HOUSEHOLD FINANCE REVIEW Q1 2022 - Comment from national broker firm, Just Mortgages

John Phillips, national operations director, Just Mortgages said: “This report confirms a stable start to the year with application activity similar to pre-covid levels and feedback from our brokers around the country confirms that re-mortgaging remains strong.

“However, what these figures don’t yet show is the recent shake-up in household budgets with interest rates, fuel, energy, and food costs all rising steeply and eating away at take home pay especially for lower-income families and typically first time buyers. The chancellor has warned that interest rates are expected to rise to 2.5% by the end of the year and with the cost of living rising rapidly, complying with affordability conditions will become increasingly difficult. Our brokers tell us that competition for houses remains very high and borrowers key concern is securing a mortgage offer and having the ability to proceed when they find the house they want.

“In the remaining half of 2022, mortgage demand should remain strong as borrowers look to secure a competitive purchase or re-mortgage deal before inevitable rate rises and with reducing housing stock the speed of offer could overtake rate as the most important factor to borrowers. Professional mortgage advice looks set to be more important in 2022 than for many years previously .”

Published: 08 June 2022