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Lenders vie for release key as trackers replace SVRs

On the product front, I know that a number of lenders are working hard on the two big issues. The first is a real solution to equity release. Bank of Scotland and, latterly, Barclays and Northern Rock showed there is fantastic potential demand for the release of equ ity for our ageing population. It wouldn&#39t surprise me if Standard Life gets there first again.

The bigger challenge is to produce affordable support for key workers and first-time buyers in London and the South-east. A significant market awaits the lenders intelligent enough to come up with the right solution in 2001.

Standard variable rates will slowly start to wither on the vine as more lenders follow the intelligent lead of the Portman in supporting their new business offers with tracker-style offerings during the residue period. The big issue here is what Halifax does with its SVR.

The impact of the new regulatory regime will be very significant. With lenders effectively charged with regulating intermediaries, the existing pressures for consolidation in mortgage intermediation will grow. Expect to see significantly greater proportion of this market taken by the leading players, Charcol, Savills Private Finance and London & Country.

A number of the pure players in our market will disappear. But, the whole market will benefit because of the pressure that the internet market is exerting for a true online community between lenders and intermediaries. A series of fragmented initiatives will start bearing fruit.

It is going to be an exciting place to be this year.


Schroders recruits Perpetual fund managers

Schroders has recruited three fund managers from Perpetual to strengthen its US equities team. Ian Brady will become Schroders head of US equities. Philip Chappell and Grant Cowley will also join the team. Former Legal & General joint head of North American securities Ian Cooke is also joining Schroders. Perpetual was bought by Amvescap in […]

Reducing costs is the year&#39s big challenge for providers

The key issue coming up is, of course, the launch of stakeholder. This,and the move to 1 per cent margins, will be a real catalyst in the industry. There will be substantial competition as companies aim to take the market share and inevitably we will see more consolidation. I hope this year we will actually […]

B&W launches guaranteed equity Isas

Bristol & West has launched a new range of Tessa Only Isas offering stockmarket linked growth potential with capital security. With an estimated 2 million Tessa customers looking for a new tax-free home for their money in 2001, the three new accounts are available as Tessa Only and Mini cash Isas. Savers can put up […]

FSA is a rank outsider

If I were a betting man, and I&#39d lay 2-1 that I&#39m not, I would probably hold on to my money rather than take a chance that the FSA will finally get its authority in 2001. It has already taken more than two years to get this far and the end of the road still […]


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