View more on these topics

Packagers must be kept in the loop

Over the past few months it has become apparent that lenders are splitting into two camps. On one hand you have firms that are still lending in vast quantities. On the other you have lenders limiting the amounts on offer. Most providers sit somewhere between these extremes.

I understand the reasons for both side’s actions and the challenges lenders face in the prevailing economic conditions.

The market is in turmoil and all lenders have to pitch their propositions carefully to ensure they can manage the challenges they face.

Unfortunately, any lender with an attractive product is inundated with business, which has a knock-on effect on service standards. If there are going to be delays we need to know so we can inform our broker clients.

But we’re finding that lenders with popular products are failing to communicate with us when their service buckles under the strain.

As a packager we need to update brokers about all aspects of their cases, from products and criteria to availability and service levels. If lenders fail to let us know when they’re struggling it makes our job harder.

Packagers need honest and open relationships with lenders. Without this our updates to brokers are fatally flawed.

Regrettably, the days of having a multitude of lenders to choose from and swift no-questions-asked offers have gone. We don’t expect them to return any time soon.

The reality is that offers are taking longer due to lenders’ service problems so expectations must be managed from the outset.

Brokers need to ensure their clients are aware of the current problems hitting the mortgage market.

I’m pleased there are still lenders willing to lend when some of their competitors have pulled out of the fray, but it hasn’t been surprising to find the ones still providing products are having difficulties coping with demand.

The market is fragile and we need to work together to ensure the relationship between pack- agers and lenders remains solid despite the delays.


TMO in management buyout

The Mortgage Operation has undergone a management buyout after blaming its private owner for falling short of contractual obligations. Adrian Stahl, marketing manager at TMO contacted brokers today saying the packager had also suffered from its association in 2007 with Victoria Mortgage.Stahl says: “It was hoped that the new private owner, who took over in […]

Lenders doubt 100% market

Experts doubt the future of 100% mortgages following the recent exodus from the sector.Both Norrie Henderson, director of lending – Scotland at Bank of Ireland Mortgages and Simon Cocker, head of business development for the Dunfermline, said that if more lenders withdrew this could lead to the market disappearing completely. Both Bank of Ireland and […]

BUDGET 2008: Darling’s speech to the House in full

Mr Deputy Speaker, the core purpose of this Budget is stability – now and in the future. And its core values are fairness and opportunity, founded on stability and strength. Mr Deputy Speaker, in every country in 2008, every government has one aim – to maintain stability through the world economic slowdown.Britain with its central […]

Enterprise to launch site range

Enterprise Group has announced it will launch a suite of websites. Enterprise Finance, its secured, bridging and commercial arm, launched a website last week and websites for its Partners, Homeloans and Broker Services businesses are due shortly.


News and expert analysis straight to your inbox

Sign up