FR: You recently celebrated 30 years with Norton Finance – what are the biggest changes you have seen in the industry during this time?
Over 30 years I have seen a lot of changes to the industry and the biggest one is around the protection of consumers. The introduction of the FSA and then FCA and their strict regulations were definitely required to ensure all institutions followed set standards with the customers best interests at the heart of all business models. The other major change over this period is with the customers themselves and their attitudes to obtaining credit and their overall outlook on debt.
FR: With the European Mortgage Credit Directive soon to hit the mortgage market, what are the challenges or opportunities you think the industry will face in its wake?
The initial challenge for intermediaries will be ensuring everything is ready for March 2016 as this will be a major change to the second charge industry in particular. The first charge intermediaries have had more stringent regulation over the last few years, not least with MMR in 2014, so they have been used to dealing with change. The process will require new IT systems, increased training and monitoring for current staff including the need for further qualifications which all takes time to set up. The downside will be slower processing times for customers as intermediaries manage their way through the changes to the processes. The opportunities will be for intermediaries as they may face less competition as some may decide to come out of the market entirely due to the costs involved. We have seen a steady decline since October last year when they had to decide whether to be directly authorised or become an appointed representative. Consumers will be able to take out finance with the knowledge that all financial institutions are working to the same set standards and this can only be good news for their protection.
FR: What problems are first-time buyers facing in the current climate and how do you think they can be tackled?
First time buyers are still facing challenges in raising the deposits to fund their purchases as house prices in certain areas have increased substantially. This also affects the general affordability of the actual mortgage even if they use the Help to Buy schemes. I feel the only way to tackle this issue is more good-quality affordable housing working in conjunction with Help to Buy schemes. I also think more could be done to create innovative mortgage products to include more ways family members can help, not just acting as guarantor or putting a lump sum in a bank account, but being involved in just supporting the deposit side. For example, having a comfort charge on the family member’s property to cover the deposit. Another issue for first time buyers may be a lack of credit for lenders to obtain a reference from even if they have the deposit and can afford the monthly payments. It would be useful to have a product linked to a parent for the first few years until the lender is satisfied.
FR: With the MPC pushing back the timeline on a rate rise, how do you think this will affect the rates seen in the market?
I think the rates will remain fairly static with the lenders just altering their own rates to increase and decrease business levels as they need.
FR: If you weren’t in financial services, what would you be doing?
I don’t know what else I would be doing as I came straight from school. I suddenly had a change of heart as I was previously going to become a nanny after being offered a job looking after my Doctor’s two young children.
