In the Spotlight with David Jackson, TMA

We spoke to David Jackson, Key Account Manager at TMA Mortgage Club, about the strength of northern cities and the effects of the base rate cut.

Related topics:  In The Spotlight
Rozi Jones
16th September 2016
David Jackson TMA
"An underwriter reviewing a case is always going to be better placed than a computer to make decisions and is undoubtedly the preferred process by brokers."

FR: How will Brexit and a Bank Rate cut affect different areas of the housing market?

In many ways, the topic of Brexit has almost been forgotten about. Although brokers did find that business went quiet after the vote, Brexit is no longer at the top of the agenda in the meetings that I’m holding.
 
The base rate cut was something that had to happen. For the northern region, given that we generally have lower salary brackets in comparison to other UK regions, I believe the cuts will prove particularly helpful for first-time buyers looking to step onto the property ladder. Equally, clients looking to re-mortgage their homes will never find a better time to look at a new rate.

FR: Recent Hometrack research shows that northern cities are registering stronger house price growth than their southern counterparts – why is this, and is it a trend you see continuing?

Cities like Leeds, Manchester and Glasgow offer some great opportunities for employment. As such, these regions are attracting more and more people to live and work in these areas. For instance, Siemens recently invested in the ‘Green Port Hull’ project, bringing more people to live and work in Hull.
 
As I travel around the region, I’ve witnessed a lot of new build projects in plenty of areas. With more properties being built and business in the northern cities getting stronger, i definitely expect this trend to continue.
 
FR: Do you foresee the supply and demand issue getting worse? What more can be done to ensure that people continue to have access to the mortgage market?

In my hometown of Grimsby, this was definitely an issue some years ago. We had the most affordable houses in the country and at the time, buy-to-let purchasing was a bigger part of the market than home movers and first-time-buyers. Fortunately, I feel that this is now changing.

Borrowers who have previously not fitted the stereotypical ‘run of the mill borrower’ profile will now find things slightly easier with the base rate cut and, more importantly, lenders now looking to lend more rationally.

It is important that in the mortgage application process, the human element remains. An underwriter reviewing a case is always going to be better placed than a computer to make decisions and is undoubtedly the preferred process by brokers.

FR: With an increase in FTB numbers, do you think more brokers need to be thinking about including protection as part of their service?

This is a massive issue for the industry and I often see brokers and firms that are very good at offering protection products as part of their service, however I also see the other side where protection is not even touched upon. Protection is an integral part of the advice process and needs to be addressed. We work closely with firms that don’t write protection business to provide training along with engaging with the protection providers for support. Those that have undertaken training have been able to reap its benefits and I would encourage every broker to look into this.

FR: If you could see one headline about financial services in 2016, what would it be?

“Despite the rise of digital and online services, broker interaction is still vital to the end borrower".

The added value and personal touch from a broker will always be needed with regards to mortgage applications that can sometimes be complex and therefore need explaining.

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