With lending activity continuing to gather momentum, consumer confidence seemingly riding high and mortgage rates still close to historic lows, all appears rosy for UK lenders and borrowers alike.
Now, who is expecting a ‘But…’ here? Well, there will always be some kind of ‘But…’.
There is concern over China’s economy. Exactly how, and if, this will affect the UK mortgage market remains to be seen, although greatly derailing this will prove more difficult than in recent times.
Not that lending conditions are perfect. There remain, and will continue to be, many challenges for brokers. That said, it is a sector illustrating sustained growth. According to recent CML figures, brokers’ market share is near record levels with adviser-introduced loans reported to have accounted for 69 per cent of new mortgages in Q2 2015. This outlined an increased market share of over 7 percentage points in the past year. The figures are also significantly up on Q3 2009, when brokers had a market share of 46.7 per cent – the lowest ever.
It is great to see intermediary business booming and growing numbers of borrowers realising the benefits of the independent advice process. Nevertheless, I echo the sentiments of Andrew Montlake in his recent Market Watch piece when he said: “We still have a long way to go to make the public aware of what we do and how we value our service.”
And we, as lenders, also have a long way to go in better supporting you on this journey.