Carney threat of Brexit house price crash failing to materialise, according to online mortgage provider
The latest data from the Bank of England and the Building Society Association bears out the experience of one of the leading online mortgage providers, mortgages.online, that the threat by Bank of England Governor Mark Carney of a potential housing market collapse as a result of the Brexit uncertainty has fallen on deaf ears.
Paul Flavin, Managing Director of mortgages.online explains, ‘The data issued yesterday indicates that mortgage lending is at its highest level since the financial crash of 2008, and that remortgaging similarly is running at a ten year high. Total mortgage lending for 2018 at £257 billion is as high as it has been since 2007, with no signs of a dampened market despite the outcome of the current Brexit negotiations being far from clear. Due to the steady rise in remortgage approvals since 2012, total approvals from lenders are up 30% on the 2012 numbers, again with no apparent fall in appetite from consumers.’
The picture in the high street is the same according to Paul Flavin. ‘We are seeing no reduction in loan requests for house purchases,’ he says, ‘and with the spring almost upon us we are forecasting an actual increase in applications. It feels like there is no real consumer fear of a price crash either for owner mortgages or buy to let mortgages, despite the threat issued towards the end of last year from the Governor that a dysfunctional exit from Europe would result in a 30% reduction in values. The sense is that most people are tired of the Brexit confusion and are simply carrying on as normal.’
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Notes for Editors:
Data references are from the Building Society Association Total Market Mortgage and housing Statistics issued on 30 January 2019.
mortgages.online is an online mortgage broker providing mortgages for both Buy to Let landlords and traditional house owners.
Contact details:
Paul Flavin:
paul.flavin@mortgages.online
03300586058
07968822606