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Your Views: Barclays most at risk from Brexit?

Barclays is most at risk from a Brexit? Try telling them that…

The news that analysts deem Barclays the British bank most at risk from a Brexit is at odds with Barclays’ own summation of its position, I feel.

I have just attended a seminar where Barclays was pushing its SpringBoard mortgage. Given that this scheme pretty much relies on the future increase in a property’s value so that the borrower can return their parents’ cash deposit after three years, you would think Barclays must be expecting property prices to rise, not fall – unless it is the initial cash deposit it is interested in at this time, to help balance the books for the next three years…
Samantha Cox, Whichers IFA

Release of lending data is of little use without the regional variations

The CML says buy-to-let lending dropped by 65 per cent between March and April.

Such releases of data are pointless other than to state the obvious in that imposing property taxes creates a surge followed by lower activity levels.

It would have been useful to receive a sense of regional variations, to assess whether the increased tax on second property ownership has had the intended consequences for London.

And how about the rest of the country? Many areas have property surpluses and I would like to know the net effect of the tax increase on these communities.

What were the forecasts, and how helpful or harmful has this truly been?
Steven Balmer, David Allen Financial Services

The merry-go-round will close down if we don’t attract new entrants

I was at a seminar the other day with a number of underwriters and fraud managers. They were from different-sized companies across the bridging industry but had one thing in common – they were all aged over 40.

When we were discussing the biggest risks facing the industry, a common concern was that there were not enough new people entering the industry.

This cry has often been heard regarding mortgage brokers, numbers for whom are reputedly down to about 12,000 from more than 30,000 before the financial crisis, but it seems the issue is widespread.

This leaves us with a merry-go-round of qualified staff who move from one lender to another. There must surely come a day, however, when there are not enough staff to go around.

What the industry needs to do is attract more new entrants. Without them, the risk of losing good staff gets higher and wages are constantly pushed up.

I have heard that the need for qualifications and the volume of regulatory changes are blamed for low numbers joining the industry, but I don’t think the younger generation is affected by these things. I also don’t think anyone joining the industry needs to have achieved a high level of exam qualifications.

What is needed is practical training – possibly an apprenticeship- or internship-type scheme.

Negative press about the mortgage industry in national newspapers also may put off young people.

Every sizeable firm should offer coaching and on-the-job training to increase the pool of bright young people in the industry and ensure its survival. If we do not do this, despite growing demand for both long- and short-term mortgages, there will not be enough people to deal with the enquiries and market growth will be stunted.

Benson Hersch, Association of Short Term Lenders


One to One: Trevor Pothecary, chief executive, The Mortgage Lender

A £1bn commitment, 900 square feet of office space, multiple pilot licences and the importance of the ink on the bottom line Last week it emerged that The Mortgage Lender had secured £250m of funding from TwentyFour. What are your ambitions for this funding? This is the first element of the £1bn commitment we signed […]


FCA authorisations hit by consumer credit backlog

A backlog of consumer credit applications is the driver behind delays in the FCA’s authorisation process, insiders claim. Money Marketing understands that in May the regulator took 18 weeks to appoint a case handler for authorisation applications, which it expects to drop to 14 weeks by the end of June. This is a lag on […]


Barclays ‘most exposed’ to Brexit fallout

Analysts have warned Barclays is the British bank most exposed in the event of the UK voting to leave the EU. The Daily Telegraph reports Barclays’ share price is highly correlated with moves in sterling, accounting for 80 per cent of the stock’s movement over the past 18 months. Jefferies analyst Joseph Dickerson says: “Barclays […]

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Pension Wise — now taking calls…

Those with decent-length memories will recall that in the 2014 Budget statement George Osborne announced the new (and entirely unexpected) pension freedoms. The new rules come fully into force in less than two weeks.


Guide: how to change your auto-enrolment support

As we approach the two-year milestone of auto-enrolment, employers have had the opportunity to truly assess the capabilities of their chosen support. They are also now realising that getting to the staging date was the easy part, and that support is required for almost every aspect of the day to day running of their scheme. With the three-year re-enrolment window coinciding for many with the total removal of commission and Active Member Discounts from pension-related products and services, as well as the introduction of the pension charge cap in April 2015, many employers will have no choice but to review their support options. But, what is involved in transitioning your auto-enrolment scheme away from your current support options? This guide from Johnson Fleming aims to outline some of these key areas and provide information and discussion points on what you need to consider.


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