At this time of year, it is only natural to take a moment or two to reflect on the highs and lows of the past year, while drawing a veil over events we may want to forget and look forward to a new year with increased purpose.
The seasonal market slowdown also provides a small window for intermediaries to catch up on tasks that may have been shelved in the busier times and offer breathing space for planning forthcoming strategies.
The past can provide a sounds basis from which to learn, whether successes or failures and, generally speaking, 2011, much like 2010, has been a year that has been shaped by the past.
It would be great to consign the “dark period of lending” to the shadows, but we continue to feel the aftershock of the credit crunch and, with sweeping economic concerns circling the market, the memories of this period are never too far away.
The UK economy finds itself in a precarious situation with regards to the eurozone, in addition to other global influences. There is no ignoring the fact that such uncertainty has helped to subdue the mortgage market, especially over the past six months.
The extent of any potential impact is difficult to quantify, but what is thankfully evident is that the mortgage market is in a far stronger position to ride out any potential storm than it has been in recent years.
Of course, it has taken time to rebuild this stability – reflected in understandably, but still disappointingly, low lending levels.
Back in June, we saw the CML increase its gross mortgage lending forecast for 2011 from £135bn to £140bn and net lending for the year from £6bn to £9bn, with further predictions of £150bn of gross lending in 2012.
Looking back, this may have been slightly ambitious and lending will likely come in at somewhere around £135bn for 2011. However, we should not be too downcast and these are levels we should get used to, because I cannot see much improvement in 2012.
As I said, harsh lessons have had to be learned and the last thing the market needs is a return to the dark days of over-exuberant lending. Of course, more can be done and promising signs have emerged throughout 2011, with increasing numbers of lenders entering the market and bringing welcomed competition.
There are some fantastic mortgage deals available right now, especially for homeowners looking to remortgage, but the market continues to underperform as borrowers are either not in the right position, unwilling or not fully aware of some of the great value offers to be had.
The lending sector remains tough and juggling interest rates, rising household costs, risk, business volumes, swap rates, LTVs and affordability remains no mean feat.
Intermediaries and potential borrowers have suffered because of this and, unfortunately, some will continue to do so.
Any successful intermediary market needs a mix of innovation, competition and impetus. Innovation is tough in this kind of marketplace, but there are signs of it in sectors such as remortgaging, buy to let and short term lending.
Smaller lenders, especially those in the mutual sector, are also becoming more active through some enterprising products and hopefully this trend will continue into 2012.
Despite the subdued lending, opportunities are available for intermediaries with the right kind of proposition backed by the right level of service. Like the child in the John Lewis ad, it really is a time for giving.
As lenders, we need to work hard to ensure the intermediary market is equipped with the right deals for their clients. However, the aforementioned factors will continue to influence products in 2012.
Having said this, more and more lenders are embracing intermediaries rather than repelling them, as many did in the tougher times.
Brokers, too, have to sharpen their offerings by adopting unparalleled levels of advice, proactive marketing, strong affiliate partnerships and levels of communications above and beyond the call of duty.
The lending arena has not exactly lit up 2011, but the industry as a whole is moving in the right direction.
This year has provided us all with a raft of challenges, but certainly nowhere near the level that we have had to endure in previous years and we should be thankful for that. External influences will continue to curtail certain lending, but for intermediaries, opportunities will continue to present themselves as demand remains.
We need to continue to keep a lid on expectation levels, but with more competition and some innovation slowly seeping through, there is certainly far more hope than despair as we say goodbye to 2011 and welcome in a hopefully prosperous 2012.
