TMA's wish list for 2019

TMA Club reveals its wish list for the new year.

• At the top of the wish list is maintaining, if not boosting consumer confidence. Throughout 2018, the mortgage market has remained relatively stable despite ongoing political uncertainty, with lenders continuing to offer competitive rates and expanding their product offerings to accommodate for the growing pool of customers. TMA hopes that 2019 sees lenders continuing to offer the incentives needed to keep customers’ confidence high in the mortgage market.
• TMA hopes that the FCA will understand through the completion review, that whilst product pricing is important, many other factors have to be considered such as service, criteria and eligibility. This is where mortgage brokers add real value to the process.
• TMA would also like to see the regulator be more persuasive with lenders and allow them to offer execution only mortgages through their own digital portals. At TMA, we appreciate that some experienced customers are happy to self-serve their own mortgages, especially product transfers and like-for-like remortgages. Why can the lenders do execution only and intermediaries can’t? By enabling more intermediaries to offer execution only mortgages through platforms, they will be given greater opportunity to strengthen their position in the market.
• B2B solutions, such as the newly emerging multi lender platforms, can have a huge benefit for brokers and customers alike. TMA would like to see this initiative gain traction during 2019, as we break through the politics of who is supporting which platform. With B2B platforms beginning to gain traction as lenders integrate with each other to formulate customer solutions, TMA hopes to see more of these to come to the market.
• TMA is optimistic about the continued digitilisation of the industry to ease the customer and adviser journey. A particular wish of TMA’s for the upcoming year is to see the price of these digital tools remain realistic and affordable for intermediaries, especially as more and more digital platforms come onto the market and the competitiveness of cost becomes more essential for providers.
• Many believe that the product transfer market will increase next year, and we hope that intermediaries respond to this by growing their share of this market. Also, with a growing number of homeowners possibly opting to stay in their current property rather than move, at least over the short-term, intermediaries should be forward thinking in offering the best products and services to this growing pool of customers.
• TMA also hopes that, with the withdrawal of Help to Buy set for 2023, new initiatives will be introduced to the market to help first-time buyers. Building more affordable housing is the most logical solution to this, and TMA hopes that increased government effort in this area will mean that more first-time buyers are given the opportunity to get onto the property ladder.
• In his most recent Budget announcement, the Chancellor shifted his focus away from the buy-to-let market. TMA hopes that greater incentives and more lending products for this community are introduced to the market to stimulate increased activity and confidence in the next twelve months.
• Data from a recent YouGov poll revealed that almost half of the UK population would like 100% mortgages to be re-introduced to the market, as does TMA. Since the requirement for a substantial deposit is what is hindering many borrowers from starting the property purchase journey, a reintroduction of 100% mortgages would mean that borrowers are not forced to pay a lump-sum of money outright at the beginning. It would also help reduce the burden on family or friends to help fund a home purchase.
• Finally, our last wish is to only check ID once! TMA is delighted at the emergence of digital identification however it is still not sufficiently joined up. Currently, the intermediary, lender and solicitor run the same checks when in reality, this could be easily streamlined.

2018 has been a challenging year for the mortgage market, as ongoing political uncertainty has brought concerns to brokers, lenders and borrowers alike. In spite of this, the industry has remained stable with lenders continuing to offer competitive rates and broad product ranges, all the while proving that customers remain at the heart of every decision.

Looking ahead, the industry must work together to ensure that we are fully prepared to respond to any regulatory or market changes that come our way. Customers will be better served in the long run, reassured by their advisers that the market is on hand to help find a solution that best suits their requirements.