As I pen my 300th column for the paper, I do wonder where
the years have gone and what a totally different market we are now in compared
to my first column in 2008! In fact,
that actual column highlighted the 'stormy waters ahead' and that 'this would be
a journey we wouldn't forget in a hurry'.
What I, like most, didn't realise is that seven years on, we would still
be in such a financial retraction!
However, the positives are that we are in the midst of a
very competitive high street price war which has just seen a high street lender
launch a sub 2% five year fixed rate deal.
This will spur on further reaction over the coming days.
We've also seen lenders looking at assisting those with just
a 5% deposit and having minimal or very small fees, to help First Time Buyers
and Next Movers.
We're also seeing lenders look at criteria to attract
business, rather than just a low rate.
This could be a key part of the mortgage market moving forward. A huge number of people will be ignored by
computer technology and credit scoring decision making systems. But this does
not mean they should not obtain mortgage finance, it just means they don't meet
all of the rules entered to make that particular decision!
I often wonder if we are on the way back to as it was in
2007/8. Rates couldn't go much lower then either and
criteria played a huge part. Fast
forward to today and again rates can't get much lower and lenders are looking
at gaps in the market where a criteria change or tweak might give them the
competitive edge.
However this time, we also have a housing shortage
problem. The demand for houses is
outstripping supply and this could lead to an increase in house prices. First Time Buyers are already finding it
tough enough without the additional stress of a lack of properties. Let's hope someone is looking at addressing
this issue and has a balanced approach to the market.
Which leaves one last thought - I wonder what the market
will look like in another 300 articles time?
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