Building Societies Association
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What will the mortgage of 2020 look like?
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Contact: Paul Broadhead Date: 30 Apr 2009 |
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The mortgage borrower of the future is going to have to be much more aware of their finances to get into a super prime position if they want the best priced loan – that was the message from the launch event for the BSA’s 2020 Vision report.
Peter Williams, the report’s author, said that lenders in the future will be looking to develop long term relationships with highly credit worthy individuals, and these people will be getting the best mortgage rates. As a consequence, aspirant borrowers are going to have to ensure that their finances are in good shape when they apply for a loan.
He spoke of the very rapid and frequent changes in people’s lifestyles, and said that mortgage providers will need to ensure that they offer products that reflect people moving regularly between tenures and having numerous relationships interspersed with periods on their own. He also spoke of the growing numbers of people becoming self-employed and the consequence future importance of self-certification mortgages.
Responding, David Hollingworth from London & Country echoed Peter’s findings, and said that brokers are also going to have to increase the levels of service that they provide if they are to retain clients. He forecast a growth in shared equity, saying that more borrower friendly products are needed for this market to grow. David also recognised the important role that family members can play by using their existing equity to help, but cautioned against viewing this as a panacea to housing problems since those family members may need the money themselves.
He also spoke of the increasing expectations of people to do business via the internet, and forecast that online systems in the future were going to have to become much more sophisticated. But, he said. this wouldn’t replace personal advice – with the mortgage market becoming increasingly complex, people would look for advice before making their final decision.
Gary Styles from Hometrack forecast new players coming into the mortgage market, and said that existing players will have to increase their customer service levels to compete. He also said that issues regarding the property will become much more important in lending decisions, with lenders looking at the future value and condition of the property in much greater detail than at present.
The full report, which looks at how mortgages will be distributed, the housing market and the likely demand for mortgages, can be found at the link below -
