60 Seconds with.....David Tweedy

18 January 2010 | By Christine Toner

Are you happy with the merger and how did you feel when it was announced?
Yes. Britannia Building Society and The Co-operative Financial Services had similar business values so when the merger was announced I was optimistic about the opportunities it would bring. And since the merger in August 2009 we have been going through a successful transition period.

What changes have occurred because of the merger?
We were already making changes to our model last year as we launched our mainstream product offering and established ourselves as a dedicated provider of mainstream mortgages to the broker market having previously been a specialist lender. This process has continued since the merger.

What do you expect to happen in the market in 2010?
We believe that 2010 represents a fantastic opportunity for the broker market. Uncertainty is likely to continue to surround interest rates and the type of products consumers can choose from. Clients need sound financial advice now more than ever and advisers who grasp the chance should go far. But if brokers are going to deliver on this opportunity they need to be supported by lenders that understand the intermediary business and provide the products they need.

More specifically I believe that interest rates will remain low, with any changes to the Bank of England base rate only likely in the second half of the year. I also believe there is likely to be more consolidation in the market with larger but fewer networks and the trend continuing towards more generalist providers. Financial services organisations will capitalise on gaps in the market.

What do you think will be the biggest problem to face the industry in 2010?
The number one priority will continue to be funding. I don’t expect the wholesale markets to develop in the first part of the year, if at all.

How will suggestions in the Financial services authority’s Mortgage Market Review affect you?
The MMR is tackling the right issues. A focus on responsible lending and professionalism has to be good for the sector and we have a strong interest in the success of the broker market.

But we don’t want to see solutions that are too prescriptive as this could have a detrimental effect on the wider housing market, adding cost for a limited benefit.

Interview by christine toner