FR: Why do you feel more secured loan lenders are now entering the market?
There is a wave of optimism surrounding the economy which is filtering into the financial services market. People are becoming more confident to borrow and potential lenders have been watching the lending figures growing last year and recognised they were missing out . Pending regulation by the FCA also offers a legitimacy to second charge lending that perhaps had been missing before.
FR; What do you predict for the regulation of secured lending?
Bearing in mind we are still in the dark about the detail, which is uncomfortable, there could be initial teething problems depending on the lead in period we are allowed by the regulator. However, regulation will widen the market potential especially as mortgage brokers will need to explore the 2nd charge avenue as a potential route for the borrower looking to raise capital.
FR: Secured lending has continued to rise over the last 12 months – why do you think the demand has continued to grow?
As mentioned above it’s about consumer confidence. People battened down the hatches after the credit crunch and began to repay debt. There is a renewed confidence and a desire to move on with life. On the supply side, there is more money in the system and lenders have recovered some of their confidence in the prospects for the overall economy. More choice then makes for greater competition, which in turn makes pricing more attractive and criteria more accessible for borrowers.
FR: With more lenders entering the market and competition increasing, do you think innovation (such as your hybrid bridging and secured product) is necessary?
With more lenders fighting over the same space it is vital, in my view, that lenders including MSL, continue to innovate and respond to broker requests. It’s about listening to the broker, who is essentially our customer. Having a single regulator and a growing harmonisation of process must encourage more cross fertilisation and therefore greater innovation.
FR: What products do you think we will be seeing by next year?
I wouldn’t like to let the cat out of the bag at this stage but we are planning several innovations throughout the year. I can tell you that we are launching a first charge Buy to Let Purchase product, which complements our secured loan range and I have no doubt our peers will be looking at what we have done and bring their ideas to market. This is an exciting time for the industry.
FR; Have you got any big plans or exciting news coming up for Masthaven you can tell us about?
Apart from the new launch I mentioned before I can confirm we have plans but if I told you I’d have to kill you! Seriously, Masthaven is constantly evolving its proposition so watch this space.
FR: What advice would you give someone starting out in the industry?
Be respectful, remember you have two ears and one mouth – use in those proportions and never burn your bridges.
