UK Finance's annual mortgage lunch on Friday was a big success, bringing together figures from across the industry to discuss the major opportunities and challenges we face. 16 years ago, I attended my first annual mortgage lunch - hosted by the Council for Mortgage Lenders.  A lot has changed since then and continues to do so; we?ve seen the successful transition from the CML to UK Finance, capably led by Paul Smee - who I wish to pay special tribute to - and the ever-changing mortgage market is as interesting as it's ever been. I?m delighted to be back, this time as Director of Mortgages at UK Finance, championing the industry.

Looking ahead, there's a lot to expect from the mortgage market this year. We anticipate gross lending will reach the highest figure for a decade, at £260 billion in 2018 and £271 billion by 2019. Although this isn't quite a reprise of the mid-2000s, we have a resilient market which meets the needs of consumers and is probably one of the most innovative in Europe, if not the world.

Remortgaging figures are strong too, with £76 billion of business last year, the highest since 2008. We?ve noticed that around 94 per cent of those remortgaging are taking out a fixed rate mortgage, suggesting customers are getting ready for a potential rate rise by the Bank of England.

So far half of new fixed rate business this year has been at 5 years or more, compared to around a third over the last few years. UK Finance research has found there are currently around 1,400 five year fixed rate products on the market, roughly double the number seen three years ago.  And even with a rise in pricing following the last Bank rate rise in 2017 (and, more recently, expectations of another rise in the coming months), longer term fixed rate products are still attractively priced, averaging around 3.1 per cent.

Despite these positive figures, there are some challenges to keep an eye out for. For example, as Support for Mortgage Interest changes from a benefit to a loan, only 90,000 of those eligible for the latter have signed up for it. Amid concerns about how households may face this increased pressure, UK Finance has been coordinating efforts with lenders, debt advice charities and the government to ensure recipients are made aware of the changes and respond appropriately.

We supported the publication of the FCA's final rules on retirement interest-only mortgages, an important development for an underserved but growing market segment. This is especially so as we have an ageing population with complex lending needs. As well as later-life lending, another innovation we?re watching with keen interest is the increased use of Modern Methods of Construction and Custom Build. These are vital in delivering the extra homes we need to meet the under-supply of housing.

The challenges faced by the mortgage market may be broad, but they are balanced by the opportunity the industry has to expand underserved segments of the market. UK Finance is committed to helping all its members, regardless of the type of lender, to minimise the impact of these challenges and make the most of these opportunities.