It is true though that we are currently in the midst of probably one of the longest price wars for at least seven years, which is a positive.
However, there is still plenty of news hitting the press that quickly shows that we are working within a fragile environment.
In recent weeks we have seen:
– 850 job losses at Lloyds Banking Group, taking total losses to 15,000
– 1,400 job losses at Royal Bank of Scotland over the next two years, taking total redundancies to 37,000 since 2008
– Potential shortage of surveyors if applications continue to rise at current levels
– Potential liquidity issues at Co-operative Bank
– The failure of both LBG & RBS branch sales to come to fruition
Whilst not great news, especially for those who may lose their jobs, none of the above, will have a long term effect on market sentiment, but it does show there are still issues being worked through the market.
I feel that the short to long term view of the mortgage market is positive; lenders will continue to offer attractive products for the rest of the year and at least Q1 2014.
I also believe that we will start to see plenty of movement in relation to retention product development. The key to any sustainable recovery for the mortgage market is sentiment, both within the market and also the wider economy.
I believe that sentiment is strong in the market with many positives, we just need to hold our nerve when the economy sends the odd curve ball.
Martin Reynolds is chief executive at SimplyBiz Mortgages
