In episode 33 of the Growth Series podcast, Jeremy Duncombe, Director of Intermediary Distribution at Accord Mortgages, is joined by Kate Davies, Executive Director at the Intermediary Mortgage Lenders Association (IMLA). They discuss how the intermediary mortgage sector will develop in the future as well as government policy, what changes would benefit the sector, and the challenges of getting on the housing ladder for first time buyers.
Early in 2019 IMLA released a report claiming nearly five million borrowers would have been expected to buy their first homes since the financial crisis, and only 2.5 million people had managed to become first-time buyers since 2008. Despite these low numbers, intermediary-led lending has gone from strength-to-strength in recent years as more people than ever turn to a broker to find a suitable mortgage.
The report found that 449,000 35 to 54-year-olds entered home owner occupation between 1996 and 2006 in net terms, while owner occupation among the following cohort of 35 to 54 year-olds fell by 57% between 2006 and 2016 to just 191,000.
But pressures remain on the market. Despite low-mortgage rates supporting affordability, higher house prices and regulatory constraints on lending since the crisis have made it very difficult for first time buyers to get on the ladder.
Mortgage brokers were responsible for 74% of mortgage lending by volume in 2018, and are expected to account for a record £171bn of lending in 2020. With this growing trend, the onus is on brokers to provide the greatest value possible while helping borrowers navigate a tough market.
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0.00 - 1.19 Welcome and Introduction
1.20 - 21.05 Jeremy and Kate discuss:
- The size of the first time buyer issue, and what the Government should do to address it
- How lenders and advisers can play a role in supporting first time buyers
- The risks of another housing crisis
- How the gap left behind Help to Buy coming to an end in 2023 should be addressed
- The changing role of the intermediary
- How robo-advisers can be an opportunity for advisers
21.06 - 22.20 Outro