EXPO 2009: More securitisations are imminent

11 November 2009 | By Natalie Thomas

Lloyds Banking Group completed a £4bn securitisation in September and Nationwide completed a £3.5bn securitisation at the end of October, which many interpreted as a sign that the securitisation market was finally thawing. And Paul Howard, head of corporate accounts at Nationwide, says that more are set to come to market.

: “The securitisation market is starting to open up again with a lot of banks and smaller building societies about to bring securitisations to the market.”

But he predicts net lending in 2010 will not be much higher than £5bn of the net lending predicted for 2009 for the overall market.

Speaking about this year’s net lending prediction of £5bn he says: “If we come out with a positive figure this year it will be a result.”

Howard also predicts a higher gross lending figure for 2010 than the predicted £160bn.

But he says this will depend on the remortgage market, which he says, “has almost died at the moment and will not improve until interest rates increase”.

Nationwide has taken the stance of not dual pricing and offers the same products through intermediaries as it does through the branch, with 64% of its business is done via intermediaries.