{"id":4263,"date":"2024-05-14T10:43:44","date_gmt":"2024-05-14T09:43:44","guid":{"rendered":"https:\/\/new.contentdeployment.co.uk\/quilter\/?p=4263"},"modified":"2024-05-14T10:46:50","modified_gmt":"2024-05-14T09:46:50","slug":"mortgage-market-update-2","status":"publish","type":"post","link":"https:\/\/new.contentdeployment.co.uk\/quilter\/2024\/05\/14\/mortgage-market-update-2\/","title":{"rendered":"Mortgage Market Update"},"content":{"rendered":"
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2023 was a difficult year for the UK mortgage market, with rising interest rates posing affordability challenges for many borrowers. However, there are signs that the market is stabilising, which is promising for buyers and sellers alike.<\/strong> <\/p>\n<\/div>\n\n

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Mortgage approvals on the up<\/strong> <\/p>\n<\/div>\n\n

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In January 2024, the number of mortgage approvals increased for the fourth time since June 20231<\/sup>. There was a total of 55,227 successful mortgage applications for house purchases \u2013 7.2% month-on-month and 40.2% year-on-year. <\/p>\n<\/div>\n\n

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More borrowing and repayments <\/strong> <\/p>\n<\/div>\n\n

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Individuals also repaid \u00a31.1bn in mortgage debt, up from \u00a30.9bn in December 2023. Meanwhile, between December 2023 \u2013 January 2024, net borrowing of consumer credit by individuals increased from \u00a31.3bn to \u00a31.9bn. <\/p>\n<\/div>\n\n

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More homeowners with longer mortgage terms<\/strong> <\/p>\n<\/div>\n\n

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Although the market may now be recovering, many mortgage holders will be feeling the effects of the recent volatility for years to come. Data has found that, in 2023, 58% of people who took out a mortgage opted for a term of 25 years or more2<\/sup>. This is likely due to the cost-of-living crisis putting a strain on many homeowners, so they needed to make their mortgage more affordable by spreading the cost over a longer period. <\/p>\n<\/div>\n\n

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What\u2019s in store for the mortgage market?<\/strong> <\/p>\n<\/div>\n\n

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With mortgage rates so dependent on the rate of inflation, it\u2019s difficult to predict precisely what\u2019s next. However, many experts are confident that things will improve in the long run. In its latest Mortgage Market Forecast for 2024\/5, UK Finance advised that, \u2018Whilst it will take some time for the pressure on household finances to recede, we expect things to begin to look up in 2025. Meanwhile, prudent lending standards and extensive lender forbearance will minimise the number of customers who struggle with their mortgage payments through this period.\u2019<\/em> <\/p>\n<\/div>\n\n

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1<\/sup>Bank of England, 2024  <\/p>\n<\/div>\n\n

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2<\/sup>Mojo, 2024 <\/p>\n<\/div>\n\n

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It is important to take professional advice before making any decision relating to your personal finances. Information within this article is based on our current understanding and can be subject to change without notice and the accuracy and completeness of the information cannot be guaranteed. It does not provide individual tailored investment advice and is for guidance only. Some rules may vary in different parts of the UK.<\/em><\/strong> <\/p>\n<\/div>","protected":false},"excerpt":{"rendered":"

2023 was a difficult year for the UK mortgage market, with rising interest rates posing affordability challenges for many borrowers. However, there are signs that the market is stabilising, which is promising for buyers and sellers alike.  Mortgage approvals on the up  In January 2024, the number of mortgage approvals increased for the fourth time […]<\/p>\n","protected":false},"author":4,"featured_media":4264,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":[],"categories":[32,76],"tags":[],"hd_content_source":[],"_links":{"self":[{"href":"https:\/\/new.contentdeployment.co.uk\/quilter\/wp-json\/wp\/v2\/posts\/4263"}],"collection":[{"href":"https:\/\/new.contentdeployment.co.uk\/quilter\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/new.contentdeployment.co.uk\/quilter\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/new.contentdeployment.co.uk\/quilter\/wp-json\/wp\/v2\/users\/4"}],"replies":[{"embeddable":true,"href":"https:\/\/new.contentdeployment.co.uk\/quilter\/wp-json\/wp\/v2\/comments?post=4263"}],"version-history":[{"count":4,"href":"https:\/\/new.contentdeployment.co.uk\/quilter\/wp-json\/wp\/v2\/posts\/4263\/revisions"}],"predecessor-version":[{"id":4268,"href":"https:\/\/new.contentdeployment.co.uk\/quilter\/wp-json\/wp\/v2\/posts\/4263\/revisions\/4268"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/new.contentdeployment.co.uk\/quilter\/wp-json\/wp\/v2\/media\/4264"}],"wp:attachment":[{"href":"https:\/\/new.contentdeployment.co.uk\/quilter\/wp-json\/wp\/v2\/media?parent=4263"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/new.contentdeployment.co.uk\/quilter\/wp-json\/wp\/v2\/categories?post=4263"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/new.contentdeployment.co.uk\/quilter\/wp-json\/wp\/v2\/tags?post=4263"},{"taxonomy":"hd_content_source","embeddable":true,"href":"https:\/\/new.contentdeployment.co.uk\/quilter\/wp-json\/wp\/v2\/hd_content_source?post=4263"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}