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Expo 2012: Nationwide predicts high LTV rate war for spring 2013

  • 15/11/2012
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Expo 2012: Nationwide predicts high LTV rate war for spring 2013
The impact of the Funding for Lending Scheme (FLS) will reshape the market in spring next year, according to James Chidgey of Nationwide.

The mutual’s senior manager of group intermediary sales told an audience at the Mortgage Business Expo that with the FLS set to expire at the end of 2013, lenders would be keen to take advantage at the start of next year.

“I’m extremely bullish about Funding for Lending and we are pleased to have taken part.

“In the prime market interest rates have fallen over the autumn and some commentators have said we’ve seen a rate war, but I don’t think we’ve seen anything yet.

“Come next spring and the new housebuying season, lenders will start having to lend. That will involve adjusting criteria and looking to open up to high LTVs.”

Chidgey predicted a mortgage market of around £150bn in 2013, joining Aldermore and GE Money commentators yesterday at the Expo, and said that the market looks more promising than it has done for five years.

He later praised the government for other initiatives such as FirstBuy and NewBuy, but said that the industry had work to do in making the schemes better known with consumers.

“We need to get across that the NewBuy scheme is available to everyone, not just first-time buyers, with just a 5% deposit. As lenders and intermediaries we need to get a positive message out as awareness of NewBuy is not great at present.”


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