What will dominate intermediary business in 2023?
I am seeking expert insight into what will dominate intermediary business this year?
Could it perhaps be remortgaging, buy-to-let or interest only? Or maybe another product type altogether?
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I believe 2023 will be the year of the remortgage. We have already kicked off the year with a large amount of clients wanting to review their remortgage options. However, I do think first time buyers will still be a big part of the market this year. Aside from the doom and gloom the media keep repeating, many first-time buyers are still keen to buy, especially those that are renting and are seeing gargantuan rental increases. With the market calming down, it's a perfect time for those who were constantly getting outbid previously in a hectic market. They are also having more time to view several properties and consider their offers properly, rather than rushing in with the highest offer. Yes interest rates are higher, but a saving on the purchase price is definitely one way to soften the blow.
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The first half of the year will be dominated by a lack of confidence in the market and remortgages will make up the majority of lending being written. However, the second half of the year, once rates start to reverse, will see more first-time buyer activity and a resurgence of the specialist lending sector.
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2023 will be known as the year of the product transfer. Many clients will be unable to move lenders during the cost of living crisis due to affordability shortfalls. We will also see more people with adverse credit after the financial fallout from lockdowns, meaning they will be unable to switch to a more attractive lender. The good news is a lot of high street lenders offer better product transfer rates through brokers rather than directly in-house, therefore you really need to be speaking to a good local mortgage broker.