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Savings account will be needed for a mortgage

Wriglesworth Consultancy managing director John Wriglesworth believes lenders could restrict mortgages to people who have a savings account with them.

He told delegates at the Mortgage Business Expo in Manchester that he believes certain lenders may introduce this practice in the next six months.

He said: “That was normal in the 1980s. You had to save. Obviously, you know that lenders want funding, so I do not think it is going to be long before it occurs to some of the brain cells in the boardrooms to start linking mortgages to savings.”

Wriglesworth said intermediaries should be looking at the savings market as a means to make some extra money.

He said: “Savings are going to be important over the next few years, so you could look at non-regulated saving products to get some extra money, products like guaranteed equity bonds.”

Last week, former mortgage lender Edeus launched two savings products in partnership with Newcastle Building Society.

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