Contents Help clients wrap up against the cold
The fi rst week of October was a strange one. Temperatures soared to nearly 30° and then dropped dramatically leaving us reaching for our winter woollies. Meanwhile, in spite of a summer boost in gross lending a distinctly chilly wind has blown in on the economy and it seems we’re in for a winter of discontent. Unfortunately there’s no economic equivalent for a hat and scarf, though it hasn’t stopped the City and business across the
UK clamouring for the government to provide it with a comfort blanket. Just what that blanket might be remains something of an enigma. There are three main concerns: with the prospect of Greece failing to repay
sovereign debt and the fear of overexposure to Greek, Spanish, Portuguese and Irish economies endemic in Europe’s banks, the Eurozone remains balanced on a knife- edge and confi dence is at a low ebb; there is no discernible growth in our domestic economy; and no money to boost spending. GDP has caught a chill and various pundits including the Institute of Directors
have called on the Bank of England to pump more cash into the system in an effort to warm it up. It seems likely that the Bank will give in eventually and even if more quantitative easing doesn’t materialise, it would be madness for the base rate to rise in the near future – something the Chancellor George Osborne made clear in his speech at the Tory party conference earlier this month. Honestly, it’s grim. However, take comfort. We’ve thought of three things that
aren’t so bad for mortgage brokers. One: it’s been grim for four years and you’re still here. So that’s something. (Granted it’s not great, but they get better.) Two: as the economy stumbles the base rate will almost certainly stay where it is but jitters mean the cost to banks of borrowing from each other is already rising. That means your clients need your help. This sorry state of affairs is more bewilder- ing for them than you. Three: with every cloud comes a silver lining and the mortgage market’s is buy-
to-let. Read our power hour on page 38 and special supplement from Aldermore to fi nd out how you can get in on the action. It’s always an anticlimax when summer comes to an end but don’t lose heart. Read on to discover what you need to arm yourself against the winter and help your clients in from the cold.
Sarah Davidson, Editor Editor
Sarah Davidson, 020 7502 8225
Sarah@thepublishinggroup.co.uk
Reporter Yuan Phoon, 020 7502 8220
Yuan@thepublishinggroup.co.uk
Editorial Director
Nia Williams, 020 7502 8231
Nia@thepublishinggroup.co.uk
Issue 39 October 2011 Publisher
Robyn Hall, 020 7502 8229
Robyn@thepublishinggroup.co.uk
Associate Publisher
Matt Bond, 020 7502 8227
Matt@thepublishinggroup.co.uk
Subscriptions Andrew Goldsmith, 020 7502 8220
Andrew@thepublishinggroup.co.uk
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Copyright Mortgage Introducer Limited; published by TPG Ltd under licence.
The text and cover papers used in this publication are sourced from sustainable forest products and are fully recyclable.
4 News Review 6 Property News Review 8 Lending News Review 10 Housing News Review 11 Near Prime News Review 12 Product News Review 14 Buy-to-let News Review 16 Service News Review 18 General Insurance News Review 20 Economics News Review 21 Short Term Finance News Review 22 Specialist Prime News Review 24 Packaging News Review 25 Protection News Review 26 Equity Release News Review 28 The Bigger Issue Vote in our poll and see what the experts think 30 Blemain Awards 2011 Get the gossip from the night 32 Skeletons in the cupboard The spectre of mortgage mis-selling haunts us still 38 The Power Hour
Industry experts discuss buy-to-let 44 The Interview
MI talks to Paymentshield’s Tim Johnson 46 Green Mortgages BSA’s Paul Broadhead explains
47 Let-to-Buy A growing trend 48 High LTV Lending
Genworth gets to grips with FTB options
50 House Prices Numbers reveal the national picture 52 Bridging and Commercial News Review 54 NACFB News digest The NACFB shares its news from the past month
58 Hall of Fame Who is infamous this month? ADVICE TO READERS
Information carried in Mortgage Introducer is checked for accuracy, but we recommend that you make enquiries and, if necessary, take legal advice before entering into any transactions. Any views or opinions expressed in this magazine are solely those of the author and do not necessarily represent those of The Publishing Group Ltd or Mortgage Introducer Ltd. All rights reserved in respect of all articles, drawings, photographs etc published in Mortgage Introducer anywhere in the world. Reproduction or imitations of these are expressly forbidden without permission of the publishers. Editorial contribu- tions requiring an answer should be accompanied by a stamped self-addressed envelope. No responsibility can be taken for contributions lost or damaged in the post. Conditions of sale and supply: this periodical is sold subject to the following conditions, namely that it shall not without the prior written consent of the publishers be lent, resold, hired out or otherwise disposed of in a mutilated condition or in any unauthorised cover by way of trade or affi xed to any advertis- ing, literary or pictorial matter whatsoever. All advertising is subject to the terms of our current rate card.
1st Floor, Fergusson House, 124-128 City Road, London EC1V 2NJ Primary and Special Mortgage Servicing with a difference.
www.exact.co.uk StripintroducerEXACT.indd 1 MORTGAGE INTRODUCER OCTOBER 2011 3 13/12/2010 16:25 23
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