The last few years have certainly kept us on the edge of our seats and this week is proving no different. Just ahead of our official Brexit tomorrow, the Bank of England’s Monetary Policy Committee (MPC) has announced its decision to keep interest rates on hold.
Up until this week, all bets were on that the MPC would cut rates due to the UK’s flailing economy, which led the credit rating agency Moody’s to reduce its outlook of the banking system from ‘stable’ to ‘negative’ in December 2019. However, the most recent figures, which have been put down to the so-called ‘Boris bounce’, show that job creation increased for the second month running in January and business optimism soared to the highest level in almost five years.[i]
The large and specialist loan space has bucked the overall trend of the last few years, so our team has remained busy throughout the periods of uncertainty. As reported in the Guardian, more than 180 £5m-plus mortgages were taken out in the year to the end of September 2019 and banks are increasingly offering large mortgages at low interest rates.[ii]
Nevertheless, we have certainly felt the effects of the ‘Boris bounce’ and our team has been inundated with enquiries since the election result was announced. Pent up demand in the housing market has been released and a string of ultra-luxury real estate sales have been signed since the election, including a £200m mansion overlooking Hyde Park, a central London home priced at £65m and a Chelsea property worth £50m.[iii]
If you are considering your financing or refinancing options across the large or specialist loan space, talk to us. Our team of experts includes specialists in commercial and development finance, overseas mortgages, later life lending, equity release and buy to let mortgages, so we’re able to advise on all aspects of large and specialist lending. Don’t hesitate to get in touch.
[i] https://www.theguardian.com/business/2020/jan/24/pressure-eases-on-bank-to-cut-interest-rates-as-uk-economy-improves-bank-of-england
[ii] https://www.theguardian.com/money/2020/jan/13/uk-house-sales-boris-johnson-savills-estate-agent-brexit
[iii] https://www.theguardian.com/money/2020/jan/13/uk-house-sales-boris-johnson-savills-estate-agent-brexit
