Over the last year, the mortgage market has again faced economic, social and political uncertainty and regulatory change. In this report we look at how the market has adjusted and how it is likely to fare in the next twelve months.
- The market expected the new regulatory and Bank of England restrictions to cause a significant decline in sales of buy-to-let mortgages, however sales only dipped by 3% from last year
- The remortgage market has shown strong growth in the last 12 months, with an 11% year-on-year increase
- The number of offers made in ten days or less has seen the sharpest year-on-year increase of just over 12%, with nearly a third (30.8%) made
- However the number of “instant” mortgage offers or offers made within five days or less remains low following the introduction of the mortgage market review
The intermediary is still king:
- Intermediary mortgage distribution remains the channel of choice for lenders. 80% of survey participants on average
- Last year, three quarters of lenders saw an increase in applications through intermediaries and the majority (75%) expect intermediary volumes to remain level this year
A more digital future?
- Half of lenders (50%) in the survey offer, or are about to offer, a digital self-service proposition
- Lenders are increasingly engaging with intermediaries and consumers through social media. Twitter and LinkedIn lead the way. Two fifths (39%) of lenders in the survey view engagement via social media as very important or vital
- Lenders continue to invest in providing mortgage services on mobiles, with more than three quarters (80%) of lenders providing affordability calculations on mobiles and two thirds (66%) allowing consumers to obtain a decision in principle