MIp17_0110:MI 12 Jan 15/12/2009 14:08 Page 21
Challenges | 17
Challenges will
become opportunities
Lee Gladwell,director of sales and
proposition at Platform, on his
predictions for 2010
T
he last twelve months saw that meets all parties’ requirements. sufficient pressure to increase rates remains to
unprecedented levels of uncertainty I am also hopeful that the outcome of the be seen. But it is the implications of such issues
in the mortgage market. Whilst the review paper will address both the FSA’s main that people must factor into their mortgage
volatility in the market began to aims, but will also best fit the industry. When it decisions, and the reason why good advice is
quell in the latter part of 2009, a comes to income verification we are concerned absolutely essential to consumers at the current
theme which looks set to continue into that the FSA’s rationale behind this may become time.
2010, there are a number of challenges which too prescriptive and are concerned that the cost Business professionals are reporting that
the mortgage industry will face in the New to lenders, and thus, consumers will become there may be a number of new entrants into the
Year. markedly higher. mortgage market in 2010, with current banking
Much of the uncertainty around products, licence application levels on the rise. This
house prices, interest rates and regulation is Optimistic  alongside more possible mergers within the
likely to persist into 2010. However these 2010 is a year of opportunity for both lenders banking industry and greater network
challenges may turn into opportunities for the and intermediaries. I am optimistic that 2010 consolidation may ultimately lead to greater
intermediary sector amongst others. will be the year where lenders join together to competition, better access to funding, greater
In 2008 the wholesale markets were implement a strategy to raise professionalism in cost efficiency and increased growth
stagnant, which was a major cause of many of the industry, in turn, building the mortgage opportunities.
the funding issues within the market place. industry’s ‘brand’ into a trusted, respected and Despite some lenders scaling back their
Whilst there have been a few hopeful early valued one. broker activities in favour of direct business, the
signs of increased fluidity, this is not to say that At the moment there are approximately role of the intermediary channel will continue
wholesale market levels will return to levels 12,000 IFAs in the UK and there have been to be integral to a sustainable mortgage market.
previously seen and we don’t expect to see any suggestions by industry bodies that this number The contribution of private client advisers will
real change until later in 2010. However this is will drop to 10,000 over the next 12 months. still account for more than half the market next
an opportune time for lenders to look at From this, it is understandable to think that the year with consumers needing their expertise to
alternative funding models and move away sector could be set for another difficult year find a way through an apparent mortgage maze.
from a heavy reliance on the wholesale market however we actually believe that these
by considering more traditional approaches uncertainties are providing a big opportunity Exciting
such as those adapted by The Co-operative that brokers should grasp. I am sure that 2010 will bring challenges to the
Bank whereby funding is derived from lenders’ Consumers - now more than ever – need mortgage industry that nobody will have
deposits. good quality advice to help them find their way foreseen, and we are yet to see the full impact of
The FSA’S Mortgage Market Review (MMR) through a mortgage market emerging and the current economic situation in Dubai,
discussion paper, which has provoked so much evolving from the financial crisis. It is a chance however it is heartening to see that the general
debate across the industry, will undoubtedly be for advisers to truly show value and come into view of intermediaries is that the situation will
integral to the mortgage market moving their own. get better in 2010.
forward and therefore it is vital that lenders At Platform, we believe that 2010 will be an
and intermediaries voice their opinions to the Interest rates exciting year. Not only will it be our first full
regulators by the January deadline. Another key issue at the present time is interest year as a dedicated intermediary mainstream
rates. There appears to be no inflationary mortgage provider, it will be a year where we
Self employed pressure to lift rates at the moment, although can continue to deliver on our promise to
We believe that it is of crucial importance that some commentators are predicting a spike provide great service standards to
self employed people continue to have access to during the first quarter of 2010 driven by the intermediaries, who often feel that they are
mortgage products in 2010 and that lenders and return of VAT to 17.5 per cent and the impact given bad service, and lead the rest of the
the FSA work together to develop a solution of rising petrol prices. Whether this will cause industry by example.
www.mortgageintroducer.com January 2010 Mortgage Introducer
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