Posted on 9 December 2014 by
This week I have started my Christmas shopping, earlier than usual (although my wife has already done all of hers apparently), in an effort to not be sifting through the detritus of leftover gifts in Debenhams on Christmas Eve. Again. But it’s not just me who’s preparing presents, as the mortgage market has put some tastefully wrapped boxes under the tree in the form of a number of new lenders. It really is an exciting time as we have some banks coming back into the intermediary market after time out, and this can only be a good thing for our clients.
The Post Office (backed by Bank of Ireland) have started using intermediaries again, (that’s brokers to you and me), and TSB are also returning to brokers early next year. In the buy to let world Fleet Mortgages are gearing up to re-enter the fray once again. There are also some brand new entrants to the market, notably Harrods Private Bank, and Tesco Bank. Even HSBC, the one UK mortgage provider consistently dealt directly with customers, has started to consider accepting business from intermediaries.
So why is this? Well partly it’s due to the Mortgage Market Review (MMR) where the regulator now expects that advice be given in the vast majority of applications, and it’s more prudent from a regulatory perspective for a lender to accept advised business from a mortgage broker as opposed to having to recommend a deal themselves. On the back of this the broking industry is expected to take a 75% market share within 5 years lenders want to tap into this as quickly as possible.
For clients this offers great choice and more competition, both in terms of rates and fees and also criteria. Even if most of the new lenders have fairly standard lending policies, a broker can often find that they will have a little quirk or something unusual that will fit specific client needs. And the longer these lenders are in the intermediary market and the more applications they receive, they may well start to change their criteria to reflect the market. This is exactly what we need, with brokers providing useful feedback and lender’s adapting slowing to the demands of our clients.
So whilst you unwrap your Christmas presents remember that if you are looking for a mortgage its not just you that has some new toys to play with; us mortgage brokers have some shiny exciting gifts to enjoy as well – so your season of goodwill may well extend deep into the New Year.
Call our team to find out if there’s a better deal out there for you: 0344 346 3672
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