Although the mortgage market is going through a very challenging time, many are confident it will eventually recover as the world returns to a new normal.
As a newly formed organisation, the Mortgage Market Alliance has perhaps found itself in a perfect position to push the message that the sector will once again be open for business.
Alex Hammond, who is one of its co-founders, says: “As we emerge from this crisis, everyone’s finances would have been impacted in some way and the concept of a vanilla case will apply to a smaller number of borrowers than ever before.
“More people will have more to gain by seeking professional mortgage advice. There’s even a chance that we could see a spike in demand for mortgage advice by the end of 2020.”
Under recent changes to government rules, moving home, viewing homes to let or buy, visiting estate and letting agents is now allowed again under controlled conditions.
“At MMA, we will work tirelessly to communicate that the mortgage market is open for business, has a strong appetite to lend and is highly competitive, and that the best way to access everything that the mortgage market has to offer is through professional, independent advice,” Mr Hammond says.
The MMA was set up in February by Mr Hammond and Rob Griffiths, who are both public relations directors, having previously worked as journalists for rival publications.
The idea for the MMA came about as a result of repeated conversations they had with industry professionals; that the market could do more to educate and inform consumers about the depth and breadth of product options available and how best to access them.
The group was formed as a “collaborative new voice” for the mortgage industry to raise awareness and understanding among consumers about the range of options that are available to them and to highlight the importance of seeking professional advice.
Mr Hammond says: “We know there are millions of people across the UK who either don’t know where to turn to get a mortgage, or don’t even try because they believe their circumstances rule them out of consideration, and this situation is only going to be exacerbated by the financial fallout from the coronavirus crisis.
“There is an urgent need to promote greater understanding of the market and the benefits of professional advice to the people who matter – consumers.”
And just to be clear, as Mr Hammond stresses, the MMA is not a trade association. It is an alliance of lenders, intermediaries, and all other interested stakeholders, who can combine their resources to amplify the voice of the mortgage market.
Focusing on a single objective
He adds: “Our advantage is that, unlike trade associations that have a number of different responsibilities, our sole purpose is to achieve this one objective. And this singular focus will enable us to channel all of our energies into achieving that objective.”
The group’s first objective is to establish a consistent presence in consumer media channels: to provide a “rational and informative contribution” to coverage on behalf of the mortgage market.
It has already published notes explaining some of the government’s measures to help mortgage customers during the coronavirus crisis, and is launching a series of reports working with members to identify the product and customer segments it will cover.
Mr Hammond adds: “Individual businesses have invested in their own campaigns in the past, but in order to make a real difference, we need to maintain a consistent presence and narrative – and most businesses simply don’t have the resources to sustain this activity on their own, as they have their own commercial objectives to pursue.
“The Financial Conduct Authority recently introduced rule changes that encourage the execution-only channel, but for many consumers, having access to the right advice and the right lenders for their circumstances will always remain the best way to secure the most appropriate mortgage.”
Membership of the MMA is open to all stakeholders, where they can feed into the MMA PR and communications strategy across all target media – a directory listing that highlights their products and services, early sight of all MMA research papers and press releases in order to co-ordinate comment.
Joining the MMA costs £250 a month. Members can also join without having to pay a fee for their first few months of membership, while the group is working on a separate membership scheme for smaller advisory companies.
For all its optimism, the MMA will have some work on its hands as the lockdown eases.
The mortgage market has been hit hard by the crisis. Property website Zoopla has estimated 373,000 sales have been on hold during the lockdown.
Meanwhile, the number of mortgage products has more than halved, owing largely to the fact that social distancing rules meant surveys could not take place – effectively grinding the market for new business to a halt.
Although lenders responded quickly, with many increasing their use of automated valuation models, the approach still limited the availability of higher LTV products and some specialist mortgages.
Mr Hammond says: “These factors have been practical problems faced by the market in an unprecedented situation and there continues to be a significant appetite to lend.
“Once lockdown restrictions are lifted and surveyors can get on the road again, there are no reasons why the market cannot get up to speed quite quickly.
“There are reasons to be hopeful for advisers and, as we return to a new sense of normality, the intermediary mortgage market will be well placed to help people get their finances back on track and contribute towards the country’s economic recovery.”
Ima Jackson-Obot is deputy features editor of Financial Adviser and FTAdviser
Career highlights:
February 2020 - present: Director, Mortgage Market Alliance
July 2019 - present: Director, Square 1 Media
January 2018 - present: Managing director, Also Communications
September 2016 - present: Head of marketing - mortgages, Castle Trust
January 2015 - September 2016: Head of marketing and communications, Kensington Mortgages
