Cover
Hands up Brokers and lenders alike say the media has not helped confidence and indeed, headlines screaming falling house prices one day and rising house prices the next is confusing for anyone. Negativity in the press also feeds into a general consumer outlook and can cause people to take fright, as was so chillingly demonstrated by the queues around Northern Rock’s block back in 2007.
Laker says this has caused the misapprehension that mortgages are in scarce supply. “Public perception is that it is impossible to get a mortgage without a huge deposit,” she says. “So national press could help by being more positive about the real situation.”
“Economists say something different every day leaving the would-be homebuyer in a state of utter confusion about what to do. I am asked more now if it’s the right time to buy than ever before”
David Sheppard, managing director of London broker Perception Finance, agrees that media headlines are part of the problem.
“Economists say something different every day leaving the would-be homebuyer in a state of utter confusion about what to do. I am asked more now if it’s the right time to buy than ever before,” he says. “Obviously we cannot avoid news stories about changes in the economy but uncertainty breeds fear and that is what we are seeing every day.”
tHe big question So what can be done? There are various ideas being mooted, the largest scale being to abolish Stamp Duty Land Tax for first-time buyers or for all property
What’s causing the logjam and what would unjam it? Dev Malle,
sales and marketing director, Personal Touch Financial Services
“I believe many consumers are not aware of the deals available and still think mortgage criteria is where it was two years ago, this is
exacerbated with low consumer confidence and house prices making the perceived risk of moving or buying relatively high.”
David Hollingworth, communications director, London & Country
“It’s unfortunately never so simple as one single thing being the root cause of difficulties in the market. Availability of
mortgages or lack of is at the heart of everything and how to improve that is the crux – therefore addressing lender confidence is key to an improvement in market conditions.”
Robert Barnard,
head of business development, Aldermore Residential Mortgages
“Consumers haven’t fallen out of love with the idea of owning a home of their own, but they are reluctant to commit to buying for several
reasons. For first-time buyers, the barrier is the size of deposit required. For subsequent buyers, it’s a lack of confidence. If the government really wants to help homeowners, it needs to focus on finding ways to get the economy up and running again.”
John Tooth, head of B2B mortgage distribution and strategy, Clydesdale Bank
“Lack of confidence in the economy: owners aren’t selling unless they have to, potential
buyers are worried about committing to a mortgage and lenders have had to tighten criteria. It’s a chain reaction waiting for the spark of recovery to ignite it.”
38 mortgage introducer NOVEMBER 2011
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