View more on these topics

IMLA members predict easing of high risk business volumes

IMLA has found that intermediary lenders expect to see an easing of business volumes in the higher risk categories of lending, while lower risk mortgage business will continue to grow.

Self-certification business is expected to decline by around 2 per cent over the next quarter, while light, medium and heavy adverse volumes are predicted to ease by slightly smaller percentages.

Lenders believe that mainstream lending will continue to grow steadily over the next quarter, by 2.5 per cent. Buy-to-let is expected to surge by a strong 3.6 per cent.

IMLA executive director Peter Williams says: “In the current uncertain market lenders’ focus is expected to be more on mainstream and buy-to-let, but in reality and not least because underlying demand remains sound we are not seeing a meltdown of the self cert and adverse sectors. Lenders are re-pricing products and may indeed be pulling back slightly, but they still expect to write significant business volumes. Self cert and adverse accounts for around 40 per cent of our respondents’ business, and there is no sign that the proportion will fall to any significant degree.”

In the second half of 2007, 35 per cent of lenders predict that volumes will grow, and 40 per cent expect them to be broadly stable, but 25 per cent anticipate a slight fall of around 5 per cent.

On average, IMLA members expect gross mortgage volumes to grow by 2.0 per cent between H1 and H2. Looking forward to next year, forecasts are slightly more restrained, with average growth in volumes up 2.8 per cent for the full year 2008 compared with 2007. Again, 35 per cent expect volumes to grow, while 50 per cent expect stability and just 15 per cent anticipate a fall.

Williams adds: “IMLA members remain sanguine about the state of the market, with continued modest growth in lending volumes, but the 2.8 per cent increase they anticipate is modest compared with the growth between 2005 and 2006, which amounted to 12.5 per cent.”

“Clearly, competition remains fierce among lenders, particularly in an environment in which business volumes are slowing. It’s no surprise that in our survey 40 per cent of respondents cited competition and business volumes as key issues over the next 6 months.”


FSA bans Liverpool IFA

The Financial Services Authority has stopped Michael Sheron from carrying out regulated activities after finding that he was not fit and proper to oversee or manage a business. Sheron was a partner at Sheron & Company Financial Advisers and was solely responsible for its day-to-day business. The FSA found that Mr Sheron lacked competence and […]

Africa is lion king for investment prospects

StanLib is setting up South African equity and regional African funds and claims that the investment outlook for the continent has never been stronger.The Standard Africa equity fund will invest in up to 16 equity markets across Africa with its initial holdings focused in Egypt, Morocco, Nigeria and Kenya.It will also have the freedom to […]

Aifa highlights gap between chartered and certified status

Aifa has criticised the retail distribution review for failing to recognise the gap in standards between certified financial planner and chartered financial planner status.The trade body’s second issue paper calls for closer examination of the credit systems for both qualifications.Aifa says to be a certified financial planner, candidates must belong to the Institute of Financial […]

Flexible reversionary trusts and estate planning

The suitability of different estate planning solutions will depend on the individual’s own circumstances, needs and objectives. When considering the different solutions available there is a trade-off between inheritance tax (IHT) efficiency and access. Overall a flexible reversionary trust provides a greater level of flexibility than a discounted gift trust and can offer individuals a […]


News and expert analysis straight to your inbox

Sign up


    Leave a comment


    Why register with Money Marketing ?

    Providing trusted insight for professional advisers.  Since 1985 Money Marketing has helped promote and analyse the financial adviser community in the UK and continues to be the trusted industry brand for independent insight and advice.

    News & analysis delivered directly to your inbox
    Register today to receive our range of news alerts including daily and weekly briefings

    Money Marketing Events
    Be the first to hear about our industry leading conferences, awards, roundtables and more.

    Research and insight
    Take part in and see the results of Money Marketing's flagship investigations into industry trends.

    Have your say
    Only registered users can post comments. As the voice of the adviser community, our content generates robust debate. Sign up today and make your voice heard.

    Register now

    Having problems?

    Contact us on +44 (0)20 7292 3712

    Lines are open Monday to Friday 9:00am -5.00pm