Speaking at Mortgage Solutions’ The Mortgage and Protection Event, Donnell noted that housing equity held within the UK had reached almost £4.5trn.
He suggested smaller mortgages could be increasingly considered as part of wider financial planning.
“What might they do with a mortgage, even with a small mortgage given the very low funding cost at the moment?” he said
“I think there’s going to be further innovation in how consumers want to use mortgages as part of their wider financial planning.
“In 10 years’ time I do wonder if we’ll have more mortgages, but a lot more smaller mortgages and that certainly fits in with the whole equity release side of the market,” he added.
Donnell continued: “There’s a lot of equity out there, there’s almost £4.5trn of equity out there and the whole piece around broking, financial advice, what people want to do with their homes and how mortgages fit into their wider financial planning is a real theme to kick about into 2019 and beyond.”
Three years’ repricing
In his session, Donnell also touched on how the UK housing market had developed since the 2007 crash.
He noted that many places around London and the South East had grown significantly in value but were now at their maximum levels of affordability.
As a result of this he suggested that the south of England faces at least another three years of repricing before it looks to grow again.
Meanwhile, many places in the North West which have not seen such marked growth over the last decade would continue to enjoy growth of up to 7% per year.