"Brokers are having to adapt, with the continuing volatility to swap and guilt rates and lenders are constantly changing their rates."
FR: Can you tell us a bit more about what your new role at John Charcol entails?
My role at John Charcol has taken on many forms. I continue to broker and help clients with specialist lending such as bridging, commercial, second charges and developments. I also assist with marketing content as well as providing quotes and insight to the national and trade press.
FR: What are the challenges and opportunities for brokers in a challenging market at the moment?
Brokers are having to adapt, with the continuing volatility to swap and guilt rates and lenders are constantly changing their rates. Lenders' criteria is also subject to change and we expect lenders to make changes to their affordability calculators to reflect the changing economic environment.
The continuing lack of stock and high demand is driving the property price increase. With lack of stock and homes being built, broker focus needs to be on other areas where we can help clients. Self-build is one area that can be improved, especially with the recent help to build scheme coming out. Another area is diversifying your tools and looking at other finance options (bridging & development) with the change in permitted development and more lenders offering finance in this area. How we develop our unused commercial space has become more important than ever.
FR: How do you think the market will continue to evolve over the next 12 months to meet the needs of customers?
I expect the economic challenges and constant changes to have an impact on the property market. I anticipate that we will see an increase in property prices year on year to increase by 3-5%. The continued uncertainty and cost of living will naturally play an important part in where we end this year and into 2023.
FR: How can brokers prepare themselves and their clients for further rate rises in 2022?
Clients need to be made aware of the risks when taking out a mortgage and rate rises are inevitable given the length of your typical mortgage term. Highlighting potential increases is an important part of the advice process.
Fixed rates are the first though for both brokers and clients to protect you from a future rate rises. Brokers can also explain to clients the value of offset mortgages, which are effective for those wishing to overpay on monthly payments but would like access to those overpayments at any time.
FR: Why is it important for the mortgage industry to embrace diversity and inclusion?
The report complied by AMI in October 2021 shone a light on our industry and gave for a very uncomfortable but thought provoking read in our response on how we move forward. Our industry, and the individuals within it, can do the right thing. Remove barriers, provide equal opportunities, act with care and consideration, no more unconscious bias.
FR: If you could read one headline about the broker market in 2022, what would it be?
'Mortgage brokers lead the way in their policy towards diversity and inclusion according to latest employment figures for the industry'.
