100 days since Brexit result: cheaper mortgages and stable house prices

100 days since Brexit result: cheaper mortgages and stable house prices

Research from Which? Mortgage Advisers has found that 100 days on from the announcement that the UK had voted to leave the EU, record-low mortgage rates are on offer to first-time buyers and remortgagers.

The number of mortgages on the market has increased by 13% in the 100 days since the Brexit result. At the end of September there were 5,366 mortgage deals available, compared with 4,736 in June.

Despite pre-referendum fears that inflation could lead to pricier mortgages, deals have actually become cheaper following the Bank of England’s decision to cut the base rate in August. The average mortgage rate on offer fell from 2.99% at the start of June to 2.85% at the end of September, according to Which? analysis of Moneyfacts data.

In addition, contrary to the predictions of some experts, house prices appear to have remained relatively stable at a national level with the average house price increasing by 1.79% (from £211,231 to £215,008) between June and August.

Which? Mortgage Advisers also found:

  • First-time buyers: At the end of September there were 245 deals available to first-time buyers with 5% deposits, seven more than in June. The number of 80% mortgages available to first-time buyers increased from 516 in June to 609.
  • First-time buyer mortgages: The interest rate on 95% mortgages for first-time buyers has dropped by 0.13 percentage points to 4.14% since the Brexit vote. The average first-time buyer rate on an 80% mortgage has decreased by 0.1 percentage points to 2.84%.
  • Remortgaging: Homeowners looking to remortgage are also seeing more and better deals made available to them. The number of 60% mortgages available to remortgagers increased from 345 in June to 421 in September, and the average rate decreased by 0.07 percentage points to 2.23%.
  • Buying & selling levels: in terms of activity levels, the number of people buying property increased from 101,840 in June to 109,630 in August, according to data from HMRC.

David Blake of Which? Mortgage Advisers said:

“Lower interest rates and an increase in the number of mortgages on the market is excellent news for house hunters. In a complex property market it’s important to get yourself into the best possible position before applying for a mortgage. Seeking independent advice from a reputable mortgage adviser can help with this and ensure you get the best possible mortgage deal.”


Notes to Editor

  • House price increase based on the average (mean) of figures reported by the Halifax and Nationwide House Price Indices (both UK-wide) and the monthly median price paid data from the Land Registry for England and Wales.
  • Which? Mortgage Advisers is one of Which?’s commercial services. When an important market fails to deliver value for customers, we develop products and services that put customers’ needs first. Which? Mortgage Advisers provides truly independent, whole-of-market mortgage advice. You can find out more by visiting: https://mortgageadvisers.which.co.uk
  • How much is my house worth? Find out about house prices in your postcode area with our interactive map
  • You can contact Which? Mortgage Advisers by calling 0808 252 7987

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