As an important player in London’s luxury property market, Henry Wiltshire works closely with the experts at Enness Private Clients, specialist high net worth mortgage brokers.
We contacted David Ewington at Enness to find out more about the current financial climate. Thursday saw the reduction in the Bank of England’s base rate to 0.25%, a move made to cushion the UK against a post-Brexit recession. We were interested to know what effect this would have on the mortgage market.
“The message from lenders following the referendum outcome is very much ‘business as usual’,” David says. “Over the past 24 months, the market has seen lenders chipping away at rates to the extent that they are almost as low as they can be. Thursday’s reduction in the Bank of England base rate is unlikely to affect mortgage pricing and products unless they are directly linked to the base rate without limitations.”
While the numbers of mortgages being taken out is virtually unchanged since August 2015, there has been a clear increase in the volume of remortgages being granted. “Clients are much more aware of the potential savings involved with refinancing when they come to the end of their existing product,” David explains. “In fact, this number distorts the mortgage figures nationally and it’s important that we take this into account.”
David has some tentative predictions for the future as well. “Looking ahead, the regulatory changes of the last few years have made for a robust mortgage market, and produced lenders with both the appetite and ability to lend. There is speculation that house prices will grow at a slower rate in the short to medium term but supply is limited and borrowing remains cheap – two factors that contribute to a good return on investment. Mortgage demand is strong, be it for a new purchase, expansion of a buy to let portfolio or simply to improve existing properties. We don’t anticipate that either Brexit or the subsequent reduction in the base rate will have a negative impact on the UK mortgage market.”
Enness provides financing solutions for individuals from both the UK and overseas buying high value property. Click here to contact them