Research by Alliance & Leicester Mortgages has reveals that, overall, brokers expect business volumes in the combined mortgage and personal loan market to grow by 9.4 per cent in the next two years, with nearly one-in-ten (9 per cent) even predicting a growth in excess of 20 per cent. A further one-in-eight (13 per cent) predict a static market with only a very small minority (1 per cent) of brokers predicting a decrease in the high LTV mortgage sector.
With more providers offering products which combine a mortgage with a personal unsecured loan, it looks like the market is preparing for increasing consumer demand for these products.
Jeremy Claridge, head of specialist mortgages at Alliance & Leicester, said: "With increasing house prices and rising interest rates, homebuyers and remortgagers will be looking for affordable ways to get a mortgage. We are pleased to see that most brokers predict this market will grow within the next two years as these products offer a great opportunity for borrowers who need some additional funding. The mortgage market is continually changing and there is an ever growing need to find more flexible products to allow people to get on the housing ladder or to manage their existing borrowings in a better and more efficient way."
The research further shows 100 per cent plus LTV mortgages are no longer new products for a small niche market, with three out of four (74 per cent) brokers saying they have already advised on this type of product.
Claridge added: "It's good to see so many brokers are familiar with the 100 per cent plus LTV mortgage and personal loan market and they have started advising on these products. As borrowers look for the added flexibility a combined mortgage and personal loan can offer their clients, brokers need to ensure they are advising on all options available in the market especially in the current housing market and interest rate environment."
