By September 2022, the sales market had finally started to relax and although demand from buyers was still strong, activity was gradually returning to pre-pandemic levels.
That was until, on 23 September 2022, Chancellor Kwasi Kwarteng announced his now widely criticised “mini budget”, sending financial markets into turmoil and prompting lenders to pull hundreds of mortgage products almost overnight in fear of an emergency base rate hike by the Bank of England.
Although many products were eventually replaced, the available interest rates spiked from circa 3.5% a couple of months earlier to almost 7% by October - doubling monthly repayments for would-be buyers and seriously limiting affordability in a market already under increasing pressure from rising inflation and the cost-of-living crisis.
Property sales and therefore mortgage transactions inevitably dwindled over the weeks that followed but, in an effort to reinvigorate the market, lenders recently engaged in a mortgage price war and are now offering rates as low as 4.5% to entice buyers off the fence and back into the market.
Initial signs suggest it's working. At Reades, enquiry volumes have more than doubled over the past 10 days and the number of sales agreed is in line with pre-pandemic levels for the time of year.
If you need a mortgage, whether that's to buy your new home, an investment property or refinance an existing loan, Reades Financial Services can assist. They are whole of market brokers who don't charge for their advice and are no obligation, so there really is nothing to lose and everything to gain from getting in touch.
You can reach Reades Financial Services on 01244 538 538 or pop into our Hawarden Property Centre for a face-to-face chat with an advisor.
The service at Reades Financial Services was second to none. Darren went above and beyond to help us with our mortgage.
Thank you so much.
John & Elizabeth Fetherston - Buyer