MIp14-15_1209:MI 12 Jan 24/11/2009 17:26 Page 20
14 | 2009
Happy it’s
over?
David Finlay, intermediary business
director at Barclays Woolwich, is glad
2009 is over and is hoping for a
boring 2010
et's be frank, on the brink of Brand strategy making
L
2009 it's fair to say that there Lenders were also increasingly looking at their adjustments to
were not too many firms looking brand strategy. Earlier in the year Santander products which ultimately may be one of the
forward to the new year with any revealed that all UK Abbey, Bradford & Bingley main reasons why more applications are being
great relish. The year ahead and Alliance & Leicester branches will adopt the approved. LTV levels have risen steadily from
appeared a daunting one for all Santander brand and name from Q1 2010, but it 60% to 70% with some lenders even starting to
concerned in the mortgage will retain its specialised-market brands, push the 80% boundaries for certain products.
market from providers to various distribution including Abbey for Intermediaries. Another Whilst intermediary product numbers hit
channels all the way through to broker firms of major talking point was the move by Lloyds TSB some historic lows in the early part of 2009
all sizes. to streamline its broker offering by channeling all according to the November TrigoldCrystal
This lack of confidence wasn't helped by the business via Birmingham Midshires, Cheltenham Product Index, constructed from data from its
January announcement from the Bank of & Gloucester, Halifax and Scottish Widows. mortgage sourcing system in October, product
Ireland that it was no longer accepting new Mergers, acquisitions and consolidation were numbers have stabilised over the past quarter.
residential business through intermediaries. all major features of the mortgage market in The index states that the average number of
Whilst this wasn't a massive shock the tone it 2009 especially in distribution channels. The intermediary mortgage products actually rose by
set for 2009 didn't bode well. For providers beginning of the year saw Openwork become a 7% to 2,203 in October and shows a fluctuation
dedicated to the intermediary market the big prime mover in this area with the addition of of fewer than 250 products over the past three
challenge was always going to be how best to GHL. Mortgage Intelligence and Mortgage Next months. Although numbers continue to be well
distribute products. At Woolwich, we took the also merged relatively recently to create a large down on previous years (down 75% from
decision to launch a new distribution system network offering and also, even more recently, we October 2008 and 95% lower that Oct 2007)
early in the year which saw networks and clubs have seen Sesame complete its acquisition of these figures signify some welcomed stability.
receive individual tranches of funding. This Bankhall and PMS to create a 'distribution giant'
decision was taken in response to adverse as it has been universally branded. It will be Stability
feedback received from intermediaries interesting to see how these moves will affect the This increased market stability has also been
regarding the sheer number of product distribution horizon and it is expected that more reflected by the steady growth in house price
withdrawals being experienced across the consolidation will take place in 2010 and beyond. confidence throughout the year. Indeed - at the
market. This system helped provide time of writing - the Nationwide House Price
intermediaries with greater security in Lending conditions Index has had a run of eight unbroken months
securing funds for their clients and throughout Harking back to general lending conditions in of increases to reflect the widespread view from
the year we saw lenders trying to implement 2009 there is evidence that the number of many commentators and economists that the
greater controls over their distribution to help mortgage applications and LTV levels rose market bottomed out sometime in the Spring.
provide brokers with greater levels of product slowly but steadily throughout most of the last The positivity emerging for these two major
certainly. three quarters of the year. Lenders have, and are, elements of whole mortgage arena are good
December 2009 Mortgage Introducer www.mortgageintroducer.com
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