New Year Resolutions and my wishes for 2013 by


Robert Sinclair, chief


executive, Association of Mortgage Intermediaries


Having now survived fi ve years of banking and eco- nomic turmoil, the great European experiment must reach a new phase. T e main Euro economies


in Germany and France will have to fi nish their debates on banking and fi scal union, so determining the fate of the other nations, by defi ning the rules and future wealth of those who want to dine at the same table. In concluding these arrangements the next phase of European economic development will be decided and banks can then estab- lish their true value and their likely size, shape, risk appetite and ability to lend. Whilst the UK will sit on


the fringes of these decisions, we are not immune from the impacts.


Investing in the future T e capacity of UK banks to withstand further shocks ap- pears good, but their ability to


fund signifi cant growth whilst worrying about external risks remains limited. UK compa- nies are holding mountains of cash and my next wish is that they start investing that money in the UK’s future.


Less barriers Assuming the genie is still feeling benevolent we need lenders to loosen their crite- ria to allow more of the 90% and over loans available to be really available to consumers. T e barriers being put in the way in some scoring systems make it virtually impossible for consumers to make the grade. T is must change.


“We need lenders to loosen their criteria”


Interest only Another shiſt in 2013 is that we need the pendulum to swing back on interest only. Whilst the back book issues need activity to ensure all consumers have a plan, this is a product that will work well for about 20% of loans in London and 10% across the rest of the country. So whilst


some unwinding of current positions might be required, there are still new borrowers for whom interest only could and would make perfect sense.


Housing targets Another wish is for a hous- ing strategy. We need some bravery. Some targets to be set


for housing starts and


completions broken down by owner/occupier, private rental, shared ownership and social housing. Realistic stepped growth targets for the next decade that deal with building where people need houses; brave thinking on how such housing can be cre- ated and a move away from just creating more housing estates where we perpetu- ate our social issues. We all need more space if we are to appreciate each other more, so land prices must change. T us the talk from the Dep- ertment of Communities and Local Government of free- ing up large amounts of land must be good news and needs delivering.


Wise regulation As the ink is now drying on


don’t tick all the boxes


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


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the Financial Services Act, creating the FCA and PRA, I hope that they are alive to the new world. My concern on their more intrusive and in- terventionist approach is that it will force many participants to leave the stage as they see the risks of trading as just too great. Product intervention and


consumer protection without the balancing limit of “buyer beware” is a blunt instrument - all roads from PI insurers risk leading to the door of the intermediary. My concern is that many


will judge this too big a risk without enough return and exercise their right to limited liability by closing their fi rms. T at will leave a very busy Financial Service Compensa- tion Scheme and fewer and fewer fi rms having to pick up larger regulatory invoices. T e FCA will need to exercise its new powers with care if it is not to limit the ability of the fl edgling advice profession to grow and develop under their protection. So my fi nal wish is for a


wiser regulator who takes a wider more constructive view to deliver good consumer outcomes.


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