The firm reported that the number of £500k+ mortgage completions rose by 122% in July but growth has still slowed year-on-year.
“The growth in volumes at 122% is flattered by the fact that the market was only beginning to recover in July last year from its record low position a few months earlier,” said Simon Gammon, head of Knight Frank Finance.
“There are fewer buyers active right now – but ironically those that are active are being courted by a wider range of banks in the £500,000+ mortgage market. Not only have the range of products widened, but rates are falling and LTV options are improving. Our average rate on agreed mortgages fell from 3.48% to 3.02% between June and July, and average LTV s have risen from 58% in June to 66% in July,” he added.
Melanie Bien, director with high-end broker Private Finance, said the firm has seen a seasonal lull, but there’s still plenty of demand. “The Lloyds and Halifax refusal to do interest-only above £500,000 has made it harder for large loan customers to go direct, fuelling the broker market. There is uncertainty about a potential double dip, so it’ll be interesting to see how things look in September.”
