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2011 prediction is gross lending flat, net lending down

The Council of Mortgage Lenders is forecasting that gross lending will remain static at £135bn in 2011, but that net lending will drop from £9bn
this year to £6bn.

In a market update last week the CML says: “We do not envisage a return to the lending levels that characterised the middle of the last
decade for many years to come.”

Halifax is forecasting that house price rises will remain static in 2011 but that interest rates will reach 0.75% by the end of next year. In the lender’s market outlook, Martin Ellis, chief housing economist at Halifax, says government schemes have filled the gap left by the contraction of money markets.

But he adds: “At the same time, banks have to boost capital and liquidity reserves. So they will need to be able to refinance wholesale debt and build strength in their balance sheets and liquidity provisions to maintain mortgage availability.”


Enquiry into banks’ failures is vital or nothing will change

The Wikileaks report last week (Mortgage Strategy Online) revealing the Royal Bank of Scotland’s chairman Sir Phillip Hampton thought directors at the bank had breached their fiduciary duties was a real eye opener. The only way anything will change is if we lobby for an enquiry into the failure of RBS, HBOS and Northern Rock. […]

Nationwide stops guarantor deals through brokers

Nationwide for Intermediaries no longer offers guarantor mortgages via brokers as of last Friday. Its guarantor deals will be directonly and brokers will now have to go through The Mortgage Works brand. A Nationwide spokesman says: “Nationwide continues to be supportive of the broker market with a specific range of intermediaryexclusivemortgages – TMW Prime.” But […]


60 Seconds with…Phil Whitehouse

PHIL WHITEHOUSEHEADTHE MORTGAGE ALLIANCE HOW WAS 2010 FOR TMA?At TMA we managed to hit the majority of our business objectives and made some positive changes to the business. It was a good year for our customer service strategy and we have worked hard to build some productive and long-lasting relationships. DO YOU THINK MORE LENDERS […]

Guarantees in the retirement income market

Lorna Blyth, Royal London  Do guarantees benefit customers and, if so, when? To answer this conundrum we commissioned Millimans, a global actuarial consulting firm, to conduct an independent review of the UK retirement income market and whether guarantees really do offer customers better value for money. The brief The study was one of the most comprehensive undertaken […]


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