Adam Oldfield, chief revenue officer at Phoebus, says:
“With so many conflicting reports around the state of the housing market and mortgages in particular, we have to take encouragement from the non-seasonally adjusted figures from HMRC today. Although lower than in 2022 the uplift from the number of transactions in May shows a level of confidence returning. Most of these transactions have been in the pipeline for over three months, a time when the hikes in interest rates coupled with the highest inflation for years could have caused a serious lack of confidence. It appears that despite everything the need to move has outweighed these negatives.
“With the news that the American Federal Bank increased interest rates this week, it is understandable that borrowers will be anticipating the Bank of England to do likewise. However, with the recent drops in swap rates, it is up to lenders and brokers to educate their clients that perhaps a base rate rise next week may not necessarily mean an immediate rise in mortgage rates. There are plenty of opportunities, especially in the remortgage market, so a proactive approach is vital to keep things moving in the coming months.”