With a slew of new programs hitting the market before buying assistance ends, questions are being asked about the extent to which brokers and clients understand the options available to them.
Speaking on the last Accord Mortgage Growth Series Podcast which went live on Thursday July 7, Craig Hall, director of new homes at LSL Financial Services, spoke about some of the government, private and lesser-known lender programs designed to help people move up or up the ladder of the property.
However, he warned that more needs to be done to publicize these options if they are to fill the void left by Help to Buy when applications closed in October 2022.
Hall explained, “I don’t think first-time buyers know about alternative diets. There is a lot of work to do to really help navigate with consumers, brokers need to engage with lenders, networks, clubs and BDMs. This gives them a great opportunity to really demonstrate their knowledge to customers to help them find the right solution. »
Even with back-to-back rate hikes, Hall reminded listeners that the Bank Rate is still historically low compared to previous years and will create “a very different landscape going forward as borrowers’ fixed-rate agreements end.” .
He added: “Advice will be key in supporting first-time buyers and those moving – looking at a range of options and what is affordable – but also helping people keep their homes too. What happens when fixed rates end? Having a real plan around customer contact strategies will be fundamental to helping customers when they feel the pinch.
The intermediary lender’s latest podcast also considered the impact of rising interest rates on the first-time buyers’ market, the Bank of England’s removal of stress test requirements and examines the effects of the buying assistance on the sector, with top notch advice for brokers not forgetting those approaching the end of their years with no interest on the scheme.
Nicola Alvarez, Senior New Proposals Manager at Accord Mortgages who hosted the podcast, said: “The end of Help to Buy is very much in the air right now, so it was great to hear Craig’s thoughts firsthand. hands on many facets of the program from introduction to relaxation.
“This is another great piece of content for our Growth Series library that I’m sure will prove insightful to many advisors who have secured purchase assistance mortgages for clients, or who seek to fill the void that the program will undoubtedly leave.”
Dealers can sign up to receive Growth Series materials for free here.