Following ongoing lender closures, KGB Packaging is appealing to mortgage lenders to declare their intentions with regard to remaining active in the UK mortgage market and supporting the intermediary distribution route.
Rachel Bancroft, managing director at KGB, says: “I believe that the good news cannot start until all the bad news is finished. We all want to see recovery in the mortgage market, but none of us are going to see any sign of recovery until the full extent of the credit crisis is known. Only then can brokers and the public regain confidence in the market.
“I am asking all of the players in our industry to be fair and open about their intentions to remain in the mortgage market, or to take the lead from Edeus and re-invent themselves for the sake of the rest of the industry. I know that ultimately the smaller UK operations don’t have control over what their parent companies wishes are but I am calling on the Investment banks to make decisions now so that distribution firms can plan effectively.
“The phrase about lenders‘ either, lending, pretending or ending’ was much quoted following the recent mortgage packager summit and I really wish that that the ‘ending and pretending’ lenders would decide whether they want to stay or go, so that everyone in the distribution chain understands the true state of the market and can start to plan for the recovery.
“I am very encouraged by the government’s initiative announced recently, to use mortgage assets as security for government bonds, and although this will take time to filter through to the lenders, maybe we can start to see the beginning of the end of the credit crunch over the next few months. I truly hope that all of the remaining lenders will continue to have a presence in the UK market – but we do need some clarity before we can move on.”