Contents Sunshine and showers this Spring
There’s a funny feeling in the air this month. A spate of depress- ing economic data including rising unemployment, lower than expected growth and higher than expected infl ation would normally be a spanner in the works for the mortgage market.
But Spring, it seems, holds sunshine as well as showers. Brokers say business has improved noticeably as borrowers cotton on to the fact that interest rates are only going in one direction and have started to remortgage.
March also held the long-awaited Coalition Budget which, as anticipated, merely tipped its hat to the mortgage market with a £250m shared equity scheme designed to boost the construction sector and help fi rst-time buyers onto the property ladder. The industry clapped its hands unenthusiastically in a lukewarm welcome. But a change announced in the way Stamp Duty is levied on portfolio prop- erty purchases may yet enliven the buy-to-let market – something we discuss in detail in our analysis (see News Review: Budget 2011 p26). A bright spot for brokers continues to be short-term fi nance as prohibitive criteria are still locking many borrowers out of the mainstream market. Our cover feature this month starting on page 32 picks up just this point with Mort- gage Centre IFA’s Paul Munford and former Apprentice contestant, Liz Locke, who have taken up residence at the Candy brothers’ new bridging lender, Omni Capital. Finally, the European Commission has published its proposals for Europe- wide mortgage regulation. It’s not yet clear how these proposals will interact with the FSA’s proposals in the Mortgage Market Review – particularly relating to disclosure.
“The proposed Directive covers all loans which allow the consumer to borrow
money in order to buy a home as well as certain loans to consumers to renovate a home,” the Commission said. “It also covers all loans to consumers that are guaranteed by a mortgage or another comparable security.” The proposed Directive aims to create a more effi cient and competitive single
market for mortgages by creating a level playing fi eld for all actors involved and making cross-border activity easier. It now passes to the European Parliament and the Council of Ministers for consideration. We’ll keep you posted.
Sarah Davidson, Deputy Editor Issue 33 April 2011 Editor
Nia Williams, 0207 490 0693
Nia@thepublishinggroup.co.uk
Deputy Editor
Sarah Davidson, 020 7490 1365
Sarah@thepublishinggroup.co.uk
Publisher
Robyn Hall, 0207 490 0588
Robyn@thepublishinggroup.co.uk
Advertising Manager Matt Bond, 020 7490 0588
Matt@thepublishinggroup.co.uk
Subscriptions Andrew Goldsmith, 0207 490 0622
Andrew@thepublishinggroup.co.uk
Head of Production
Melanie Jones, 020 8290 4999
melanie@mortgageintroducer.com
The text and cover papers used in this publication are sourced from sustainable forest products and are fully recyclable.
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The Magazine Printing Company. Distributed by The DM Print & Mail Company
4 News Review 6 Property News Review 8 Lending News Review 10 Buy-to-let News Review 12 Equity Release News Review 14 Product News Review 15 Protection News Review 16 General Insurance News Review 17 Regulation News Review 18 Short Term Finance News Review 19 Scotland News Review 21 Packaging News Review 22 Economics News Review 25 Specialist Prime News Review 26 Budget 2011 News Review 28 The bigger issue Vote in our poll and see what the experts think 30 MI party
The industry celebrates our 12th birthday 32 You’re hired Apprentice Liz Locke on joining Omni Capital 36 The Power Hour
Industry experts discuss what can be done to boost interest only 44 The Interview MI talks to Openwork’s Paul Shearman 46 Network conundrum
The tug-of-war over AR versus DA 48 The eye of the storm This is prime time for selling protection 50 House prices
What has happened over the past month 52 Commercial News Review 54 Full protection needed NACFB Member Services initiative 58 Hall of Fame
Who is infamous this month? ADVICE TO READERS The Publishing Group Limited, 1st Floor, Fergusson House, 124-8 City Road, London EC1V 2NJ Primary and Special Mortgage Servicing with a difference.
www.exact.co.uk StripintroducerEXACT.indd 1 MORTGAGE INTRODUCER APRIL 2011 3 13/12/2010 16:25 23
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