Help to Buy forming mortgage anomaly
The ex-adviser was speaking at the annual Tenet Business Conference in London, with his presentation entitled ‘Looking back on 2013 and forward to 2013.’
Cartwright said: “The help to buy emergence has given a bit of filler to the market and in November we saw four of these mortgage guarantee options available on a day to day basis, now more than double that, so that seems to be a trend we’re observing in that particular market.
“The number of 95% mortgages have increased over the last 12 months probably from the support given by the government, and if we look at the number of providers that’s fairly static.”
He added: “We’re now seeing fewer long term fixed deals come through and become available on a daily and weekly basis. That could be a trend.”
The funding for lending scheme is said to have been responsible for a number of new products coming into the market.
Cartwright said: “We’ve seen the emergence of some stepped interest rate deals to help with affordability given that obviously it’s going to be more expensive for clients if they take a capital interest mortgage rather than a pure interest only.”
He added: “Looking at the economic backdrop earlier – the two year or five year rates are not that hugely different. In the past the differential has been bigger.
A culture to protect consumers in the UK was also called for.
Cartwright said: “We found income protection seems to be the poor relation in the income market.”