Speaking at the launch of the Building Societies Association’s study, 2020 Vision: The Mortgage of the Future, author Peter Williams predicted the rise of an elite mortgage borrower.
He said: “In the UK mortgage market, we are seeing an emergence of a super-prime category of borrower, who everyone is competing for.
“These are borrowers below 70 per cent loan to value, very high quality credit history and instant access to the market, with lenders falling over themselves to lend to them.”
Williams says the emergence of this new class of borrower is the result of lenders wanting strong, clean mortgage books.
He said: “Quality of book is going to be critical in terms of individual organisations and that will shape what they do in the market. They will originate what they can sell. That is a major recasting of the market.”
London & Country mortgage adviser David Hollingworth says this new class of borrower will be loyal to the intermediary sector. He says: “By definition, this borrower will bring a lot of traction for lenders. However, these are savvy borrowers well used to an adviser and will not move away from that too rapidly.”