We have found increased enquiries from


our existing clients over the past couple of months requesting reviews on their current borrowing as they are becoming anxious about the expected announcement of a base rate rise. They are willing to accept higher monthly mortgage repayments in order to fix costs over the next three or five years in order to control their future budget. We have also completed a number of


let-to-buy mortgages for our clients who have elected to rent their existing properties, to enable them to purchase their new properties without having to sell. We are very optimistic of business levels


returning to pre-recession 2008 levels before the end of this year.


profitable again. The way forward is to target more insurance sales.


by Jeremy Brown, director, Xact Homes, First Complete, Midlands


There appears to be fewer people selling their houses compared to last year, however, sales are strong and we have exceeded sales compared to this time last year. Offering a one stop shop (house sale or purchase, conveyancing and mortgage services) really works for us. A lot of people appear to be


by David Sinclair, Mortgage & Loans UK, Pink, Bath


It’s been a tough three years; direct competition has grown stronger with the likes of the Post Office and HSBC, plus many lenders have increased dual pricing products. I’m hoping new regulation for banks in regards to advice of products will bring fairer competition as their overheads will increase. Increasingly clients gain product information over the internet and are prioritising rate over advice. There’s still a lack of first time buyers, but lenders increasing LTVs are encouraging them back; however the rates are still too high. First time buyers can save a few thousand pounds but not much more so we need more 95% LTV products. I prefer to get first time buyers as clients, as they need advice most and we all rely on them to get the market moving. People are nervous about losing their


jobs and about sudden interest rate rises; inflation isn’t helping either, but once the panic of the spending cuts is over, and inflation is under control I think things will improve. I feel positive about the future, but it’s how long mortgage brokers can survive before their businesses are


coming out of rented because they feel now is the time to buy, which is really positive. Buyers appear to have good deposits which they have either saved whilst renting or have as equity from a former sale. These people sitting on cash are deciding now’s the time to re-enter the housing market. Most sellers are also coming on the market at a sensible prices and this means we have three or four people bidding on the property. I think with the public sector cuts


the next three months could well be slower and a bit tougher than last year, but once everyone has digested the cuts I think we will see the market return about September. We are also witnessing a large number of clients opting for fixed rate mortgages to ensure that they have covered any potential rate rise.


by Shirley Hughes, SJP Shirley Hughes Financial Services, First Complete, South East


We are busy with new business coming from recommendations and referrals, which is good because business has been down by about a third. First time buyers are getting a raw deal and it’s holding up the housing market; we are also not doing much with our existing


book as many of them are on good variable rates but buy-to-let looks like it will progress. Lending is tight and will continue to be


so. Lenders blame the FSA for everything but some things lenders do is not logical – one size will never fit all. It is good that people have to save for deposits, we just need the criteria to be realistic; good borrowers aren’t being lent to, it is hard to get a mortgage to go past age 65 for example. We need individual underwriters who can see when it’s logical to lend, computer underwriting does not cater for what’s happening now, so often is inconsistent and does not make sense. We now deal a lot with local lenders as


we can go across and talk to them, also with other smaller lenders as their criteria is more flexible.


by Chris Hulme, The Clayton Hulme Partnership, First Complete, North West,


The market is fantastic, both in the number of people wanting to sell and buy. We’ve been rushed off our feet since the beginning of the year with remortgages , first and second time buyers, but our problem is with lenders not willing to lend. Lenders are not helping their own cause


because it’s so much harder to get cases through even more than it was last year; pricing has come down but credit scoring is going up so it’s much harder to place a mortgage even at low LTVs. We are receiving a flurry of calls from


clients asking whether to remortgage. We think it’s worth people on tracker rates of 3% and above switching to a fixed rate, but for those on 2.5% or below it’s still worth them remaining on their tracker deals. I think base rate will go up but not until


Q3, and predict we will end this year at 1.5%, 2012 at 2.75%-3% and by the end of 2013 we’ll be back to 3.75%-4.25%. There is a lot of hype about inflation


but it’s not real inflation, it’s duty rises by the Government to raise revenue.


mortgage introducer MARCH 2011 27


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