Q&A with Niamh Downey, what to expect from the mortgage market in 2023.

We asked leading industry figure Niamh Downey, Head of Business Development at Bluestone Mortgages, for her take on the future of the mortgage market.

1. What were the main challenges in the mortgage market in 2022?

Last year was a turbulent one in the mortgage industry and was nothing short of a rollercoaster. We saw inflation reach a 40-year high, the base rate reaching 3.5% at the end of 2022 compared to 0.25% at the start of the year, and a mini-budget which sent mortgage lenders into turmoil. This resulted in worried customers facing a cost-of-living crisis and affordability pressures impacting clients’ lender choices in the wider market. Customers were unable to buy their dream homes, mortgage brokers had to re-run figures with multiple lenders, and we saw lenders increasing their pricing multiple times in a short space of time.

2. Is the market changing now we have entered the New Year? What do you expect to happen in terms of interest rates?

After the mini-budget in 2022, we saw lenders pull out from the market due to not knowing where to price products or how to manage the demand from panicked customers. Entering the New year, we’re in a position to return to stability, with inflation hopefully reaching its peak and swap rates plateauing. Taking this into account, along with lenders becoming more competitive in a quieter market, I believe we can be confident in seeing a gradual decrease in rates from lenders over the next few months before stabilising.

3. How can brokers put themselves in the best position to help customers secure the home they want in 2023?

2023 will be the year of the specialist client. With the cost-of-living crisis continuing into 2023 and unemployment rates increasing, we’re going to see a lot more clients in a complex situation whether that be credit-related, someone with multiple income sources or a newly self-employed customer. This presents brokers with a really exciting opportunity to diversify their offerings proactively. Brokers will need to take time to learn what the needs of their clients are and combine this with finding creative solutions with their knowledge of the wide offering the specialist market provides, giving clients the confidence to secure the home they dream of. 

If you’re wondering how you can serve a growing market of adverse cases but aren’t sure where to start – we can help. With times being tough for many people, we will work together to ensure your complex cases are packaged correctly, quality support is provided and the best possible client outcome is delivered. Give us a call on 0800 368 1833, or alternatively request a call back here.