MBE Leeds: Remo and B2L to stimulate growth
In 2014 the market saw £206bn of lending, but Nationwide for Intermediaries head of corporate accounts Gary Salter, Kensington’s marketing manager Alex Hammond and Martin Richardson, Leeds Building Society’s general manager – business development, all agreed that they will rise again this year.
Salter said lending will increase, but at a lower level than the Council of Mortgage Lender’s prediction of £222bn, while Hammond agreed that levels will rise but not in excess of CML predictions.
In terms of how lending levels will increase, Richardson said a “continuation of low interest rates – which are the lowest they have been for some time – will start to stimulate the remortgage market” and Bailey also said “the remortgage market will come back at some stage and there will be a clamour”.
Bailey added: “Remortgaging is starting to pick up now. You are seeing people thing about their finances – they think that at some stage interest rates are going up.”
Hammond also brought up buy-to-let as a potential growth area.
He said: “Those lenders are going to have to get market share somehow – we will probably see that growing.”
And he added: “We definitely see the specialist market going to 10% of overall lending.”
At the debate Salter was also forced to defend Nationwide for failing to offer retention procuration fees. He said: “I’m sure it will come but I’m not sure when.
“Being a juggernaut – it takes a long time to change direction.”