Borrowers continue to be hugely engaged and want to lock in deals in plenty of time, which is the right approach in the current market. Purchasing activity has started to cool.
FTA: Some brokers have cited a drop in foreign ownership in the UK housing market. Does this indicate a downturn in the housing market?
HB: We haven't noticed any drop off in interest from overseas buyers, in fact we usually see the opposite. The UK housing market is viewed by overseas buyers as an attractive long-term investment and during periods of volatility, we do expect an uptick in international customers looking to acquire homes at attractive prices.
That's particularly the case amid periods of softening in both capital values and sterling.
FTA: Are clients worried about what is happening with government economic and tax policies?
HB: Some clients have expressed worry and are waiting to see how central banks develop their approach to interest rates through November.
The spike in mortgage rates following the "mini" Budget brought home how quickly volatility can spread from financial markets into the outgoings of consumers and I think that alarmed people.
Having said that, we are seeing some of the major lenders drop rates on some products. Pricing in financial markets has brought down predictions of a peak base rate to less than 5 per cent, from more than 6 per cent a few weeks ago. If that remains unchanged, which admittedly is a sizeable 'if', we could be nearing peak mortgage rates.
FTA: What sort of time to completion are people looking at, on average? Does this differ in rural areas compared with urban areas?
HB: Solicitors are under pressure at the moment, particularly at some of the larger companies and particularly when it comes to remortgages. It's hard to put an average period because there is so much variation.
simoney.kyriakou@ft.com
