Buy-to-let to last

At the end of last week I was fortunate to spend a couple of very educational days at the buy-to-let Summit.

It is important to realise that the issues facing lenders at present are not set to go away any time soon.

I have long feared that the reality of the situation is that we will not see a return to a semblance of normality this year. In fact it could be spring 2009 until things start to move again.

I am not trying to be the doom monger but this is the reality of the situation.

In the meantime we can expect lenders to increase their tracker rates even further as their margins need to rise to cover the increasing costs they will inevitably be facing. And as professional brokers we need to understand this reality.

Lenders also need to know that brokers can help this situation, in terms of working with the lenders, assisting them in changing public perception to the realities of pricing. Brokers, and the good packagers, who really control distribution can help to deliver quality business within the parameters that lenders really need at present.

It is not a time to abandon brokers and start offering better rates directly to the public. In these times the general public needs professional advice more than ever.

On a less serious note, after a couple of glasses of vino and a couple of hours of serious debate round the dinner table we managed to work out that the credit crunch began in France and should now be referred to as “Le Crunch” – Paul Merrigan will be happy to enlarge on this point!