Call for lenders to abandon caution is misplaced

I read with interest the recent press release from All Types of Mortgages, which quoted Vic Jannels urging lenders to be less cautious.

My company sees the industry from all angles as it deals with lenders, brokers and third party providers.

Jannels’ statement shows a lack of understanding about how the market is positioned and how lenders are restricted by economic conditions.

Arguably it was a lack of caution that led to some of the challenges the market now faces, in particular the misplaced trust placed in third party providers such as badly run packagers.

To suggest that balance sheet lenders are seeking the demise of the securitisation market is not only a crass misjudgement but also shows that Jannels does not understand how they fund products.

Lenders have long memories and many of them will be in business a lot longer than some packagers.

Kevin Friend
Strategic partnerships director
Mortgages.co.uk
By email