Welcome to this month’s Industry Roundup, bringing you up to speed with industry insights, regulatory updates, and the latest TMA news.
England secured their spot in the finals with a perfectly timed last-minute goal – get in! Will you be tuning in for the big match on Sunday?
Whilst we are officially in summer, although the sun is yet to make an appearance, I hope that you are taking some time out over the summer to relax with family and friends.
Labour in power, but what are their promises to the mortgage market?
Labour has promised to deliver 1.5 million new homes throughout the upcoming parliamentary term. Additionally, they are set to unveil a Freedom to Buy initiative, aiming to supersede the existing Mortgage Guarantee Scheme. Whilst it is early days there are some good intentions mentioned around growth and house building, I think you’ll agree we now need to see the plans as they need to restore the trust in what has been a volatile market.
Could we see a post-General Election market pick-up?
Data from Rightmove shows that the average first-time buyer mortgage payment has risen by 61% since the last election year of 2019. Over the last five years, the average mortgage payment for a typical first-time buyer home has risen from £667 per month to £1,075 per month. We’ve seen a decrease in energy prices but they are expected to increase later on in the year, which will have further impact on affordability. Will newer lenders offer first-time buyers a lifeline? Read the article here from Financial Reporter.
There is cause for optimism post-election as SWAP rates have decreased, paving the way for a potential rate cut later this year. The Bank of England is still awaiting additional reassurance that the underlying pressures have been alleviated. This confirmation might be provided in August when they receive a new set of forecasts. Let’s have a look at the the product maturity spikes from the CACI data below, are you prepared?
SWAP rounds are on a downward trend, with a current 2 year at 4.413% and a 5 year at 3.913%, is this an indication of things to come? Track the SWAPS here.
CONSUMER DUTY ANNUAL ASSESSMENT – ARE YOU READY?
With the deadline for the Consumer Duty Annual Assessment fast approaching, it’s crucial to be ready. Firms are now required to create an annual report each year, actively taking time out to reflect on how you’ve embedded the Consumer Duty. If you haven’t already, I’ve created some brief videos discussing the upcoming deadline, available for viewing on our Consumer Duty hub.
For our compliance members, we’ve put together a handy support document available in the TMA Vault. Click here to access your Annual Assessment support guide. Not a compliance user but need assistance? No worries! Reach out to your dedicated Key Account Manager for more info on our compliance offering.
The FCA are hosting a webinar on 31st July, ‘Consumer Duty: 1 year on’. To register, click here.
TMA AWARDS ARE BACK – VOTE NOW!
Seize this opportunity to acknowledge the remarkable accomplishments of our partners, individuals, teams, and your firm! Feel empowered to nominate yourself for an award category that highlights your firm’s outstanding work. VOTE NOW!
Have you secured your spot at the upcoming TMA conference on the 28th of November? Don’t miss out on the chance to network, acquire valuable knowledge, and engage with panel debates. Click here to register now.
REFER & PROTECT…
Are you actively engaging in conversations about protection to prevent unforeseen risks? Our Protection referral service allows you to refer your customers to a trusted ‘Protection Referral Partner’ who will take full responsibility for providing protection advice. They will ensure that your customers receive the necessary guidance and are presented with the most suitable products from either Finance Roome or Finance North.
You also may have seen recently, the AVIVA and AIG Life integration news, just as a reminder: For the business that is closing, (as of 20 June 2024), Aviva are giving 8 weeks’ notice that the final submission date for new AIG Life branded quotes for intermediary distributors across both individual and group protection will be 23:59 on 15 August 2024. More details can be found here.
Want to know more about our protection solutions? Reach out to your dedicated Key Account Manager today to find out more.
UPCOMING VIRTUAL PANEL DEBATES…
Join us on the 16th of July, at 10 am for an engaging virtual panel debate led by our very own Senior Product & Business Manager, Rob McCoy. Gain further insight on the market’s post-general election landscape with panel speakers featuring Kensington Mortgages, Bluestone Mortgages, Together Money, Pepper Money, and Zephyr Home Loans. Register your place here.
