If Dallas can return, so can we.

Its been a while since my last blog. Writers block, a crazy mortgage market, kids teething, washing my hair - the reasons are numerous. However, inspiration came my way when I sat down to enjoy the return of one of the greatest TV programs of our time - Dallas. Okay slight exaggeration. Maybe it can't claim that accolade, but it can claim the greatest set of eyebrows ever seen on TV. Larry Hagman, aka JR Ewing has returned with two co actors (eyebrow number one and eyebrow number two) and is back on our screens. Something about JR's scheming, Bobby Ewing still whispering every sentence, and Sue Ellen having had so many face lifts her eyes are almost on the back of her head, has motivated me to come out and get blogging again.



 

Perhaps it is the flash cars, the sight of Southfork, or the tone of green I seem to turn whenever I watch the program. Perhaps it is the tall sky scrapers in the opening sequence, or the site of the horses running wild around one of the biggest areas of land ever owned by man that makes me think, you know what; money is out there! You just need to find it.

 

Well lenders certainly seemed to have found it. The rates we have seen of late are simply sublime! NatWest went truly crazy leading the way with their five year fixed deal and even after repricing, are still head and shoulders above everyone else. Halifax got stuck in with a fantastic 90% range for 7 year fixed deals. Lenders seem to be having a go. Perhaps it was Tescogate that triggered this? The emergence of one of the most feared brands in the land now evident in our sector must have made many stand up and take notice. Whilst their initial offering was quite conservative, it didn't take long for them get a little more aggressive.

 

News today that Precise are also joining the prime market with some fairly attractive deals means that price wars are rife and consumers can start saving a few pennies to invest in larger tvs to truly appreciate the splendour of JRs eyebrows. In HD they really are something. If you look hard enough you can even see them blowing in the wind as free as a middle aged man driving a red MG Midget in a country lane after a successful visit to Belgravia Hairloss Centre.

 

SVR Hikes continue to hit our market. So, as SVRs go up, long term funds go down, and economic uncertainty remains, why are we not pushing the remortgage market more than ever? We have read the reports, lenders are mostly below their targets. The funding for lending scheme is working and we are approaching Quarter 4 with more opportunity than we have seen for a while. We win. Our clients win. WE ALL WIN!

 

So, JR is back. Cowboy boots are fashionable again. Get your spurs on, get your belt buckles enlarged enough so that you can receive a signal for sky sports on them, and lets give it a final push for the final quarter folks. If JR can come back, so can we.

 

TRUMPETS PLEASE...

 

Ba baaaaaaaa ba baaaaaaaaaaa ba baaaa da da daaa daaaa...

Can we fix it? Yes, WE CAN!

Bob the Builder is one shrewd cookie. He has been in the construction industry since 1997 and his business has gone from strength to strength. He is multi lingual, and works all over the world and has gone about his business, building his company while other construction companies struggled for funding during the credit crunch. Oh, and his diggers talk.

Wow. What a guy.

Sure, most of his work is in the local community but he keeps employment up in his local areas, never really imports his materials and keeps his petrol costs down by only doing local work. A sound business model.

Is he concerned about the impact of GREXIT? Well, in a recent interview, I asked him about his views on interest rates and Bob said this:

"Can we fix it?"

And I said "Yes, we can".

The man should be prime minister. He really knows what he is talking about. Whilst having a pint together, I discussed with Bob that the pending exit of Greece from the Euro's could make the availability of funds harder for lenders and this would drive up the cost of borrowing. So, with lenders this week cutting their fixed rates, Bob was all over it like a teenage girl at SoccerAid.

Many of the "big boys" have reduced their fixed mortgage rates, and Nationwide have even slashed their arrangement fee by 50% on their five year deals as well, making these options appear all the more tempting. Much pressure has been placed on the Bank of England to cut the Base rate yet again if the Eurozone starts to break apart, but a reduction in the base rate would not necessarily mean that the cost of borrowing would reduce. It would suit people sitting on trackers right now, those that have the smaller margins above base on deals from the past, but the pricing of new deals would simply absorb this reduction and I would suspect we will see variable and tracker products become more expensive. 

"So, can we fix it?"

Yes Bob we can, keep your hard hat on. There are some competitive deals out there right now and it would be a good time to assess your options, especially if you have been sitting on your lenders Standard Variable Rates thinking that it will see you through the tough times.

