If you buy a large Coke with your popcorn, then Zero Dark Thirty, Les Miserables and Lincoln all represent a significant vesical (translated bladder – ed.) challenge. If asked to make a film yourself, you’d be forgiven for thinking that quality is measured by duration.
The ridiculousness of this logic is obvious of course. The best film I have seen recently was Tyrannosaur, at 92 minutes long. It appealed to me much more than the titles above, although I suspect that it is less viewed than its blockbuster cousins have been. It didn’t try to be like the others – it is a very different film.
There’s a similar story going on here at Kent Reliance. In 2011, the top 10 lenders took 92% of gross lending according to the CML. These lenders have the muscle to compete with sub 2% deals and if you meet their criteria, there has never been a better time to borrow against property, thanks to four years of 0.5% base rate and, more recently, FLS.
Perhaps through necessity as much as choice, we can’t be the same. So when a large lender offers fee free, sub 2% fixes, with free legals etc, there’s no point even trying to compete. Coupled with the increased competition in what used to be niche markets, the outlook for smaller lenders could be seen as bleak.
The response has to be innovative and targeted. Recent months have seen many small lenders move into what are new markets for them. Good luck, I hope they do well, but to do so just because they see margin opportunity could end in tears. It is vital that smaller lenders should respond to the broader market trends by playing to their core competencies and assets.
Rather than going head to head with the Spielberg-esque volume lenders, our genre is more art house than mainstream; we are deploying our competencies and assets to make the most of some very clearly defined niche markets. Any small lender who lacks clarity of market should be prepared to go straight to DVD.
John Eastgate is sales and marketing director at Kent Reliance
