ROBERT
SINCLAIR, director, AMI
VARIETY OF LENDERS
FINALISING REGULATION Our regulators in Brussels and Canary Wharf have also still to fi nalise their rules for the new world of mortgage lending. Whilst there may be an attractiveness for some lenders to “hunker down”, this may not be the best policy. A focus on direct only, squeezing out cost and tightening quality controls may appear lucrative.
demand that will fl ood out when interest rates really start to
rise is liable to be huge”
However consumers may not follow this lead. Their aversion to visiting bank branches is now entrenched. Also builders, estate agents and housing associations have a preference for brokers who have wide market access and deliver robust advice and help to consumers and to achieve the right property and consumer demographic for a balanced portfolio requires most lenders to use brokers.
QUALITY ADVICE
It is only with access to a good range of lenders and products that real quality advice on the right product can be given. Whilst price is important, a loan that will complete and will deliver through the term is critical.
“The latent consumer
Only brokers can genuinely deliver this. It is the existence of brokers that delivers a genuinely competitive market. Some 85% of the market in the hands of six lenders is only in any way healthy or permissible because of the competition delivered by brokers. However that is not the only answer. We also need new blood. The
market needs new lenders with skill, experience and a desire to lend. Whilst the existing big boys want to play in safe prime space, we need those prepared to possess and price risk with an appetite for the vast consumer need we all know is out there. Buy-to-let whilst positive, will not deliver the housing market of tomorrow. Indeed with many who hold mortgages not as disciplined in keeping a pristine credit rating as their parents did, we need a diverse market and it needs more competition. Good lending is not just for prime 60% LTV customers. AMI wants to see new entrants survive and prosper and indeed to welcome back as many of our old friends as possible. We need their skills and the funding to drive our economy.
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