David Finlay, managing director of the intermediary channel at Barclays UK Retail and Business Bank, said that while 2013 would be a good year for the mortgage market, the real positives will come through in 2015 and into 2017.
He said: “We think 2013 will be good but if the Funding for Lending Schemes and the right-to-buy schemes don’t kick in the way they potentially could, we may see a fall at the end of the gross market figures for 2014.”
He praised the government’s Budget initiative of Help to Buy, for showing “commitment” to helping people realise their ambitions to own their own home.
Mr Finlay said: “We do actually think that the mortgage market will come back slightly over 2015 as we go into 2017 and will have a more balanced approach in 2017.”
Mr Finlay was speaking as part of a panel of experts invited by Financial Adviser on 22 March to address issues currently facing the mortgage industry.
While he said the average deposit size of £60,000 for first-time buyers was ‘scary’, he said lenders and intermediaries were both becoming more innovative, attempting to introduce mortgage products to help more people onto the ladder.
He said that opportunities for advisers apart from buy-to-let, which was seeing a strong revival, included the fixed and tracker mortgages maturing this year, representing £9.4bn worth in April, £5.7bn in May and £12bn in June.
He said: “That is a significant number of individuals who will be looking for another deal in rates or a new product. It is an alternative and a great opportunity to go and talk to your clients, and not just talk about mortgages but holistic advice.”