So, once again mortgage brokers should be actively working the market. Working hard for their clients to get them ready for the turbulence that lies ahead. The captain has asked us to put our seatbelts on, and whilst I am not quite sitting with my life jacket on as well, I expect a rough ride. Fixed rates are starting to make sense again, with an uncertain future to the economy, and rates appearing cheaper, its time to review.

So, another pint Bob? Oh...no, the pump has broken.

"Can we fix it?"

Most probably Bob, most probably.

Prisoners of Mortgage War

The Great Mortgage War of 2012 had seized many of my troops. Some converted to repayment, but others were still out there, Prisoners of MortgageWar held captive by their lenders on interest only with no way out, hoping that a rescue mission was coming their way to give them freedom of choice and their independence back. I armed myself with every bit of artillery; Virgin Money, Accord, Aldermore and even Halifax Product transfers, and 'choppered' into the jungle to launch my rescue mission.

Shoe polish on my face, head band on, I began my rescue mission Rambo style to see who I could rescue and bring back home with me. Many had given up hope of escape, with communication lines detailing repayment was the only way out, but Broker Squadron Independence had other options. We needed to show that we had not forgotten our troops, that we had not left them abandoned with their current lenders and that our aim was to offer them alternatives that would grant them their freedom back. Freedom of choice.

The interest only restrictions has left many feeling they are trapped, but brokers offer alternatives. Many of us will not have shoe polish on our face or head bands on, but we will be able to offer guidance in these uncertain times. Quite how we ended up here remains a mystery. Some blame the brokers for mis-selling this niche product, others blame the lenders for being complicit in the advice by actually lending without question in the first place. Some even blame the government! Whoever is to blame, numerous clients are trapped with a lender on interest only, above the thresholds offered by alternative lenders, and are looking for a route out of the war. Inspite of the negative press, their are still options open and we aim to make people aware of this.

As I look down over the jungle, knowing there are more Prisoners of Mortgage War out there, I am happy that I have saved a couple of them this week. Others from Broker Squadron Independence will have also performed such rescue missions, and for those still out there held in captivity, fear not. We will find you, and we will bring you home as we are your Brokers in Arms:

"Through these Apps of repayment,

Interest only has tired.

I've witnessed your suffering

As the payments got higher.

And though they did hurt me so bad

In the fear and alarm

You did not desert you

My Broker in Arms"

The Great Mortgage War of 2012 continues...

A Nightmare on Broker Street

Its pretty easy to spot a mortgage broker these days.

 

Whether you are on a train, walking down the street, or in a Marks & Spencer (hang on, we stopped shopping there post credit crunch) make that Tesco at lunchtime (every little helps), mortgage brokers stick out like sore thumbs.

Why? They are the ones with the unsightly bruises on their faces. The ones walking on crutches, or with a plaster cast on their arm. They are hunched over, their posture is all wrong, or they are limping. Long story short, they are the injured amongst us.

When the credit crunch hit in early 2008 we looked around and thought, "some of us are not going to make it" and many didn't. Some of us, not all, got through it and lived to fight another day but we saw the number of brokers fall to a low of around 8,000.

Now, we find ourselves at this junction again. Criteria changes, broker rates not being comparative when you look at the direct deals, and now the recent reductions in proc fees too. Let's face it, we have taken a beating over the last few months. Some senior people in the industry have even asked whether there is a role for the mortgage broker in today's market.

In a rapidly changing market there is nothing more important than advice. Gone are the days when mortgage broking was simple. Every case is now a puzzle and we are the ones that must complete that puzzle. Sure, sometimes we get the wrong piece, but put it down, pick up another and find the one that fits.

If mortgages were as simple as finding the lowest rate, we would all be out of a job. That is a fact. However, the role of a mortgage broker is so much more than that. Credit profile, income streams, property exposure, unusual build types, agricultural ties, live/work units, there are so many hurdles in this industry. So many the public know nothing about, but we do.

We find ourselves at a point where some are questioning their ability to survive and brokers nationwide should be telling themselves that if we are still in the industry now, if we are still broking mortgages, it is because we are damn good at what we do. It is also because people value our advice. Targets for lenders rise and fall, and right now it is clear that direct business is below target and is being compensated for, but when this is back up to target, our own intermediary offering will become more attractive again.

