1] Base rate continues to rise from historic low
The first Bank of England base rate increase came in the last days of 2021 and the trend continued in 2022, changing the shape of the market
Changes to the base rate gripped the market every month that the Monetary Policy Committee (MPC) met and attempted to tackle rising inflation. This also marked the disappearance of sub-one per cent mortgage rates, soon to be replaced with average rates of six per cent, pricing which had not been seen since 2008.
Base rate rises to 0.5 per cent with further increase narrowly missed
2] Support for Ukraine
The UK rallied round to support people from Ukraine fleeing the war and this effort did not exclude the mortgage market. Banks got behind the Homes for Ukraine scheme, and pledged to discount any money received by those entitled to government payouts in return for housing Ukrainians when assessing future mortgage affordability.
How the industry put logistics in place for the Homes for Ukraine scheme – UK Finance
3] Affordability test scrapped
The Financial Policy Committee followed through with its proposal to scrap the affordability test, making way for people to borrow larger mortgage loans.
FPC to withdraw mortgage affordability stress test from August
4] Equity release market sees record lending
The equity release market proved strong this year as people turned to this type of lending to help with the rising cost of living. Improved product flexibility and lower rates also made this product more attractive to borrowers.
5] Consumer Duty rules announced
The Financial Conduct Authority (FCA) finally revealed the details of the Consumer Duty rules which aim to reduce consumer harm and result in good customer outcomes.
Regulated firms were asked to put together a plan by the end of October this year and this will be fully implemented by July 2023.
6] New laws come in
The Building Safety Bill and Leasehold Reform Bill finally came to fruition, providing further protections to leaseholders and homeowners impacted by cladding, ground rent and remediation costs.
7] Market stress felt by all
A business leaders lunch held by Skipton with all women attendees shed some light on the stressors felt by all in the market as rates changed rapidly.
‘Fast changing rates are tough on both brokers and lenders’ – Skipton BS business leaders’ lunch
8] Inclusion for the working class
At the start of the year, Paragon’s Richard Rowntree spoke at Mortgage Solutions’ Diversity and Inclusivity Finance Forum (DIFF) leadership event to discuss how companies could be more inclusive towards those from lower socioeconomic backgrounds.
DIFF: Financial services firms should move away from recruiting people who ‘fit’ – Rowntree
9] AMI’s 10th anniversary
The Association for Mortgage Intermediaries looked back at its impact and influences as it marked its tenth year of operation.
A decade of AMI: The biggest achievements, changes and upcoming challenges – Sinclair
10] FSCS works to reduce overall levy
The FCA announced that it would aim to reduce the overall Financial Services Compensation Services levy paid by regulated firms over time.
11] Mortgage Solutions launches Changemakers
Mortgage Solutions unveiled an initiative to celebrate people in the industry working to make the sector fairer, more balanced, and more environmentally conscious.
12] Government reshuffles
With every new government typically comes a change in housing policy, so the hokey cokey of Prime Ministers this year was an event everyone watched intently.
UPDATE: PM Boris Johnson to step down and Greg Clark replaces Gove as Levelling Up secretary
13] Mini budget
Liz Truss, the first replacement for former Prime Minister Boris Johnson, set out making her mark on the country with a mini Budget announced by then-Chancellor Kwasi Kwarteng. Unfortunately, this spooked the markets and accelerated the already rising mortgage costs and house price slowdowns.
Mini Budget 2022: Chancellor Kwasi Kwarteng’s speech in full
14] Ian Wilson retires
Halifax’s Ian Wilson bowed out of the sector and announced his retirement after 40 years with the bank.
Ian Wilson bids industry farewell in heartfelt video message
15] Brave talks
Appearing on Mortgage Solutions’ DIFF podcast, Pepper Money’s Paul Adams bravely shared his story on dealing with alcoholism.
DIFF podcast: ‘It came to a point where I thought I’d hit rock bottom’ – Adams
16] Tough times for landlords
A video debate held with Accord Mortgages highlighted some of the struggles faced by landlords wanting to refinance their mortgages.
17] FCA diversity drive
The FCA laid out its objectives and expectations to make the financial services sector more diverse and inclusive.
18] Housing market settles
After more than two years of solid purchase activity which reached record levels, the steam started to come out of the market and began returning to a more normalised setting.
19] Commitments to green agenda
An alliance was formed to steer the energy efficiency agenda and lenders put money aside to help borrowers make their homes greener.
L&G, Sesame Bankhall Group and SimplyBiz Mortgages form climate change alliance
20] Opening up about fertility
Sesame Bankhall’s Stephanie Charman and Vida’s Sarah Hartwell were also featured on a DIFF podcast, with both women courageously discussing their experiences with fertility and pregnancy and sharing advice on how firms can be supportive to employees.
DIFF podcast: Fertility policies at work can give employees a ‘mental and physical break’
21] Thoughts on the recession
Towards the end of the year after it had been announced that the UK would likely fall into a recession, a discussion at Mortgage Solutions’ The Mortgage and Protection Event offered a sober view of what is to come.
TMPE 2022: ‘A short, shallow recession’ and no house price crash – Siebrits
22] Predictions for 2023
As the second half of the year veered in a direction very few could have foreseen in the first few months of 2022. As people wondered what would happen next, the opinions of economists and industry experts rose to the fore.
Base rate to hit 4.5 per cent and nine other predictions for 2023 – Capital Economics
