View more on these topics

Up, Up and Away For Mortgage Rates ?

I see Halifax, amongst others, is increasing its tracker rates again today which in isolation is not so much of an issue. Taken in the context of the last few weeks, I have never known such a situation.

Lenders are repricing upwards, with not much if any notice, on a frighteningly regular basis which is making the job of the poor, beleaguered adviser very difficult indeed. After all, by rights we are meant to be in a falling interest rate environment so where will this end ?

Criteria changes are going on left, right and centre and worrying rumours are circulating at high speed.

The Bank of England, European Central Bank and the Fed are all pumping more money into the banking system to try to assist with the current liquidity issues, but will this be enough as we are now eight months since the “credit crunch” began ?

In the short-term this may assist and the US stockmarket has responded favourably, but is there now a deeper issue. As the BBC’s Economics Editor Evan Davis put it “It is, in other words, a crisis of confidence in bank solvency. It’s not that banks don’t have cash to lend; it’s that they don’t trust each other to have sufficient assets.”

It is however, up to all of us to keep calm and take some responsibility. It is up to the lenders to keep a sensible and open dialogue going with brokers and the few main packagers. We do understand the issues and we want to work with you to help.

Perhaps the most worrying aspect of all of this is the slight feeling that some lenders may slowly and carefully be retreating from the conversation.

Recommended

Easier2move appoints first chairman

Easier2move has appointed Tracy Morshead as its first chairman.It follows his apppointment as chairman of Mortgage Brain.He joins E2M from Principality where he was managing director, before which he spent 10 years at Nationwide in a number of senior positions including divisional director of mortgages and insurance and divisional director of marketing.His new responsibilities will […]

NDL conference: Sub-prime business to fall by 30%

Speaking at Network Data’s annual conference today, Alex Cotton, chief executive of Network Data says that it is predicting sub-prime business to fall by 30% in 2008, and prime by 10%.She also revealed that BM Solutions has lost its top spot in the lender charts and has dropped to third place, while Abbey for Intermediaries […]

Automation gives investors confidence

Every lender has a unique business proposition with a specific methodology that backs up its brand. Understandably, each organisation is keen to promote and justify its chosen strategy and many use a mixture of PR and advertising to do this.

BUDGET 2008: Darling reveals affordable housing scheme

Chancellor Alistair Darling has revealed a plan to spend £8bn more on affordable and social housing.He says this will allow the Housing Corporation to deliver 70,000 homes each year in three years time.He also revealed a plan to help key workers such as nurses and teachers onto the housing ladder.Darling says there will be new […]

Newsletter

News and expert analysis straight to your inbox

Sign up