Some experts are predicting that the post-Brexit environment could provide the perfect conditions for a period of sustained successful mortgage applications in the UK, with deals expected to become cheaper if the Bank of England does what it is expected to do and cuts interest rates to 0.25%.
Although there is still no difference in the pre and post Brexit mortgage application markets, the fact that most experts agree that the Bank of England will move from its record low 0.5% to an even lower 0.25% has got home buyers excited, especially as banks are already finding it cheaper to fund fixed price deals.
The fact that rates have not yet been slashed has not stopped many from speculating that mortgage lenders will take pre-emptive action in order to tempt prospective buyers.
The news at least provides some positivity against a background of a great deal of post-Brexit doom and gloom, with the FTSE falling and Sterling taking an initial nose-dive. It does however present would-be mortgage applicants with a dilemma: do they move for a mortgage application now or wait until rates are slashed as predicted so that they can take advantage of a cheaper deal?
Perhaps it is best to wait until the situation becomes clearer, but with so many stalling on the important decisions until the Brexit dust settles, it is equally true that those who act now may just be able to seize on the opportunities presented by other would-be buyers’ hesitancy – if you’ve found your dream home now click here for more information about the mortgage application and house buying process, becasue this may just be your once in a lifetime opportunity to secure it without the usual fevered competition.
Economists are almost unanimous in their belief that the Bank of England will need to cut interest rates in order to provide buoyancy to an uncertain economy, so it seems that it is now a matter of ‘when’ rather than ‘if’ rates will fall.
For example, swap rates have already fallen by around 30% since the referendum, and it is anticipated that borrowers will soon reap the benefits in the form of lower interest rates. And with fixed rates already incredibly cheap, it seems that it will be a while yet before the tracker rate mortgage again becomes a popular option.
Whatever the case, consider your options carefully and good luck with your mortgage application.