Our remortgages expert and Mortgage Adviser Richard Rushworth in Brentwood and Hertford reviews a renewed optimism within the mortgage and property market in 2023. 

Firstly, the Thomas Oliver mortgage broking team wish all our customers a healthy and happy New Year, and all the very best for 2023.

Reasons to take mortgage advice

If you are looking to move house, remortgage, purchase your first home or want a commercial mortgage for a buy to let investment in 2023, now is the time to call your local Thomas Oliver mortgage broker for mortgage and protection advice.  

Our mortgage brokers are available to take your call on 01707 872000, alternatively complete our booking consultation form and we will call you.

Thomas Oliver mortgage advisors advise on the changing mortgage market

We have witnessed a very volatile mortgage market recently. One thing we have learned from 2022 is that the situation for mortgages and property changes quickly.  

it is more important than ever to take expert mortgage advice. Our mortgage advisors are trained to monitor the mortgage market and review mortgage forecasts and property trends.  

Our mortgage brokers research new products and mortgage deals when they become available, so we understand how they work and whether they are suitable for our customers. As products and deals were being introduced and withdrawn so quickly in the Autumn of 2022, we advise anyone wanting to move or remortgage to talk to us first so we can explain the best options currently available to you. 

Should you fix or track your mortgage?

For example, with interest rates at relatively high levels our customers are wanting mortgage advice about whether to fix or track their mortgage.  

Reasons to be positive about the 2023 mortgage market 

1. Better economic data should mean a less volatile mortgage market

In 12 months during 2022, the base rate increased from 0.25% to 3.5% and inflation rose to over 10%, but there are reasons to be more positive in 2023. Although inflation is expected to stay above the 2% government level in 2023 it is likely to fall during 2023 from its current 10.7% for the 12 months to November 2022. If economic conditions remain calmer as most forecasters expect, we will continue to see better mortgage deals for customers.  

2. Mortgage deals and mortgage rates stabilising

In October 2022 mortgage rates peaked at 6.51% but since then mortgage rates have fallen and we are seeing more stability in the mortgage market. Although we are unlikely to return to the days of 1-2% mortgage deals we are seeing mortgage deals of typically between 4% - 5% which is much lower than in Autumn 2022. 

For anyone who is coming up to remortgage in 2023 these mortgage rates are better offers. Do remember to contact us at least six months before your mortgage deal ends as we can check the market and organise a mortgage deal that lenders often honour for up to six months. In this situation you could benefit if interest rates keep increasing and mortgage lenders raise the cost of their current mortgage deals. 

3. House prices are unlikely to fall as much as in previous downturns

House prices started to fall in Autumn 2022, given the difficult economic conditions the UK experienced. However, most economists are not forecasting a housing market collapse, they suggest there will be a sell off, but this may not be as bad as we have experienced in previous downturns. In the 1990’s and during the 2008 financial crisis house price inflation had built up in the property market, but now tighter restrictions on how much you can borrow means homeowners are better able to pay their mortgage. This is reassuring news for any of customers who want to move house in 2023.

4. 2023 could be a good time for first time buyers to purchase

If you are seeking a first time buyer mortgage, 2023 might be a good time to purchase your first property. If house prices do fall and you haven’t got a property to sell you will be in a better position to purchase a property, especially if you have a large deposit saved. If you are in this position, we recommend that you call our mortgage broking team for expert mortgage advice. Our mortgage brokers will help you understand your options as a first-time buyer, explain the mortgage process to you and support you with your mortgage application.

5. Homeowners wanting to trade up in the property market could benefit 

Some homeowners who want to purchase a larger property would benefit from falling house prices.  

For example:

If you owned a property worth £500,000 but wanted to sell it and purchase a home worth £1,000,000 this is how a 10% fall in house prices affects your purchase.  

If you made the purchase before the house fall, assuming you have no mortgage on the original purchase, you would need to take out a mortgage for £500,000 on the new property.

However, if house prices fall by 10% and then you make the purchase, both properties would be worth the following:

• 500,000 – 10% = £450,000
• 1,000,000 – 10% = £900,000

In this situation you would only have to take out a mortgage for £450,000.

In addition to this, there is also the potential to make a Stamp Duty saving of £8,750 on a property with a purchase price of £900,000 compared to £1,000,000.

In Summary…

2022 was a difficult year for the mortgage and property market but there are reasons to feel more hopeful that 2023 will be better. In a difficult housing market taking mortgage and protection advice can save you time and money. Speak to our mortgage brokers who understand the mortgage market and can provide expert mortgage advice.

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As a mortgage is secured against your home, it could be repossessed if you do not keep up the mortgage repayments. The information contained within this article is for guidance only and does not constitute advice which should be sought before taking any action or inaction.