The mortgage market has recently been a little like watching kids playing football a lot of people all scrambling for the ball in the same small space on the pitch.
But what we’re seeing now, is a growth in the number of products available an increasing focus on niche areas and some signs of a widening risk appetite, mainly evidenced through higher LTVs.
This situation has probably been driven by two things.
First, lenders are looking to support brokers and borrowers by ensuring emerging customer needs are better met.
Second, given the current risk appetite and criteria there seems to be more supply than demand and this over-supply is exacerbated by low interest rates which have reduced the demand for refinancing.
That means margins have been reducing in key areas of the existing market.
Some lenders’ moves or planned moves into the buy-to-let sector are an example of greater focus on specialist areas of the market and we have also seen a few higher LTV products being introduced recently.
At Platform we have focussed on offering a wider range of buy-to-let products and fee options as well as introducing one and four-year fixed products.
Overall, these market changes will be good news for the intermediary mortgage sector.
We need more product choice and innovation right now.