“Over half of people said that first-time


buyers are too scared of being declined to apply for a mortgage. “We actually accept 8 out of 10


applications from first-time buyers. A broker can play a really important role in an education so that people understand what the real chances are.” Indeed, coming to a broker not only


affords consumers the benefit of advice, it also offers access to lenders not on the high street which are more willing to look at marginal cases. Market re-entrants such as Kensington


have positioned their proposition using a more traditional underwriting approach and have been reviewing at cases on its individual merits rather than the lending


“Borrowers may have been knocked back relatively recently and decided not to put their toe back in the water. Potential buyers may not be aware that they


could now get a mortgage.” Paul Nye,


business development director, Stonebridge Group


“Supply is still a larger barrier than demand, but for some borrowers the perceived difficulties of getting a mortgage could become a self- fulfilling prophecy.” Paul Broadhead,


BSA head of mortgage policy “Many FTBs also


think that lending criteria will exclude them from buying a property. However lenders have different affordability calculations and many


FTBs will be surprised on how much they can borrow.”


Mike Fitzgerald, director,


Brentchase Financial


decision based on score cards, explains Countrywide’s Stockton. “Supporting this Kensington also has a


number of lending USPs,” he says. “For example, one year’s accounts for self-employed applicants, the opportunity to use 100% of a second job income, the consideration of minor historic credit events and so on.”


whiCh Came First It’s a chicken egg situation we now find ourselves in. Lenders wouldn’t lend and despite assurances that they now want to, borrowers are reluctant to borrow. Melanie Bien sums it up. “Much of the deadlock in the mortgage market stems from lenders’ unwillingness


“Just about all house price indices show ongoing falls which is relentlessly picked over by the press; in this situation bad news sells more papers than good


news and the problem we have with the housing and mortgage market is that this becomes self-perpetuating.


Bob Young,


managing director, CHL Mortgages. “The market is


improving, slowly but surely, and more lenders are showing a little more appetite and not necessarily as tightly focused on very low


loan to value.”


David Hollingworth, communications director, London & Country


“Culturally the


younger generation may be moving to more of a rental model which will allow them the flexibility to move around for employment.”


Fionnuala Earley, UK consumer economist, NatWest


to lend which has created an environment where borrowers think it’s not worth their while even attempting to apply for a loan because they will be turned away,” she says. “Although lenders blame consumers for


lack of demand in the mortgage market, the fact is that this problem has emerged because of the reluctance of lenders to lend in the first instance. If there is inertia, it is not the borrower who is entirely to blame.” Whichever came first, the thing


brokers should take away is that with borrowers lost in the mortgage maze like a lab rat trying to find its way, their role as map reader is all the more important. n


“On balance, after periods of retrenchment and stability the market does appear to be on a slow path to normalisation, although the path may be bumpy


and the journey may take some time.” Andrew Baddeley-Chappell, head of mortgage strategy and policy, Nationwide


“Financial reviews are an absolute must in this current climate. It alleviates fears and it puts into perspective the scare mongering from the tabloids.”


Mark Graves,


financial services director, LSL Property Services


“I think it’s a plain and simple motivation issue - unless you need to capital raise or have another issue forcing you to act, why would you want to shop in


your one over base tracker for a 4% SVR?”


Chris Gardner, director, Obligo


mortgage introducer AUGUST 2011 35


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  |  Page 37  |  Page 38  |  Page 39  |  Page 40  |  Page 41  |  Page 42  |  Page 43  |  Page 44  |  Page 45  |  Page 46  |  Page 47  |  Page 48  |  Page 49  |  Page 50  |  Page 51  |  Page 52  |  Page 53  |  Page 54  |  Page 55  |  Page 56  |  Page 57  |  Page 58  |  Page 59  |  Page 60