As we reach the end of what has been a rollercoaster of a year, I wanted to share my thoughts and look forward to 2023.
Firstly I would like to massively thank you for your continued support!
Wishing you a very happy, healthy, and peaceful festive season.
After what was a demanding couple of years during the pandemic, there was hope that we’d be coming into a period of normality. Well, that didn't exactly go to plan!
2022 was a year of “two very unequal halves”, as it started with the mortgage market continuing from strength to strength, rapid house price growth, demand outstripping supply and low mortgage rates.
Then… it stopped. October saw rates rise at the quickest rate that I can ever remember, with 5-year fixed rates starting the month beginning with a 3 and ending the month with a 5 if you were lucky and a 6 if you were not. Turbulent doesn’t even begin to describe the chaos. Happily, November has shown that rates can go down as well as up, with recent lender comms all being rate reductions, thank goodness.
This year the sector has faced the toughest market since the credit crunch and 2022 confirmed that the media continues to love a bad news story!
Although it was positive to hear the king of finance Martin Lewis state that 'mortgage advisers are worth their weight in gold'.
Despite the difficult and rapid change in market conditions, we will continue to support clients in always finding them the most suitable mortgage option.
Many lenders are now offering ways for people to 'see out the storm', for example by allowing interest-only payments for a period of time. This is not advisable to most but can be a massive help if cash flow is an issue.
Problems such as damage to supply chains and double-digit inflation would have been largely unthinkable a year ago so it goes to show how quickly the narrative can shift. Analysts predict a base rate of 4.5% in 2023 (currently 3.5%) before reducing if the government can control inflation levels. This does not necessarily mean that fixed rates will increase as they are based on SWAP rates which have remained stable in recent weeks. It is impossible to say for sure, but we are hopeful of rate reductions in 2023, with this week's inflation figures lower than expected.
If your mortgage is up for renewal in 2023, in most cases the monthly payment will be increasing. We will help to mitigate this as much as possible, and will be contacting you 6 months before your rate expiry, giving us the best chance of securing the most suitable mortgage.
I continue to keep people updated via social media, so please feel free to follow me for regular market updates and mortgage tip videos. Link Below!
For our self-employed clients, the deadline for filing your 2021-22 taxes is 31 January 2023 so it's worth adding to the to-do list!
I work closely with Simon at Eco Accountancy. Another local Kent business with 5-star Google Reviews so please feel free to contact him if you need any assistance.
FCA does not regulate accountancy. We act as introducers only.
We are here to help when needed and look forward to helping you with all things Mortgages and Protection as we move into the new year.
Wishing you all the very best for 2023.
Warm Regards,
Dean Laidlaw - Cert CII (MP)
We will be closed from Thursday 22nd December, returning on Tuesday 3rd January.
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