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‘High-risk lenders to lead sales in Europe’

The high-risk sector stands to benefit the most from cross-border lending in Europe, according to Mercer Oliver Wyman director Matthew Sebag Montefiore.

A report from Mercer – Risk Funding in European Res- idential Mortgages – suggests that more than 80 per cent of growth potential will be in higher-risk lending products as the prime market has essentially been “tapped out”.

But Sebag Montefiore arg-ues that it is more likely that smaller countries such as Lithuania and Ireland will benefit the most as bigger countries such as Spain, Great Britain and Germany are already competitive.

The paper, sponsored by the Mortgage Insurance Trade Association, which examines the potential of cross-border mortgages, reveals current untapped mortgage demand of more than 346.71bn in the European residential mortgage market. If cross-border mortgages become a reality, the potential increase in mortgage activity could amount to a rise in 15 per cent to Europe’s current level of home lending.

The growth opportunities come as a result of a changing Europe – rising house prices, declining saving rates, increasing numbers of single-family households and immigrants wanting to buy homes as a means of wealth accumulation and social acceptance.

Highly rated international banks will benefit with their access to low-cost deposits.

Specialist providers also stand to make a success of Eur-opean cross-border mortgages, with their willingness to embrace unconventional distribution alternatives.

Risk-management specialists such as mortgage insurers will also benefit as they can help lenders target demand with additional product and service flexibility.

Sebag Montefiore says: “The benefits will be for sma-ller lenders who do not have the scale of competition among themselves.”


Dry run planned for Hips in 2006

Home information packs took one more step to becoming a reality as industry bodies agreed with the ODPM on a dry run, to be carried out next year. Approval has also been given to the diploma in home inspection. The partnership is also look- ing at a not-for-profit certification scheme to oversee the standards of […]

‘IHT rules will force pension holders back into annuities’

HM Revenue & Customs’ proposals for how inheritance tax will apply after A-Day will effectively force people back into annuities just months after removing the obligation to buy them, claims Standard Life marketing manager John Lawson. Individuals opting for alternative secured pensions or drawdown look set to trigger IHT bills on their remaining funds on […]

Grey’s Locke in move to Aegon

Bright Grey communications manager Mark Locke is leaving to join Aegon’s pr team on August 10. Locke will continue to look after protection as well as employee benefits at Aegon, having been at the Edinburgh-based protection provider since April 2004.Locke says: “I am delighted to be moving to Aegon after an exciting year at Bright […]

Allianz Technology Trust – April 2017

Welcome to the latest update for Allianz Technology Trust PLC from the Trust’s portfolio manager, Walter Price. Portfolio review The Trust’s NAV returned 4.3% , outperforming the Dow Jones World Technology Index return of 2.8%. In US dollar terms, the portfolio gained 4.8%. During the month, stock selection contributed to relative performance, and industry allocation […]


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