The home buying process will become more digitalised. Automated Valuation Models (AVM) for property valuations and real-time affordability checks will play a more significant part in buying a home.
Lenders will make further investments in technology to ensure they offer a seamless mortgage application process.
However, the human touch will continue to play an important role. Just as customers continue to value face-to-face interactions with advisers, in turn advisers appreciate a personal touch from a lender. People can find a common ground, something computers can never do.
Stamp duty relief will help more first-time buyers get onto the property ladder, but may have a detrimental effect on the private rental sector as more people opt to own rather than rent a home.
Retention will be a key driver for lenders as they develop a balance cultivating offerings for existing customers as well as enticing new borrowers.
April will be an important month for the buy to let sector. Landlords may see a greater impact on their net profit as the next stage of the reduction in tax relief is phased in this month. This may also prompt lenders to review their minimum rental cover requirements to ensure landlords can comfortably manage their mortgage payments.
Purchasing new buy to let properties through limited companies may become more prevalent amongst landlords serious about either entering the market or building their portfolio.
The intermediary market will continue to grow. Last year approximately 75% of lenders saw an increase in mortgage applications from advisers and the value borrowers place on advice from advisers is growing.
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