Contents Playing the blame game Amid the doldrums innovation stirs 4 News Review
It’s very easy to say “it’s not fair” when things aren’t going your way. It might give us some release from our frustrations but in practice it doesn’t change anything. The latest (and revised) fi gures from the Council of Mortgage Lenders show that the intermediary share of mortgage business was 52% in 2011. Its height at the turn of 2007/8 was 65%. Lend- ers on the high street make no secret of their wish to do as much lending as possible through their branches – it’s commercially
The Roman god Janus is the gatekeeper of the new year, character- ised by his two faces looking back and forwards. It is tempting in January to mull more on the year that has passed than on what the future holds. Especially when the future looks so bleak. I am not going to go over the Europe, unemployment and double dip forecasts here – read on for all you need to know on 2012’s economic outlook. Rather, I want to look forwards at a year I believe marks a
sensible to make them as effi cient as possible. But the net result is that brokers suffer with less access to good rates and lower fees. In some areas of the market the biggest lenders are accelerating that drive to direct. One major lender is rumoured to be budgeting to lend less via intermediaries this year and NatWest Intermediaries re- cently made the decision to limit its distribution partners to just the larger networks. But brokers banging their fi sts on the table complaining about dual pricing – how-
ever satisfying and right that may be – isn’t going to change the status quo. Lenders have the upper hand in their size, share of the market and their ownership of the funds to lend. It’s not fair that lenders have that power. But business isn’t fair; it’s about winning.
The thing that brokers have only half realised is that they have more power than
turning point for the mortgage industry. Blind optimism you may well say, but you’d be wrong. Admittedly it ain’t rosy for gross lending this year but there are signs of Spring. Brokers and lenders have pinned their hopes on buy-to-let and with Abbey for In- termediaries fi nally open for business and Paragon launching 50 new products, 2012 looks set to be a dapper year for landlords and those arranging their fi nance. Innovation is often the fi rst sign of the slow way back to competition and this year
they use. Taking control back is within advisers’ reach. One way to beat your oppo- nent is to divide and conquer. Lenders have that sussed. They’ve split distributors into the large and small; they’ve talked about quality and fraud and being able to control the types of business they want and need to lend responsibly. They’ve said who, when and how much. And brokers have so far accepted that. What’s stopping advisers from turning the tables? The thing brokers have that banks lack is judgement and advice that favours the consumer. Stop playing on lenders’ terms and regain control. Every time a client walks through your door, stop being grateful for the income and start educating them about why their decision to use you makes them cleverer than their neighbour who went to a bank and how they’ve benefi ted from that. Nail a sign to your door that what you sell is advice, not mortgages. It will take time to fi lter through to consumers but the foundation is there. Take advantage of it.
may tread the mortgage boards this year too. Near prime is likely to grow, driven in large part by rising unemployment and the
fi nancial blips that accompany it. Clients in this bracket are often in vulnerable situa- tions and advisers have a critical role to play in helping them sort themselves out. The other area where innovation is opening its sleepy eyes is in the short-term
market. The FSA has woken up to the potential the bridging market has to grow (and present problems) as lender after lender piles in. Pricing, LTVs and criteria were all beginning to look more interesting in this sector last year and I suspect 2012 will see that continue. Best of all, the brokers in our cover feature on pages 28-33 are fi red up about busi- ness prospects this year not overwhelmed by the fl ames of the economy. In spite of all the gloom it is reassuring to see that people’s spirits aren’t dampened.
Sarah Davidson, Editor
Mortgage Introducer Mortgage Introducer
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Issue 42 January 2012 Publisher
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is the fi rst since pre-credit crunch that there is some real progress. Castle Trust is due to launch its partnership mortgage (one hopes in Spring) and lenders including Precise Mortgages, Aldermore and Kensington are trying really hard to lend and offer diversity in a market crying out for it. Mutuals too are throwing their hats in the ring and Leeds is the latest to launch a 100% shared ownership mortgage. Virgin Money, Tesco Bank and Home Savings Bank are all waiting in the wings and
8 Property News Review 10 Housing News Review 12 Products News Review 13 Near Prime News Review 14 Specialist Prime News Review 15 Economics News Review 16 General Insurance News Review 18 Buy-to-Let News Review 18 Short-Term Lending News Review 20 Protection News Review 24 The Outlaw
The good, the bad, the boring and the vulgar 27 News Review
Nationwide for Intermediaries celebrates 4 years
4 News Review 6 Property News Review 7 Lending News Review 8 Housing News Review 10 Products News Review 12 General Insurance News Review 14 Economics News Review 15 Near Prime News Review 16 Equity Release News Review 16 Packaging News Review 17 Specialist Prime News Review 18 Mortgage Market Review Analysis 20 Protection News Review 21 Scottish News Review 22 Short-term Lending News Review
28 The Bigger Issue Vote in our poll and see what the experts think
30 Pawns and kings 28 The burning issue
Near prime update 40 The
How to beat fraud 38 The Interview
MI talks to Halifax Intermediaries’ head of sales, Ian Wilson 40 The IT crowd Technology can improve your business 42 House Prices Numbers reveal the national picture
MI talks to Abbey for Intermediaries’ Miguel Sard
42 House prices Numbers reveal the national picture
44 Bridging and Commercial News Review 46 NACFB News Digest The NACFB shares its news from the past month
54 Hall of Fame
Who is infamous this month? 50 Hall of Fame
Cover: Quan Dich / Robyn Hall Who is infamous this month?
44 Bridging and Commercial News Review 46 NACFB News digest The NACFB shares its news from the past month
Brokers fight for survival 34 The Power Hour
How brokers around the UK are faring 34 The Power Hour
24 The Bigger Issue Vote in our poll and see what the experts think
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