News Review: Packaging
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Wishful thinking by
Ian Balfour, CEO, Solent Mortgage Services
The news that Metro Bank has announced its intention to enter the buy-to-let market is welcome to the intermediary market, even if they are still not confi rming whether they are interested in the broker
channel as a means of distribution. It is easy to get carried away by projecting the idea that a
trend of new lending is on the horizon, particularly as there has been such a shortage of good news stories but I think we all agree that it is a step in the right direction. Taken with the moves in recent months by Santander
and Yorkshire Building Society to get involved in the buy- to-let market later in the year, there seems to be a clear demonstration of growing confi dence among lenders. Existing providers, such as Bank of China which has been lending in this area for the past two years, have capitalised while other lenders have waited to see which way the wind was blowing. To be fair the restrictions on funding have meant that
many have not had the capacity but the knock-on effect of the overall shortage of new funding along with limited criteria and the effect of capitalisation rules from the Financial Services Authority, have all had the effect of cutting off the lifeblood of a healthy housing market. We will have to hope that the upcoming Northern
Rock securitisation will provide further evidence that the securitisation market is beginning to function again and that we will see more activity to diversify and therefore strengthen funding options for lenders.
The role of technology
I was interested to see a older, established lenders are resisting the adoption of new technology offering improved means of processing and communication because of their legacy investment in their own IT infrastructure and in existing providers.
FOR THE USE OF MORTGAGE INTERMEDIARIES AND OTHER PROFESSIONALS ONLY.
The information within this advert is for professional intermediaries only. If you do not have the relevant professional experience, you should not rely on this information. It is not a consumer advertisement and should not be displayed or used as such. Halifax is a division of Bank of Scotland plc. Registered in Scotland No. SC327000. Registered Office: The Mound, Edinburgh EH1 1YZ.
22 MORTGAGE INTRODUCER JUNE 2011
Whatever the merits or otherwise of that argument, the existence of dated technology and its inability to be part of a universal hub are a big obstacle. But what really stops the UK mortgage market plugging into a homogenous and uniform neutral portal for all brokers, packagers, conveyancers, valuers and lenders, regardless of access point, owes much to a resistance to change and a fear of losing competitive advantage. Perhaps it is a pipedream to expect a universal approach.
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