Mortgage rates have been consistently falling for some time and are now at their lowest level since 2007, when the Bank of England first started tracking them. Gross advances rose by over 15% to £52.5 billion in the second quarter of this year and at the same time, new commitments increased to £59.3 billion. So with activity high and rates low, right now there’s a much more competitive marketplace, with a boom in demand from borrowers and lenders vying to win their business .
All of which puts the mortgage industry in an exciting place, but it gets even more interesting when we look at the wider economic landscape. Inflation rose from 0% to 0.1% in the 12 months to July, defying the expectations of many and fuelling speculation about the probability of an interest rise early next year. An Equifax survey published earlier this week shows that 78% of people with variable rate mortgages have not been budgeting for the increased payments that a rates rise would bring, even though 80% of the same people agree that there is likely to be a rate increase within the next year – and a separate YouGov survey has 28% of homeowners stating they’re unaware of how much their payments will be if the rate rises to 0.5%.
All of this is setting up another year with a very buoyant mortgage market and a big rise in demand for Business Development Managers, Mortgage Advisers, Underwriters and highly skilled people all across the mortgage market.
For any mortgage / protection / intermediary recruitment needs or career advancement inquiries, contact me at Kind Consultancy on 0121 643 2100 or e-mail info @ kindconsultancy dot com