This page contains a Flash digital edition of a book.
AMI


THE PRICE OF ADVICE AND A Good lending is not just for


prime 60% LTV customers. We need new entrants to survive and thrive and drive our economy


As we move out of the deeper risks of the fi nancial crisis and away from recession many consumers expect that getting a mortgage will become easier. They are blissfully unaware of the problems facing the industry from both a funding and regulatory basis.


Whilst UK mortgage securitisations are back, ahead of the rest of the world, these are for a select asset. It is merely helping replace the current Special Liquidity Scheme. More importantly it appears that Europe, Treasury, Bank of England and the Financial Services Authority would like a simpler, smaller and less adventurous mortgage market. With the new and enhanced capital, liquidity and asset matching disciplines now being applied on and by lenders, for many the mortgage market, which commits to 25-year funding needs, is less attractive. Also in order to re-align their extant book, many lenders have only a limited risk appetite measured by LTV, age profi le and payment history.


All this is going to do little to deliver the supply of mortgages or the more competitive, larger market that most recognise will be required. The latent consumer demand that will fl ood out when interest rates really start to rise is liable to be huge.


18


Page 1  |  Page 2  |  Page 3  |  Page 4  |  Page 5  |  Page 6  |  Page 7  |  Page 8  |  Page 9  |  Page 10  |  Page 11  |  Page 12  |  Page 13  |  Page 14  |  Page 15  |  Page 16  |  Page 17  |  Page 18  |  Page 19  |  Page 20  |  Page 21  |  Page 22  |  Page 23  |  Page 24  |  Page 25  |  Page 26  |  Page 27  |  Page 28  |  Page 29  |  Page 30  |  Page 31  |  Page 32  |  Page 33  |  Page 34  |  Page 35  |  Page 36