Mortgage market stays strong as rates fall and product choices grow

The mortgage market is set to remain strong despite the upcoming general election, with falling rates and increased product availability boosting borrower confidence, according to Jonathan Samuels, CEO of Octane Capital.

Market resilience and improved conditions
Recent research from Octane Capital indicates that the mortgage market is well-positioned to withstand any political uncertainty brought by the general election. Over the past six months, mortgage rates have dropped across the board, and product availability has surged, providing buyers with more favourable conditions.

Significant rate reductions
The analysis shows that average mortgage rates have decreased significantly. Those looking to remortgage have seen rates drop by 0.68%, while home movers have experienced a 0.49% reduction. First-time buyers have also benefited from a 0.43% decrease, although they still face the highest average rate at 4.62%.

Landlords, however, are enjoying the most substantial benefits, with buy-to-let mortgage rates falling by 1.11% to an average of 3.33%, the lowest among all market segments.

Increased product availability
Alongside falling rates, the number of available mortgage products has also risen. Home movers now have 3.7% more products to choose from, while remortgagers have seen a 6.6% increase. First-time buyers are benefiting from an 8.3% rise in available mortgage products. Landlords again lead the pack, with a 10% increase in product availability over the past six months.

Jonathan Samuels commented, “We’ve seen six consecutive monthly increases in mortgage approval figures, and it’s fair to say that buyers today are in an even stronger position with both mortgage rates having fallen and the range of products available increasing.”

Positive outlook despite political uncertainty
Samuels acknowledges that the upcoming general election may cause some buyers to hesitate temporarily. However, he believes this will not significantly impact the market’s momentum. “While some buyers may now act with a momentary degree of hesitation with a general election on the horizon, it’s unlikely to be significant enough to stall the momentum that has been building in recent months,” he said.

A stable market for landlords and buyers
The latest data from Octane Capital underscores a robust mortgage market, driven by lower rates and greater product availability. Despite the approaching general election, the market is expected to maintain its positive trajectory. For UK landlords and buyers, the current conditions present an excellent opportunity to secure favourable mortgage deals and benefit from the increased choices available.