Specialist lender says the winner will need to look at them closely
First-time buyers face a more challenging market than they have ever done previously, and whoever triumphs in the General Election on July 4 will have to focus on tackling it, suggests Kensington Mortgages’ Vicki Harris.
As chief commercial officer for the specialist lender, Harris (pictured) believes that a potential revision of stamp duty will also come under the spotlight in the run up to polling day. Certainly, with Housing Secretary Michael Gove announcing that he will not stand for Parliament again, the industry can be sure that property issues will come under fresh eyes come the morning of July 5.
Established in 1995, Kensington Mortgages is a leading residential specialist mortgage lender, serving customers who may not meet high street criteria - such as the self-employed, contract workers, multiple-income applicants and those who have a small blip on their credit file.
“Following a long period of relatively benign interest rates, the rate environment has become significantly more volatile, creating new challenges and leading many in the industry to adapt their approach,” Harris noted. “The market is currently tougher than ever for first-time buyers and whichever party wins the next election will likely have to take a close look at the housing market to attempt to address this issue.
“Reviewing stamp duty is also an area that is likely to receive attention as well as the increasing cost of rental where changes can have a material impact on the buy-to-let mortgage market. There are no easy solutions for any of these issues so it will be interesting to see how the government of the day thinks about trade-offs.”
What questions must borrowers face in today’s mortgage market?
Given that the market is contending with more complicated conditions than it has seen in recent years, and higher interest rates than many of us have recently been accustomed to, those seeking to purchase property must grapple with fresh dilemmas.
“Borrowers now face difficult questions which they may not have had to consider previously,” Harris said, “such as if they should take out a tracker mortgage or wait for rates to fall.”
She acknowledged that with higher market volatility and lenders changing rates and adapting products more frequently, it can be difficult for brokers to stay up to speed and ensure that they are securing the right deal for their clients.
“Customer centricity will continue to be key for brokers over the next year, with those who provide exceptional customer service improving their chances of securing referrals and repeat business,” she said. “The best brokers will be continuously scanning the market to maintain a clear understanding of market conditions and the products that are available for their customers.
“Paying close attention to the specific needs of customers is perhaps more important than ever in the current environment, with many likely facing more complex financial situations.”
READ MORE: “Brokers’ growing share of the market offers opportunities”
What will the mortgage market look like, 12 months from now?
Kensington became a £1 billion-a-year mortgage lender in 2018, and was bought up by Barclays Bank in 2023. Harris, who was previously on the executive team of Aldermore Bank, joined the lender six years ago. She describes herself as an entrepreneurial leader, specialising in financial services, with particular focus on innovative and fast growing challenger brands – and is passionate about bringing a more customer-led culture to financial services. Despite some calming of the market, she believes it’s difficult to say where it will be a year from now.
“Most of the industry likely would not have been able to predict 12 months ago where we are currently,” she said. “However, we can likely expect interest rates to be a little lower and for the market to be more buoyant as consumer sentiment gradually begins to improve.”
