Nearly three-quarters, or 74%, of brokers say mortgage merchandise have “did not hold tempo” with the altering monetary circumstances of debtors.
One in 4 brokers say product innovation, comparable to extra versatile dwelling mortgage choices for non-traditional employment patterns, revenue varieties, and household buildings, “should be the primary focus for lenders within the yr forward”.
The findings come from a survey of 500 mortgage brokers commissioned by Nottingham Building Society and carried out by information physique Censuswide final month.
The ballot finds that 23% of brokers wish to see higher assist for susceptible debtors, whereas the identical proportion would love lenders to undertake new applied sciences to streamline functions.
However, 83% of brokers mentioned they felt extra optimistic in regards to the state of the mortgage market than they did six months in the past.
This comes regardless of the rising cost-of-living squeeze, which as we speak noticed inflation rise to three.8% within the yr to July, from 3.6% in June.
The ballot mentioned that “rising confidence” amongst brokers “displays a way that the market is stabilising”.
Earlier this month, the Bank of England minimize the bottom fee by 1 / 4 level to 4% from 4.25%, taking the rate of interest to its lowest stage since March 2023.
This was the central financial institution’s third quarter-point minimize of the yr and the fifth since final August.
Nottingham Building Society head of mortgage product & proposition Greg Went says: “It is encouraging to see indicators of confidence returning to the mortgage market.”
“But the message from brokers is evident — lenders should guarantee they hold tempo with altering existence.
“People’s lives and funds have modified, from revenue patterns to family buildings, and mortgage merchandise want to stay appropriate.
“Many [brokers] are telling us that outdated lending standards danger locking good prospects out of the market.
“Whether it’s supporting debtors with complicated incomes, simplifying journeys via know-how or providing tailor-made assist to these in susceptible circumstances, lenders have a duty to adapt.”
