dropped by -1.11% in the last six months – the largest reduction of all market segments – but at 3.33% landlords are also benefiting from the lowest rates.
But it’s not just a fall in rates that will have helped strengthen mortgage market activity, the number of mortgage products available has also increased, providing borrowers with greater choice.
The number of mortgage products available to home movers is up 3.7% in the last six months, while remortgagers are benefitting from a 6.6% jump.
There are now 8.3% more mortgage products available to first-time buyers compared to six months ago, however, it’s landlords who again have benefitted the most, with a 10% increase in mortgage product availability.
Octane Capital chief executive Jonathan Samuels commented: “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.”
He added: “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.”
Staying with the General Election, last night TV debate between Rishi Sunak and Sir Keir Starmer has come in for criticism for its extremely limited housing policy discussion.
Rightmove’s property expert Tim Bannister said: ‘At a time when house prices and rents are at record highs, it’s really disappointing to see that housing barely got a look in during last night’s debate. People need to hear much more about what long term solutions there could be to help more people to move, especially renters who weren’t mentioned at all.”
He added: “We hope to see housing get much more attention over the coming weeks. There are many complex issues affecting different groups of people that need to be discussed.”
