myi: What do you see in the foreseeable future with regards to the lending markets:
As we are all aware, there has been a range of regulatory changes and guidance over the last three years that have affected all market sectors.
The modifications are only set to continue as we wait to see the full impact of the MMR, the outcome of the Secured Lending Reform Bill, the impact of one regulator in the secured lending market, as well as the implications of regulation on buy to let and commercial secured lending.
In their efforts to avoid a repeat of the housing crash, regulators have been accused of over-regulation and stifling the recovery of the mortgage and secured loan markets. However, the reality is that we are living in a different world than two years ago or earlier.
In order to grow, lenders will look to adapt and innovate to complement the market and regulatory demands. As a result, 2011 is likely to be a period of stability. Challenges will undoubtedly continue to present themselves, but optimism will remain.
Of course, increased choice for the consumer is paramount to the growth of the market. More lenders will innovate, which is great news for brokers, as the new lending landscape presents a range of competitive new products and plans to offer to their customers.
However, the volume of customers now deemed “creditworthy” by the majority of lenders, represents a relatively small segment of most broker portfolios. The likelihood is that the broker will find themselves placing business across a broader spread of lenders.
The danger for lenders is that this perceived “creditworthy” sector is an incredibly competitive space and growth will be stalled if they cannot differentiate. Offering something new or competitive to meet the needs of customers is key to really standing out.
Lenders that recognise opportunities and meet this changing demand will help to grow the market, and provide a sustainable portfolio of products and plans for brokers.
As a result, the industry will look to cater for the needs of the customers and recognise that ‘creditworthy’ doesn’t necessarily mean that a client must have a perfect credit history. In times of recession, everyone has the potential to suffer a credit record discrepancy.
To see market-wide recovery, lenders will be preparing to recognise all ‘creditworthy’ customers with sustainable affordability. This will ensure that potential customers are not left by the wayside.
Ultimately, by servicing the demands of these customers prudently, the market will once again broaden, and niche elements will help to create growth for those who are prepared to offer appropriate products and plans.
myi: How are you finding the current market conditions?
The market conditions remain tough generally across all market sectors; however optimism continues to grow.
Economically, the country is far from out of the woods. The ongoing Comprehensive Spending Review announced public sector job cuts and regulatory impact continue to have an adverse influence on all types of lending. As a result, it is no secret that lenders, in general, are continuing to adopt a cautious approach.
However, all sectors are seeing lenders re-enter the market, with rumours abound that more will follow, improving the potential growth of the industry. This is great news for consumers and brokers, and provides some sanguinity for the market as a whole.
Of course, more lenders is good news, as the new lending landscape presents a range of competitive product and plans; however we are seeing more lenders increasing market share rather than growing the market. Over the coming months, all lenders will recognise this and look to increase their product offerings, where possible.
myi: What trends are you seeing in the commercial market?
More lenders have entered the market and each one appears to be recognising a niche that they can fill. This is good news for all concerned as the broker panel is broadening with lenders that complement each other, which will fuel growth in the commercial market.
Commercial mortgage and secured loan term lending is increasing at a faster rate than bridging finance. In recent times the commercial market has seen a substantial growth in bridging finance lenders.
Many of the bridging loans provided over the past couple of years are now coming to the end of their contractual term. If the intended exit route has not been achieved customers must now seek to secure a longer term solution to their aspirations, and a commercial mortgage or secured loan is often the ideal solution.
Equally brokers and introducers are more educated to the appropriateness of a bridging loan and the importance of a defined exit strategy. This means they are identifying earlier when the customer would be more suited to a commercial secured loan or mortgage, rather than bridging finance. As a result these products are seeing a resurgence.
myi: What is the proudest moment of you career?
This is the toughest question as there have been many moments in my career that I am proud of on a personal level.
These include recognition for exceeding both personal and business objectives throughout my career, including numerous promotions. I’d have to list meeting my wife Tracey (not at Blemain Group I may add, as is often presumed, but as a result of progressing through my career).
Also, watching the junior members of staff develop into integral senior managers in the business and seeing the successful achievements of my team have been particularly proud moments. It is fulfilling to see individuals you know exceed their
