60 Seconds with.....Guy Batchelor
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What was Countrywide’s reaction to the mortgage market review?
First, we can see that the proposals will lengthen the underwriting process and there will certainly be more cost involved which inevitably will be passed on to consumers.
Self-cert became a mainstream product for some which it was never intended to be. Its withdrawal will severely hinder some valid self-employed customers in obtaining purchase or remortgage finance when they easily have the ability to service a mortgage but cannot provide say two to three years’ audited accounts. We are seeing the pendulum swinging from one extreme to the other.
The recession nearly turned into a depression. how has Countrywide’s Asset Management arm coped with the upswing in business?
Countrywide Corporate Property Services has grown its asset management market share to over 20% and won several lender prizes for performance in 2008 and 2009. Our branch network has increased its repossession sales with branch instructions up by 40% and exchanges are up 111% (H1 2008 versus H1 2009). The strength of this business is drawn from the links we have with our 1,000 branches of estate agents and other leading agents, plus our own auction house.
How do you think lenders’ attitudes to brokers have changed over the past 24 months?
Maintaining close relationships with lenders has been key. Dual pricing is a challenging reality but we’ve been able to negotiate exclusive products that reflect what our customers need. We’ve worked tirelessly with a panel of high street lenders to launch national campaigns for 15 exclusive products in 2008 and 2009, at a time when many speculated that lending had dried up.
Do you see further lender consolidation as inevitable?
Yes, regrettably there will be more consolidation. I say regrettably as this will potentially lead to a stifling of consumer and broker choice. Similar to 40 years ago in the Soviet Union, I hope we do not have the best stocked shop in Moscow but with no-one either able or willing to buy the products. I would certainly welcome more choice for consumers.
When do you see the recession ending?
We’re starting to see signs already, particularly through our estate agency, mortgage, surveying and conveyancing activities. Buyer appetite is strong but lending has to match it. The recession will end, it is now a question of how quickly will we recover? Key factors will be restrictions on lending, liquidity and its relative cost and availability.
