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
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.”