Latest research from Avelo, the UK’s leading financial services technology solutions provider, has revealed that eight in 10 (80%) intermediaries predict a rise in mortgage lending in 2013 with only three per cent envisaging a fall during this period. The poll was carried out as part of the 10 Avelo Experience Mortgage & Protection roadshows between February and March.
There has also been evidence of lender innovation in recent weeks, with some banks and building societies launching specific products aiming to open up home ownership to a wider demographic such as 100% LTV (parental guarantor) mortgage . New FSA data has revealed gross mortgage lending hit £152bn in 2012 with the CML forecasting this to rise to £156bn in 2013.
Sophie Hall, Head of Intermediary, Avelo commented: “It is really positive news to see that intermediaries believe mortgage lending is set to rise in 2013. With a housing shortage, strong rental demand and desperately poor returns on other forms of investment, the buy-to-let market has shown it is bouncing back; this should have a knock on effect on the mortgage industry as a whole and hopefully get the economy moving in the right direction.
“As more products become available in the market place, LTVs and rates should become competitive. Most indices are now suggesting a small rise in house prices in 2013, so it makes sense that gross lending increases in line with this.”
Results based on 370 responses to Avelo Experience roadshow polls carried out between February and March 2013