Crunch could go on ‘for months’
Back in July 2008, financial services firms were on the money when they predicted it would take the industry “more than six months” to recover from the doldrums of the crash. Of course it took quite a bit longer for things to return to normal. The PWC survey found that the savings market was propping up volumes while the residential mortgage sector was “showing signs of distress” with demand for mortgages falling fast. Happily, the picture of the market is much more rosy 10 years on.
Readers back FSA action on senior manager business failures
A decade ago, a Mortgage Strategy poll found that three-quarters of readers were in support of the then Financia
l Services Authority (now Financial Conduct Authority) targeting senior managers for business failures. No surprises there really that the majority were in favour of an ethical market, but the question of why 26 per cent felt they shouldn’t be pulled up on their failings is a little bewildering!
BTL boom as tenant demand soars
While the residential mortgage market took a beating during the
financial crash, the buy-to-let sector experienced a boom with rental years at two-year highs as tenant demand soared. Paragon’s buy-to-let index, a study which is still carried out 10 years later, found landlords’ incomes were boosted by 12 per cent in the year to summer 2008. Nowadays, the roles have switched somewhat with residential mortgages performing well and BTL going through a difficult period following many regulatory and tax changes.
Beginning of the end for self-cert loans
It was the beginning of the end for self-cert lenders a decade ago when the FSA mooted plans to call to account lenders it deemed to have offered such deals without “adequate justification”. The Council of Mortgage Lenders, which last year ceased to exist and was replaced by UK Finance, said at the time that self-cert was “perfectly reasonable” for some borrowers. The loans were banned in the UK a few years later as part of the Mortgage Market Review.
Brokers back ‘safe’ Equity release option
A new trade body was launched for brokers with the catchy title of Specialist Advisers for Equity Release back in August 2008. At the same time the equally catchy Safe Home Income Plans was in place for ER providers, although the bodies were expected to “complement” each other. Neither brands exist today; instead a new body in place that represents all areas of the market in the form of the Equity Release Council; that rolls off the tongue much more comfortably some would say!