It really did infuriate me when I had to sit and listen to a broker presenting at a recent exhibition, as he referred to the short-term funding market as the funding route of last resort.
As I listened to this respected person with over 20 years experience in the mortgage market, especially the buy-to-let sector, I had to ask myself why he still has this outdated impression.
The answer I think has to be that as lenders we are still failing to get across to the majority that short-term funding has a place in most proactive broker portfolios but many remain ignorant of the benefits of our many and varied solutions to a client’s needs in the short-term. For any sector to be vibrant it has to have the whole hearted support of the industry as a whole and this speaker’s reaction shows that we still have a great deal more to do to educate and inform our distribution.
Our reputation is not a good one, for there is no denying that over the years stories about high rates, upfront fees, and exit costs have all served to tarnish our reputation. But now, many lenders are fighting back and showing that as ethical and prudent lenders we can be trusted to provide solutions that are right for the individual needs of the client.
The sector has a growing reputation for working with the FCA through the likes of ASTL and other trade and if we are to show how this can work for the benefit of brokers and other stakeholders then we need to do more to promote the progress we are making in this area.
At Capital Bridging we are going through the exacting process of becoming regulated under the FCA. We did not take the decision lightly but we felt that as we are in this for the long-term it was a necessary investment and whilst there are challenges but we have found the regulator to be positive in their approach.
The ASTL is having its inaugural conference in October and I am delighted that through the combined efforts of its members an agenda has been set that addresses many of the issues that I believe are holding back the sector.
Ahead of the conference, Benson Hersch the chair invited all members to be active in constructing the programme. I feel this is an excellent way of showing the broader market that we are serious about ensuing the sector is open and keen to work with all parties to enhance its reputation and bring the many benefits of our many propositions to a broader distribution.
With forecasts of over £2bn in completions in 2013 we should be excited about the potential for our industry. Link this optimism to the general confidence that is building across other sectors and I see a rosy future.
We must do more to educate our distribution and then listen to them so we can offer solutions that will convince a broader market that we are not a last resort but providers of solutions that will stand the test of time.
