Earlier this week, Shadow Chancellor Rachel Reeves (pictured) and Lisa Nandy, Shadow Secretary for Levelling Up, said that they would meet brokers to hear about how increasing mortgage rates were hitting first-time buyers and homeowners and discuss potential solutions.
Nandy said on Twitter: “It was good to hear from brokers and financial advisers at our emergency summit today about what they’re seeing in the mortgage market.
“The government cannot continue to stand by while they and families across the country battle the turbulence of this mortgage crisis.”
Reeves added: “Today at our emergency summit we heard first-hand from mortgage brokers of the despair caused by the Tory mortgage bombshell.
“Only Labour has a long-term plan to fix the housing crisis for buyers, renters and homeowners alike.”
Reeves had said earlier this week that Labour would look at bringing out a mortgage insurance scheme where the state acts as a guarantor for those struggling to save for a deposit, reform planning and boost housebuilding. She added that it would explore long-term fixed rates.
Representatives from small and large broker firms attended
The event was chaired by Andrew Montlake, managing director of Coreco and chair of the Association of Mortgage Intermediaries.
Topics discussed at the event included how brokers are dealing with their clients, real client stories of those facing higher mortgage costs, ideas for the present and future mortgage sector, overall housing market, rate withdrawals from lenders, product innovation and issues first-time buyers have getting on the property ladder amongst others.
At the meeting, Montlake said: “It is very important that you hear the opinions of mortgage brokers who are the ones on the front line, dealing with people’s issues and fears, helping them to find a way through the mortgage maze and advise them on the best ways forward for them.
“The work brokers do and the advice they give has never been more crucial, important and valued. We are trusted by clients like no one else in the home ownership journey.”
He continued that he welcomed this “refreshing, forward-thinking approach, and look forward to this being the start of a professional working relationship that can help guide and formulate policy that will help real people on the ground”.
Montlake noted that the cost of living crisis, inflation and ever-increasing rate hikes “hurt the same group of people each time, forcing lenders to reprice often with little or no notice”.
He added: “I would hope that together we can look for alternative ways forward.”
