The Legal & General Partnership today announced that since November 1 2004, it has reached lending volumes of 18.5bn.
L&G went through a massive transformation pre Mortgage Day, to ensure its firms had the compliance support to be able to trade successfully in this new market. A risk based technology system featured heavily in this, to support advisers in meeting the regulatory and reporting requirements. So far, over 250,000 customers have been advised using this new point of sale system introduced for M-Day.
Graham Newitt, managing director of intermediary solutions at
L&G, says: “We are delighted by these early results and they reflect the investment and effort our partners have made before and after M-Day. The industry, as a whole now needs to stimulate an active house buying market.
“We can do this, for example, by developing suitable products for the first-time buyers market where inevitably we see parents playing a bigger part in helping to buy the first home.
“Lenders can help with products such as a guarantor mortgage, or allowing the parent to be party to the mortgage, creating a more flexible approach to funding the purchase. The industry needs more of this type of innovation.
“We believe that by working closely with lenders and listening to advisers, we can develop products that match customers requirements. Another challenge for lenders is the need to facilitate aggregating their acceptance in principle systems, which would help customers and advisers to explore their options from one source.
“The life and general insurance markets have supported these consolidated services for some time, providing real time, accurate illustration information to portals and other service providers. The mortgage industry now needs to do the same. It is not workable to expect users to visit individual websites for this information.
“By placing property on the market at a realistic price, there are benefits to be gained all round and it will help re-stimulate the marketplace.”