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Property buyers will need advice as mortgage market faces uncertain future

03 July 2020 16671 Views
Property buyers will need advice as mortgage market faces uncertain future


The impact of the Covid-19 pandemic on the mortgage market has been significant and that's why consumers will be seeking expert advice more than ever in the coming months.

Due to the ongoing furlough scheme and thousands of job losses across the country as a result of the economic effects of coronavirus, many people's finances have become less stable.

Consequently, the mortgage market has contracted, with many lenders temporarily withdrawing the highest loan-to-value (LTV) mortgages. This cautious approach means that many buyers may find it more difficult to get a mortgage and therefore independent advice will be in high demand.

According to research by Zoopla, a third of under-35s have delayed or halted their plans to move, with many blaming lenders' decision to withdraw high LTV mortgage products and a difficult saving environment.

Although some lenders have started to reinstate products as lockdown restrictions continue to ease, Zoopla reports that there were just 14 mortgages at 90% LTV available in the final week of June. This is compared to a whopping 386 in January.

With less choice available, first-time buyers and purchasers with lower deposits will need the help of independent mortgage advisors to help them identify which products could work for them. They will also need advice on how to save, what size deposit they are likely to need and when the mortgage market is likely to return to a pre-pandemic state.

Despite the restriction of 90% LTV and similar products, there has been some positive mortgage market movement in recent weeks.

According to mortgage sourcing platform Mortgage Brain, the number of available mortgage products increased to 9,033 in the penultimate week of June – a rise of 3.3.%. The total number of mortgage products is now over 20% higher than the lowest point experienced during the height of lockdown, which was recorded in mid-April.

On the whole, however, the market is yet to return to levels seen before the pandemic – with the number of available products still almost 40% lower than the nine-week average to mid-March.

According to Mortgage Brain, the below 80% LTV part of the market – which will be of interest to buyers with higher deposits – is now 'relatively stable'. However, it says – backing up Zoopla – that options for buyers with a deposit of 15% or less are 'slim'.

So, while buyers with lower deposits will need advice on which of a limited number of products could work for them, those looking for lower LTV products will need guidance on sifting through a large number of options.

With the market outlook set to remain uncertain for at least the remainder of 2020, consumers will be actively seeking independent mortgage advice, with mortgage advisors playing a crucial role in helping people to purchase properties.

Why should you become a mortgage advisor?

With demand for independent mortgage advice set to spike in the coming months and an ongoing shortage of mortgage advisors working in the industry, now is the perfect time to think about a career change.

Mortgage advisors can earn up to £50,000 per year, benefiting from impressive commission rates. You can also benefit from a more flexible working lifestyle as a mortgage advisor – a desire which has come into sharp focus as a result of lockdown.

Mortgage advisors can work for themselves, for a private firm or in association with a bank or estate agency.

What are the benefits of uAcademy’s mortgage advisor course?

If you’re wondering how to become a mortgage advisor, our full CEMAP course, which has been featured on the BBC, is the only course you will need. It includes three modules made up of seven units and is a distance learning course.

This means you can complete the qualification from the comfort of your own home and fit it around your existing commitments. The recommended study time for the full course is 270 study hours, meaning it is possible to complete within 12 months.

When taking the full CEMAP course, you will also have access to a Property Development Course, CEMAP practice exams and a Life in the UK Test. It's also important to note that all our courses are regularly updated to reflect ongoing legislation and tax changes in the property sector.

If it suits you better, you can also buy the first module separately, before purchasing modules two and three of our mortgage advisor training at a later date.

Over the last few years, we have helped thousands of people of all ages from all backgrounds to gain their CEMAP qualification and take the next step in their career. With now a great time to become a mortgage advisor, there's no reason why you shouldn't join them.

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