What would bolster the mortgage industry?

Speculation continues to mount about when the UK electorate may go to the polls, but whatever the date of the next general election, our representatives in Westminster could boost the mortgage industry, it’s suggested.

Tom Barnett (pictured), head of sales & recruitment at HLPartnership, a privately-owned network for mortgage and protection advisers, believes two key areas stand out for potential support – innovation to address the varied needs of today’s borrowers, and funding for affordable housing programmes.

“In 12 months’ time, the mortgage industry faces a landscape filled with uncertainties, which could substantially shape its trajectory,” Barnett told Mortgage Introducer. “A key factor will be the upcoming election, which could lead to significant policy changes affecting everything from regulatory frameworks to economic strategies directly impacting the housing market.

“Inflation trends are also critical. Currently, inflation is on a downward trend, which bodes well for interest rates. If this trend continues, we could see lower interest rates, which would likely stimulate demand in the housing market by making mortgages more affordable. This potential increase in buyer activity would drive growth in the mortgage industry, leading to more lending opportunities and potentially a more vibrant housing market.

“However, these positive outcomes hinge on the broader economic environment maintaining stability. Any unexpected economic shocks or significant policy changes post-election could alter this forecast. Thus, while there’s potential for a more active and robust mortgage market, industry stakeholders should remain cautious and prepared for a range of scenarios given the current uncertainties.”

He urged: “In this election year, politicians have a real opportunity to bolster the mortgage industry, which is essential for both economic growth and individual financial stability.”

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How can politicians support the industry?

“First, supporting innovation within the industry is crucial,” said Barnett. “By encouraging the development of new lending models and diverse financial products, we can address the varied needs of today’s borrowers.

“This isn’t just about technology; it’s about embracing new ideas that can make homebuying more accessible and tailored to different demographics and economic backgrounds. Such innovations could significantly widen the path to homeownership, making it a more feasible goal for more people.

“Second, there’s a substantial need to increase funding for affordable housing programmes. This is about more than just creating housing opportunities; it’s about nurturing sustainable communities and fostering economic development.

“By expanding access to affordable housing, we not only support homebuying among lower and middle-income families but also stimulate local economies. Enhanced funding could help bridge the gap between the housing demand and what’s available on the market, ensuring that more families can own homes without compromising on their financial health. These initiatives would not only support the mortgage industry directly but also contribute to broader economic resilience and equity.”

HLP’s 447 appointed representative firms and 934 advisers specialise in providing advice on mortgages, protection, general insurance, and later life lending products.

“What really makes us stand out is our focus on building a network that truly listens to its members, blending cutting-edge technology with real-world feedback to create tools and provide services that everyone needs,” said Barnett. “Having been in this industry for a good while, I can say that our community is truly special – it’s bustling, collaborative, and driven by meaningful connections.

“What I truly enjoy is the personal impact we make. Guiding someone to secure a home is both meaningful and satisfying. It’s a field where financial expertise meets personal connection, keeping every day interesting.”