I’m sure it’ll come as no surprise to you that I start by suggesting that 2018 has been a year of instability. In my 2017 review, I mentioned the year of change that the Brexit vote had triggered and the theme for 2018 has been largely the same.
It’s been a year of political turmoil as Theresa May and her government have continued to work to identify solutions to the deadlock caused by a tough line from the EU, the Irish border issue and disharmony both within Parliament and their own Tory Government.
What has that meant for the mortgage market?
It has been very evident as 2018 has progressed that the housing market has been slowing down. Whether that is a result of buyers becoming jittery at the unknown’s the UK faces in 2019 as Brexit looms, or wider economic issues that a ‘no deal’ may exacerbate.
What we can say with certainty is that despite the Bank of England rate rises this year, mortgages remain historically low and homeowners are still able to benefit from a wide range of mortgage deals from a competitive industry.
The Bank of England’s base rate increases over the last 18 months have no doubt hit some homeowners in the pocket, but it is widely acknowledged that this increase provides Mark Carney and his team with scope to reduce rates again should the Brexit process have a negative impact on the UK economy.
There are more products available for homeowners in these unique economic conditions we find ourselves in. A greater range of niche lenders have stepped in to fulfil vital funding options that the high street lenders shy away from, meaning there is broadly speaking, a competitive mortgage available to meet most homeowner needs.
HMRC have continued to tighten their grip on taxable benefits for Landlords following on from legislation in 2017 and those who own four or more properties now have to shoulder the burden of extra administration. But it’s not all bad news as, like with a standard mortgage, there is a wide range of Buy to Let mortgages available, ensuring that deals remain competitive as we head in to the new year.
We are seeing greater flexibility is coming back in whereby lenders may use not just rental income, but personal income to make more risk based decisions and lend in more situations.
Thanks to the City Mortgage Solutions team
2018 has proved to be another successful year for City Mortgage Solutions, thanks in no small part to our expanded team of 25 brokers, many of whom have been with us since our humble beginnings back in 2007.
My records show that we have used over 40 lenders for our clients through the year which indicates the level of research and service that our brokers provide to ensure each of their clients gets the best deal possible. Their dedication and professionalism in ensuring our clients enjoy the best deals with an unrivalled focus on personal service provides the backbone from which City Mortgage Solutions has been able to grow.
As ever, you can be assured that City Mortgage Solutions will keep abreast of the changing landscape of mortgage ownership next year and beyond, providing you with the very best advice from our fantastic team of brokers, wherever and whenever you need it.
…and thanks to you, our clients
2018 has been another good year for City Mortgage Solutions and I’d like to thank you for your support. We really wouldn’t be in the strong position we are without you.
On behalf of the City Mortgage Solutions team, I’d like to wish you an enjoyable Christmas break and a prosperous 2018.
Managing Director, City Mortgage Solutions