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MIG scheme will encourage lenders

Whatever your political persuasion on how to maintain stability in our financial markets, the government has tried to stay ahead of the crisis with a wide range of initiatives.

Some of us might have done things in a different order, but at least the government is trying.

However, we are still not seeing any noticeable increase in residential mortgage lending.

Two things need to happen. The bad bank facility will only work if lenders analyse and understand their existing portfolio.

With complicated purchasing arrangements – where some lenders agreed to buy mortgage portfolios before the loans had been underwritten – many lenders don’t know the risks in their balance sheets.

It is likely that independent analysis will be required for lenders to understand the problems. Having lost the toxic liabilities, we need to see LTVs increase.

It was great to see Nationwide launch a broker-only 95% LTV deal, albeit for existing borrowers, but more deals are needed.

To encourage lenders further, I would like to see a government-backed mortgage indemnity guarantee scheme. If structured correctly, taxpayers could even make money out of such a facility.


Get clients to think of financial security

I’m writing this on what has been labelled the most depressing day of the year, and all the doom and gloom in the world markets makes me think that the day is not going to get any better.

FSA fines broker for self-cert mis-selling

The Financial Services Authority has fined Nottingham mortgage broking firm Gillen Farrelly Independent Advisers £17,500 for self-cert mis-selling.

Home Buyer Systems reveals top six direct only deals

Home Buyer Systems has used feedback from users of its HBSLite sourcing system to compile a list of the the top six direct-to-lender mortgage products that brokers are using for both purchase and remortgage.

Auto enrolment – so far so good?

Jamie Clark – Business Development Manager The recent report from the Pensions Policy Institute demonstrates the sheer scale of auto-enrolment so far and what we can expect in the future. We’ve pulled out the key information to save you reading the full report. Auto enrolment in numbers Sources: Pensions Policy Institute, The Future Book: Unravelling […]


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