News analysis: Price hike in sight
The move to bring back 95 per cent mortgages is broadly welcomed, but some warn it will make the country’s understocked housing market more expensive
By Roger Baird 12
th March 2021 2:15 pm
Chancellor Rishi Sunak unveiled his well-trailed £3.9bn mortgage guarantee scheme during the Budget, which he says will turn “Generation Rent into Generation Buy”.
The move to bring back 95 per cent mortgages to the market was broadly welcomed by the industry although others cautioned it would make the UK’s understocked housing market more expensive.
The scheme begins next month, with several of the UK’s largest lenders Barclays, HSBC, Lloyds, NatWest and Santander already signed up. However, the country’s second-biggest lender, Nationwide, is yet to back the scheme, which acts as a guarantee for lenders, not borrowers.
In the latest Growth Series podcast from Accord Mortgages, industry figureheads revealed what they had learned about themselves over the past 12 months and what they were most looking forward to in 2021.
Jane Benjamin from Sesame Bankhall Group, Danny Belton at L&G Mortgage Club, Martin Reynolds of SimplyBiz and Seb Murphy at JLM Mortgages provided commentary through the podcast.
Murphy said: “I think we can all agree that our industry has been lagging behind for the past 10 years, so the fact we’ve seen such a big step forward is great.
He went on to explain that adopting technology to make the customer journey much better and make brokers more efficient is important going forward.