With figures indicating that mortgage transactions currently stand at 80 per cent of the levels seen last year, intermediaries have been urged to develop their technical skills while lenders have similarly been asked to produce innovative products to match market needs.
Speaking at the conference Richard Fox, chairman of the Society of Mortgage Professionals, said: “It is important we help the first-time buyer market where people are often held back by the fact they cannot borrow sufficient money to get onto the housing ladder.
“This is often because lenders calculate what they are willing to advance on the basis of income multiples. The industry should consider selling on ‘affordability’ rather than multiples which would increase the size of potential loans in many cases. This is entirely appropriate in a stable, low interest rate environment.”
However, James Carter, IFA at Virtue Financial, disputed claims intermediaries could do much more to revitalise the industry and instead called for a further period of catch-up. “The market still rests on the issue of affordability,” he said.
“Until the market catches up with house prices then it will struggle. There is no point pushing people into the housing market if they can’t afford it. There is a definite need for a period of consolidation and until this happens I don’t think much will change.”
