UK Finance: Mortgage market is still strong
Despite a backdrop of uncertainty, the mortgage market is still strong and competitive, UK finance chief executive Stephen Jones said at the regulator’s annual mortgage dinner.
He pointed to figures showing that gross mortgage lending will reach around £265bn in 2019, almost the same as in 2018.
Jones (pictured) said: “Our industry wants to focus on competitiveness, innovation, talent, tax, regulatory proportionality and coordination, and regulation fit for the future, all themes that underpin UK Finance’s work for our members.
“At UK Finance we seek to help our members, large and small, navigate change.
“A growing number of first-time buyers are entering the housing market, while existing homeowners are taking advantage of competitive products available in a low interest rate environment.
“The potential end of Help to Buy in 2023 presents a major challenge to growth in new housing delivery.
“We will continue to engage with governments across the UK on initiatives to support low cost home ownership and increase the new supply of affordable and social housing, and to ensure that housing association lending and investment continues to be attractive.”
He warned about the challenges that remain, for example 5-year fixed mortgages now account for nearly half of all fixed rate sales, a market where 2-year deals once dominated.
Jones added: “Longer terms will inevitably mean fewer remortgages in the coming years, which the industry must deal with.
“Our figures show that, despite challenging conditions in the buy-to-let market, lenders are continuing to support and work with landlords, to ensure sustainable and affordable finance is available for the private rented sector.”