I expected to see a small increase by now, but I’m starting to think that the economy is too fragile for the government to risk making things worse.
I wouldn’t be surprised if rates remain unchanged for the rest of the year. That won’t help the remortgage numbers as homeowners sit tight on standard variable rate.
Some were tempted to take out fixed rate deals earlier in the year in anticipation of the rate hike that never happened.
So what next for brokers? What can they do to keep the wolf from the door?
If the answer was easy, then we wouldn’t be discussing it now, but my hunch is that buy to let is the way to go.
All the evidence points to an increase in demand for rental property as the availability of mortgages at higher LTVs remains limited, continuing to squeeze first-time buyers out of the market.
Entrepreneurs with money in the bank are starting to look at property as a long-term investment again now that the market seems to have bottomed out.
Reluctant or accidental landlords are becoming the number one customer for many proactive brokers.
Many new landlords did not buy their property with the intention of letting it out but are doing so because they can’t get the price they want for their property.
These people need the help of an expert broker.
The buy-to-let sector is set to expand considerably while the first-time buyer sector may not match its level of growth over the coming years.
This presents us all with significant opportunities. Those brokers that are willing to tap in to buy-to-let mortgage market should do well. They need to position themselves as experts in the sector and ensure that they have access to the best deals.
Government figures show that, by 2016, there will be 4.1m households living in rented property, compared to 3.4m currently.
I’d like to see greater government assistance for buy-to-let investors. Tax breaks would be a big help.
A cultural shift away from home ownership and towards renting is a reality for the latest wave of young people leaving home.
Don’t miss the boat.
Sally Laker is managing director of Mortgage Intelligence