I speak to many brokers that lose sleep over cases. You are taking that stress away from that client and it is only right that by taking that stress away, you are remunerated for it. IF lenders want to reduce/abolish proc fees, then fine. We will charge because as Cheryl Cole says "We're worth it!"

Freddy Krueger, turned many of our dreams to nightmares in the 80s, and right now it seems some cases are proving more scary than that. However, like most horror films the good guys always win and so long as we are giving, honest, helpful advice to our clients, we are taking away their stresses and getting them to where they want to be, we will pull through whatever this industry throws at us.

Next time someone questions your fee, next time someone questions what you do (you know who you are), or even next time you have an element of self doubt, think about the stress and anxiety you put yourself through to get that case offered and completed and be proud of the work you have done and the service you have provided. This job is no walk in the park anymore, but the sense of satisfaction on that day of completion makes it so worthwhile, and makes you worthwhile to that client.

Now go...and broke like you have never brokered before.

Britains got Mortgages!

Saturday nights are not the same without variety shows. That splendour of mix, surprise, and anticipation of what is to come. Throw in a panel, a buzzer and an audience and you get prime time tv. So, it is with much anticipation that Britains Got Mortgages returned to ITV this weekend with its creator SiMoney Cowell back to front the show.

What a show it was. There was a dangerous display from "The Dual Pricer" that left the audience outraged. A great example of flexibility in a gymnastic display by the beautiful young girl Aldermore (ahhhhh who can forget her) who bent over backwards, sideways and hung upside down to a beautiful rendition of "Help I need Somebody". There were the wacky sheep impersonations by Nationwide and Coventry who just seemed to copy everyone else on stage. There was a somewhat curious display by new group Virgin Money who played a supposed very "fast track" of music (that seemed normal speed to everyone else) and then removed the track and simply walked off the stage. Strange one. But, perhaps the most talked about act was the disappearing act from the double act Nat and West who together were "NatWest"

Here were some of the highlights from the show, with hosts Application McPartlin & Declaration Donnelly.

App: What a shooooo we've got t'daaay Dec.

Dec: Aaaaaaaaaaaaaaye App. By the way, have you groooown? You seem longer than last yeear?"

App: WEEEyeeey mun, noooo, just a bit more content like most Apps in the industry now you knoooow...

Dec: Well, lets meeet the new punnel (thats panel to non Geordies)

We have SiMoney Cowell, Carmen ElecTracker, Aleisha Discountson, David Fixediams (seriously, you try and make something mortgage related out of that name!!!)

Most memorable act

"My name is Nat"

"My name is West"

""...And together we are - NatWest!""

S: Okay girls, what are you going to today?

NW: Today, we are going to make Nats box marked "interest only", temporarily disappear.

D: That's a shame as we rather like her box (audience cheers)

NW: Well, I promise it will return (laughs West)

S: Alright Fixediams, that's enough flirting - girls?

It was clear the audience had some affection for NatWest, not to mention Nats box marked interest only. These kind of acts have been pulled from the stage very quickly so demand to see it was strong. Yet still NatWest proceeded with the act. NatWest placed a cloak over the box, and within seconds to a crescendo of "Another one bites the Dust", West took the cloak away and removed it swiftly. The interest only box had vanished. The crowd loved it, but Nats box never returned and the crowd started to turn on the act.

Aleisha: I thought it was a great act. And reminded me a little of when I was on Strictly Come Lending in that...

David: Hang on... where is Nats box of interest only now?

NatWest: It has temporarily disappeared.

Carmen: Well when will it return?

NatWest: I can't say. It has temporarily disappeared.

SiMoney: Look say by some miracle, we put you through, you'll be performing in front of the Queen? Will Nats Box be back then?

NatWest: We don't know if it will be back in time. But, you can see it in local theatres not available to brokers and also you don't have to pay to get in.

SiMoney: Erh. Look hang on. Look. Uhm. Speaking from my head...its no. But from my heart...its still a no.

The no's continued until Simon asked Fixediams and he responded with "Does anyone have Nats number?" Unfortunately NatWest didn't make it through. The show can still be seen in local theatres however, for free, or at least considerably cheaper than through broker channels, and with Nats box of interest only still available.

