High street lenders – including TSB, Lloyds, Santander, and NatWest – have all been reducing rates and making changes to their product ranges over the last few weeks, expanding in some cases with new innovation. The question now is whether we’re going to see more lenders following suit.
In terms of the overall market, it’s been quite stable and positive. The outlook on geopolitical and economic events has been relatively static, but that doesn’t mean there’s no longer a fear factor surrounding them.
We absolutely still need to be conscientious of what could happen and the impact it may have.
FOCUS ON RETENTION
From an overall market perspective, it’s fair to say we’re in a temporary slowdown in purchase activity, which means retention remains a huge focus.
It’s very much at the forefront of the industry, with lenders asking how they can do this better.
Brokers are at the heart of this, as clients need advice more than ever. There’s a real opportunity for lenders to support brokers and borrowers through greater flexibility, whether that’s changing repayment methods, adjusting mortgage terms, or facilitating additional borrowing alongside a remortgage.
PURCHASE MARKET
At the same time, there’s a need for more direction in the purchase market. While activity is quieter, this is the ideal time for lenders to take stock and focus on their USPs for first-time buyers, landlords, and homemovers.
The key question is what more can be done to drive the purchase market, support consumer confidence, and demonstrate that this remains a stable market and still a good time to buy.
Ultimately, it’s about showing what support is available and how we help more people get onto the property ladder.
EDUCATION IS KEY
Our first-time buyer research highlights that one of the biggest challenges facing homeownership is not necessarily affordability, but awareness.
Almost half (47%) of renters say they would buy immediately if mortgage payments matched their current rent, yet awareness of the products designed to help them remains remarkably low.
In fact, 80% have never heard of track record mortgages, 73% are unaware of 95% LTV products and 70% don’t know about the full range of family-assisted mortgage options.
These findings reinforce the importance of lenders and brokers working together to educate consumers, build confidence, and provide clearer pathways onto the property ladder.
If we can close this awareness gap, there’s a significant opportunity to unlock demand, support growth in the purchase market and help more aspiring homeowners take that first step.
