60 seconds with...Phil Cliff
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Director of retail assets, Abbey for intermediaries
Why has it taken so long to launch into buy-to-let?
We could have rushed to market but decided to build a system that’s good for brokers and ensures we have a straight through end to end IT model that means we’ve built the scaleability and efficiency into our operations. Maintaining leading customer service was always our primary driver with buy-to-let, so we were never going to rush the launch.
How much do you aim to lend in buy-to-let in 2012 and what proportion of your total lending will it be?
As we are re-entering a new market segment, we are walking before we run, but over the medium term we aim to become a significant buy-to-let provider.
Will we see Abbey offering higher buy-to-let LTVs of 80% or 85% next year?
At a market level I’d be surprised if higher buy-to-let LTVs opened up when considering the bleak economic outlook, but we always keep a close eye on market trends.
Why is there such a rush into buy-to-let and will it cause a relaxation of standards?
The housing shortage and house price affordability are two of many factors that have increased demand in the private rental sector, and lenders and landlords have responded to this demand. Abbey has developed policies and calculations to ensure we are responsible.
Do you think buy-to-let should be regulated?
We ensure we are lending responsibly whether the product is regulated or unregulated.
Do you have any secret talents?
I used to play the trombone. I still have it in the loft so perhaps at this year’s Christmas party…
What is the best advice you have ever received?
I’ve received three - get your work life balance right, your life isn’t a dress rehearsal and your kids will grow up fast.
Apart from a house what is your most extravagant purchase?
Probably a piece of hi-fi equipment but I can’t give you the details just in case my wife reads this.
What book are you currently reading?
I’ve always got a few on the go. Currently it is Tony Blair’s autobiography, A Journey and the new Sherlock Holmes book The House of Silk, by Anthony Horowitz. I’m also reading Charles Dickens’ A Christmas Carol with one of my sons.
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