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CML says lenders must innovate to keep share

Mortgage lenders must continue to innovate with new products or face

dramatic loss of market share, warns the Council of Mortgage Lenders.

Research by the CML suggests the ageing and increasingly migratory

homebuying population will look to lenders capable of offering a more

diverse range of mortgages over the next 20 years and desert those which do

not.

The research estimates there needs to be almost five million new

properties built by 2021 so the CML says lenders need to keep pace and

provide products able to cover all types of demand.

It highlights growth in the numbers of households in their 50s, combined

with a tendency to move to the South coast to illustrate how population

changes will force lend-ers to reappraise the type of loans that they offer.

The report points to dwindling demand for first-time buyer mortgages among

those in the 25-34 age bracket as proof that people increasingly prefer to

delay buying a home until they achieve greater financial security.

A CML spokesman says: “The research suggests that mortgages will have to

develop to fund the changes and aspirations of borrowers over the next 20

years. It is up to lenders to come up with the kind of products that people

will be looking for.”

Mortgageforce managing director Rob Clifford says: “There are still many

lenders which have failed to shift their market view and policies.I think

that some will be forced to change their outlook or acquire a lender in a

sector they are looking to enter.”

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