Industry experts discuss an optimistic future for the lending market at the Specialist Lending Expo.
- Forecasts suggest economic stabilisation, with decreasing interest rates and manageable inflation.
- A projected increase in specialist lending demand, with millions anticipated to seek unique mortgage products.
- House prices show unexpected resilience, hitting pre-pandemic levels with stable monthly transactions.
- Potential challenges remain with a gap in loan and deposit growth, yet the industry’s outlook remains hopeful.
At the recent Specialist Lending Expo, industry leaders delivered an encouraging assessment of the lending and housing markets, forecasting renewed borrowing activity post-2025. With decreasing interest rates and manageable inflation on the horizon, economic stabilisation seems within reach. Such conditions promise a fertile environment for specialist lending to flourish, reflecting a broader optimism shared by experts and brokers alike.
The anticipation of a booming specialist lending sector arises from predictions that between 10 and 14 million borrowers may seek tailored mortgage solutions. Rob Jupp, CEO of the hosting group, highlighted this demand surge as indicative of a healthier lending landscape, supported by a favourable economic climate beyond 2023’s uncertainties.
Interest rates are a focal point in these predictions, with Darren Winder of Lazurus Economics suggesting notable rate reductions, contingent on economic projections aligning with Bank of England expectations. A stabilised base rate between 3% and 3.75% could ease refinancing and market entry burdens, flipping previous rate hike anxieties on their head.
Inflation concerns appear to be waning, offering further relief as refinancing rates grow more appealing. The market’s confidence is bolstered by a steadfast recovery of house prices to pre-pandemic norms, with transaction stability adding support to growth forecasts for 2025 and beyond.
Lastly, some potential headwinds were acknowledged, particularly the mismatch between the growth rates of loans versus deposits, a factor to monitor moving forward. However, stabilising factors and an influx of borrowers seeking specialised products suggest substantial growth potential remains viable, marking an era of opportunity within the sector.
Despite some foreseeable hurdles, the lending market is poised for substantial growth and stability in the years to come.