As the acts rolled on, the crowds responses were varied. Aldermore received huge cheers for her flexibility and the way she delivered her act and she sailed through to the next round. As did the elderly gentleman Abbey, who showed live on stage how to deliver a perfect service with a tennis racket. Aces continually. Not bad for an oldie!

But the question mark still remains with the act NatWest. Why remove Nats box of interest only from the Big Stage, giving no indication of when it will return, yet keep it continually returning for local theatres? To be honest, there was nothing amazing about Nats box of interest only, but now it can only be seen at local theatres, it seems the theatres now have something the big stage really wants, but can't have. This suggestion seems to defy logic and you can't help but wonder what the real motive behind this move is.

App: Well what a shoooow that were Dec.

Dec: Weeeyeeey App. Now lets get me signed, staple us together and get us posted, so this shoooow can get processed.

App: I dunno mun, I think there is a backlog...

Dec: Wey mun, there is always a backlog.

Woolwich Thriller!

We all remember it. One of the greatest music videos of all time, allegedly. Filled with amazing special effects, great dancing and a great tune. Thriller had it all.

Well, I propose that this should be re written, mortgage style. Because at 23.05pm, I am waiting for the "midnight hour" to be "close at hand." But at midnight, there will be no werewolf's. Jacko's eyes won't turn a strange yellow and his hands won't stretch before our eyes. There will be screams however. Make no bones about that one. Especially if the words "funds not available at this time" appear on peoples computer screens.

Why?

"Because this is Wooooolwich. Wooolwich night"

The mists are rising in the evening air. A deadly silence falls upon my log cabin and I sit patiently waiting to secure funds for my non fee paying client. Yes that is right, I am not charging a fee. For the purposes of this music video I will be playing "The Mad One" clearly. As the midnight hour draws near, my palms are starting to get sweaty. I know I only have one shot at this. A window between 12am and perhaps 12.01am to secure a miserly £383,000 for my semi detached buying client. Do they know the pain I am going through? No. Do they care more to the point? No. They just want the mortgage and their semi, and I have to step up to the plate and deliver.

An owl hoots, and a cat jumps on the roof of my log cabin. My heart races and it is about this point that I question exactly what alternative employment I could seek. NO MORTGAGE MIND!!! Don't wonder! We are on a mission to secure Woolwich funds in without doubt, the most obscure way I have ever done in my 14 years of being in this industry.

The clock clicks on. T minus 37 minutes. I know the UK is populated with hundreds of the remaining 8000 or so brokers all sitting around, about to embark in this madness. MADNESS I tell you!!

And then it starts. I start to formulate a song. To the tune of Michael Jacksons Thriller, but digitally remastered to work with this fiasco. And here ladies and gentlemen, is the final version:

Its close to Midnight, and Woolwich funds are lurking in the dark.
Under the moonlight, you see a sight that almost stops your heart.
You try to scream, but terror takes the sound before you make it.
Your laptops freeze, and horror looks you right between the eyes
The sites paralysed


Coz this is Woolwich. Woolwich Night!
The funds are gonna go and then your clients outta sight
You know its Woolwich, Woolwich night
You're fighting for your rate inside a Woowlich, Woolwich
Rate Fight


You hear the door slam, and realise your wife has gone to bed.
You feel the cold hand, and feel the stress is going to your head.
You close your eyes, and hope that this is just imagination.
But all the while, the mortgage rate is going out your mind
Your out of time.


Coz this is Woolwich. Woolwich Night!
There ain't no second chance to get the three year fixed tonight
You know its Woolwich. Woolwich night
You're fighting for your rate inside the Woolwich, Woolwich Website.


Night brokers tweet
And the industry walk in their masquerade.
There's no escaping the jaws of dual pricing this time,
Its the end of the line.


They're out to get you.
There's branches closing in on every side.
They will dual price you, unless you change that number on your dial.
Now is the time, for brokers all to cuddle close together
All through the night, I'll save you from the terror on the screen
I'll make you see...


That this is Woolwich, Woolwich night
The rates will thrill you more if you can book them on the daaaaamn site
Girl, this is Woolwich. Woolwich night
So let me hold this rate the next 5, days for, you both, tonight!


