More mortgage choice - and better rates - post-Brexit
PUBLISHED: 12:37 07 November 2016 | UPDATED: 12:03 09 November 2016
Brexit fears were unfounded, according to research revealing that mortgage deals are cheaper since the referendum.
Concerns about the mortgage market being adversely affected have proven untrue - with new figures showing an increase in the number of deals and a drop in interest rates since the referendum.
The Which? study suggests there is now greater choice, with homeowners able to pick from 5,336 mortgages at the end of September compared with just 4,736 in June.
And the cost of borrowing has fallen since the June 23 vote, with average mortgages now being repaid at a rate of 2.85 per cent – down from 2.99 per cent three months ago.
National sales director at property specialist Leaders, Kevin Shaw, said: “Despite fears Brexit would make it more difficult and more expensive to get a mortgage to buy a property, the opposite has actually come true.
“Not only are interest rates down, but availability is up for both first-time buyers and those planning to remortgage, in order to take their next step up the ladder.
“This means it is an ideal time for people to consider selling their home, safe in the knowledge they will be able to buy a new property and benefit from a favourable mortgage deal. First-time buyers with a deposit should also move forward with their plans to buy during a period of low interest rates.”
Meanwhile, existing homeowners looking for a 60 percent loan-to-value mortgage enjoyed an increase in the amount of deals open to them, from 345 to 421 in the same period.
Kevin added: “While nobody can be sure of what the future holds, the initial post-Brexit indications are that house prices will not crash and people are still keen to sell.”