The last year – and the last three months in particular – have been a turbulent time for the mortgage market.

So what does 2023 have in store for the sector and what specific areas does it need to focus on in the coming year?

Current Market
Consumer confidence in the mortgage market  has been hit by recent financial uncertainty and a climate of higher rates, which poses a new set of challenges for the industry in 2023.

However,we have noted lenders have started to cautiously lower the price of some products, which many consumers will hope to see continue into the new year.

Rates are unlikely to hit the lows seen in the last two years, but we can expect a less turbulent mortgage market next year.

Above all, consumers will require a calm voice and steadying hand during another transitional period. The value of advice has never been more important.

The year ahead
For some it will be a difficult year, given the climate of higher interest rates and the cost of living crisis.

Whilst first-time buyer markets could be subdued, due to property prices and the cancellation of Help to Buy, consideration to remortgaging or product switching becomes more important than ever.

Technology and efficiency will be major drivers this year, with the industry seeing positive developments around its identity verification procedures.

The market is predicted to be much smaller than 2022, which is great for consumers, as lenders will need to be much more competitive rate-wise.

Watch mortgage products become a lot more competitive from February/March onwards.

The industry has a lot to focus on in the coming months, in particular replacing Help to Buy to support first-time buyers and home movers on the housing ladder.

Green mortgages and helping landlords adapt to upcoming Energy Performance Certificate rule changes will also be topical this year.

Read more about the new rules for landlords.

Read more about what the end of Help to Buy means to first-time buyers

There is lots of contradictory information circulating in the market, on social media and in the press and consumers need reassurance from someone they trust, and I believe we are in the perfect position to do this.

Climate change will also be highlighted in the industry and the Future Homes Standard will mean significant changes in the way new homes are built.

Lenders will be required to report on the risk posed to them by securing mortgages on housing stock that is increasingly not fit for purpose in a changing world, and assess risk accordingly.

There is a lot to be done before the industry can fully understand the challenges that this poses and provide appropriate solutions.

Confidence & Advice
Confidence is key in many markets and consumers need reassurance from someone they trust, and I believe the adviser is in the perfect position to do this.

The market is so hard to predict at the moment and all the economic and political challenges mean that it is all about vigilance and trying to keep one step ahead and the regular information we get from lenders allows us to be proactive and put us in a much better position to provide guidance to our your clients.