Happy New Year to all of our clients, introducers and regular followers of our mortgage blog.

2013 was the year of green shoots for both the housing market but also for Fox Davidson as we of course launched the new brokerage in May. The Bank of England has confirmed that mortgage approvals are at their highest since Jan 2008 and so our launch was well timed and we have been fortunate enough to enjoy a good first 8 months of trading. We are excited for what lies ahead in 2014, we are working hard to ensure that our proposition remains a sound one and that our client’s journey is a positive one from enquiry through to completion and beyond!

What will 2014 bring?

Now we are not economists and so we will not try to speculate too much on how the housing market will turn out or how the mortgage market or economy will fair, but what is clear is that house prices are increasing. The 2 main property price indexes (Nationwide, Halifax) have reported increases across the UK and the land registry records back this up, this is expected to continue into 2014. We have already mentioned mortgage approvals being at a 6 year high and it is hard to see this momentum stopping.  Lenders are telling us that they want to increase market share this year and most have targets to lend at levels higher than 2013.

Mortgage rates remain positively low and there are some fantastic rates to be secured for loans from £25,000 to £1m plus. The launch of Help to buy and consequently more lenders offering terms at 95% means we should see this end of the market become increasing competitive which is good news for clients with a smaller deposit.

In April the mortgage market review comes into effect which will see further regulation of our industry, most lenders have adopted the proposed changes already and we don’t expect ‘MMR’ to have much of an impact on brokerages as we already give full advice to all our clients.  In fact we expect to see more clients coming to us as lenders will now have to offer full advice when offering mortgages and not all will be in a position to do so.  We know lenders criteria inside out so are in the best position to offer real whole of market impartial advice.

In summary there is a lot to be positive about as we head in to 2014 and although increases to house prices may not be welcomed by some first time buyers who are having to spend more to purchase the property they desire, it will be welcomed by the many home owners and landlords who will enjoy the increase in value to their assets.

At Fox Davidson we will look to grow the team with the addition of another mortgage broker and also a protection broker.

May we take this opportunity to thank you all for your support and please do continue to recommend us to your friends, family and colleagues. Happy New Year from the Fox Davidson team.