Last week saw two newcomers to the mortgage market, Precise Mortgages and Aldermore.
Both are committed to the intermediary sector and I hope brokers will view them positively.
New entrants probably have good reasons for making their move now. I can speak only for Precise Mortgages but we have a strong view that the worst is behind us.
We have one eye on the eurozone debt crisis and the tensions in North and South Korea, both of which could turn into something of a financial nightmare. But we still believe the risks, while significant, are manageable.
As lenders we look at the relative stability of the housing market. A volatile market is not good for us as it makes it difficult to predict credit risk. Even if the market is not great, as long as it is stable and sustainable good lending decisions can be made.
Right now the mortgage market is undersupplied by lenders and liquidity is still a major problem that is acting as a brake on volumes, which means borrower demand cannot be met.
We are bringing a small but significant level of new money into the market that we hope will be well received.
Although we know we cannot fix the liquidity problem by ourselves, we are doing our bit. We hope other lenders follow suit and help plug the liquidity gap that is causing so much damage to the economy.