Mortgage Pulse Report 2024
Real Insights Into Public Opinion Of The Mortgage and Property Markets
The CPF Mortgage Pulse Report 2024 results provide insight into public perceptions regarding interest rates, mortgage repayments, house prices, and the housing crisis debate in the UK in 2024.
Published: 28/03/2024
Methodology: The research was conducted through over 500 form fills on the Clifton Private Finance website between November and March, which attracts thousands of monthly visitors seeking information on property and property finance. This method ensured a diverse and relevant audience for the study. Survey questions included topics surrounding mortgage rates, mortgage repayments, house price trends, the housing crisis debate, and each participant's annual income for comparative data.
The Key Findings
Over 85% of those surveyed don’t think interest rates will rise in 2024
1 in 3 are worried about keeping up with their mortgage payments
3 in 4 don’t think house prices will increase in 2024
Over 60% of participants think the UK is facing a housing crisis
Over 85% of those surveyed don’t think interest rates will rise in 2024
Just 15% of participants believe interest rates will rise over the next 12 months, while 85% expect either a decrease or for rates to stay the same.
This sheds some light on the fixed or tracker mortgage debate for first-time buyers and those remortgaging in the next coming months.
George Abouzolof
Senior Finance Broker CeMAP
The immediate impact of a 0.25% reduction will be a drop in mortgage payments for those on base rate trackers. Paying 0.25% less on a £1m interest-only mortgage equates to £2,500 less per year. So, the savings across the mortgage industry could be huge.
Fixed rates are unlikely to follow suit unless government bond yields relax - which they have done month-on-month. Most borrowers are opting for two-year fixes in the hope that rates will continue to drop in the future.
Relations with the US could pose a threat to the economy’s recovery. Trump is highly US-focused, and is prioritising American brands, as well as removing incentives for sustainable tech. This could make trade with US more difficult.
There are signs that US administration could go on a spending spree, which could also have a knock-on effect on us.
However, the overall sentiment has been much more neutral than we might have expected. While some landlords have been put off, for many, it’s business as usual. Investors are looking where they can to make a profit and overcome the current climate.
We’re still seeing a steady influx of first-time buyers and buy-to-lets, which could be a sign of the anticipated rush to purchase ahead of the upcoming stamp duty changes.
Furthermore, we haven’t seen a decrease in foreign investment so far, despite claims that the Autumn Budget would impact this.
1 in 3 are worried about keeping up with their mortgage payments
Concern about meeting mortgage repayments in the next year is higher than expected, with 27% of people worried about keeping up.
It underscores the significance of the multiple consecutive interest rate hikes by the Bank of England over the last few years, and how it affects everyday borrowers.
George Abouzolof
Senior Finance Broker CeMAP
People are definitely worried – we see a clear concern about repayments among our clients every day.
As brokers, we look at every possible avenue to alleviate these struggles, whether it’s increasing the mortgage term, switching some or all of your mortgage to interest only, exploring offset mortgage options, and of course comparing lenders to get the most competitive deal.
3 in 4 don’t think house prices will increase in 2024
It’s a pessimistic outlook for property prices in the UK, with 67% of participants expecting the housing market to fall or stagnate in 2024.
George Abouzolof
Senior Finance Broker CeMAP
I always suggest looking at Nationwide's quarterly house price index for housing market insights.
The rate at which prices are falling is potentially reducing - remember, as rates drop, demand increases.
In terms of a housing crisis, there's an argument to be made that in a housing crisis, we should see house prices decreasing significantly - although we've seen drops recently, the rate of decrease is reducing, suggesting we're coming out of it.
Over 60% of participants think the UK is facing a housing crisis
It's a subjective and devising topic, but the numbers speak for themselves.
And this jumps to a whopping 71% of those who are earning less than £50k per year.
For more information, please contact: sam.hodgson@cliftonpf.co.uk
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