(Rap performed by a Woolwich BDM)
Darkness falls across the land
The midnight hour is close at hand
And brokers crawl in search of funds,
For clients buying their dream homes.
And who soever shall be done
To miss the rates at 12.01
Must stand and face a client from hell
And rot inside their damn slow DELL
The foulest stench is in the air
I let one go, but I don't care.
And grizzly branches Everywhere,
are closing in to steal our share
And though we broke, to stay alive
Our bodies start to shiver.
For no mere broker can resist
The Evil Woolwich Thriller.

What a night. AND, funds NOT secured at 12.00am.

Thanks for listening.

HEEEEEEEEEEEEEEE HEEEEEEEEEEEEEEEEE
SHAMONE!!!!!!!!!!!!

Da da, shugachuggah.

Same again on Monday Night now.

Mortgage Trek. The Motion Picture.

Mortgages. The Final Frontier.

These are the voyages of The Prolific Enterprise. Its ongoing mission, to explore current mortgage lending.

To seek out lenders currently accepting interest only and products that do not get pulled within an hour.

To boldly go, where no broker has gone before....

Aaaaaaaaaaahhhhhhhhhhhhhhhhhhhhhhhhhhhhhhhhhhhhhh aaaaaaaaaaaaaaaaaaaaaaaaa.

Brokers log. Star date 08.03.2012.

Uhura has been busy trying to secure funds with Woolwich and seems to be encountering communication problems. The ship is worried. Over a 24 hour period Uhura's communication has been falling on deaf ears and fears the Kingons have overtaken Woolwich are rising. "Woolwich. This is Prolific Enterprise. Come in Woolwich. We require funds for a client but are being told that none are available. We need urgent assistance. Come in Woolwich!"

Nothing.

Meanwhile, the deck is concerned about the welfare of Spock. He was transported to an old planet Northern Rock over 2 weeks ago with important documents for processing and so far we have heard nothing from the Rock, or Spock. The Rock are under transition from the Genesis project which has seen them blosom into a beautiful planet called Virgin Money, but somewhere in this megamorphisis, parts of the planet are suffering from the change. Service levels are slower and backlogs are being formed. Spock continues to investigate, but channels of communication again from planet Virgin Money are very quiet at present and Uhura is working on trying different channels to gain access.

We continue to press through the meteor storm of last minute rate pulls. Shields have been up for the last 3 weeks but Prolific Enterprise has taken hit after hit but she's holding up. "Engine Room? Status report"

"Ucchhh. I dooon't think the engines can take much more of the rate pulls Cap'n. Its takin' a pounding Sirrrr"

"Thank you Scottie. I need full impulse power. These rate pulls look set to continue so I need you to give me eveyrthing you have."

"It can't take much more Cap'n!"

Prolific Enterprise continues its mission. New planets are forming in the way of fantastic buy to let products with Planet Skipton, Abbey and Natwest continuing to excel. The beautiful planet of Godiva also continues to shine as do Clydesdale. But as we journey on, we know Prolific Enterprise is heading for the Residential Nebular. An area of space where we expect turbulance and perhaps a bit more of a pounding from the residential rates that have been rising since star date 15.12.2011. Yet whilst our rates continue to increase, the parrellel universe of "Dual Pricing" seems to be keeping their rates static, with NatWest proving to be the greatest culprits. We have been to war with them before over this, and we brace ourselves for another. A meeting is set, to discuss it with one fo their generals.

Brokers all over the System are currently in the medical room. Severely injured in "The Great Battle of The Rate Pull". Conditions are not fatal, and brokers will make a full recovery, but Bones is seeing more and more visit him in what almost seems like an epidemic of sufferers from the late rate pull. As I walk past the medical room I fight back the tears hearing one of my crew shout "Not even an hours notice. Why? WHY DAMN IT?" It's like torture.

"Bones? Can you not do something to battle the rate pull infection?"

"Damn it Jim i'm a doctor, not a miracle worker!"

Chekov has noticed some strange goings on in the SVR System and these continue to be monitored. "Dey seeeem to be expaaanding Captain. De rates! Dey are growing in frrrront of my very eyes. Deese poor civilians!" Expanding svrs for the great planets of Halifax, and RBS have alerted The Enterprise that whislt rates rise, many thousands of civilians are to be effected. We are in communication with many of these planets civilians to inform them of the danger they face and have suggested to our alliance that they do the same.

