Following the announcement from the chancellor Jeremy Hunt of a reversal of many of the ‘mini-budget’ pledges, John Phillips, national operations director at Just Mortgages said: “With many of the key pledges of the ‘mini-budget’ now reversed or scrapped entirely, it seems this is far more than just a U-turn, but rather a cannonball to the new PM’s entire agenda.
“Nevertheless, the hope is the changes will bring back some much-needed confidence to the market and interest rates will begin to stabilise. It’s positive to see the pound already beginning to improve with this news. With the stamp duty change remaining as one of the few ‘mini-budget’ pledges to survive, there’s hope that, despite rising interest rates, confidence in the market will stay strong.
“It goes without saying that brokers shouldn’t expect things to now go “back to normal” as the market will remain unsettled. As a result, brokers will need to keep up the hard work to support those looking to move or remortgage. There are still 1.7 million people who will be coming off low fixed-term mortgages in the next year, who will now be facing tougher criteria, tightened affordability and more expensive mortgage options.
“There will be a generation of homeowners and house buyers unsure what their next step should be, desperate for solid financial advice to make sense of this rapidly changing market. Brokers are in the best place to respond to this demand and support those who will still want or need to make moves in the current climate.”