More houses, more hope and more mortgages by
Robert Sinclair, chief
executive, Association of Mortgage Intermediaries
As we edge ever closer to the final policy statement on the Mortgage Market Review, AMI remains optimistic that the outcomes will do very limited damage to the world of intermediaries. Given where we started most of the proposals which might have impacted adversely on our part of the industry have been removed or amended. In identifying these issues
and working with member firms, consumer groups, government and other trade bodies, we have reached a better place. It is this vital work that trade bodies do that demonstrates why they should exist and why it is worth paying the member- ship fee to ensure that the ordinary broker’s voice and issues are heard.
Helping brokers Indeed with the changes proposed, which will clarify when advice actually occurs,
it is looking possible that
some lenders might decide that it is better for them to distribute their mortgages through intermediaries rath- er than direct. Should such changes occur, then this will generate great opportunities for our sector. With the
sharper clarity
on responsibilities, advisory firms will be much clearer on what is in their remit and what sits with the lender. Te MMR has been a long and tortuous journey, but we are now in a place where the AMI board feels that imple- mentation will not cause any significant business disrup- tion. It is only in the area of individual registration that we feel the Financial Services Authority has much to do to meet industry and consumer expectations. Tis is perhaps now the most eagerly await- ed aspect of the impending announcements.
Back in work Te economy is now look- ing set for some improve- ment with the Governor of the Bank of England stating that he feels the economy is back on the road to recov-
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ery. Te strong employment numbers with reducing un- employment is one of the government’s success stories. With inflation getting closer to target levels and the bal- ance of trade also moving in the right direction, there is some positive evidence. Debt funding remains relatively cheap and the long term view on equity investment is posi- tive.
Building Britain It is likely that the initiatives to get domestic house build- ing moving will improve the overall state of the mar- ket. Te NewBuy scheme is helping get houses mov- ing, with more targeted help also encouraging builders to get more developments ac- tive. Tis combined with the Funding for Lending Scheme should deliver a range of positive outcomes: economic activity and growth, con- sumer confidence and a bet- ter mortgage market. With Castle Trust coming to mar- ket and more lenders extend- ing their range of products there is much to feel positive about, in what has been a great year for sport, but fairly
glum in the world of inter- mediary mortgages.
Money Advice Service Finally, many feel that the money the industry is invest- ing in the Money Advice Ser- vice is just being wasted. Tis is not a project that will be successful in its early years. If it is to genuinely make a difference it will take the best part of a decade. Indeed if the new proposals on simple products are to achieve trac- tion, they will need the Mon- ey Advice Service behind them for a similar time. In reviewing the new MAS ad campaign, I agreed with one of the senior estate agency chiefs who said that if anyone got to view a house with full particulars and did not know if they could afford it or not, then the manager of that branch would have a short career. However the concept of trying to engage the public on real life issues is what this is all about. Ordinary people hate talking money, mort- gages and protection. If MAS opens this up, then it will be doing us all a service. Te general public are not people like us.
FOR INTERMEDIARY USE ONLY
Bank. British
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