Lenders seek new software but market holds them back
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Serious enquiries from mortgage lenders for new systems and software have risen 75% in 2010 but funding issues are preventing them from following through on the deal, reports Phoebus Software.
Phoebus experienced its busiest first half in six years with the number of serious enquiries between January and June nearly doubling compared to the same period last year.
Enquiries have come from a combination of new companies entering the lending market and established lenders wishing to increase their activity.
Paul Hunt, managing director of Phoebus Software, says: “Our rental model has allowed businesses to renew their IT without huge upfront costs which is very attractive in this environment.
“But even with all the will in the world, lenders – existing and new – are still suffering from an inherent lack of funding in the market. Tranches of £100m here and there are great but their not going to solve the funding shortfall.
“Similarly, obtaining a licence to lend from the Financial Services Authority is proving harder than motivating the England football team. Until something is done to help the lending industry close this gap and lend at appropriate levels we’re not going to see any significant recovery in the market.”
