<\/p>\n
How has the UK mortgage market performed in October?<\/h3>\n
On the ground, however, it\u2019s been business as usual. While we\u2019ve received more questions regarding Energy Performance Certificates<\/a> for buy-to-let properties and an uptick in queries about no-fault evictions<\/a>, the broader market continues to move forward. Landlords are still actively purchasing properties, encouraged by lower borrowing costs compared to the past 18 months. Residential purchases are also proceeding steadily.<\/p>\n We\u2019ve recently had several lenders visit us at Fowler Smith\u2019s head office, each highlighting their unique selling points to attract more business. They recognise the importance of staying adaptable in a shifting market. For example, one prominent lender in the limited company buy-to-let sector now bases remortgage valuations on market rent rather than current received rent\u2014enhancing lending capacity for landlords with long-term tenants who may be paying below-market rates. It\u2019s these kinds of innovative and responsive adjustments that help the industry progress.<\/p>\n As a company, with two working days remaining in October, we anticipate these trends may strengthen further. Our October application volume has already surged by 48% compared to the same period in 2023, and by an impressive 122% relative to 2022.<\/p>\n <\/p>\n October has also brought updated forecasts, particularly from Savills<\/a>, which initially predicted a 3% drop in UK house prices for 2024. However, this forecast has now been revised to a 2.5% increase. According to Land Registry data (via Which?), annual house prices have risen by 2.8%.<\/p>\n Certainly, the new Labour government\u2019s policies will continue to attract close scrutiny. Yet, as we’ve seen with prior governments, priorities and policies can evolve. In the context of ongoing political shifts globally, we can\u2019t overlook the comparative landscape of SONIA swap rates<\/a>. As of October 25, 2023, 5-year swap rates were at 4.560%, whereas by October 24, 2024, they had decreased to 3.781%. This shift comes amid a notable rise in swap rates driven by ongoing developments around the US election.<\/p>\n In response, we\u2019ve seen some lenders reducing their rates to sustain lending momentum. Just yesterday, Barclays announced rate reductions of up to 30 basis points. It\u2019s a trend we hope will continue.<\/p>\n There\u2019s a familiar saying\u2014perhaps a clich\u00e9\u2014that change equals opportunity<\/strong>. In my view, it holds true. Regardless of what the budget delivers, or any subsequent changes that follow, new opportunities will arise. It will be crucial to seek structured, tailored, and quantifiable advice from a reliable source to navigate this evolving landscape effectively.<\/p>\n <\/p>\nWhat can we expect for the mortgage market moving forward?<\/h3>\n
![\"buy-to-let](\"http:\/\/www.buyassociationgroup.com\/en-au\/wp-content\/uploads\/sites\/9\/2024\/10\/mortgage-brokers-300x138.jpg\")