What will the mortgage of 2020 look like?

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 consequent future importance of self-certification mortgages.

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Consistency is king with building society savings accounts

The April Moneyfacts consistency survey reveals that building societies retain the crown of the most consistent savings accounts. 77% of the top positions in the survey are taken by building society accounts.

Michelle Slade, analyst at Moneyfacts.co.uk, said: “Taking more than three quarters of the top spots, building societies once again increase their dominance in the Moneyfacts consistency survey. Savers looking to make the most of their money shouldn’t just look to their bank for their savings needs.”

Adrian Coles, BSA Director-General said: “Building societies have always and will always put their customers first - this shows that to get long-term value on their savings, customers should first think of a building society as the home for their money.”

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Budget round-up

The Chancellor’s 2009 Budget brought a small cheer from savers. The increase in the annual investment limit for ISAs to £10,200, up to £5,100 of which can be saved in cash, was good news, although it was disappointing that the under 50s will not enjoy the benefit of this until April 2010.

It was also disappointing that the regulations preventing transfers from stocks and shares ISAs to cash ISAs were not changed. The current one-way-only transfer from cash to stocks and shares ISAs means consumers cannot rectify errors of bad judgment or advice and still retain their tax exemption.

Encouraging mutuals

The Government’s commitment to support alternative ownership and business models to provide financial services was welcomed. The BSA looks forward to working with the Government on their forthcoming proposals to strengthen the mutual sector.

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BSA Annual Conference

Register now for this year's Annual Conference - 20-21 May, Harrogate

Day one highlights include sessions on the political and economic outlook, the mortgage market, and cost control. An address from our Chairman, John Goodfellow. Socialising and networking at the Norwich Union lunch and Bank Machine Conference Dinner. Authoritative insight from futurologist Professor Richard Scase.

Day two features the ever popular Deloitte Business Breakfast. Adrian Coles is back in the chair for Question Time. Stimulating sessions on funding, communication, and strategic planning in the new market environment.

www.bsaconference.org

BSA welcomes new Associate

HML is the UK's foremost provider of systems and process outsourcing solutions to the mortgage sector.

Working for over 30 UK and Irish lenders HML has over 45,000 different financial products on its system, ranging from straightforward loans through to complex niche products such as equity release.

To find out more about them check out their website www.hml.co.uk