Paul Stockwell, Chief Commercial Officer, comments on the Bank of England's Money and Credit statistics for June 2022
“With the cost of living rising, record inflation and several months of consecutive interest rate hikes, it’s not surprising that the demand for mortgages has dipped. The short supply of homes and rising house prices over the last few years have also impacted property transactions as buyers look to delay purchases until market certainty returns.
“We are just concluding what is traditionally the busiest period for property purchases each year, and as mortgage market professionals and their clients go on holiday over the summer months, we would expect a slowdown in activity.
“It is also important to remember that year-on-year numbers are being compared to a period characterised by the Stamp Duty holiday, and appetite for purchase will naturally have seen a decline since this ended in June 2021.
“It’s key to stress that there is still a strong pipeline for future borrowing and we are gaining interest from new and existing borrowers despite the economic hurdles and supply issues. In the current climate, one marked shift has been a trend towards longer term fixes both for those looking for a mortgage or indeed to remortgage."