One feature that both lenders share is offering automated valuations via Hometrack, although it appears Ing is rolling this out gently whereas Edeus has fully embraced it.With intermediaries having a 75 per cent market share, ING is competing for just 25 per cent of the market. Although that represents an annual market of 85bn it means its potential market share in percentage terms is somewhat limited. Both lenders have big marketing budgets but as long as Ing is a direct-only lender it will have to rely primarily on getting at least one product in the best buy tables and/or a big marketing spend, unless it manages to achieve more than the normal 1 per cent success with direct mail. For the first couple of years, ING will benefit from very few redemptions and so whatever gross lending it achieves will also more or less be its net lending. I expect it to report its lending figures on a net basis for at least two years, with little mention of the gross. For example, if it does 1bn of gross lending in 2007, that will be a market share of about 0.3 per cent. However, as net lending would also be around 1bn it would be approximately a 1 per cent share of net lending, a rather more impressive figure for the first full year of a new lender. The FSA report on exit fees is imminent and the timing of Ing’s launch should ensure it widespread media coverage. Transparency is a key FSA requirement is transparency and, due to the pronounced lack of transparency in exit fees imposed by the vast majority of lenders, it seems probable this will be one major focus in the FSA report. Ing’s policy of no exit fee is transparent. Ing claims it intends to offer mortgages via the intermediary market but has set no timeframe. No doubt, it wants to see what it can achieve on a direct-only basis first. This reminds me of The One Account’s policy. It initially also launched as a direct-only lender and was very critical of the intermediary market, until they needed us. Ray Boulger is senior technical manager at John Charcol
Capital & Regional are the latest member to join the Reits and Quoted Property Group. The co-investing real estate asset manager manages property assets for funds in which it holds a significant stake. There are now 32 companies that are members of the group behind the Reita.org website and awareness campaign. The Group now includes […]
Scottish Widows Investment Partnership
Swip Absolute Return UK Equity Fund
HSA has brought out its first cash plan focused on dental cover.
The IMA says property was the best-selling asset class for the ninth month running in September. Net Isa sales were up by 4 per cent on last September, rising to 49m.
By Rob Burnett, Manager of the Neptune European Opportunities Fund In recent weeks, the bear case for European equities has become more pronounced on the back of weaker-than-expected GDP data and deflation concerns. This softening in economic momentum has led some investors to question whether the ECB is behind the curve and indeed whether it […]
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