The recently published Bank of England Credit Conditions Survey for quarter 3 2018* has shone the spotlight onto the fact that demand for first charge secured lending for house purchase has remained steady throughout the last quarter, but there has been a significant increase in demand for secured lending for re-mortgaging. It is felt that demand will continue to increase significantly again throughout quarter 4.
However, before everyone rushes out to arrange their Remortgage, this upbeat news is tempered by the fact that lenders have tightened criteria and the availability of secured credit to households fell during the three months to end August 2018 and is expected to fall again in quarter 4 of the year.
The Bank of England’s Credit Conditions Survey is conducted every three months and questions the banks and building societies on their previous three months business and their projections based on historical data for the coming three months.
This latest report is released less than 6 months before Britain is scheduled to leave the European Union and is suggesting a quieter time ahead for the property market. It is hardly surprising that the RICS (Royal Institution of Chartered Surveyors) in their September Market Survey** found that house prices had remained flat nationally and that Estate Agents are predicting a negative view for the coming 12 months ahead with an overall feeling that Brexit was causing the housing market to stagnate.
John Carter, Director at Great Bentley based Abode Mortgages Limited says “With rates as low as they are, it is hardly surprising we have seen one of the busiest periods I can recall over the past 25 years. Obviously with Brexit looming, there is no guarantee that lenders will continue to offer the superb rates that are currently available. My guidance would be that anyone thinking of securing a good rate ahead of Brexit would be well informed to act sooner rather than later!”
You may have to pay an early repayment charge to your existing lender if you re-mortgage
Your home may be repossessed if you do not keep up repayments on your mortgage.