FASA 2022
Mortgages

Any hopes for a ‘normalised’ mortgage market in 2022 after the stamp duty holiday were seemingly dashed, as the country came to grips with the cost of living crisis.

At the time of writing, the Bank of England increased the base rate following every Monetary Policy Committee meeting this year. Besides base rate rises, fluctuating swap rates at high levels also pushed up fixed mortgage rates.

While rate rises hit the headlines, 2022 was also a year for long-term changes affecting the mortgage industry.

The Bank of England withdrew its affordability test in August, the Help to Buy Equity Loan scheme came to an end in October, and a permanent cut to stamp duty was introduced in the "mini" Budget and survived a U-turn.

Like the pandemic, the cost of living crisis highlighted the role that lenders play in supporting borrowers who find themselves in financial difficulty.

In June, the Financial Conduct Authority published a ‘Dear CEO’ letter, in which one of its expectations was for lenders to provide customers with an appropriate level of care and support.

Matt Pheasey, director of retail distribution at JUST, which achieved another five-star rating this year, says: “Putting the needs of our customers first is at the heart of everything we do. It underpins our purpose, to help people achieve a better later life.

“To achieve a five-star rating is also very satisfying, because it’s what our customers deserve, at all times. This is especially true in the current climate when financial resilience can be a challenge.

“As we fast approach the end of the year and begin to reflect on everything that’s happened in 2022, we want to continue to support intermediaries in being ready to meet the challenges of getting even better outcomes for their clients in 2023.”

chloe.cheung@ft.com