The year was marked by significant shifts, particularly following the 2022 mini-Budget, which dramatically changed the buy-to-let market and spurred on the Bank of England’s rampant rate rise.
This shift, coupled with a general slowdown in purchase activities because of the deepening cost of living crisis, necessitated a change from advisers and lenders alike to support clients.
The events of 2023 didn’t just necessitate a reaction to market changes; they reinforced our longstanding commitment to proactive, holistic advice.
At The Mortgage Stop, we have always prioritised long-term financial planning over simply securing the cheapest rates.
This year further solidified our approach, underscoring the importance of deep conversations about financial security with our clients, especially considering the heightened awareness of life’s uncertainties in the post-pandemic world.
Our steadfast dedication to this comprehensive strategy has proven invaluable in navigating the turbulent waters of this year’s mortgage market.
Despite the market volatility, we adapted swiftly and effectively. The frequent changes in interest rates presented a considerable challenge but also an opportunity. We diligently worked to ensure our clients remained on the most competitive deals, navigating through the complexity of the market.
This effort was not in vain; we estimate a combined saving of £35,000 for our clients by actively monitoring and adjusting their mortgages as rates fluctuated through this year.
Looking ahead to 2024, the outlook remains cautiously optimistic. While a return to pre-pandemic levels of business seems unlikely soon, the easing of interest rates and people adjusting to what is now considered the ‘new normal’ has led to an increase in purchase enquiries.
However, the property market, particularly for first-time buyers, continues to be challenging. The government’s ideas, or distinct lack of, on how to fix the shortfall in housing and bridge the “deposit gap” will be a key factor in shaping the market dynamics for years to come.
The buy-to-let market’s rebound also presents an interesting scenario. In parts of the country where higher deposits are required, it remains to be seen how big this bounce back will be, we’re seeing more targeted purchases from landlords with an increased focus on rental yields.
We’re also seeing landlords adjust to the trade-off between higher fees for lower rates but it’s by no means a palatable option for many.
In response to these market dynamics, we have not only expanded our team but also deepened our commitment to exceeding client expectations.
Mortgage advice at The Mortgage Stop has transformed into a service that not only addresses immediate financial needs but also frames a broader financial strategy for the future.
This includes an increased emphasis on discussions around protection, reflecting a change in attitude in many clients towards protection having seen how quickly they can go from stability to uncertainty post-pandemic.
As we step into 2024, our resolve at The Mortgage Stop is firmer than ever. The lessons and experiences of 2023 have equipped us to offer more comprehensive, client-focused mortgage solutions.
We are ready to help our clients face the future, navigating the complexities of the mortgage market with confidence, clarity, and a focus on their long-term financial well-being.
Rohit Kohli is operations director at The Mortgage Stop
