UK Mortgage Market Sustains Growth Despite Brexit Concerns

Welcome to iCalculators monthly mortgage update for October. In this month's mortgage news we take a look at:

  1. Brexit and its impact on the UK Mortgage Market
  2. 10-Year Fixed Deal Mortgages
  3. The Best Mortgage for You
  4. Are Consumers becoming Credit Card Savvy?

Key points in our October 2019 Mortgage Update:

  1. House Prices rose at 0.6% in August
  2. Mortgage Approvals up 3.2% Year on Year.
  3. 157 10-year fixed mortgage deals available at an average rate of 3.01%.
  4. Credit card spending increases 8.2% to £12 billion.
  5. Loan borrowing up 9.3% Year on Year.
  6. Overdraft Borrowing up 1.7% Year on Year.

Brexit continues to cause concerns in the economy but the U.K. Mortgage Market is still positive (Stats July-Aug 2019)

UK Mortgage News. Mortgage News: Mortgage lending has shown positive growth despite the Brexit turmoil. The number of mortgages which have been approved recently by the UK lenders has shown a drastic growth

Mortgage lending has shown positive growth despite the Brexit turmoil. The number of mortgages which have been approved recently by the UK lenders has shown a drastic growth, especially in the month of July. According to the figures released by the Bank of England, lenders have approved 67,306 mortgages in July 2019 and around 66,506 in June 2019. Net mortgage lending also rose by £4.611 billion in July, which is highest increase in mortgage lending since March 2016. A very interesting trend also shows that house prices rose at an annual rate of 0.6% in August, the highest rate in the last three months. According to UK Finance the net mortgage approvals to buy a home were 43,957 in August, which is 3.2% more than August 2018.

Reports released by industry body UK Finance state that banks have approved 95,126 mortgages in July. This figure is the highest in the last 10 years, taking the total amount borrowed to £261 billion. This 2.9% rise from July of 2018 is good news for those moving home and looking for a new mortgage or to remortgage their existing homes.

The full effects of Brexit on the UK housing market and mortgage lending is yet to be fully seen but, as things stand, the UK mortgage market remains buoyant which is excellent news for homeowners and property investors alike.

Despite the uncertainty due to Britain's exit from the European Union, mortgage lending has grown at a consistent pace.

The 10-year deal is great news for the mortgage market.

UK Homeowners and regularly choosing the 10-year deals available from mortgage lenders which provide a mortgage at a fixed rate for the 10-year period. Recent figures show that mortgage lenders are offering 10-year fixed rate mortgages in increasing numbers, recognizing homeowners desire for financial stability and regular monthly budgeting. Five years back, there were only 22 10-year fixed mortgage deals available in the market offering an average interest rate of 5.09%. Now, the mortgage market has around 157 10-year fixed mortgage deals at an average rate of 3.01%. Though there is financial security from a monthly budgeting perspective with a fixed amount, the fixed term mortgage deals are often not flexible. If a homeowner's financial situation changes, during the fixed term period, they can find refinancing a challenge as is the ability to change mortgages when better offers become available. Most homeowners who select a 10-year mortgage consider the tie-in risks minimal considering the regular monthly repayments and ling term financial peace of mind.

Mortgage Facts

The UK mortgage market is a significant part of the UK economy, did you know:

  1. The outstanding value of all mortgage loans in the residential sector was £1, 451 billion in quarter 1 of this year.
  2. There are 10.94 million outstanding mortgages as of May 2019.
  3. Gross mortgage advances in quarter 1 of 2019 was £63.3 billion which is approximately 1.4% higher than the same period last year.

The Best Mortgage for You

Whether you are a first-time buyer, an existing homeowner, a landlord and/or property investor, keeping up to date with changes in the UK mortgage market is key in supporting you accessing the best mortgages. Our regular mortgage updates and mortgage facts will help you gauge market conditions and access the best mortgage deals available in 2019. The UK mortgage market has a significant number of mortgage dealers, each with various mortgage deals to offer. Getting the best deal starts with understanding the market and the specific variations in mortgage deals, the following mortgage guides and tools will help you find the best mortgage deal and budget for your mortgage and property investment.

Are Consumers becoming Credit Card Savvy?

In addition to the increase in mortgage lending, credit card spending also showed a steep 8.2% increase to £12 billion, the highest according to records. This increase likely contributed to by the number of new homeowners investing in their homes. The good news is that credit card repayments have also shown a good amount of increase, highlighting the fact that consumers have become more adept in managing their finances. The amount borrowed through loans also climbed by a good 9.3% whereas overdraft borrowing was again up by 1.7% as compared to last year's July.