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Six months post-Brexit vote: mortgage rates low, house prices stable

Cheap mortgage deals still on offer

Six months after the Brexit vote Which? research has found that mortgages continue to be available at historically low rates and the housing market remains buoyant.

Between June and December there was a 16% increase in the number of mortgages available, according to Which? analysis of Moneyfacts data.

At the beginning of December there were 5,502 mortgages on the market, compared to 4,736 in June.

The average mortgage rate has also fallen by 0.18 percentage points from 2.99% in June to 2.81% at the beginning of December.

  • The best mortgage for you will depend on your circumstances. If you’d like to discuss your options with an impartial adviser, call Which? Mortgage Advisers on 0808 252 7987

Tracker mortgages: worth considering?

The Bank of England base rate has been at a record low of 0.25% since August this year, and analysts expect it to remain low for the foreseeable future.

This means a tracker mortgage could be an attractive option if you’re buying a house or remortgaging soon.

At the start of December there were 372 tracker mortgage deals on the market, with an average rate of 2.18%.

The average five-year tracker mortgage rate fell from 2.72% in June to 2.06% in December, while two-year tracker rates went from 2.02% to 1.97%.

What about fixed-rate mortgages?

If you would like the financial certainty of knowing exactly what your mortgage repayments are going to be each month, a fixed-rate mortgage may be a good option.

There are plenty to choose from – at the start of December there were 4,330 fixed-rate mortgages on the market compared to 3,692 in June.

The average rate on five-year fixed-rate mortgages fell from 3.2% to 3.12%, and for two-year fixed-rate mortgages from 2.74% to 2.52%.

What’s happening with house prices?

Despite some predictions that we might see house prices fall in the wake of the Brexit vote, in fact they have remained pretty stable.

We took an average from three of the biggest sources of house price data – the Halifax, Nationwide and UK House Price indices – and found that between June and October the average house price grew by just 0.5%. Year-on-year there has actually been an increase of 5.86% between October 2015 and October 2016.

The graph below shows average house prices according to all three sources until October 2016.

Of course, in your local area the situation may be very different.

Is now a good time to sell my house?

Despite some predictions that house prices could take a hit following the Brexit vote, the market has remained pretty buoyant.

However, this may not be the case in your area so make sure you investigate what’s happening in the local property market by speaking to estate agents and looking at local sold prices on the Land Registry website.

If you need a mortgage to buy or move home there are plenty of deals on offer, and mortgages continue to be available at historically low rates.

David Blake, principal adviser at Which? Mortgage Advisers, said: ‘In what can be a complicated property market, an independent mortgage adviser can help you to have the best chances of success when buying or moving home. They will explain the steps you can take to be in the best possible position before applying for a mortgage.’

You can contact Which? Mortgage Advisers by calling 0808 252 7987.

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