New Government, New Opportunity

The recent announcement of a snap election has sent the political machinery into overdrive, and as the campaigns get underway, it’s clear that the next government will have a significant impact on the mortgage market.

The Conservative Party has already announced several policies that will affect individuals at both ends of their life cycle, including mandatory National Service for 18-year-olds and the “Triple Lock Plus” policy, which will create a new personal tax allowance for pensioners. While the latter policy is aimed at supporting pensioners, its impact is still uncertain, and many will need to rely on equity release to achieve their financial goals.

The increasing financial responsibilities of those in their 50s, 60s, and 70s are well-documented, and it’s clear that the next government will need to address these challenges. This includes the growing need for mortgage debt in later life, the increasing cost of living, and the desire to support family members.

The importance of later life lending

Chris Pond, Chair of the Lending Standards Board and the Equity Release Council, has emphasized the need for greater confidence in the later life lending sector, both from a political and regulatory perspective. This includes ensuring that consumers have access to professional advice that outlines all available options.

The good news is that political support for later life lending has been growing in recent years, and the regulatory environment is becoming more supportive. The Consumer Duty rules, for example, are helping to bring the mainstream mortgage market closer to later life lending options.

Mortgage searches down 8% in May

According to recent data from Twenty7tec, mortgage searches were down 8% in May, but up 7.16% compared to the same period last year. While the number of searches may be down, the market remains hot, with more products available than ever before.

Paragon grows mortgage loan book by 4.5%

Paragon Banking Group has reported a 4.5% growth in its buy-to-let mortgage book, driven by strong customer retention and a growing pipeline of new business. The bank has also seen an increase in lending on energy-efficient properties, with over half of new mortgage lending going towards properties with an Energy Performance Certificate (EPC) rating of A to C.

As the election campaigns continue, it’s clear that the next government will have a significant impact on the mortgage market. With growing support for later life lending and a hot market for mortgage products, it’s an exciting time for the industry.

A new government, a new opportunity