Home movers remain committed despite summer slowdown

Many key indicators for home movers and first-time buyers remained either stable or only marginally changed when compared to the previous month, according to new research from Mortgage Advice Bureau.

Its National Mortgage Index found that, while June signifies the start of the great summer getaway, there was still market momentum over the past month.

In terms of mortgages arranged, the bureau’s brokers observed a somewhat steady ‘tick over’ in most regions.

In fact, the East and West Midlands, Scotland, Wales, Yorkshire and the Humber and the North saw purchase loan sizes increase on the previous month, as has been the case for the past year.

However, whilst many areas of London appear to be suffering from ‘Brexit fatigue’, and a downwards pressure on prices, brokers suggest there is an encouraging level of activity – particularly from first-time buyers taking advantage of softer market conditions to negotiate on their purchase.

Meanwhile, conditions outside of the capital are starting to move a little, with a positive change in terms of average purchase loan size in the South East over the last month. This suggests that those who have decided to go through with their purchase are paying advertised asking prices.

Brian Murphy, head of lending for Mortgage Advice Bureau, commented: “Across the month, many lenders reviewed their rates and repriced downwards, providing those who were moving or remortgaging with access to some of the lowest rates seen for some time.”

“What’s also become more apparent is a move by many lenders to take a more pragmatic view around affordability where it’s prudent to do so, sending a clear message to the would-be borrowers that conditions continue to be favourable.”