Nigel Payne's Blog
Nigel Payne, Friday, 17 December 2010
Nigel Payne is managing director of Assurant Intermediary
What would be on your wish list for the mortgage and housing market in 2011? Well we can all dream…
New Lenders
Yes please and the more the merrier. We have seen Precise and Aldermore this year and there are undoubtedly a number of others sat on the regulator’s desk waiting for approval. None of these are likely to make a material difference to the market but we have to start somewhere and they will target segments of the market that are currently under serviced by the existing lenders or not serviced at all. Margins in the UK mortgage market are very healthy at the moment and the risk return for investors is very appealing.
Existing Lenders
More lending please! Yes we know the big boys have to repay the government and the wholesale markets are tight, but 2010 saw a number of deals get away including Leeds Building Society and Kensington. Confidence will return in the wholesale markets, it is just a question of how fast. I suspect 2011 may not be much better or worse than 2010. Let’s get the basics in place during 2011 so we can look forward to a positive 2012 knowing that the risk factors are no longer there.
Regulation
Yes please but in a practical way. Some of the aspects of the MMR are ‘no brainers’ so let’s bring them in as soon as possible, for example approved persons; anyone who is afraid of this shouldn’t be in the market anyway. The MMR can only be good news for brokers. All we ask for is clarity, certainty and timeliness in getting the changes defined and implemented.
Bank of England
Positive management of the economy please. The recovery in the economy still has risks and the impact of the last budget changes are really still to be felt. However it is within the power of the Bank of England to make sure that we don’t risk the economy. I for one would welcome an increase in the base rate as this will help lenders and savers. This may seem a little perverse but a number of lenders are being hampered by such a low base rate. Even if they were to increase the rate to 2% I am not sure this would have a significant downside for borrowers.
Royal Wedding
Well why not. We all get an extra day off and more importantly the whole population needs a feel good factor. So how about a Royal Wedding organised by Simon Cowell, with Ant and Dec as the best men, Stacey Solomon as Chief Bridesmaid, the whole of the England Cricket team as the Guard of Honour and Peter Kay presiding over the proceedings? I for one would be glued to the TV! Bring on 2011.
