Despite the initial surprise and anxiety that followed the result, the general mood in the mortgage market is very much business as usual. After a short period of reflection, most brokers and lenders have opted for a reassuring message of ‘keep calm and carry on’.
Overall we are hearing from the market that the outlook is far from doom and gloom. In fact, brokers should see the current climate as an opportunity to diversify their approach in order to meet the demands of their ever-changing demographic of customers.
The market has already experienced an increase in remortgage activity, for example, which largely compensates for any potential slow down in purchase numbers. Demand for property still exceeds housing supply; this has remained consistent both before and after the referendum. It is essential to remember that demand is strong, and there are customers waiting to purchase even if someone changes their mind.
If nothing else, last month’s vote has given brokers a reason to get in contact with their clients to discuss their options. Proactivity and customer engagement will bring confidence and opportunity. Many advisers are predicting that remortgaging figures will continue to rise, spurred on by the changing landscape post-referendum.
While uncertainly still prevails, in the short-medium term at least, fixed rates have shown signs of reducing, allowing savvy consumers to remortgage in order to gain a better deal.
However, it is important to realise that these changes are not solely linked to the result of the referendum. In the lead up to the vote, the market was already changing due to a culmination of factors including changes in the buy-to-let sector and a number of bank holidays in rapid succession. Markets constantly change and as such, there has never been a better time to ensure that customers seek professional advice so that they understand the options available to them and their personal circumstances.
Overall, for Legal & General Mortgage Club it is business as usual. Wherever there is change there is a vital need for advice, and mortgage brokers are in the perfect place to provide this support and meet the demands of the market.