As I look around my ship, around space at the damage being done by late rate pulls, dual pricing and criteria changes, its clear that our mission remains a tough one. But all battleships are strong. Prolific Enterprise, like many others in the system have seen it, been through it, and come out the other end. Whilst the ship has been damaged in many parts, the opportunity to repair, rebuild and even better the ships performance is also there with the SVR increases and the buy to let resurgence making this an opportunity for all of us to find warp speed.

Shields up, Phasers on stun. This is a war at present. But a war we can win. We must win. The needs of the many, outweigh the needs of the few. Or the One.

Kirk out!

The Mortgage Market Hits Puberty

Puberty.

It brings with it so many changes. Some welcome, some not so welcome. I remember when my voice first showed signs of breaking. I was on stage, playing Joseph in 'Joseph and the Amazing Technicolour Dreamcoat'. I was 11 and the gym hall was full of parents watching us kids. As I embarked on my BIG solo of Close Every Door To Me, it hit.

"For I know I shall Fiiiiiiiiiiiiiiiiiiiiind".

"Erh, what the hell was that?!" I asked myself.

The big note warbled. I continued as every pro should, but remember looking around and seeing the sniggers. Some things just stick with you, and that did me. Puberty is something we all go through and it brings with it a rollercoaster of emotions. Excitment, frustration, anger, confusion... it is lifes free ticket to the greatest ride on earth. And now, I believe it has hit the mortgage industry.

We have seen the industry grow over the years. We have seen it through the teething of the 90s (17% interest rates were as painful as incisors cutting through!), watched the growth spurt (buy to lets booms of the early naughties), and we all remember the "first steps of FSA regulation." Now, comes the mortgage industries steps into puberty. It is a defining time. Puberty defines the person you become for the rest of your life and is the first signs of maturity. Whilst these changes are difficult to cope with and sometimes more challenging than we perhaps ever thought they could be, we know come the end of it, our character is defined and that puberty lays down the blueprint of what we will become.

This may seem a strange comparison to draw. We have seen a lot in the mortgage industry but what we are now in, are our defining moments. Lenders are making some big changes to their criteria and these changes may come across much criticism but we need to look at the bigger picture. We need to look at why these changes are being implemented and we need to learn to cope with them as they will not be going away for a while. Santander's recent reduction of interest only to 50% was, at first, a bit of a shock. The reality is however, that really we all knew this day would come. How this decision will influence the other lenders remains to be seen, but HBOS followed suit soon after tightening their interest only rules and we expect more to follow. It is a big change from what we were used to. 95% interest only seems almost mythical now. 90% self cert?! People coming into the industry (you brave brave souls!!) must think "surely not?" Surely there was never such a product?! Well there was. 90% self cert, interest only. Its laughable now to even think that such things ever existed but they did.

Such products were like playtime at nursery. They were a pleasure, but lets be honest they simply cannot go on for the rest of your life. We adapt to change in our every day life, in our growth and we understand why such change is implemented. For the greater good. After much reflection, perhaps a little bit of sulking, and then a complete reality check, its clear the criteria changes we are witnessing are all for the greater good of the economy. With so many examples of irresponsible lending in the past, lenders are now asking the question "how will you repay the mortgage at the end of the term?" and we are up in arms at why they are asking! I know we want to be treated like adults, but the economy is in a mess. We must all unite and find a route to recovery. 

It could be argued with no huge increases in SWAP rates of late, that the increase in interest rates we have seen since mid December represent lenders looking to increase profits by increasing margins. But, with everything going on in Greece right now, with the threat of how that could impact Europe and more so ourselves, do any of us really want to be borrowing as much as the banks will lend us and show no signs of how we intend to repay that debt? Who knows what is round the corner!

Puberty brings with it mood swings. We accept that, and these mood swings are often symbolic of lenders and their attitude to brokers/clients and their trust they place in us and our abilities to maintain the payments of the funds they are lending us. We are all maturing in our concept of debt because we have to and because we are seeing first hand the implications that it will have if we don't. We are not taking on as much as we used to and looking at repaying the debt again, rather than relying on property growth to do so for us.

Perhaps one of the most stupid things I have ever done as a growing teenager was "swan dive" into collection of rubbish bags placed outside a pub. At the time, I was an adolsecent, growing up without a care in the world and just having fun. Looking back my thoughts are "what if there were broken bottles of glass in there, what if someone had disposed of a sharp instrument that would have impailed me on impact?" I had cleared a good 5 - 6ft of air whilst forming my swan dive. Actually, it was pretty cool! It could have been very messy. The mortgage market has had these "swan dive" moments and now with perhaps with the benefit of hindsight, looking back and ensuring such moments do not happen again.

