REVIEW
MARKET
Snapshots of 2022 so far Craig Calder Director, mortgages, Barclays
W
hisper this quietly, but we’re fast approaching Q3, the Platinum Jubilee celebrations, and the summer holidays. We are also operating in a mortgage/housing market that continues to see sustained demand from a range of borrowers. It’s true that when compared to this time last year, these levels are obviously far lower – but chunks of 2021 and the later part of 2020 were, generally speaking, something of a lending anomaly due to the sheer volume of transactions taking place across all sectors. MORTGAGE BORROWING AND APPROVALS
In terms of more recent figures, the latest Money and Credit report from the Bank of England showed that there were 70,700 mortgage approvals in March – down from just under 71,000 in February. However, this was higher than the average 12-month pre-pandemic level of 66,700 in February 2020. In addition, mortgage borrowing reached £7bn in March, up from £4.6bn in February. This was the highest monthly level since the final month of stamp duty relief last September, when borrowing hit £9.3bn. Approvals for remortgaging rose slightly to 48,800 in March. This remained below the 12-month pre-pandemic average up to February 2020 of 49,500, but was the highest since February 2020. These figures reflect rising levels of inflation, interest rate increases, and the beginning of escalating living costs. Inevitably, these factors www.mortgageintroducer.com
continue to affect the lending landscape, although homeownership aspirations and the volume of purchase business remain strong. INTERMEDIARY CASELOADS AND CONFIDENCE
These sustained activity levels were highlighted in the latest research from the Intermediary Mortgage Lenders Association, which found that the average number of mortgages placed per year by intermediaries fell only slightly in Q1 2022. At the end of 2021, the average was 103 – a record high – and in the first quarter of 2022 that fell slightly to 97, matching the rates for Q3 2021. Despite a slight reduction in the average number of cases, the confidence of intermediaries in the business outlook for their own firms remained high. 62 per cent of intermediaries said they were “very confident” about the outlook for their firms, maintaining the same rates of confidence reported at the end of Q4 2021. Ninety-eight per cent of intermediaries were confident overall, with only a very small minority (two per cent) describing themselves as “not very confident”. The average number of decisions in principle processed by intermediaries in Q1 rose by two when compared to the final quarter of 2021. Despite a drop in January (to 28 per intermediary), the following two months saw a strong rebound with February reaching 32 per intermediary and March hitting 37, a two-year high. This rise came alongside homeowners returning to the market, aiming to remortgage or secure new fixed-rate mortgages. The data does outline a slight lull, but this was fully expected – and it’s encouraging to see advisers maintaining their momentum, with solid underlying demand continuing to underpin the mortgage market.
WELLBEING AND MENTAL HEALTH
Whilst the high and lows of the mortgage market are well documented, the impact of the pandemic, a hectic housing market, and ever-changing client demands continue to weigh heavily on the wellbeing and mental health of intermediaries and people operating across the industry. This is a topic that we tackled last year in a very well-received instalment of the Mortgage Insider podcast. The episode saw the Mortgage Mum, Sarah Tucker, share her experience alongside chartered psychologists Nana-Efua Lawson and Kate Oliver, who discussed the changes they’d seen in organisations and the coping strategies we could all use to build resilience. This episode is still available to listen to. I’m referring to this after seeing a report released by the Mortgage Industry Mental Health Charter (MIMHC) that showed that while almost half of brokers are seeing improved mental health support at work (48 per cent), 23 per cent say their mental health is either “poor” or “of concern.” The report added that over half (55 per cent) are working more than the recommended weekly guidance, with 13 per cent saying they work 60 or more hours a week and a quarter never getting the recommended amount of sleep in any given week. Overall, brokers were said to be moderately happy in terms of their professional contentment. However, those who are disillusioned and considering their options had risen to 14 per cent (previously 10 per cent). Everyone has their own unique set of circumstances to deal with, and this report really does underline the importance of individual and collective support in meeting the MIMHC objectives of improving and implementing best-practice mental health provision in the finance sector. Let’s hope that by focusing on and talking openly about this subject, we can all continue to take steps in the right direction. M I JUNE 2022 MORTGAGE INTRODUCER
5
