Newly released data concerning the UK housing market indicate a definite slowdown is taking place. Mortgage applications have fallen off since Brexit and are now at a level not seen since the early part of last year. June posted almost 40,000 home mortgage loans. The following month saw a drop of more than 5% to 37,662. To put this into perspective, July of 2015 posted a figure almost 20% higher.

Remortgage activity started the year on a high note, and continued at a high level during the months leading up to the referendum. The benefits of a remortgage are now attractive and are expected to remain this way for some time. Since the interest rates have been cut to another historic low of 0.25%, homeowners are discovering they can save hundreds of pounds off the cost of their monthly mortgage in some cases.

The month of July saw remortgage activity fall slightly month on month, but for the year activity is up.

With the drop in interest rates, homeowners are able to lock into a fixed rate which gives them protection if by chance the future includes a rise in interest rates.

Howard Archer with IHS Global Insight commented on the latest data to emerge, saying: “This adds to the evidence that economic activity held up better than had been feared in the immediate aftermath of the Brexit vote on June 23.”

Archer continued: “We suspect that the fundamentals for consumers will become less favourable over the coming months with purchasing power likely diminishing and the labour market softening.

“Companies may well look to clamp down on workers’ pay as they strive to save costs in a more difficult environment and as imported input prices are lifted by the weakened pound.”