So 2018 has nearly come to an end and it has been a crazy year in the financial industry, but what can we expect in the Mortgage market in 2019, particularly with Brexit looming.
Let’s face it Brexit is all other the news and you cannot switch on the radio or look at the BBC news app without hearing about a new development, to be honest I am fed up with Brexit so I expect you are as well!
Let’s look at what 2019 could mean to house prices and Mortgage rates
First time buyers are expected to benefit post Brexit with most leading experts expecting house prices to drop, however, we are in a speculative industry and if you
consider what has happened to house prices since the referendum in June 2016 house prices have climbed slowly in certain areas when many thought they would decline.
With the bank of England expecting up to a 30% drop in house prices this could be a prime time to buy your first home or buy a second property and get a great mortgage deal along the way.
Supply and demand is a current issue in the housing market and with the government committing to build more houses, this could mean Help to Buy is frequently used in 2019. In one of my other posts I talked about how help to buy could help you, whether you have bad credit or you are a first time buyer Help to Buy may be the right option for you.
Mortgage Rates After Brexit
Mark Carney of the Bank of England (BOE) recently said that Mortgage rates would rise after Brexit, this is mainly to curb inflation but also the uncertainty around economy after
leaving the EU. This could have a huge affect on thousands of people, especially if you are on a Tracker Mortgage or even on the lenders Standard Variable Rate (SVR) which traditionally is higher
than most lower loan to value fix rate Mortgages.
The Bank of England (BOE) have mentioned there will be another two increases in the base rate in 2019 but the uncertainty around Brexit and whether the divorce will be a smooth-Brexit or a hard-Brexit makes the situation even more difficult to predict, but lets face it traditionally the only way to bring inflation down is to increase the base rate and with inflation still above the set target then the BOE words may come true.
If you're coming to the end of your fix rate Mortgage deal and wondering what your options are, I would urge you to speak to a Mortgage Broker about your expiring mortgage rate. With fix rates still low it maybe the right time to fix your mortgage for a certain period of time.
Like most financial products, Mortgages can be confusing thats where we can help.
I am finishing on probably the least interesting point for most people (unless you are me and enjoy the regulation part!) but it’s important to point out that if you are
expecting the great British government to implement new rules around affordability criteria or bring back the self-certification mortgage then unfortunately
there is more chance of getting blood from a stone.
The Financial Conduct Authority (FCA) have already implemented these changes into their 'source books' so the new affordability criteria and stricter guidelines are here to stay.
2018 has been a great year and Bristol and Bath Financial Services would like to wish you a wonderful Christmas and prosperous 2019.
Speak to Bristol and Bath Financial Services for the right advice. Contact us now through social media or email me here