Page 15 - The Pulse Issue 6 Online

property letting future. The number of landlords operating in the buy to let market
may reduce as part-time landlords feel the squeeze on
Terry Jordan, RBSIP: Recent changes continue to impact their income. However, as purchases reduce, the number
upon the buy to let sector and we have noticed a reduction of landlords needing guidance when remortgaging under
in buy to let lending. Landlords are likely to look to the the new regulation will increase.
refuge of a limited company status if they are professional
landlords and we might also see some amateur landlords First-time buyers, older customers and customers with
exit the sector as returns are eaten away due to the new adverse are all growing markets which will greatly benefit
regulations. from the advice and support a mortgage broker can
provide.
Will the first-time buyer market increase
or decrease? And how will they fund their We hope this feature provides you with some reassurance
deposit? and helps to highlight that even during periods of austerity
there is always opportunity.
Keith Barber, The Family Building Society: We expect the
first-time buyer market to continue at current levels. Many
people benefit from help from their parents or wider family
and we expect that to increase as products such as the
Family Mortgage become more well known in the market.
We’d expect to see a refocussing of Help to Buy towards
those who need the most help.

Louisa Sedgwick, Vida Homeloans: The future is bright
for first-time buyers. There are a number of government
schemes available, which to date have been the backbone
of this lending sector. However we have seen the re-
emergence of 95% lending/shared ownership on new
build and of course great initiatives like four people buying
together from Vida. We need to continue to support this
growing market and convince first-time buyers they can
purchase their own homes.

Terry Jordan, RBSIP: All political parties seem directed to
supporting the housing market issues and see first-time
buyers as the customer segment to oil the rest of the
housing market. The Help to Buy scheme or some new
government initiative is likely to gallop over the horizon
to rescue first-time buyers whilst Bank of Mum and Dad
already being the 9th biggest lender in the UK will grow
in popularity as lenders promote the options available in
this space.

Peter McGuinness, Bluestone Mortgages: First-time buyers
are an essential part of the market and they’ve actually
been among the most active participants in the market
in recent months. We expect to see increased activity
from the Bank of Mum and Dad assisting with gifted
equity style transactions, although lenders are taking
care when assessing affordability for these borrowers
who often have not had a history of prior borrowings.

Summary

So there you have it. Straight from the horse’s mouth, so to
speak. We may be heading into uncertain times, however,
the need for innovative mortgage products which cater to
growing niches in the market has never been greater.

Property transactions may slow down over the next few
years and some areas of the UK, like London and the
South East, which were experiencing quick growth may
decrease slightly as investment in to the UK economy is
put on hold.