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Looking forward to lender competition
I read Nationwide’s latest house price index with interest to see its predictions for 2010, but after finishing the report I was inspired to return to my bed and stay there for 12 months.
House prices will be unchanged and interest rates will rise in the second half of the year - sooner if inflation continues to rise and the pound slips further. Not particularly motivating when you work in an industry that relies on house prices and interest rates.
There are positives in the report if you look hard enough including a 5.9% rise in house prices in 2009, the fact that unemployment has not been as high as expected in a recession of this magnitude and the banking system has stabilised.
These are reasons to be cheerful when you think back to this time last year and the mess we were in.
Trawling through the national press for good news was also hard work but I was impressed to read that Lloyds Banking Group is a share tip for 2010.
After its successful rights issue Lloyds group is deemed to be emerging from the doldrums. After all, the government would not allow it to leave the Asset Protection Scheme if it was struggling.
So the potential return of Lloyds group as a big player in the broker market is motivation enough for me this year and my fingers are crossed that this happens.
Last year’s top share tip was Barclays and we all know what a fantastic year it had, so bring on 2010 and a year of competition.
ROBERT WINFIELD
MANAGING DIRECTOR
CHARTWELL FUNDING
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