After a 2016 which David Copland, the director of the TMA, described as “an interesting and challenging time for the mortgage industry”, he said 2017 looked set to be another busy and eventful year.
With this in mind the TMA has put together five things it would like to see happen next year:
- More lenders to pay product transfer fees to advisers next year. It says with record low interest rates and the market stalling on second time movers, advisers are doing significantly more work on retention deals. As such the club hopes that in 2017 lenders holding back on product transfer fees will start to introduce them.
- Lenders should report to the regulator when they approach borrowers ahead of the expiration of their mortgage from next year. It says that unreported product transfers compromise the professional advice given by brokers to borrowers. As the size of the remortgage market is increasing, it says it should be made a requirement that lenders are declaring the size of their product transfer book, either to the regulator, government or Council of Mortgage Lenders in 2017.
- The club hopes that lenders build on their success with mortgage networks in 2016 by engaging with smaller, independent advisers across the country. It says 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 buy-to-let market, TMA said it has been positive to see the mortgage market was 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.
- TMA expects rates to rise higher next year and wants to see advisers respond to the possibility of rising rates by locking in remortgaging and contacting their back book. As such it hopes to see brokers continue to be proactive and help borrowers to reconsider their mortgage deal and help them save money in 2017.
“With more changes coming into play, borrowers will continue to need all the help and support that they can get,” said Copland. “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.”