"As the size of the remortgage market is increasing, it should be made a requirement that lenders are declaring the size of their product transfer book"
TMA is calling for more lenders to pay product transfer fees to advisers next year. With a record low interest rates and the market stalling on second time movers, advisers are doing significantly more work on retention deals. TMA hopes in 2017 that lenders holding back on product transfer fees will start to introduce them.
TMA also wants lenders to report to the regulator when they approach borrowers ahead of the expiration of their mortgage from next year. Unreported product transfers compromise the professional advice given by brokers to borrowers. As the size of the remortgage market is increasing, it should be made a requirement that lenders are declaring the size of their product transfer book, either to the regulator, Government or CML in 2017.
The club hopes that lenders build on their huge success with mortgage networks in 2016 by engaging with smaller, independent advisers across the country. New lenders entering the market should look to continue to embrace directly authorised intermediaries in 2017 in the same way they would welcome mortgage networks when launching.
Despite the introduction of the European Mortgage Credit Directive and the changes to the BTL market, TMA says it has been great to see that the mortgage market is still healthy and coming out of the back-end of 2016. After six consecutive years of lending increases, it wants lending levels to hold firm and reach a steady £240bn in 2017.
Finally, TMA expects rates to rise higher next year and would like to see advisers respond to the possibility of rising rates by locking in remortgaging and contacting their back book. TMA hopes to see brokers continue to be proactive and help borrowers to reconsider their mortgage deal and help them save money in 2017.
David Copland, director of TMA mortgage club, said: “The last 12 months have been an interesting and challenging time for the mortgage industry and already, it looks as though the market will be in for another busy and eventful year in 2017. With more changes coming into play, borrowers will continue to need all the help and support that they can get. For advisers who are already anticipating these changes and willing to adapt to shifting market demands and consumer needs, we believe the next year will be full of opportunities and exciting changes.”
