You can take another look at the week’s news and we’ll also round up the stand-out, most thought-provoking or unmissable comments posted after stories or sent straight through to the editor.
Comment any time on the Mortgage Solutions website and you could feature in next week’s Mortgage Mutterings.
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Email to editor 16 August 2010
Brokers no longer final word 02 August 2010
I would like to formally respond to the article titled Brokers no longer “final word”
Mr Kevin Mountford appears to be contradicting his own logic when it comes to product versus advice.
In the first instance he refers to ‘Savvy borrowers’ – I can assure Mr Mountford that many visitors to his site are not savvy when it comes to mortgages and do not necessarily understand exactly what they buy. You don’t have to be savvy to press a few buttons on a computer.
Secondly, whole of market advice is not over. Brokers have access to direct products through sourcing systems and can provide regulated KFI’s; in fact plenty of brokers are doing this at present and charging a fee for the advice (not the product). As Mr Mountford quite rightly indicates, people will always want advice. I would go one step further Mr Mountford and say people will always need advice.
Mr Mountford indicates that lenders do not have to “push their products through brokers” anymore but their advice should be part of the mortgage process. Maybe Mr Mountford would like to mention this on his comparison site as he is still happy to guide customers to brokers – for a fee of course!!! Brokers must become savvy and stop buying leads from a provider who promotes product over advice.
The combination of comparison sites and lender direct products contradicts and undermines mortgage regulation by encouraging customers to make their own decision without obtaining advice. It is also causing the cost of advice to increase for the consumer as brokers will charge for a service that on the whole was historically free.
Finally Mr Mountford you indicate that people who do not shop around will inevitably miss out on the best deals available. It is clear from this comment that you know nothing about how professional brokers operate in respect of their resources and the integrity they possess.
Brokers take note; stop purchasing leads from a company (paaleads.com) who questions your position within the mortgage process.
Peter Kelly
director
PjK Associates
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“Golden age” of home ownership is over, says CIH 16 August 2010
Posted online
Just one of the consequences of the FSA clampdown on mortgage lending.
Why can’t they leave commercial decisions to the lender & stick to ensuring solvency requirements & overall compliance procedures are met?
They just do not think through the unintended (or was it intended?) consequences. They don’t think the results of their actions.
Nick Pilkington
Comment two
Posted online
Good one Nick Pilkington
Nick, the results of their actions mean lower house prices, which mean more affordable homes. And do you seriously believe that banks are willing to lend but are now being stopped by the FSA? That could be a useful smokescreen for the banks surely, but the unpalatable truth is that, quite simply, houses cost too much compared to wages. Banks got silly in lending multiples generally greater than 3 – 3.5x but now the scales have fallen from their eyes.
I suggest you take a trip along the road to Damascus too, starting with this excellent article by Mary Ann Sieghart.
Peter Silcox
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Nightmare tenants” exposed on ITV this week 17 August 2010
Posted online
I hope this programme raises the profile on this very serious issue.
It is a complete nonsense to pay the tenant who is then supposed to pay the landlord. I am £1700 pounds down with fat chance of getting it back.
The tenants, with the backing of the law and lawyers have all the rights. The landlords have hardly any.
When local authorities are dependent on the buy to let sector to help fulfil the councils obligations they sure have a bad attitude when the “clients” are in the property and will not pay the landlord. You have to wait two months before you can start the eviction process then the tenants have another two months rent free.. and maybe if the eviction notice is all correct you can go to court. If, like me, the lawyers muck it up …guess what ..you have to start the process all over again.
Peter
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Email to the editor 17 August 2010
Dear Vicky,
I am an independent mortgage advisor trying to cope with difficult trading conditions so it surprises me that every day your headlines are full of doom and gloom. Why not see if you can find the odd piece of positive news every now and again and maybe talk the industry up a bit!
Kind Regards
John Hyde
King Associates Independent Mortgage Brokers
Editor’s response
Hi John – really sorry to hear we’re getting you down a bit. I’ll take your comments on board. It’s a tough ride as you say at the moment and unfortunately most of the market commentary that touches down, from CML repo predictions to struggling landlords, is on the glum side.
However, one thing we do have – in an attempt to clutch some joy from an industry that is definitely on a gradual upswing – is a Reasons to be Cheerful box. http://www.mortgagesolutions-online.com/tag/reasons-to-be-cheerful
Every day we tag the stories which offer a cheerier take on the market, so do check in from time to time.
Also, we are in the middle of a complete website overhaul, which will bring plenty of new, industry focused features and in-depth analysis and colourful new sections, which is also intended to give Solutions a boost.
Let me know what you think when it launches in September.
Vicky Hartley
The editor
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Blog: The sale and rent back waiting game 18 August 2010
Whilst many firms may have fallen away post the interim authorisation regime, there are several I believe still waiting over two months after submitting applications to the FSA for authorisation.
I can only think that the FSA moved resources away from the permissions department at a crucial time for SRB firms, the quality of applications cant be all bad.
There are firms waiting who have submitted variation of permission applications as well as new to “regulation” firms so it seems no preferential treatment just questions and delays.
Whilst accepting the need for great care in a often wrongly labelled high risk area, the current delays must be having a commercial impact on those waiting as well consumers again being left with little choice. With the end of the holiday season in sight perhaps things will improve.
Bill Warren
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Countdown to online Approved Persons registration begins 19 August 2010
Advisory firms are being encouraged to sign up now to the FSA’s Online Notifications and Applications tool to vary authorisation permissions or qualify as an approved person.
I signed up for this yesterday and have now got a password, etc. What am I supposed to do now?
Everything the FSA brings out is written in their own strange language, which normal citizens of the UK will never understand. I spent three hours trying to find out if I was supposed to register current advisers or just new, ongoing changes. I got nowhere, except frustrated and even more hopeful that the FSA is being closed down.
Robin
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Have a great weekend.
The Mortgage Solutions team
