by Mark Johnston
New Mortgage Lenders to Launch this Year.
It appears that many mortgage brokers have reported increasing numbers of clients and also better mortgage availability, so it therefore means that 2013 may be shaping up to be a more successful year than 2012.
Therefore it is no wonder that experts have predicted that 2013 may an important year for new lenders entering the market, particularly with the offer of new liquidity and for those who have a ‘real’ appetite to lend. The challenges are clear but there are opportunities out there.
Colin Snowdon, executive partner at Saffron building society, states “we simply do not have enough mortgage lenders at the moment”.
So according to industry experts a number of new lenders are expected to enter the market later this year.
Ben Thompson, managing director of Legal and General Mortgage Club, said “we are talking to a number of new lenders at the moment. The key development has been the relaxation of the rules of new entrants. I think that this has been important as it has been very hard to get permission in the last five years and this is starting to change”.
Industry insiders suggest that there are not many new lenders sitting with the Financial Conduct Authority (FCA) looking for registration and they feel that those who are will probably end up operating in niche areas.
Islay Robinson, chief executive of London mortgage broker Enness Private Clients, said “new lenders entering the mortgage market will substantially widen the choice”.
Specialist bank and asset manager Investec is one such lender who has recently launched Investec Professional Mortgages.
This lender is an intermediary only residential and buy to let brand that is specifically tailored to professional borrowers.
This means that they will therefore only offer mortgages to qualified or business professionals who earn at least £50,000 a year or £75,000 for buy to let applicants. These customers will include the likes of accountants and architects or senior businessmen like executives or senior managers.
Although some mortgage experts feel that while Investec’s flexible underwriting is attractive, their current product range is not at all competitive.
Alex Hammond, an Investec specialist bank spokesman, says “we have created this new range of mortgages to meet the specific requirements of professionals. We believe that this market sector is not driven by rates alone and these individuals demand a better service than they are currently getting”.
It seems that retirement advice firm Age Partnership, who currently offers equity release, mortgage, annuity and loan advice, is currently set to launch an equity release lending arm this year.
This firm however is still awaiting lending permission from the Financial Conduct Authority (FCA), but a spokesman for the firm said that they expect to launch a lifetime mortgage product by the second half of this year. The product will be offered on a national basis.
David Finlay, head of intermediary lending at Barclays, added that he would “welcome new competition in the market”, but he also warned that “they are unlikely to be major players”.
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