3mc target panel for change over DWP tenants By Samantha Cordon


3mc, the mortgage club and packager, has began a cam- paign to change attitudes towards local housing al- lowance tenants among the mainstream buy-to-let lend- ers on its panel. Doug Hall, deputy man-


aging director of 3mc, told Mortgage Introducer he was speaking


to the heads of


credit of the lenders on 3mc’s panel which currently would


not allow its borrowers to let to this group of tenants. He


said: “I with these lenders


am meeting to dis-


cuss ideas and demonstrate to them there is a real mar- ket out there to let to LHA tenants.” Te latest figures released


in August by the Department of Work and Pensions showed that of the 5 million people receiving local housing al- lowance, 1.6 million of these


– 32% - were in the private rented sector. Hall said he wanted to get


more “vanilla” lenders to con- sider moving into this market which is currently only ser- viced by specialist and com- mercial lenders. He added: “I don’t


think


there is a lack of understand- ing from these lenders more that they receive so many deals already which fall out- side this category that they


don’t need to consider this sector of the market. “Tere is a lot of demand


from brokers who have land- lords which service this mar- ket so lenders should view these tenants as an opportu- nity and not a threat.” Last month Mortgage Intro-


ducer reported that BM Solu- tions and Accord had indicat- ed they were reviewing their lending policies in respect of this tenant group.


2013: Increased competition for peer-to-peer By Samantha Cordon


Peer to peer lending is tipped to exceed £600m in 2013 as forthcoming regulation and a lack of traditional sources of funds drives the fledgling market forward, rebuild- ingsociety.com forecast this month. To date nearly £400m has


been loaned through peer- to-peer and peer-to-business lending and it’s expected to comfortably top £600m in 2013 with the £1bn mark in sight before 2014. Dan Raj- kumar, managing director of rebuildingsociety.com,


said:


“Tis industry is undoubtedly on the cusp of a huge growth curve. Tose who have al- ready reaped the rewards of borrowing and lending in this innovative way have confi- dence in the model. “Adding an extra layer of


security for potential users through regulation can only be a positive move for those yet to become involved.” Rajkumar said high lev-


els of confidence have led to increased competition from lenders on established sites and subsequently driven down the rates lenders re-


He said: “Te exciting auc-


tion element of the transac- tion means lenders and bor- rowers will forever be seeing their returns rise and fall. At


who break the mould


If your customers break the mould t 0333 321 1000 w aldermore-mortgages.co.uk


FOR INTERMEDIARY USE ONLY. Aldermore Bank PLC is authorised and regulated by the Financial Services Authority for deposit taking and regulated mortgages. Registered Office: 1st Floor, Block B, Western House, Lynch Wood, Peterborough PE2 6FZ. Registered in England no. 947662


www.mortgageintroducer.com MORTGAGE INTRODUCER JANUARY 2013 5


ceive on their cash but cre- ated lower cost borrowing for businesses.


the moment lenders would do well to shop around to make sure they’re not lending mon- ey at rates lower than the risk they see in the business or in- dividual borrower.” Rajkumar said it is impor-


tant for the industry to keep raising its profile and ensure a steady stream of new bor- rowers and lenders keep the market turning over. He also expects to see a rise


in competition for borrowers and lenders from rival plat- forms as entrepreneurs realise the potential of facilitating the industry.


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