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 delegates found their relationship with providers to be a fruitless one.
Lenders strongly denied this claim, arguing that pushing credit limits was not innovation.
Peter Beaumont, deputy chief executive of Mortgages PLC, says: ‘High LTVs, high credit limits, high multiple incomes – this is not innovation, it is mad lending.’
David Tweedy, managing director of Platform, says: “It is all very well saying that is the packagers who push the boundaries, but we are the ones who have to manage market capital. At the end of the day, we have to be able to afford to sell the products.”