Borrowers will likely be pleased after seeing what high profile lenders as well as others are offering as mortgage lending deals in the New Year. Due to a housing market which is being described as sluggish by many, it is estimated interest rates will continue to be held at a very low level by lenders of all types. Borrowers looking to remortgage might especially be moved to obtain a new deal, whether it is with their current lender or a new lender.

Recent forecasts for the coming year lean towards being a borrowers market. As uncertainty surrounds many aspects of the housing market, many are still forced to sit on the fence regarding big housing decisions. Those who were ready to buy or sell twelve to fifteen months ago are now caught in a scenario of which grass is greener. Big housing decisions do not take place overnight and much is riding on the outcome.

Data from UK Finance illustrates how slow decision making has become. Mortgage approvals from the month of November are 5% lower than the same month in 2016. Conditions have changed due to the hike in the base interest rate, but that took place during the first weeks of November. Although more hikes are predicted during the course of the next twelve months, housing experts see this year as one which will be mostly uneventful.

Although the remortgage sector is expected to remain active due to continued low interest rates and high lender competition, overall mortgage lending is expected to remain subdued.

David Hollingworth of London and Country commented on the coming year, saying: “I think this year will remain very competitive. There’s a question mark over how much growth there will be in the purchase market - if any - and we might see people sitting on their hands a bit more.”