View more on these topics

Mortgage market is back on track for £250bn a year

Imla chairman David Finlay says the growth in lending bodes well for the future 

As the current chairman of the Intermediary Mortgage Lenders Association, you could say that things are never dull.

Imla recently held its inaugural Great Mortgage Debate with a panel representing intermediary lenders, direct lenders, brokers, consumers and the consumer press, which was followed by the annual dinner.

It was one of those days that really cemented the optimism and camaraderie in the intermediary community and had me reflecting on just how far we have come in 2013, never mind since the dark days of the credit crunch.

An overriding factor in this recovery has to be the increased professionalism within the intermediary market and its continued importance to the overall lending arena. Long forgotten are the days of churn and burn practices and intermediary firms have really upped the ante in their advice processes, with many adopting a more holistic approach.

Improved standards and practices have been embraced and while numbers have inevitably declined, thankfully, the market remains one in which the cream will continue to rise to the top.

Anyway, back in reflective mode, I recently came across an article I wrote at the back end of 2012 reviewing the lending arena and looking forward to the year ahead. On re-reading it, I was definitely trying to be as upbeat as I could and when assessing overall market conditions it was clear that there was an underlying current of could do better. Now I would usually wait until the end of the year to review such a review but so much has been accomplished in the first three-quarters of 2013 that I feel I am justified in revisiting a few of these 2013 lending hopes and see how they now stack up.

More innovation

This was summed up by a couple of comments at the recent Council for Mortgage Lenders mortgage innovation conference. The CML’s Sue Anderson said lenders could do more to create innovative products for existing customers rather than solely looking for new business. More forthright comments came from Matthew Wyles, senior adviser at Castle Trust, when he said that any new products tended to be met with great scepticism by networks.

Inevitably, innovation is something that needs to be thought out thoroughly and while we as an industry continue to head in the right direction, there will always be arguments that more could be done or certain aspects embraced better. Positive steps have been made but this does remain a delicate balancing act for lender and out intermediary partners.

More competition, and in the right areas

Increased competition is a given but the main positives are that this is happening at slightly higher LTV levels and in areas of lending which have previously shown little appetite. All positive stuff.

Increased business volumes for lenders and intermediaries

You only have to read the reported number of “record months” to appreciate that business volumes are continuing to rise pretty much across the board. And with muted talk of £190bn gross lending targets in 2014 and end-of-year targets set to exceed early indicators, I think it is safe to say the majority of these working within the intermediary marketplace have seen some degree of accelerated business volumes.

Sustained momentum in government initiatives

In terms of the housing/mortgage market, there is no argument that the Funding for Lending Scheme has proved integral to rising house prices in 2013 and improved lending conditions in general. How long and to what extent this continues remains up for debate but for the moment at least, the positives far outweigh the negatives.

The market is edging towards genuine recovery but despite growing media debate and variation in regional property inflation, it remains a long way from experiencing a house price bubble.

Looking even further forward, still with my positive hat on, the performance of 2013 thus far has only re-emphasied my belief that we will see an eventual return to £250bn-plus of annual gross lending. This remains some distance in the future but the path ahead, while not quite lined with gold, does at least have a certain glow to it.

David Finlay is intermediary managing director at Barclays and chairman of the Intermediary Mortgage Lenders Association




Adviser wins court case against PPI claims chaser

Highclere Financial Services has been awarded £340 through the small-claims court after contesting a payment protection insurance misselling claim from a claims management firm. In a case heard on 9 October at Accrington Crown Court, claims firm Aims Reclaim was forced to pay Highclere partner Alan Lakey £100 for wasting his time and a further […]


Tom Becket: US political squabbling means everyone loses

The sparring politicians in the US can dress it up any way they want but this was a pyrrhic victory for the Democrats, a shattering defeat for the beleaguered Republicans and a travesty enforced upon the American people. Last week, after a 16-day government shutdown and endless hours of negotiations and nonsense, the two parties and […]


James Hay recruits Pete Burtonshaw as COO amid restructure

James Hay has appointed former Fidelity head of platform development Pete Burtonshaw as chief operating officer following a restructure of its senior management team. Burtonshaw joins the pension and platform provider from Openwork, where he was interim head of strategic integration. Prior to this he was head of platform development at Fidelity Investment Managers. James […]


L&G appoints ex-Hartford risk officer as non-exec director

Former Hartford Financial Services chief risk officer Lizabeth Zlatkus has been appointed a non-executive director at Legal & General. She will take up the role from 1 December. Zlatkus joined Hartford in 1983 and held a range of senior positions including chief financial officer and chief risk officer of the firm. She also served as […]

Childcare - thumbnail

Three questions for employers…

The Family and Childcare Trust’s annual survey has been widely reported in the media and the two headline figures were these: the average cost of a nursery place for a child under two has risen by 33 per cent since 2010; and the costs have risen by five per cent in a single year.


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