Despite what the tabloids may say, the UK’s economy over the last economic quarter has been more stable and in better shape than may be portrayed. This has been enforced by the Office for Budget Responsibility positively revising their growth forecasts for the next 3 years. A drop in consumer price inflation and reduction in unemployment figures has helped the situation along, though with the unknown outcome of the lurking shadow of Brexit still very much on everyone’s shoulders, consumer confidence has understandably been somewhat muted.
This being said the Bank of England’s latest dialogues have remained positive on the whole, with all signs pointing to a smooth transition from the EU, leading to the Bank of England and the Financial Conduct Authority confirming that union regulation will continue until at least 2020.
The Bank of England has been somewhat mindful of raising the base rate of interest to soon, or by too much – though it is generally predicted that at rise of around 0.25% will happen by the close of the year. Though this may be seen as having a negative effect on those with lower incomes, we would hope that given the right advice at the outset from their mortgage broker, any truly adverse effects will be sufficiently cushioned by having a fixed rate deal that will weather through the storm.
The positive in all of this is that with a rise in the base rate comes an easing of stress testing from lenders for middle to higher income earners. In addition this had led to a willingness from lenders to focus on traditionally more complex borrowers – such as the self-employed or contract workers, even amongst more mainstream and conventional lenders.
On the whole despite the perceived lack of uncertainty over the UK’s exit from the EU and a slight down turn in consumer confidence, industry experts have stated that 2018 is set to be the strongest year for the mortgage market since it hit its £65 billion gross lending peak in 2007.
Given this information, if you are self-employed, working as a contractor, or simply looking for a better deal on your mortgage it is now the optimum time to consider your options. Call one of our expert advisers today.