CFIp16-17_interview.qxd 22/1/09 15:40 Page 27
Interview | 17
faced by all lenders. Until LIBOR returns to a
more practical level compared to base rate
and that confidence returns to the wholesale
money markets, I can see little short term
change in the current mortgage climate.
Where house prices go in the short term is an
equally challenging debate. I think consumer
confidence is a key component in where the
market goes. At present the news does little to
bolster how people feel and given that
moving house is a significant decision with
major financial implications, it is no surprise
that people's appetite to move or buy is
suppressed. I also think that surveys on house
price changes can be misleading unless the
statistics are qualified to the extent of sample
size and geography.
What is the history of your
company?
N&P has been active in commercial lending for
the last 20 years and has focused on prime
lending. We are particularly interested in good
quality SME owner occupiers business. The
Society is a Basel II lender and is one of the few
lenders in the UK which has a commercial
waiver. This provides us with the ability to
price each deal according to its risk profile and
offer a lower rate for low risk customers. The
essence of Basel II is that, as a lender, the
Society can set aside less capital for our indi-
vidual loans. Capital has a cost so using less
capital means that the costs associated with a
loan are reduced. As a mutual, N&P looks to
share this benefit with its borrowers.
We continued to lend through the last recession
and we have no plans to reduce our appetite for
good quality lending in the current economic
climate.
My lending managers perform a dual role,
being both business developers and underwrit-
ers. They all have their own mandates which
means decisions can be delivered quickly which
is very important in an environment where
service is so important.
The message I am proud to deliver is that
Norwich and Peterborough Commercial
Lending is open for business and has a real
appetite to write commercial mortgages for
good quality business.
What advice would you give to
intermediaries looking to
enter the market?
There is certainly a degree of turmoil in the
commercial intermediary market and I know presenting some challenges, I would not be at of deal. I also strongly recommend you invest
that brokers are finding the current situation all surprised if further new entrants join the time in understanding the proposition and
very challenging, due to a lack of confidence market in the coming year. then presenting it in a professional and con-
in the commercial environment and a lender My advice to new entrants to the market is sidered way. The round-robin email with a
market place which is changing on a regular invest time now understanding lender crite- few key facts is unlikely to grab a lender's
basis. There is no doubt in my mind that the ria. This will save you and your client time in attention and as the volume of poor quality
intermediary market will continue to be a the future by ensuring your deal is placed propositions increases, you need to make sure
very good touchstone for commercial activity appropriately with a lender who has the that your deal is given the quality time it
and confidence. Whilst current trading is capacity and appetite for your particular type deserves.
www.mortgageintroducer.com February 2009 Commercial finance Introducer
Page 1 |
Page 2 |
Page 3 |
Page 4 |
Page 5 |
Page 6 |
Page 7 |
Page 8 |
Page 9 |
Page 10 |
Page 11 |
Page 12 |
Page 13 |
Page 14 |
Page 15 |
Page 16 |
Page 17 |
Page 18 |
Page 19 |
Page 20 |
Page 21 |
Page 22 |
Page 23 |
Page 24 |
Page 25 |
Page 26 |
Page 27 |
Page 28 |
Page 29 |
Page 30 |
Page 31 |
Page 32 |
Page 33 |
Page 34 |
Page 35 |
Page 36 |
Page 37 |
Page 38 |
Page 39 |
Page 40 |
Page 41 |
Page 42 |
Page 43 |
Page 44 |
Page 45 |
Page 46 |
Page 47 |
Page 48 |
Page 49 |
Page 50 |
Page 51 |
Page 52 |
Page 53 |
Page 54 |
Page 55 |
Page 56 |
Page 57