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Easter is usually the time of year when the mortgage market wakes up and homebuyers start to move in earnest. Usually, it also heralds a change in climate and a real upswing in the mood of homebuyers, estate agents and lenders alike. This year, Easter has come early. In fact, we are told it is the earliest Easter since 1913 and, in the same way that the housing market is struggling to deal with the early Easter, so the mortgage market and borrowers are struggling to deal with the unusual circumstances we are coping with.

This year has got off to a strange start. Very quiet for the first two weeks of January, very busy for the last two, then quiet again for the beginning of February. But, clearly, we are living through unique times.

For the first time in nearly 30 years, borrowers are going to have to contend with a market in which there is more demand for mortgages than there is supply of funding. For most of the last three decades, mortgage funding has been abundant and growing all the time.

We have waited to produce January’s update until (a) everyone was back at work finally and (b) for the Bank of England to announce their decision on interest rates.

Not moving the Base Rate this month disappointed a large group of people who are concerned about the economy and who have significant debts but in the medium term interest rates seem likely to will fall two or three times this year to leave us with a sub 5% rate by the end of the year.

So, just 3 weeks left until Christmas as I write this and most economic commentators seem to think that the Bank of England should be offering us a Christmas present of a drop in interest rates tomorrow to acknowledge that times are tough for consumers. Generally, we support that view although, by knowing how focussed the Bank of England are on inflation, they may wait until January before offering such a gesture as it might encourage people to spend more than would be prudent prior to Christmas.