Majority of brokers expect return to normal within nine months
Some 77% of brokers believe that mortgage lending will recover to pre COVID-19 levels within nine months whilst 51% believe that this recovery will happen within six months, according to the latest Mortgage Lender Benchmark.
Appointed representatives proved to be significantly more optimistic than directly authorised brokers, with 59% of appointed representatives predicting that lending levels will recover within six months, compared to just 37% of directly authorised brokers.
Michael Fotis, managing director of Smart Money People, said “Tentative steps are being taken to get the economy moving, and many lenders are talking loudly about their appetite to lend.
“That said, with job security likely to be a concern for many consumers, and predictions that house prices may decline by up to 13%, it’s really hard to see customer appetite for new mortgage lending returning until 2021 at the earliest.”
Brokers focused on the equity release market proved to be particularly sceptical of a bounce back. Just 19% of equity release-focussed brokers agreed that the market would recover in six months. Meanwhile 28% of equity release-focused brokers predicted that lending levels would take more than 12 months to recover.
The fourth edition of the Mortgage Lender Benchmark, which is a bi-annual independent research study that helps lenders to understand what brokers really think about them and how they compare with other lenders, will be released in early June.
Run by Smart Money People brokers are asked about lenders’ criteria, speed, eligibility, communication and relationship managers. They are also asked to share what they like about each lender and what could be better.