Packagers can ride the storm

Remortgages and the buoyant buy-to-let market will act as lifelines for many packagers this year.

Research from The Mortgage Business reveals that the huge number of borrowers coming off fixed rates – a market estimated to be worth a whopping £150bn along with resilient buy-to-let demand will offer packagers opportunities in a bleak year that will see more casualties in the sector.

David Murphy, sales and marketing director at TMB, spelt out the sector’s prospects during a presentation at Mortgagedistributor.’s Packager Summit in Monte Carlo last week.

He says: “If you put a massive remortgage market and huge buy-to-let and self-cert opportunities together with enhanced technology links with lenders, packagers can ride out the storm.”

Murphy also believes packagers can entice back brokers who have stopped doing business with them.

His presentation focussed on research TMB conducted in Novem-ber, which was designed to measure industry confidence in packagers as well as packagers’ own state of mind.

The study re-veals that directors of packaging firms are less confident about the future than their mortgage desk staff.

Some 8% of senior decision-makers and 25% of those working on mortgage desks at packager firms expressed confidence in the sector.

The survey also shows that 77% of lenders and brokers who no longer use packagers had placed business with them in the past three years.

Murphy says: “Most non-users of packagers are lapsed users. For whatever reason, packagers were not able to add value for some so there’s an opportunity to put that right.

“Payment shock for some clients will be huge. Borrowers will have to shop around and this is an area where packagers can come up with clever solutions.”