Navigating the UK Housing Market in 2023: Rising Interest Rates Lead to 10-year High in Mortgage Cancellations
The UK housing market has been cooling in recent months, and new research from Sirius Property Finance has revealed that this has led to an increase in the proportion of mortgage offers being cancelled. In 2022, mortgage cancellations accounted for 13.3% of all gross mortgage approvals, the highest level of mortgage market instability seen since 2013.
This demonstrates the far trickier landscape buyers are having to navigate =when it comes to the higher cost of borrowing and the reluctance that many have seen in following through with a mortgage offer as interest rates have risen.
Managing Director of Sirius Property Finance, Nicholas Christofi, commented: “As interest rates have continued to climb, it’s not only had an impact on the appetite of the nation’s homebuyers, but it’s led to a growing level of mortgage market instability.”
This highlights the UK housing market is in a state of flux, and buyers need to be aware of the potential pitfalls when it comes to securing a mortgage. With interest rates continuing to rise, buyers should ensure that they are fully informed and prepared before committing to a mortgage offer.
Operational Director of Optimus, Eva Whittaker, comments:
It’s not an easy time out there if you are looking to buy or sell. As a panel manager there are two things we can deliver to help – quicker transactions which leads to great certainty and lower fall through rates. At Optimus we are working with over 20 panel members to deliver transaction times 4 weeks quicker than industry average – and we’re getting quicker with every month that goes by. We’re ordering searches earlier in the process and easing the administrative burden on solicitors so they can focus on getting the legal work done quicker. It’s not rocket science, it’s about real partnerships. And it’s making a difference to the brokers, lenders and home movers who choose to work with us.
