Expert Suggests UK Mortgage Market Primed For Brexit
News that a vaccine for the COVID-19 pandemic will hopefully be ready for use is positive news for people looking ahead to 2021. Of course, there are many challenges in the months which lie ahead, and it is impossible to overlook Brexit.
The housing market, as well as the mortgage sector, will be affected like every other part, but one leading name in the UK market believes the sector is in a strong position to cope with the Brexit transition phase.
Richard Hayes is a well-known name in the UK mortgage market, and he said; “There is unlikely to be a massive impact there when it comes to Brexit. We’ve got two things to look back on, the recession we’re in right now and the little impact it’s had on the property sector. But the property market in the UK also acts in isolation – it is such a strong market, the largest in Europe, and it is exceptionally resilient. This is even more the case after the 2008 financial crisis and the reforms which came off the back of that – stress testing around affordability has been far more robust, for example. The financial crisis in 2008/9 set the mortgage market up to really not go through issues again.”
Lessons must be learned
It is vital that lessons have been learned, and that the mortgage market is in a position to manage challenges that are likely to come.
Mr Hayes added: “History suggests the mortgage market should be in a better place due to the first financial crisis and the outcomes and actions which were taken off the back of that to make it a securer sector. When big things are going on, the mortgage market has learnt its lessons to remain strong – and we can immediately say this is the case and has definitely happened since COVID and the national lockdown.”
Mr Hayes also said; “Although the market has been buoyed by the Stamp Duty holiday, it was in a good place even before this measure was announced – property prices were up and we were busy. We don’t expect to see anything have a crazy impact on the market itself once the Brexit transition period occurs. We were forced to be put into a different and more resilient mindset off the back of the credit crunch.”
Would a no-deal Brexit affect matters?
Of course, Brexit still looms large, and there are concerns what will happen to the economy if a no-deal Brexit occurs.
Mr Hayes concluded: “What would a no-deal do? It may affect importers and exporters, and their income, it may affect prices. There are so many things which could change. But in the same instance, there are so many things COVID-19 has had an impact on – particularly on a day to day basis. The main takeaway is that we are still processing record numbers of applications. People can breathe a sigh of relief.” While there are new challenges to overcome in the housing market, people shouldn’t consider arranging a mortgage to be an impossible task. However, it is vital people accept help and assistance from professionals in the field. If you are keen to arrange a mortgage, speak to a mortgage broker or experienced adviser and make sure you are fully equipped to make an informed decision.