There have been more changes in our Best Rates chart this month, with four product rates reducing and two increasing – in all cases the changes have been in the range of one to twenty basis points, which suggests that lenders are making adjustments to achieve a competitive edge rather than for any reason associated with Bank of England base rate rises.
Last month it looked as though lenders had decided to put a review of their mortgage interest rates on hold in the light of the predicted rise in base rate in May. This month, there have been five modest changes in our list of Best Rates, with two of the fixed rates increasing, whilst two fixed rates and a tracker have been reduced. This looks to be good news for borrowers as it suggests that the lending market remains stable for the time being as the UK struggles to find its feet on the new path that it has chosen towards Brexit.
Activity has picked up again since the half term break, although the Easter holidays are likely to divert the attention of many possible purchasers for a week on either side. This window offers a great opportunity for buyers to browse the market with less chance of being out-bid or gazumped.
Everybody tells us that there is very little choice of available property, from one and two bedroom flats, up to two and three bedroom houses – a situation which is likely to continue until more property is placed on the market by existing owners.
There has been something of a shake up with Jersey lenders this month, where keen jockeying for position has resulted in a much narrower band of choice when comparing the market-leading mortgage rates with the also rans.
It is too early into the New Year to judge how the market will move, as there is always a flush of new activity in January, and this is likely to continue if Estate Agents receive more instructions from existing property owners, than has been the case in recent months.
The pace in the market seems to have slowed, although demand remains quite high.
The market seems to have cooled slightly after the summer recess, although agents tell us that they are still busy...
The summer holiday break in Jersey seems to have lasted a long time this year.
There has been a general slowdown in recent weeks, as the holiday season comes into full swing.
There has been no change in the interest rates available from the leading lenders this month.
There is evidence that the high level of activity that we saw at the beginning of the year and indeed throughout the first quarter has slowed down since Easter...
The level of activity in the local housing market hasn’t fallen away except for the normal and expected reduction...
For the first time in many months, there has been no change in any of our best rates...
Mortgage interest rates remain stable, although economists will always warn of possible rate rises as the economy gets back on its feet.
With the Brexit vote behind us, and with little apparent impact on the Island’s economy, the local property market has become much busier than is the norm for this time of the year.
All eyes have been focused on the Bank of England, its reaction to the Brexit vote and the possible shift in base rate, which has been pegged at 0.50% since April 2009. At the July 14th meeting of the MPC the Bank announced that base rate, for the time being anyway, would remain at 0.50%. Despite this decision, it is possible that the cost of borrowing will fall during the next few weeks and there will be much for borrowers to take advantage of.
The British economy has been lack lustre in the lead up to the Brexit referendum, and the latest Cost of Living figure at 0.30% alarming, so economists have been busy making many projections as to what will happen depending upon the direction the country will have to take after the vote.
The Jersey property market is steady, with little indication of price rises and with agents finally seeing properties going under offer that have been stagnant for the past twelve months. There appears to be a shortage of property in some categories, particularly the flats and houses that are mainly bought by First Time Buyers. Whilst this sector of the market has been much more active in the past eighteen months, First Time Buyers are now finding they have to compete with investors, some buying with funds from cash deposits that would otherwise be earning very little if left in the bank.
Interest rates continue to fall and with over 180 different mortgage options available to Jersey borrowers there is plenty of choice.
More reductions have been announced by Jersey lenders in the past few weeks, so making 2016 the year in which mortgage rates fell to the lowest that we have ever seen.
As the year progresses, we should see a slightly more relaxed attitude being shown by lenders who for the past two year have been severely restricted by newly introduced regulations and this means that mortgages could soon become available to more borrowers than at present.
January is usually a busy month in the Jersey property market, as people return to work and start thinking of putting in place the plans they have discussed during the long Christmas break. Judging by our fully booked appointment diary since reopening in January, the footfall through the doors of The Mortgage Shop suggests we should be optimistic that 2016 is going to be very busy.
Recent weeks have seen a high level of media comment on the UK economy, although there has been little or no guidance in respect of how families throughout the British Isles should plan for their financial future.
Mortgage lenders now have to follow a strict code of conduct, where affordability criteria governs how much can be advanced to borrowers. Whilst some lenders have found that they are restricted by the new rules, it is still possible to obtain mortgages that are roughly equivalent to gross income multiples that will range between four and a half times income up to somewhere in the region of six times.
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