A Nightmare on Broker Street
Mortgage Solutions | 17 Apr 2012 | 14:16
Lea Karasavvas
It’s great to hear a positive voice amongst all the weeping and a wailing going on. I’m with you all the way. Brokers do add value and fix the mortgage problems our customers can’t solve on their own. I can’t remember the last straightforward case we dealt with.
Let’s keep going fellow brokers – there are plenty of lenders out there on our side still like Virgin Money and Coventry. I’ve built up a mortgage broking business that I’m proud of and I am not giving up without a fight.
Tim
17 Apr 2012 | 14:51
Nice work Lea. Many clients do not understand the pressure we are under to deliver. I always charge fees but many brokers do not. I ask myself: “Are they insane?”
There is business out there for sure. We are the strong ones here and we have survived. We must be good! As per previous comments, long live the broker!
Mark O’Connor
18 Apr 2012 | 14:05
The only reason people do not think advice is important is that they don’t appreciate the traps, particularly in sourcing protection themselves; which is actually a far more difficult area than mortgages.
I am retiring at the end of the year and my advice to brokers is – really get to know protection well. Get to understand serious illness and the best income protection. That way, you can get the insurance even if you have to recommend a direct deal.
Once you have recommended a direct deal you have the clients trust. That is what has kept me in business.
Des Platt
18 Apr 2012 | 14:32
………………………….
Landlords struggling with tightening interest-only mortgage market
Mortgage Solutions | 18 Apr 2012 | 08:50
Julia Rampen
I think lenders for many years have tried not to lend to professional landlords with a large portfolio – the fear of the landlord cancelling all those direct debits is almost too much for most.
Most buy-to-let lenders have limits on the number of background buy-to-let mortgages and property owned, only a few don’t ask many questions.
Compared to four or five years ago of course the underwriting is much tighter, but the ‘struggling with tightening interest-only’ with buy-to-let mortgages I feel is misplaced. This has nothing to do with interest-only lending, just the risk profile of those with lots of buy-to-let mortgages.
Justin Moy
18 Apr 2012 | 09:19
While most traditional residential lenders still allow interest-only, the banks stopped offering this just after the crunch. Interest-only is fine in a market that is rising, but a concern for risk managers in assessing their loan book.
Perhaps lenders who have concerns could seek a hybrid solution.
Part and part mortgages could be offered where all lending over say 60% must be on repayment and the balance on interest-only. Over time, lenders would then see all risk at circa 60%.
Arron Bardoe
18 April 2012 | 09:56
As buy-to-let mortgages are mostly unregulated the interest-only debacle should have no effect on this market. It’s purely a business decision by the lender.
Swanny
18 Apr 2012 | 09:31
………………………..
Thank you for all your comments
From the Mortgage Solutions team
