Recent figures from the Financial Conduct Authority have suggested that the mortgage market has picked up significantly in 2015 when compared from 2014 and significantly more than 2013 and the years prior. Recent findings and research from UK personal finance and mortgage website Lending Expert suggests that more and more mortgages are been underwritten this year when compared to the past 2 years and is showing an overall increase of 34% for both mortgages and secured homeowner loans.
Good news for lenders and mortgage brokers
This is significant increase and welcome news for a market place that has struggled to grow since the credit crunch and the slow down in the housing market from the mid 2000's. Dispite tougher lending rules and criteria from mortgage lenders the increase in mortgage and secured lending applications for 2015 has demonstrated that both lending has increased and more people are coming onto the housing ladder or looking to remortgage their existing home.
Mortgage expert David Allcroft from Beechill Financial Advisors commented "We have seen more first time buyers enter the market this year than at anytime during the past 8 years, things are certainly looking up for mortgage business".
An increase in first time buyers
Having first time buyers come through the market is essential to a healthy property market. However, in recent years first time buyers have found it difficult to get on the housing ladder due to lack of low deposit mortgage options. With the introduction of the government back Help to Buy and New Buy schemes, and more 95% and 90% mortgage products this has given the housing market a lift and encouraged house builders to build more homes to meet the increasing demand on housing throughout the UK.
Looking to the future
If the level of growth we are experiencing this year continues into 2016 and beyond then we will likely see the kind of mortgage market activity we experienced almost 10 years ago in 2006 before the mortgage market downturn. Since the housing crash many lenders moved out of the mortgage market or stopped lending completely.
New brokers and advisors coming into the marketplace
Many mortgage brokers and advisors went out of business, closed down or moved careers after the credit crunch hit. However, this year we have seen an increase the number of mortgage broker job applications, and more positions becoming available at both broker firms, banks and building societies. As well as an overall increase in mortgage applications and successfully property completions we have also seen an increase in the mortgage job market too.
David Allcoft mortgage expert commented "We have open up 8 new mortgage advisor roles in our branch and look to increase the amount of mortgage brokers will we directly employ in 2015 and 2016. With the expected level of growth for this year we will need mortgage advisors and brokers on the ground to keep up with the demand.