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CML says lenders must innovate to keep share

Mortgage lenders must continue to innovate with new products or face

dramatic loss of market share, warns the Council of Mortgage Lenders.

Research by the CML suggests the ageing and increasingly migratory

homebuying population will look to lenders capable of offering a more

diverse range of mortgages over the next 20 years and desert those which do


The research estimates there needs to be almost five million new

properties built by 2021 so the CML says lenders need to keep pace and

provide products able to cover all types of demand.

It highlights growth in the numbers of households in their 50s, combined

with a tendency to move to the South coast to illustrate how population

changes will force lend-ers to reappraise the type of loans that they offer.

The report points to dwindling demand for first-time buyer mortgages among

those in the 25-34 age bracket as proof that people increasingly prefer to

delay buying a home until they achieve greater financial security.

A CML spokesman says: “The research suggests that mortgages will have to

develop to fund the changes and aspirations of borrowers over the next 20

years. It is up to lenders to come up with the kind of products that people

will be looking for.”

Mortgageforce managing director Rob Clifford says: “There are still many

lenders which have failed to shift their market view and policies.I think

that some will be forced to change their outlook or acquire a lender in a

sector they are looking to enter.”


Gap-filling move sees Virgin Direct brand disappear

The Virgin Direct brand is set to disappear following its integration withVirgin Money in a bid to offer a direct gap-filling operation. Royal Bank of Scotland is taking full ownership of lender Virgin One,buying the two 25 per cent shares of Sir Richard Branson and Australiangiant AMP for £100m. The Virgin Direct/Virgin Money deal will […]

Royal London ordered to pay £15m and fined £400,000

Royal London has been fined £400,000 by the PIA and ordered to pay £15m compensation to 65,000 customers for breaches relating to the sale of investment products.As a result of the disciplinary action, Royal London is conducting a review of the past sales of its full product range including endowments, whole of life policies and […]

Business protection guide offers new opportunities

Royal & Sun Alliance is issuing IFAs with a new guide introducing them tothe business protection market. The Business Protection Guide gives IFAs an insight in to the market,explaining why businesses need protection and contains technicalinformation on business protection products. These include keypersonprotection, partnership protection and shareholder protection. In a survey of employers conducted by […]

Inside EDGE

The last few weeks have seen the media spotlight turn once again onwith-profits. Among the various discussion points, including orphan assets,free-asset ratios and transparency, much attention has focused on themarket value adjuster. Here is another area where there is significant potential for the conceptof with-profits to be misunderstood by investors and commentators alike. It is […]


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