Like most of you I am busy planning what business we are likely to do in 2011. Most people in the mortgage market believe it is likely to be another tough slog and reading the papers can only add to the sense of uncertainty.
The implosion of Ireland looks like it is spreading to much larger Eurozone countries, significantly pushing up their cost of debt and potentially squeezing their liquidity. At least one of the countries under pressure has a significant presence in the UK.
A large chunk of money needs to be repaid by our own banks to the Special Liquidity Scheme, which again squeezes liquidity and ultimately discourages lending.
I also imagine that there is at least a chance that our authorities will take a different view on the timetable for repayments to the SLS which could in turn ease short-term liquidity pressures.
Brokers will need to break old habits and search out lenders that have money to use rather than being reliant on the big six.
As a smaller scale lender I know only too well that we are not going to solve the nation’s liquidity issues, but on a local level we may be able to help some borrowers and brokers with their mortgage needs next year.