The mortgage market in the UK after Brexit was announced has been shaky. With everyone not knowing how Brexit will turn out, they are weary of committing to huge financial obligations.
However, the UK mortgage market is starting to see potential buyers increase again. In May, a total of 121,464 mortgages were completed.
Total mortgage loans increased by £3.5 billion, which is the fastest pace in more than a year. Mortgage lending has increased 2.9 percent in the past year. The prediction for next years growth is 2 percent in 2017.
The slowdown in growth we can see come from the Brexit. The value of the Sterling dropping makes customers reluctant to purchase a house. This has very negatively affected the housing market in the UK.
The consumer credit card and personal loan debts have been on the rise as well. This is also causing worry from the Bank of England’s Financial Policy Committee as consumer credit continues to rise.
More regulations are going to be put in place to slow down the lending growth and another measure to be sure someone can afford a loan.
The financial stability in the UK does not have a good outlook. According to Kay Neufeld from Centre for Economics and Business Research, the UK has not reached peak inflation yet and there is little evidence of wage growth soon.
As it is unsure yet how the Brexit and UK’s housing market will affect Ireland and financial services talk about relocating to Ireland. The government regulation needs to grow to stabilise our mortgage market to offset any fluctuations in the UK mortgage market.
In reference to Mortgage market stabilises as house prices slowdown comes to an end by Tim Wallace on 29 June 2017 in the Telegraph.