As we enter the new year, its traditional to look toward the future. To mark the beginning of 2023, we asked some of Intermediary Sales team to get their crystal balls out and tell us what they expect to see in the mortgage space this year. Here's what they had to say...
Economic uncertainty will continue to impact the market
With some significant economic uncertainties and the cost of living continuing to squeeze households, the housing market is slowing and is likely to remain subdued. Prospective buyers looking to upsize are likely to have less disposable income to put towards increased mortgage payments, while the rumoured decrease in property prices will mean many first-time buyers hold off.
Rising rates coupled with more difficult affordability thresholds for landlords, the lower end of the market has the potential to suffer. We've already begun to see landlords dispose of portfolios, and this, combined with a lack of appetite from first-time buyers, means we could see a surplus of properties on a scale we haven't experienced for some time.
It will be a busy year for remortgaging
2023 is shaping up to be a big year for remortgaging and product transfers, with homeowners potentially seeking to increase their mortgages to improve rather than move.
Supply from lenders in 2022 was limited, but this is likely to change as banks and building societies compete for business and search for innovation.
Some customers have already made conscious decisions to remain on SVR and wait until the market stabilises, which will provide further opportunities for remortgage business as the year progresses.
Shared Ownership will open doors
With Help to Buy closing, first-time buyers still in a position to step onto the property ladder will shift their focus to alternative low-deposit schemes, which means there will be lots of opportunity in the Shared Ownership space. Affordable housing schemes will be particularly key as the outcome of changing property prices unfolds.
Consumer Duty may bring change
Lenders will be adapting to the new FCA Consumer Duty Principle, which will see firms reviewing existing processes and culture and employing best practice tools.
All in all, 2023 is set to be another interesting year, although the winners and losers remain to be seen.
As always, the team are ready and waiting to help you and your clients find the perfect product. Our Helpdesk is open 9am-5pm, Monday to Friday. Contact us here.
