What is happening with Mortgages?

What is happening with Mortgages?

by Aurora Financial — Posted on September 27, 2016

The referendum caused some shifts in the mortgage market but the housing market as a whole remained strong; with growth in some areas of the south east having been in the double digits over the last year. Therefore, while there has been weakness in the highest end of the market following the referendum, the rest of the market seems to have remained strong.

Interest rates remain at historic lows due to the reduction in the Bank of England base rate. While two year fixed rates can be found at around 1.3%, tracker rates have flooded the market at just over 1% – It is difficult to imagine rates going any lower.

Another development whose effect is not yet to be known is the gradual reduction of interest rate relief for buy to let investors. While the market remains buoyant due to these low interest rates, clearly the case for buy to let investment will be hurt somewhat when compared to other investment options which retain the right to deduct the full interest costs against investment returns.

We have obtained a number of buy to let mortgages recently for clients and there seems to be no end in sight given the buoyancy of the housing market currently.

– Alistair Murdoch