View more on these topics

Industry could take six months to recover from M-Day

Half of brokers say it could take at least six months for business to be back to normal post M-Day, says Advantage Home Loans.

A further one in ten think it could take a year before business levels return to normal

A recent survey of brokers, conducted by branded mortgage arranger Advantage Home Loans, has revealed that 50% of brokers believe it could take up to six months for business levels to be back to normal following the impact of M-Day.

Advantage Home Loans has revealed that 40% of brokers have experienced a sharp downturn in business since M-Day.

The recent findings from the survey compound the negative feeling among brokers that business will continue to suffer for some time to come indeed, one in ten brokers say it could take as long as 12 months for business to pick up again.

However, there appears to be a glimmer of optimism with around one fifth of brokers saying business could pick up in the next two weeks and a further 20% believe it may take up to three months.

When asked what the main reasons were for the downturn in business, almost half, 47%, have blamed systems glitches post M-Day which have held deals up, 31% say there is an element of general confusion in the market and 22% say there has been a significant drop in consumer demand.

Keith Dearling, director of Advantage Home Loans, says: “Clearly there has been a dip in broker confidence, particularly in the sub-prime arena but we expect this will soon rectify itself post Christmas as the market picks up again.

“While many brokers fear that business could take six months or more to pick up, our feeling is that in fact opportunities will start flowing quite rapidly again in the next two to three months.

“The worry then is that brokers won’t be expecting this quick upturn and therefore wont be ready to handle the extra business.

“M-Day has created much confusion out there and brokers are still coming to grips with the new system of working.

“Clearly, we suggest that brokers invest their time wisely now to ensure their systems can cope with the post Christmas demand.”


Abbey offers payment protection savings

Abbey is offering people the chance to save 25% off their annual mortgage payment protection.It’s offering three months of free mortgage payment protection cover for all new applications until February 28, 2005.Abbey research shows that only 36% of people are covered for accident, sickness and redundancy, with men making up just under 30% of this […]

Charcol warns of interest payment rises of at least 1%

Charcol is warning borrowers to expect interest payments to increase by at least 1%.With four interest rate rises this year, borrowers could see their interest payments rise by around 20 to 25%. For a typical mortgage of 100,000, those on annual review could find their monthly interest payments rise by 83, equating to 1,000 over […]

NAB pushes into broker market

National Australia Bank Group is making a concerted push into the intermediary market through its Clydesdale Bank brand. It will primarily target higher net worth individuals in the south of England.

10 September thumbnail

Johnson Fleming set to hold auto-enrolment support webinar

Two years since the process of auto-enrolment began, the looming re-enrolment deadline provides the perfect opportunity to assess whether the support you have in place, which may well have been hastily selected at the start, is fit for purpose. Johnson Fleming is holding a webinar on 10 September at 11:00 to discover the key issues and concerns you should consider when thinking about your current support options.


News and expert analysis straight to your inbox

Sign up