Confidence is returning to the mortgage market but lenders risk falling short of borrower demands, according to research from Nottingham Building Society.
A survey of 500 mortgage brokers found 83% felt more optimistic about the state of the mortgage market than they did six months ago.
However, such optimism is tempered by concerns about the ability of mortgage products to keep pace with borrowers’ needs.
Nearly three quarters of brokers surveyed (74%) felt this way with 52% accusing lenders of being too slow to adapt.
This is against a rising demand for innovation with 25% of brokers seeing a greater need for flexible mortgages to cater for non-traditional employment patterns, income types and family structures.
Nearly a quarter (23%) of landlords would also like to see lenders adopt new technology to streamline their application processes.
“It is encouraging to see signs of confidence returning to the mortgage market,” said Greg Went, head of mortgage product and proposition at Nottingham Building Society.
“But the message from brokers is clear: lenders must ensure they keep pace with changing lifestyles.
“People’s lives and finances have changed, from income patterns to household structures, and mortgage products need to remain suitable.”
