Monthly Mortgage RoundUp- December 2021

Monthly Mortgage Market Roundup – December 2021

Hi everyone, welcome to this monthly mortgage roundup.

I’m Vincent O’Connor Director of Products here at the network and to go through the roundup with me is Anita White who is head of lender relationships.

How are you, Anita?

All good thanks!

Most advisers are busy most of the time, so the purpose of this monthly roundup is to just highlight things you need to know which have happened, are happening right now or things to look forward to in the not-too-distant future.

But I thought a good place to start Anita, was to consider how we’ve done throughout 2021… at the time of recording we’re nearly at the end of the year… so Anita, if we look at how we’ve done with Mortgages over 2021, what are your thoughts…

Just really to recap on the market

Beginning of the year there was uncertainty as to where the market would go.  Some predicted doom and gloom where as others were more optimistic

As we sit here today, Legal and General Mortgage club predict gross mortgage lending to be £305billion plus.  Around £240 billion of product transfers.

The Buy to Let Market will be around £45bn…

In terms of 2022?

Legal and General Mortgage club believe there will have a more normal split of business.

Gross mortgage lending is expected to be around £285 billion with Buy to Let being £40bn of that.

And product transfers?

That should be around £250 billion for product transfers.

For most mortgage advisers, 2021 has been an exceptional year with unprecedented level of business.

Clients more than ever have relied on the guidance of mortgage advisers to steer them through the maze of mortgages.

We’ve had the pandemic where for example, the self-employed have felt they are unable to remortgage.  Many of them were unaware of the specialist lenders like Kensington. Pepper Money and The Mortgage Lender.

At the Network we’ve had a phenomenal year!

Completions are up 59% year to date and we’re on target to complete just under 5 billion of lending with business split roughly 85% residential 15% buy to let.

Next year we’re looking at around £6 billion.

And Anita, you mentioned Product Transfers… we know that’s going to be one of the biggest opportunities for next year in the mortgage market…

As already mentioned, 2022 will be great opportunity for product transfers.

We have data showing the peaks being April, June, September, October and December totalling circa £137 billion.

And what’s your message to advisers Anita about advisers need to be looking at with regards to this opportunity?

My message to our advisers is you need to be looking at you clients who are coming to an end of their fixed rate AT LEAST 4 months ahead.

Don’t leave it until the last minute!

Start planning NOW for next year. You should be considering maturities that are coming to an end in April and start contacting your clients.

To help advisers, Legal and General mortgage club have produced a matrix which gives comprehensive details on lender requirements.

We’ve added a link to this on the adviser website but there is also a link on this podcast.

Legal & General Mortgage Club’s Matrix >>

But remember, if you don’t make contact with them other predictors are out there…lenders, the internet and other brokers who will happily take the business.

And related to that Anita, you recently sent a newsflash email out to all advisers with regards to the Nationwide PT opportunity… Just remind us what the potentially urgent reason to get in touch with Nationwide clients was?

Mortgage Newsflash Sales Opportunity!

The message here was to make advisers aware that if they had any clients who had a Nationwide Mortgage on a Tracker Rate, Nationwide were offering the lowest tracker rates in the past 2 years.

So, if you had a customer with an existing Tracker Rate with Nationwide; it was almost a certainty the customer could be switched a better rate of interest without them suffering any early repayment charges and potentially saving the customer money

How to use the Key to extract Nationwide Client data >>

Using The Key, we showed advisers how they could download a specific report of clients who had a mortgage which could qualify for this sales opportunity.

Remember there’s plenty of mortgage opportunities for 2022. The Network we will continue to support our members throughout the year with lender updates and marketing initiatives.

And next month, what are we going to be looking at Anita?

Next month we’re look at Green Mortgages and the future in this market to see how that’s panning out.

Ok, so that’s the first of our monthly mortgage roundups.

Remember, all the mortgage updates will be added to the mortgage news page on the adviser site and we will continue to ping out messages to anything which is important as soon as it happens.

So, that’s it for our first edition.  Thanks for listening, thanks to you Anita and we will see you next month for another mortgage market update.

Merry Christmas from Anita and Vincent!