When the housing market moves, employees will want to take advantage. Get ready to support them
Mortgage approvals on the up
The figures from UK Finance, the trade association for the UK banking and financial services sector, showed that there were 30,900 new first-time buyer mortgages completed in December 2018, up 1.6 per cent on the same period the year before.
Homeowner remortgages also rose, up 9.3 per cent to 34,000 for the month, whilst buy to let remortgages saw a 25.3 per cent increase up to 12,400. The trend continued into January with news that nearly 67,000 mortgages were given out to buyers, up by 2,000 compared to December. It amounted to £12.6 billion of mortgage approvals, the strongest start to any year since 2016 according to the Bank of England data.
Why employers need to offer a full financial advice strategy
The increase in mortgage approvals illustrates that both prospective and existing homeowners may be getting fed-up of the hiatus and are ready to move. However, such decisions won’t be taken lightly and the continuing market uncertainty around Brexit means employees will need help in making the right move financially.
Financial advice in the workplace is vital to avoid loss of productivity from employees distracted by money issues. As a result, financial wellbeing is an increasingly recognised strategy for responsible employers looking to better support their staff. REBA’s Employee Wellbeing Research 2018 suggested that 52 per cent of employers already include it as part of their wider wellbeing strategy and a further 31 per cent are planning to add it.
The report also highlighted the importance of access to financial advice for employees as part of a financial wellness strategy. Such advice can include everything from how to manage debt to choosing the right investments. With house purchases usually the biggest financial commitment an employee will make; mortgage advice can provide yet another useful tool in your financial wellbeing strategy. This assistance will ensure that your staff are able to make the big financial decisions they need to, whilst staying focused at work and with minimal workload and zero cost for the employer.
This article is provided by Charles Cameron & Associates
In partnership with Charles Cameron & Associates
Charles Cameron & Associates is a fully independent, whole of market Mortgage Brokerage.