Embley said that lenders who already had easy access to credit had been unimpressed by the scheme as it levelled the playing field in the low LTV market.
He added that the scheme had made little difference to prospective first-time buyers but expected an uptick in lending to the overall market next year.
“Banks who have low funding costs don’t like the Funding for Lending scheme as it allows those lenders with high funding costs to lend more,” he said.
“I expect another Funding for Lending-style scheme in 2014, but it needs changes. Lenders need to have lower capital ratios to stimulate high LTV loans.
“We need banks to lend to first-time buyers and mortgage prisoners. We need borrowers at the end of the chain to get moving but it’s about money supply, not consumers being unwilling to move.
“We expect £145bn gross mortgage lending next year versus around £140bn this year. A marginal increase but a move in the right direction.”
Speaking at the Pink Network awards at Heythrop Park Resort in Oxfordshire, Embley said that brokers in the network had dramatically increased protection sales since Pink was bought by LSL two years ago.
“Two years ago the network was earning £1.7m in total commissions, in 2012 that will reach £4.7m. In that time we’ve not increased the number of advisers. Our protection sales started at 45% of mortgage sales and we reached 76% last month.
“Our other network, First Complete, has always been protection focused and is converting 80%+ into protection sales. I never thought I would see Pink anywhere near those levels.”
