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Joe Pepper, Chief Executive Officer, PEXA UK, reacts to Bank of England’s latest Money and Credit statistics showing a fall in mortgage lending and approvals:
“These figures continue to demonstrate relatively poor housing market sentiment as buyers, homeowners and lenders alike digest the impact of 14 consecutive interest rate hikes. And while it’s possible that we have seen rates peak, this weak data shows that we are far from out of the woods. What is clear is that this unprecedented interest rate spiral has taken compounded the cost-of-living crisis for hundreds of thousands of consumers.
“The good news is that we have seen a flurry of competitively repricing their fixed-rate deals in attempt to stir activity. This is likely to help stimulate remortgage activity.
“Looking ahead however, as we do see mortgage rates fall back, it’s important that the mortgage market is equipped to handle the demand it will see as consumers seek to pare back their outgoings. With consumer outcomes front of mind for the regulator too, that will involve creating a simpler, faster and more manageable remortgage and conveyancing process.”
