There were similar themes of inflation, base rates and the cost of living crisis, with a lot of volatility throughout the year but it looks like the giant tanker that is the economy has started to turn (slowly).
Looking at mortgage pricing, whilst rates ratcheted up to new highs at the halfway point of the year, an improved outlook for inflation and the base rate has led to mortgage rates slowly edging down, bringing a smidge of calm to the market.
There were still issues with last minute withdrawals, with a debate around whether there should be minimum withdrawal notices being had but overall (touch wood) the last-minute frantic withdrawals have slowed to a crawl.
Product transfers and remortgages were also a hot topic of conversation this year with PTs becoming increasingly popular and leading some brokers to call for a realignment of product fees. Whether this happens next year as up to 1.6 million people are expected to come off their fixed rate deals remains to be seen.
Later life lending and the buy-to-let sectors also had a difficult year, with lending falling in both and an FCA review into the former. But new products and innovation has meant that both sectors look more battle-ready for next year.
The political aspect can also not be overstated, with three housing ministers this year alone, an upcoming election making housing a red-button issue, Renters Reform and Leasehold Reform being introduced to parliament and confusion as to whether there would be any action on stamp duty reform or a Help to Buy revival.
This year had been a lot to say the least, so to spread some festive cheer and sign off the year, the Mortgage Solutions team has condensed the mortgage year in a 12 days of Christmas for the mortgage market to put 2023 firmly in the rear view.
The mortgage year in 12 Days (of Christmas)
We hope you enjoy and comment on what your 12 Days would be. Merry Christmas and happy New Year!
- One per cent house price fall / One million property sales / One Consumer Duty deadline
- Two per cent inflation target
- Three housing ministers
- 4(00) misleading later life promotions removed
- Sub-five per cent mortgages
- Six-month interest-only switch
- Seven per cent buy-to-let product fees
- Eight base rate decisions
- 9(0) per cent of the mortgage market covered by Mortgage Charter
- 10 years to save for a deposit
- 11th hour product withdrawals and repricing
- 12-month grace period on repossessions
