"There is a possibility that current market conditions may dampen down demand, but it depends on many things, including consumer confidence post-Brexit."
FR: The intermediary mortgage lending market saw strong growth in 2015 – is this something you see continuing?
We’ve certainly seen a strong first half of 2016, partially caused by the stamp duty deadline at the end of March, which caused a spike in applications in Q1. Since then we’ve had the Brexit vote, which has the potential to increase uncertainty in the housing market and may affect market size.
FR: What are the biggest issues facing the mortgage market in the current economic environment, and what should advisers be aware of when dealing with clients?
The uncertainty caused by Brexit may lead to some customers deferring house buying decisions, which may reduce the size of the mortgage market over the remainder of this year. Advisers need to be sympathetic to customer concerns and be able to provide reassurance and whole of market advice.
FR: Do you foresee the supply and demand issue getting worse? What more can be done to ensure that people continue to have access to the mortgage market?
There is a possibility that current market conditions may dampen down demand, but it depends on many things, including consumer confidence post-Brexit.
FR: Nationwide recently increased its upper age limit for borrowing to 85 – do you see this becoming mainstream, and what more can be done to help older borrowers?
We’ve moved our criteria to try and help older borrowers, taking the maximum age for borrowers up to 85, and so far this has been very successful. But there is definitely more that can be done across the industry to address the needs of this type of customer.
FR: Nationwide recently announced plans to enter the equity release market – what more can you tell us about the range?
Nothing at present, as it is at the research and development stage, but it’s something that we are looking at and working on.
FR: How do you think the Referendum and the Base Rate cut will continue to affect the mortgage market in the coming months?
Any ongoing uncertainty may have a negative impact on the purchase market and house prices in some areas, although re-mortgage opportunities may increase as some customers take advantage of the very low interest rates available.
FR: If you could see one headline about financial services in 2016, what would it be?
“During time of economic uncertainty, intermediaries continue to be the channel of choice for many customers”.
