cfi: nacfB
Empty pockets?
and the nullvernment has announced with higher rates and in some cases
that null is officially out of recession. high fees as well, it could be said the
by
nullt is there any evidence that the pendulum has now swung too far in
Adam Tyler
commercial finance market is turning the opposite direction. nullly when nullr ifnull
chief
a cornernullnulle have seen a few single enough time has passed so that volume
enullcutive
swallows coming over the horinulln null of business becomes the main driving
nullnullnull
but how far behind is the rest of the factor behind business development null
Once upon a time, back in 2006, being nullcknullnullnders are still cautious and and both the current culture of caution
a broker was a relatively simple job. the number of funders is still reduced and, to a large enullent, the memory
He had to keep his clients happy and dramatically nulldue either to withdrawals of the recent downturn is completely
find them the most appropriate form from the market, or mergers and overwhelmed nullwill rates fall to those
of finance for their property or project. acnullisitions. nullere is also little evidence levels again. nullcannullt see there being
Keeping track of the myriad funders of any lending activity being ramped much of a securitisation market for a
and their different propositions was a up as lenders use the time to shore up while either as many, rightly or wrongly,
challenge, but having many options to battered balance sheets. look upon this as the source of all their
choose from allowed a broker to offer nullt there is a different feeling in the current woes. nullfortunately, this leaves
funding options to most of their clients. air. nullme people are starting to look many specialist lenders without access
nullme brokers decided to specialise null forward. nullhave had meetings with to funds nullan issue which means the
either in one specific form of funding, or various lenders since the beginning of high street banks can keep dictating the
one specific type of business, so that the year, and although nullptimismnullis terms.
they could offer a fully comprehensive probably too strong a word for it, there nullere is an enullression that it always
service to their market. is a feeling that there are small steps darkest before dawn and, bearing this
nullst forward four years and the being taken to return the market to nullnull in mind along with the few chinks of
picture is a very different one. nullactions hesitate to use the word nullormalnullnullat light appearing across the way in the
to the recession left brokers swimming least a less dysfunctional version of its residential mortgage market, is now
in a tide of nulliversificationnullas funding current self. nulld there are movements a good time to take a risknullnull it time
options wilted away and with them, the in the residential market which will to start marketing for new customers
brokernulls ability to earn a living. nullall hopefully start to instill confidence in a or developing new parts of a broker
businesses were still actively seeking sluggish sector. nullat said, on the nullp businessnullnull is it even time to cast
funding nullbut nonullne was lending. side, many of the brokers nullhave spoken aside nulliversificationnulland get back into
nullme funders chose to cut brokers to say that the first few months of 20null a specialist marketnullnull is it still far too
out of the loop and price their direct have been the hardest so far. null a very early to knownull
deals more competitively than those rough guide, they are finding the number
available through advisersnullother funders of ennulliries they are getting is up nullbut Diversification
closed their doors altogether. nulld a few there are still very few places willing to nulltually, the answer to all of those
preferred to say that everything was lend. null there is going to be a relanulltion is a bit of yes nulland a bit of no.
the same as it ever was, and simply in lending policy, for many brokers it nulliversificationnullstill has its place, but
found reasons to turn each deal down cannullt come soon enough. rather than an armsnullungnullide nonnull
individually. nullcouple, it should be discriminate wholenullfnullndustry approach
mentioned, actually did do their best chinks of Light nullot to be confused, incidentally, with a
to keep their doors open, and keep nullshould point out here that nulldonnullt think wholly commendable wholenullfnullarket
supporting the brokernulland my heartfelt that the market will return to the heady broker offeringnull a few selected strings
thanks go to them for their support in heights of 2006nullnull nulltes charged can be added to the brokernulls bow which
really difficult times. by lenders of nullnullor 2 nullover base both help to boost income and also offer
were not sustainable. nullere wasnnullt a more complete service to the brokernulls
LittLe activity enough fat built into a deal to sustain a client. nullis will both help plug an income
null here we are at the beginning of 20null portfolio when things got tight nullalthough gap while brokers are waiting for funders
42 mortgagE introducEr march 2010
MI p42-43_0310.indd 2 23/02/2010 11:07
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