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October 2009
03
Comment
Nia Williams, editor
Contents
W
elcome to your October issue of Mortgage Introducer. Just two
more issues to go until we reach the end of what has to have
been one of the worst years I’ve ever known. And, whilst I’m not
4 Economy
quite old enough to remember the Great Depression, I was around in the
Has the recession ended?
late 1980s/early 1990s.
5 Diary and appointments
While statistics do seem to show that things are starting to get a bit better,
6 Statistics
some sectors are still suffering pretty badly. The commercial finance sector for
A look at house price information
one, as the article starting on page 34 shows. And some of you are getting
around the country and what is caught up in some of the issues concerning commercial finance – and losing
happening with mortgages
money.
8 Questions from hell
The National Association of Commercial Finance Brokers (NACFB) has
All your regulatory queries
answered
warned all residential mortgage brokers to take great care when introducing
9 To fee or not to fee?
clients to a third party broker for commercial finance. This isn’t the first time
TMA’s Phil Whitehouse considers that the NACFB has issued the warning but it seems some of you are still in
the thorny issue of fees versus
need of it, as its chief executive, Adam Tyler, explains: “There has been an
commission
12
increase in the number of complaints from clients of residential mortgage
Pension pot
Why not move into the pension
advisers who have been put in touch with so-called ‘commercial brokers’ to
transfer market – and earn money
source commercial mortgage deals. These ‘commercial brokers’ then promise
for doing next to nothing
much, charge heavily and deliver nothing. The mortgage adviser, who has
14 Exit opportunities
introduced his clients in good faith, is left with demands for repayment of
Paradigm’s Bob Hunt explains why
you need a flexible exit strategy in
upfront fees and a damaged reputation.”
your mind
The NACFB’s advice to any residential broker who is looking to introduce
16 How to make money
a client to a commercial finance specialist is either to deal with an NACFB
How to successfully convert leads member or alternatively with a broker with which there is an existing, good
in order to make loads of money!
18
relationship. NACFB members operate under a Code of Practice and residen-
Bridge the gap
Bridging finance is a useful form of
tial brokers need to make more stringent background checks before they
funding for those in need of a
hand over their clients’ details - and their clients’ money.
short-term loan as Cheval explains The NACFB founded the Fraud Intelligence Committee back at the begin-
20 Watchdog warning ning of the year for the purposes of investigating these cases and putting evi-
A look at why the FSA will be
dence in the hands of the proper authorities. At the current time three cases
keeping a very close eye on the
sale and rent back sector
have been forwarded to the police and Trading Standards for further action
and many more are under investigation.
22 Equity release news So take heed and don’t make your year end worse than it started.
25 Get your house in order
Why the recent Which? Report is
Issue 15
to be congratulated
October 2009
ADVICE TO READERS
Information carried in Mortgage Introducer is checked
for accuracy, but we recommend that you make
27
Editor enquiries and, if necessary, take legal advice before
Protection news Nia Williams, 0207 490 0693
entering into any transactions. Any views or opinions
Nia@thepublishinggroup.co.uk
expressed in this magazine are solely those of the author
and do not necessarily represent those of The Publishing
31 Commercial finance news Assistant Editor
Group Ltd.
34 Hard times
Claire Creek
All rights reserved in respect of all articles, drawings,
photographs etc published in Mortgage Introducer any-
Adam Tyler, chief executive of the
Advertising Manager
where in the world. Reproduction or imitations of these
Printed in England by The Magazine Printing Company.
NACFB, looks at the damage
Matt Bond, 020 7490 0588
are expressly forbidden without permission of the pub-
Distributed by Norwood Mailing
lishers. Editorial contributions requiring an answer
wrought by the recession
List Sales
should be accompanied by a stamped self-addressed
envelope. No responsibility can be taken for contribu-
Incorporating
36 Commercial finance diary
Kevin Healey, 020 7490 0588 tions lost or damaged in the post. Conditions of sale and
The issue of regulating buy-to-let
Subscriptions
supply: this periodical is sold subject to the following
conditions, namely that it shall not without the prior writ-
Andrew Goldsmith, 0207 490 0622 ten consent of the publishers be lent, resold, hired out or
37 CeMAP revision
Andrew@thepublishinggroup.co.uk
otherwise disposed of in a mutilated condition or in any
unauthorised cover by way of trade or affixed to any
The text and cover papers used in this publication are
Head of Production advertising, literary or pictorial matter whatsoever. All
sourced from sustainable forest products and are fully
Sample questions to test your recyclable.
knowledge
Melanie Jones, 020 8290 4999
advertising is subject to the terms of our current rate
melanie@mortgageintroducer.com
card.
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www.mortgageintroducer.com October 2009 Mortgage Introducer
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