BoE comments from LiveMore Capital

30 September 2022

“While August’s figures are significant with the highest number of mortgage applications seen all year, the figures already seem out of date in perspective of the turmoil since the ‘mini-budget’ last Friday. At their most positive, the Bank of England figures show that, despite the rising cost of living, the demand for mortgages and housing remains incredibly strong. While the markets remain so volatile however, much of that demand will remain unfulfilled, and it will be interesting to see how big an impact September’s events have on the mortgage and property markets in the weeks and months to come.“

“With almost half of all mortgages pulled in the past week due to wildly fluctuating costs of funds for lenders, the government urgently needs to work with the OBR to produce a fiscally responsible budget that will calm the markets and enable lenders to reprice mortgage products and re-enter the market.”