The Mortgage Market: A Decade of Change

The mortgage market has evolved massively over the last 10 years so as to keep up with the demand of the housing
market. Today, the number of companies you can choose to take your mortgage with is vast but typically falls into two categories: mortgage brokers and banks.

According to Financial Conduct Authority (FCA) figures, in January 2018 there were 5,210 directly-authorised
mortgage intermediary firms in the UK. Those firms employ 34,105 approved people, and there are an
additional 14,169 appointed representatives. Placing Faces mathematicians tell us that this means there are
almost 49,000 people working in the mortgage market to try and give us the money we need to buy.
The shift in how people are getting their mortgages could be partly explained by the creation of the FCA only as
recently as 2013. With regulations now in place, people have become more trusting in using a mortgage broker
as a middleman.

Traditionally, to discuss a mortgage, you would make an appointment with your bank or building society to
discuss how much they would lend you. You would take along your payslips, your proof of deposit, and proof of identity. You would do your own research into what other banks were offering so that you can create your own “pro’s and con’s” lists of banks as lenders.

We can now get very quick responses with just one phone call or email to a mortgage broker. In a “compare” style, this contact with a guru in the mortgage market can often end with a mortgage offer on the very same day. This obviously makes the house buying process much quicker, less stressful and also fits in with our busy schedules. Who has time to be contacting several lenders to find out the best deal for them? To be asking the same questions over, about interest rates and fixed terms and conditions….

Instead, give all this information to one broker, and let them do the leg work for you. They’ll be able to compare
the interest rates and the term lengths from several lenders, and come to you with a comprehensive list of
lenders. This list may not be a “tick in every box” so a broker will be able to talk you through which of your
boxes each lender can tick and equally, if you can tick theirs. A third of mortgage applications have faced a rejection from a lender.

The mortgage market is always going to change to keep up with demand. Particularly whilst interest rates keep changing and house prices are on the rise. There are always many “for and against” arguments to consider, particularly when it comes to such a huge financial commitment. Ultimately, whichever option gets you the loan terms you need to finance your home comfortably is the right choice for you.