View more on these topics

PACKAGING SUMMIT 2007: New lenders accused of pushing credit limits too far

New lenders have been criticised for pushing credit limits in an attempt to gain ground in a saturated market.

On the first day of Mortgage Strategy’s Packaging Summit in Nice, France, members of an expert panel warned about the dangers of some of the products offered by new lenders.

Peter Beaumont, deputy chief executive of Merill Lynch’s Mortgages PLC, says: “There are too many new lenders entering the market without the necessary experience and analytics to understand the long term risk.

“It is a fact that arrears are a lot higher amongst those lenders who have pushed the credit envelope too far.”

Nigel Payne, managing director of HBOS brand, The Mortgage Business, says: “Too many new lenders have not figured out the risk and reward values where their high risk products are concerned.”

However, John Prust, director of sales and marketing at Lehman Brothers – which owns Preferred, Southern Pacific Mortgage Limited and LMC – argues that all lenders are well aware of the potential pitfalls of pushing credit boundaries.

He says: “It is condescending to lecture lenders about the perils of pushing credit boundaries.

“It is obvious to anyone that this may not be successful, and it is especially obvious to the people running these mortgage lenders, who are intelligent management professionals. I fully welcome any new lenders onto the market.”


West Brom completes first residential deal

The West Brom has completed its first residential mortgage securitisation, via a £320m buy-to-let financing transaction. The transaction, called Hawthorn 1, made up of mortgages generated through the society’s intermediary lending brand, West Brom for Intermediaries, and was completed via its non-member arm, West Bromwich Mortgage Company. Gary Cowdrill, finance director at West Brom, says: […]

PACKAGING SUMMIT 2007: PMPA slams lenders

The Professional Mortgage Packager’s Alliance has attacked lenders who have failed to deliver in terms of technology links at Mortgage Strategy’s Mortgage Packager’s Summit.One sweeping rumour was that PMPA was referring to edeus – although this has been flatly denied.O’Brien says: “Some companies have been very tight lipped concerning their dealings with packagers. If they […]

Praxis opens Northern Ireland office

Praxis has opened a new dedicated office in Northern Ireland days after announcing a new lender partner and the relaunch of its commercial arm.The office in Randalstown, County Antrim, opened on January 15. Fintan Monaghan, heads the Praxis team as well as national mortgage service Switch 2. He says he is looking forward to the […]

PACKAGING SUMMIT 2007: Packagers claim industry innovation

Packagers feel that they are the drivers of new ideas and innovation in the industry, rather than lenders, according to a poll cast at this year’s Mortgage Strategy Packaging Summit.When asked whether they were happy with the relationship they had with lenders, and whether lenders were the innovation behind the packaging industry, nearly all packager […]

Mental health in the mainstream

By Amanda Docherty, senior marketing consultant Apart from career success, millions in the bank and, on appearance, coveted lifestyles, what else do Rio Ferdinand, Lady Gaga and Ellie Goulding all have in common? They’ve all demonstrated that the power of celebrity can sometimes have a more altruistic purpose than idle gossip. Recently we’ve seen respected […]


News and expert analysis straight to your inbox

Sign up