Expert on whether it really matters who wins…
As the dust settles from the local elections, with all the post-results analysis and chatter they bring, the main political parties are taking stock; either punching the air or licking their wounds, depending on the votes cast, or your personal perspective… and, quite possibly, both.
We’ll likely be back at the ballot boxes within a matter of months, of course, for a much anticipated General Election, and who knows what the manifestoes will deliver in terms of pledges on housing, tax and whatever else affects the mortgage industry?
Whatever the outcome, a General Election could be good news for the profession, by ultimately boosting the economy, according to Craig Calder, head of secured lending at Virgin Money.
“First and foremost, it will be good to see the back of recent political uncertainty and have a stable government in place who can focus on solving the real challenges people face – whoever wins the election!” Calder (pictured) told Mortgage Introducer.
“Looking forward, we should see a period of stability with certainty of government. A stable environment will drive consumer confidence, which is vital for a healthy mortgage marketplace. That should allow a better outlook for the UK economy and set us on a track of expectations of growth.”
He added: “This should feed into interest rates falling back over a period of time - albeit not as low as prior to 2022, inflation under control and an easing of the cost-of-living crisis so many are feeling at present. This would all point to improving market demand.”
What should the next government do to support the housing market?
Calder, who has been in his role at Virgin Money since the beginning of 2023, and previously held key posts at Barclays and Royal Bank of Scotland, has a clear sense of what those who will be leading the country should do.
“In terms of what I’d like to see in this election year, it will be good to know how any new government will increase the supply of housing,” he said, “review and amend planning regulations to make it simpler and quicker for developers to acquire suitable land, and build the new homes we desperately need.”
Calder wants to see a plan to help property owners be ‘future fit’, with a credible long-term approach to helping homeowners transition their homes to low carbon technology over the next 10 – 15 years. He also favours a focus on affordable housing.
“Homeownership should be within everyone’s reach and we need to increase the supply of affordable housing to help more first-time-buyers achieve this ambition,” he noted. “Over the past two years the market has shown resilience against a backdrop of significant change in the external environment. The biggest challenge right now to the market returning to growth is affordability.
“Higher mortgage rates present additional hurdles for new borrowers to realise their ambitions of owning their own home. Existing borrowers are impacted too as they mature on to higher interest rates compared to two years ago.”
Read more: Don’t use housing issues just to secure votes, politicians urged
What innovations are supporting home buyers?
The market has, however, continued to show innovation to help home buyers, in Calder’s view.
“Schemes such as the market first Own New Rate Reducer, which Virgin Money was a founding partner for, has provided a new route to affordability beyond the end of Help to Buy, along with shared ownership,” he said.
“I am proud that Virgin Money has led the way to innovate and offer flexibility, with the Fix and Switch product a great example of where we offer peace of mind for borrowers in the currently uncertain environment by giving the certainty of an interest rate fixed for five years, but with the flexibility of being able to switch to another product with no early repayment charge after just two years.”
Clearly passionate about the industry, Calder is keen to observe how it continues its technological transformation.
“I’m excited to see where technology can take us,” he said. “Streamlined applications and decisions, faster processing, and online customer support, have significantly changed and improved the experience of both customers and brokers.
“We're committed to staying at the forefront of these changes to ensure we empower our customers to make informed decisions on their homeownership journey.”
