As the General Election campaign hots up, the plight of FTBs is highlighted
As polling day gets ever closer and campaigning for the General Election is in full swing, politicians are being urged to start engaging in ‘meaningful actions’ to support first-time buyers, who are struggling to purchase their own homes.
While many may be fixating on whether Nigel Farage is going to stand as a candidate (he is) and whether Diane Abbott is also throwing her hat into the ring (she is), there’s another key issue on the mind of Melton Building Society’s head of intermediaries, Dan Atkinson.
He wants Westminster’s decision makers to review mortgage regulations to help transform the market and reduce the challenges faced by those trying to make their initial property purchase.
“Whatever the outcome of the General Election this year, we would really like to see politicians start taking meaningful actions to support the affordability challenges first-time buyers are experiencing in the mortgage market,” Atkinson (pictured) told Mortgage Introducer. “Affordability remains a huge challenge, especially for younger borrowers, with house prices and interest rates at an all-time high, at least since I have been in the industry.”
What would drive change in the mortgage market?
Atkinson noted that there had been suggestions by the outgoing Housing Secretary Michael Gove of a focus on longer-fixed term products, but he believes that product innovation should be driven by lenders.
“We’re best placed to understand the consumer needs,” he said. “Mortgage lenders like Melton Building Society can support in some ways, for example with gifted deposits and family assist mortgages, but this is not a long-term solution. We’d like to see politicians reviewing mortgage and LISA (lifetime ISA) regulation, as well as lending caps to really drive change in the mortgage business and make those first steps onto the property ladder less challenging for first-time buyers.”
Atkinson prides himself on being an experienced financial services professional, with a strong understanding of the mortgage market and focused on delivering great customer outcomes. He has been at Melton Building Society for over eight years, in various roles, and was previously a financial adviser at Your Move. The mortgage market has stabilised somewhat, following a turbulent couple of years, but Atkinson clearly doesn’t take anything for granted.
“If we have learnt anything it is to expect the unexpected,” he said. “With inflation slowing and expected interest rate cuts later in the year, we will hopefully start to see some improvement and a better outlook for 2025 onwards.”
Read more: Melton BS raises maximum loan sizes
What should brokers do in the current mortgage market?
Atkinson urged brokers to keep close to clients as the industry navigates various industry and economic challenges and said it was essential as part of building strong relationships and understanding customers’ ongoing needs.
“This goes hand in hand with keeping close to market movements and being able to quickly identify any new opportunities or positive changes for existing clients,” he noted.
Based in Melton Mowbray, in Leicestershire, Melton describes itself as a modern, mutual building society that has been serving its customers since 1875. It is a national provider of mortgages and savings products, with over 40,000 members.
“Through our business development manager and broker sales team we’re dedicated to supporting and building relationships with brokers to truly understand what they and their clients really want and need from us,” reflected Atkinson.
Melton is constantly considering the needs of its customers, past, present and future, he said, to make the right investment in its products, processes and people. “So that we’re able to adapt and serve the needs of what makes us a mutual - our members - for another 150 years,” Atkinson added.
