Now, there is a sense that the mortgage market has far firmer foundations and the significantly big plus is that intermediaries and advisers appear to be the dominant distribution channel.
The proof of this pudding has been in lenders’ reaction to the advisory sector – procuration fees being raised, direct-only lenders offering products via advisers, new intermediary-only lenders entering the market, greater product choice, a focus on quality, a commitment to partnership, etc. The list goes on. We should be in no doubt that advisers are currently in the box seat when it comes to the distribution of mortgages and long may this continue.
So, what of 2015? How might it pan out?
Certainly, if we get some inclination that interest rates are going to rise, then we should see some increased activity in the remortgage market which will definitely be a boost to the market and will set 2015 apart from previous years. A firm suggestion that Base Rate is likely to increase will see remortgage activity improve prior to any move and certainly after the first rise is announced – however whether this comes this year or next is still a moot point.
While it would be nice to have steady growth across the board, we may well see some niche sectors pushing the envelope and delivering stellar activity levels. It may be an obvious choice but I see no reason why the buy-to-let market will not continue to experience the levels of growth we have seen over the past 12-18 months.
Other product areas which may also see improved activity include both secured loans and equity release. The latter sector has often flattered to deceive in terms of its ability to hit certain heights, however 2014 looks likely to be a £1.2bn market and I believe this should be improved upon in 2015. While some are suggesting the pensions freedom changes – to be introduced from April – may negate the need for equity release products I’m of the opinion that, with the average pension pot still pretty low (£20-£30k), an increasing number of at- and in-retirement individuals are going to need to access the equity in the homes in order to meet their responsibilities and achieve their goals.
So, while it is difficult to predict what might happen in any new year, the future does seem to come with an increased number of opportunities. The important thing is to be in the best position possible to grasp them and I therefore wish you the best of luck with all your working endeavours over the course of 2015.
Bob Hunt is chief executive of Paradigm Mortgage Services
