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Questions posed about Poso popularity

Instant mortgage offers will not take off for years because major banks will struggle to find investors if they try to sell on these books of business, says Mortgages PLC.

At MM Live. Mortgages PLC head of corporate development Paul Fryers claimed that estimates from the likes of GMAC that up to 50 per cent of homeloans will be offered instantly in the next five years are exaggerated and he said the figure would be closer to just 5 per cent on specialist mortgages.

He said that companies, such as investment banks, pension funds and life offices that invest in securitised busi-ness, may not be keen on loan portfolios made up of mortgages with instant offers in the near term amid concerns about the quality of these books of business.

But despite Fryers’ concerns, MPLC is looking at developing an instant-offer capability.

GMAC, Edeus and ING Direct are all using instant offers while Alliance & Leicester, BM Solutions and Kensington have all said they are interested in providing point-of-sale offers.

Fryers says: “There is nervousness from investors investing in the bonds from this market. We should not get too carried away with Posos but we are all for it and we are working hard on it ourselves.”

Cobalt Capital managing partner Julian Ingall says: “Posos are great and they make a real difference to us.”

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