Market Outlook

There are certain years I remember in my life: The Silver Jubilee of 1977 as a very young boy, the Stock Market Crash and the hurricane of 1987, the financial crisis of 2008 and 2012 Olympics. And of course, how can we ever forget 2020.
The mortgage market experienced a bit of famine in the first few months of the first lockdown, followed by an overflowing feast stimulated by a Stamp Duty holiday which saw a 13 year high in mortgage approvals in November. With demand soaring, the major House Price Indices saw strong property price growth, Halifax stating that property prices rose 6% and Nationwide 7.3%.

The Year Ahead
I am certainly not going to make any economic predictions for the year ahead as there is still too much uncertainty. We are all hoping the vaccine roll out is swift and the impact of Brexit is minimal. However, I do know is that the world will not stop spinning and people will continue to move home. They will continue to need to remortgage. And I can see people needing to raise capital to extend or modify their homes and gardens to adjust to working from home which is set to remain for many.

Interest Rates
One thing that we should not forget is that we continue to live in an environment of very low rates of interest. In fact, there was talk from the Bank of England about the possibility of negative interest rates, should quantitative easing run its course. However, this would be a last resort, not least because most people would be baffled by what negative interest rates really meant.

Deals a plenty
Unlike the financial crisis of 2008, which I still remember well, there is a huge array of very competitive mortgage deals out there – especially if you have a deposit of 15% or more. For more information about these deals, just get in touch.