Mortgage Market Gets Off To Surprisingly Strong Start To 2019

Posted on: 4 April 2019

With almost 67,000 mortgages approved in January, 2019 has started strongly for the property market. Despite fears for the housing market this year, this represents an increase in activity from the end of 2018, showing that 2019 could surprise many when it comes to the upward trend in property.

“January’s rise in mortgage approvals is at odds with recent data and surveys which had suggested that Brexit and economic uncertainty could having a dampening effect on housing market activity,” said Howard Archer, chief economic advisor to the EY Item Club.

The surprise seen amongst analysts indicates that the upsurge in activity is unexpected, but there are several factors that are contributing the market’s current health. A major contributor is, of course, the low interest rates in the market, which have supported purchasers and given the lending industry much confidence. Many current property owners have used these historically low levels in order to refinance their loans and find a better deal.

The emergence of first-time buyers as one of the major forces in the property market is another contributing feature to this unexpected upsurge, as well as the increase in mortgage applications, as for the first time since 1995 first-time buyer mortgages made up over half of mortgages approved in 2018.

The strength of the first-time buyer market in 2019 can be seen in the 25,000 mortgages taken out in the first month of 2019 by first-time buyers, according to banking trade body UK Finance. A total of 33,621 mortgages were approved to purchase a home last month, according to data from UK Finance which represents high street banks and building societies. This also represents an increase when compared to February 2018 of 1.8% - which is fairly significant considering the march towards Brexit was firmly taking place through February.

With summer firmly established as the most popular time to buy and sell, we are moving into a particularly busy time of the year for property and therefore, this resurgent health of the market should continue for the foreseeable future.

Share:


Recent Articles

20 December 2024

How To Make Your Pets Look As Festive As Possible On Christmas Day

One fun way to involve your pets in the celebrations is to dress them up for Christmas Day. 1. Christmas Jumpers • Cosy Knits: Your dog or cat can stay warm and fashionable in a soft, light jumper with festive designs like reindeer or snowflakes, especially if they have short fur...

18 December 2024

Get A Festive Grip On Your Garden Pathways!

Ensuring your garden pathways are safe and not slippery over the festive season is crucial, especially when greeting visitors. Cold, damp, and icy weather can make outdoor surfaces hazardous, but a few easy precautions can help keep paths safe. Maintaining clean, well-lit, and grated...

17 December 2024

Buyers And Sellers, Act Now: Sales Surge Amid Stamp Duty Increase

  Stamp Duty Land Tax changes are coming into effect 1st April, and purchasing a new home before this date can save you thousands of pounds.   As we approach the April stamp duty deadline for England and Northern Ireland, there is no denying the bountiful...

Get an instant online valuation

Find out how much your property is worth