asking for an equilibrium in fees as it does not exist currently. We know many Lenders have the management information to make educated and reasoned decisions in this area, but a fear of falling out with a customer set or not being prepared to have such internal discussions to make a change seems to be driving behaviors which are at odds with fair value. It would be great for the market to have a discussion on fees, both for new business and PTs (some Lenders don’t seem to have an issue in paying networks and clubs the same proc fees for PTs but not for new business). Indeed, in the area of BTL, should limited company BTL attract a higher fee than standard BTL business given its complexity and the work brokers are having to undertake here? We all know that the market is changing, there is more work to be done by advisers with their clients, and clients have high expectations, it’s time this was rewarded properly. Activity and events in August appear to be have had a positive effect on the market, indeed the mortgage intermediary sector has returned to previously held norms, following a rise in business volumes, research from IMLA found. The Mortgage Market Tracker report from IMLA showed that mortgage brokers were processing an average of 102 cases in the year to June, the highest level of business since 2021. This coincided with 29% of advisers saying they were ‘very confident’ about the future in Q2, and 65% reporting themselves as ‘fairly confident’. There was optimism towards the market as a whole, as the share of mortgage advisers describing themselves as either ‘very confident’ or ‘fairly confident’ in the intermediary sector rose from 88% in Q1 to 94% in Q2. There was a more noticeable improvement in the confidence levels mortgage advisers had for their own business, with 54% saying they were ‘very confident’ and 43% ‘fairly confident’. Mid-August saw the first shots in a potential ‘rate war’ expected for H2 and previously referenced in this commentary led by 4 of the big 6 Lenders. Started by NatWest with a disappointing 05 AUTUMN MORTGAGE NEWSLETTER direct to consumer proposition only, Nationwide, Coventry BS, Halifax and HSBC countered with adviser led products at under the magic 4% barrier. However, these products do little to stimulate the market as a whole, as all 3 products are aimed at homeowners with large deposits, (60/65%% is the LTV). But it’s a start and as First Time Buyers are the lifeblood of the market I am sure they will not be forgotten! According to figures from Moneyfacts, average fixed mortgage rates on a two and five-year term have decreased by 0.21% and 0.18% respectively to 5.56% and 5.2%. The report found that the average two-year fixed rate is at its lowest level since February 2024 and the average five-year fixed rate is at its lowest level since March 2024. Moneyfacts said that the average fixed mortgage rate on a two-year term is 0.36% higher than its five-year equivalent, adding that two-year fixed rates have been higher than their five-year equivalent since October 2022. From a market perspective, Some 20,207 home moves were predicted to occur on 30th August, four times more than the average, a report has found. According to research from HomeOwners Alliance and Reallymoving, August was the most popular month for home moves in the last 12 years, making up 12% of moves. This was followed by September and July with 10% each. Almost a third of moves happen in the late summer or early autumn. January and February were the least popular at around 6%. The report found that there are around 1.9 million home moves per year in the UK, which is over 5,000 per day. The data showed that 30th August was expected to be the most popular day to move, and around 220,000 home moves were expected in August. So it’s clear - there is plenty to go at and plenty to do, as ever! Here at Paradigm we remain committed to working with you in areas where you want to explore or reaffirm so we can help your business, please get in touch with any requirements you may have. I hope you enjoy this issue and thank you to our sponsors for helping us put this together. 1 Mortgage Solutions article
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