It’s been a strange year for the mortgage industry. With the industry set for a regulatory shake up under the Mortgage Credit Directive in March 2016, 2015 has felt like something of a year of preparation. All focus has been on next spring – which is perhaps one of the reasons why this year has gone so fast.
Of course, brokers have also spent this year adjusting to the last big regulation change – the Mortgage Market Review – which came into play in 2014, as well as the Financial Conduct Authority’s taking of the reins of the consumer credit market. It’s not surprising therefore that for many, 2015 has felt somewhat unsettled.
Ongoing hints and speculation about base rate rises, particularly from Bank of England governor Mark Carney have only added to market jitters! With the U.S. currently looking likely to hike rates speculation that the UK will follow suit sooner rather than later is rife.
One of the highlights of 2015 has been the influx of new lenders into the market. Lenders like Fleet Mortgages and Foundation Home Loans have helped put some much needed competition back into the industry and as a result products have become very attractive.
We’ve seen new sourcing tools and software brought to market as intermediaries become increasingly aware of how beneficial technology can be in helping to run their businesses smoothly and, most importantly, compliantly. With second charges now part of the mortgage product stable there has never been a more important time to ensure your business is running efficiently and meeting FCA standards.
The recent and impending regulatory changes have seen lenders rely heavily on brokers and 2015 has seen intermediaries share of the market top 70%.
And there has been more good news for brokers with lenders increasingly paying brokers a fee for product transfers.
The departure of Martin Wheatley from the Financial Conduct Authority was certainly a notable moment in 2015 and perhaps signals a new direction for the regulator.
Of course, 2015 was also the year MCI launched into the market after much preparation and our timing couldn’t have been better. Over the last 12 months we’ve witnessed the tide turning when it comes to networks and appointed representative brokers. The FCA slammed the advice ARs were giving clients earlier in the year, laying the blame for any shortcomings firmly at the door of networks. Meanwhile Leeds Building Society became the latest lender to offer equal proc fees to ARs and DAs, showing the industry is starting to catch on that the quality of business coming through DAs is equal to if not better than ARs.
