A report by Henry Samuels Marketing Services found many brokers are cautious about using new lenders such as GMAC-RFC and Mortgage Express. Instead, they are sticking to established players such as Abbey and Halifax, though their product satisfaction may be lower.However, GMAC-RFC says this is untrue. Jeff Knight, head of marketing services at the company, says: “Neither GMAC-RFC or MEX are new lenders. GMAC-RFC’s business has continued to grow since regulation by nearly 10%, at a time when others have seen a decline in business.” Knight says GMAC-RFC expects to end December with a record number of completions and that the company continues to grow. He says: “Brokers use us because of our competitive range of products, our first-class service and our online system. I always said regulation would see some winners and some losers, and GMAC-RFC is definitely winning as our business figures show.” The HSMS report says only 7% of brokers regularly use GMAC-RFC, a figure disputed by the lender, while 39% and 32% regularly use Abbey and Halifax respectively. The research also suggests brokers are unhappy with regulation, with 43% saying it has only created more work for them. Martin Reynolds, head of sales at BM Solutions, says: “Regulation was always going to drive a flight to quality in the intermediary market. But the suggestion that brokers recommend lenders to clients without being happy with the products is wide of the mark. “Feedback BM Solutions has gathered suggests the vast majority of brokers believe regulation has been beneficial to consumers, bringing transparency and fairness.”
- Top trends
- Top trends
The Financial Services Authority has defended its policy to take action against firms outside the public arena in response to criticism that it isn’t tough enough on non-compliant financial promotions.
em-homeloans is offering a range of products in conjunction with lending partner First National. em-‘s branded lending division willoffer brokers a light-to-medium, two-year fixed rate at85% LTV with a rateof 6.59%; a two-year discount at 75% LTVwith a rate of 6.44%; and a first-time buyer 95% LTV two-year discount with a rate of 5.94%.
There have been plenty of column inches devoted to equity release products over the last five years. The market seems to have great potential, which remains largely unrealised. The barriers to its growth have been far more significant than many predicted, with lenders and borrowers remaining cautious.
HBOS predicts a flat housing market in 2006, with modest nominal house growth and no change in real terms. In its 2006 forecast, HBOS says low, single digit, growth is expected to be the norm, and UK house prices are forecast to rise by 3%, broadly in line with the predicted rise in retail price […]
Royal London carried out a UK wide survey with 2,500 consumers age 35-44 over the summer. The survey found that over a third, 34 per cent, said their finances felt Squeezed and so were struggling to meet day-to-day expenses, despite 87 per cent being aware that they need to save more. However, the survey did […]
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