60 seconds with...Steve Olejink

19 July 2010 | By Christine Toner

STEVE OLEJNIK
HEAD OF SALES
MORTGAGES FOR BUSINESS

What do you make of the Mortgage Market Review Consultation paper?
It’s no surprise to see the end of self-cert and fast-track. I’m all for protecting clients and ensuring mortgages are affordable but the Financial Services Authority must listen to feedback from stakeholders.

Many borrowers have genuine reasons for not being able to prove a steady income and I have concerns that good applicants will find it harder to find competitive finance. The negative commentary on interest-only transactions is also worrying as there are often good commercial reasons to structure borrowing in this way.

Are you concerned about the future of brokers?
Yes, but selfishly I’m only really concerned about one brokerage. Thankfully we have come out the other end of the downturn but I’m under no illusion that we’ve seen the last of the fallout in the intermediary market. Customers will always need good quality advice from experienced professionals and it is imperative that the FSA and lenders understand the value brokers add to the mortgage process.

What should brokers do to ensure they still have a role in the industry?
As a specialist broker we have survived by focussing on what we’re good at and maintaining strong relationships with clients, introducers and lenders. Obviously, firms need to cut their coat according to their cloth and for some, having the ability and skills to diversify and look at all available income streams will be key.

Do you think the FSA is being too prescriptive?
It’s understandable that it is reacting to the problems we’ve seen in the past couple of years. As an optimist I hope all interested parties will have their voices heard and that with sensible debate we will avoid nonsensical regulation that could stifle the ability of sound borrowers to access finance.

What will be the biggest challenges this year?
The number of lenders and the availability of credit. The rumoured re-entry of Paragon Mortgages and offerings from new lenders such as Aldermore and Precise Mortgages are good signs but more needs to be done to get high street lenders lending again.

I think we’ll undershoot the Council of Mortgage Lenders’ projection of £150bn gross lending for 2010. With some high street lenders looking to offload non-core property loans and banks continuing to focus on building up their balance sheets sourcing finance for clients will remain a challenge for some months to come.

Interview by Christine Toner