The UK remortgage market should bounce back after falling away at the end of 2017, the European Mortgage Federation predicted.
The EMF’s quarterly review of European Mortgage Markets for Q4 2017 concluded that interest rates are too low and there are too many attractive fixed rate deals for things to stay subdued.
The EMF said: “Remortgaging, an area of strength beginning 2017, fell away in terms of both home-owners and buy-to-let over the last quarter in 2017.
“It is expected that there may be an upswing in the near future whilst interest rates are still low and borrowers find it attractive to lock into more fixed-rate deals.”
It added: “In the UK, overall house prices continued to increase in Q4 2017, though at a decelerating pace and there are also some decreasing monthly figures.
“Whilst a sustained negative period is not anticipated, further negative shocks, to employment or elsewhere in the economy, may increase this probability of further negative numbers”
The EMF concluded that the UK economy is providing ‘mixed signals’ owing to high inflation, mediocre GDP and low, if growing, unemployment figures.