There are times in our lives when we can all use some help and guidance. Buying a home is one of those major steps in the mortgage market. It is much easier to take if you are well- informed and get some good advice.
Whether you are a first-time buyer or someone who has moved before, things change. So it’s useful to understand the mortgage market.
Each year, thousands of consumers finance the purchase of their homes with a mortgage or re-finance existing mortgages. With mortgage debt accounting for over 80% of total UK household liabilities, finding a suitable mortgage is an important financial decision. Most mortgages in the UK are provided by building societies, banks and specialised mortgage corporations. There are currently around 200 different financial institutions offering mortgages in Britain. The mortgage market is very competitive, with a wide range of products and rates available, making it challenging to understand what is on offer.
Change in the mortgage market
The mortgage market is continually evolving to meet the needs of a changing customer base. With new developments in intergenerational lending, lending into and in retirement, buy-to-let mortgages and support for first-time buyers. Over the last 15 years the UK mortgage market has journeyed through some key changes, new regulatory requirements. As a result of the Mortgage Market Review and the implementation of the Mortgage Credit Directive.
Who does what in Mortgage Market?
The professional conduct of mortgage providers is regulated by the Financial Conduct Authority (FCA). There are strict rules and guidelines, to protect the consumer. Regulations set out in the FCA Mortgage Market Review (2014) aim to crack down on poor lending services. Thus, by building societies and banks, with requirements outlined for stricter affordability checks, amongst other revisions.
The Bank of England sets the interest rate, which impacts mortgage repayments. It is also responsible for ensuring banks are able to meet potential losses on their mortgage lending. Means you can save and borrow money safely. The Prudential Regulation Authority determines the amount of money that lenders need to hold and that they have sufficient risk controls.
New challenges
We are responsible for advising you on a suitable mortgage for your circumstances. Whether you’re moving up the ladder, looking to downsize, purchasing another property or remortgaging, please get in touch. We are specialists with in-depth knowledge of the market and are able to look at a whole range of mortgage products. Getting a mortgage is one of the biggest financial decisions you will make, so it’s important to get it right.
YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON A MORTGAGE OR ANY OTHER DEBT SECURED ON IT.
Key Takeaways
- Buying a home is one of those major steps that is much easier to take. If you get good advice and well-informed
- There are currently around 200 different financial institutions offering mortgages in Britain
- Over the last 15 years the UK mortgage market has seen key changes and new regulatory requirements. As a result of the Mortgage Market Review and the Mortgage Credit
- the Financial Conduct Authority (FCA) regulates The professional conduct of mortgage providers
- The Bank of England sets the interest rate. It impacts mortgage repayments and also ensures banks are able to meet potential losses
- The Prudential Regulation Authority determines the amount of money that lenders need to hold and that they have sufficient risk controls
- During the pandemic advisers are working hard to stay informed to be able to provide guidance to clients
- We are specialists with in-depth knowledge of the market and able to look at a whole range of mortgage products.