Lets embrace the puberty/maturity the industry is showing. I know it is not what we want, and hey none of us every really want to grow up, but we have to. The current climate is teaching us to understand debt again and to try and keep it a little bit more under control. Whilst we find our way to handleing these times, think back to who you were when you were young, the decisions you made and how they shaped your life. And remember that puberty, as tough as it was, was a necessity and has made you the unbelieveable person you are today.

Growing up is hard. But is worth it.

Is that some bin bags i can see... "WAHOOOOOOOOOOO..."

The buy to let "Boom" of January 2012

2012 will see the end of the world according to some. Maybe that is why some of the mortgage lenders are being so aggresive with their pricing, as they fear not having long to live.

It has been a while since we have seen such offerings in the buy to let market and people are certainly making hay while the sun shines. I have seen activiity levels increase dramatically in this sector and it has been missed I can tell you! We have seen the likes of Leeds Building Society, Aldermore and Clydesdale increase their loan to value to 80% with the added bonus of carrying flat fees. The Mortgage Works have long been the sole provider in this bracket, so I am sure they will actually welcome the competition to ease the levels of . Abbeys return to the market at 75% borrowing has been very very strong in addition, also with flat fees rather than being a percentage of borrowing. And right at the start of the year Paragon repriced and launched 50 new products with better pricing. All in all, the start of 2012 has seen some very positive steps in the buy to let sector.

The fact of the matter is, there were signs of this in Q3 and Q4 of 2011 and it is very encouraging that it seems to have pushed on into the New Year. I have heard from clients this month that I have not spoken to for some time looking to get back into the buy to let business. So why have we seen such an increase? Is it that demand for renting is now so high that tenants are finding they are having to go to sealed bids to "win" a property to let? Is it that the funding has become so appealing that it is drawing private landlords back out into the market so they can test the water again? Or is it simply that investment opportunities elsewhere in the financial sector are simply that poor that people are seeing very little alternative aside from Bank of Under The Mattress Ltd?

The fact of the matter is, there are a host of reasons as to why the buy to let sector is growing again. At present, we see no signs of this appetite abating. The price wars we are seeing between buy to let lenders are making the terms of borrowing more attractive, and the simple fact that mortgages are harder to come buy on a residential basis, is leaving more and more people with no option other than to rent, meaning the availability of tenants for landlords is probably the highest it has been for years. Coupled with the lack of funding for first time buyers (despite the pledge from "Knight in shining armour" HSBC to lend £3bn to first time buyers alone this year), there is little wonder why the buy to let sector is growing again. Sure, the short term growth in capital is not what it once was, but the old adage of "Its a marathon not a sprint" means that people investing in long term portfolios are still very confident in the returns buy to lets can bring. And with an average age of 38 for first time buyers now, who can blame them.

So buy to let lenders, we will be watching your offerings closely over the next few months. I personally would like to thank you for your boldness and return to agression. Long may it continue. Just do us all a favour and start being a little more generous with your restrictions on New Builds.

Actually...don't get me started on New Builds.

I'll be here all day!

And all night...

Who will be the A team of the Mortgage industry in 2012?

"In 2011 a crack commando unit of lenders were sent to Coventry by most brokers for a money they didn't lend. These lenders promptly escaped from a credit crunch to the London underground. Today, still wanted by the government, they survive as mortgage lenders of fortune. If you have a mortgage requirement, if no one else can help, and if you can find them, maybe you can apply for a mortgage to... 

the A-Team."

The A-Team are:
"Hannibal" Smith (Halifax)
Templeton "Faceman" Peck (Northern Rock AKA Virgin Money)
H.M. Murdock (Woolwich)
B.A. Baracus (Abbey For Intermediaries)

2012 is going to be a pivotal year for mortgage lending. With most predicting stability, the talk is of £120 - £130 billion being the target again, similar to that of 2011. My personal thoughts are that the base rate will not change and the aggression of rates will be dictated purely by the lenders individual desires to gain market share rather than being driven by swap rates. Those that want the share and to a certain extent the risk will reduce margins and have a go.

So, what can we expect from the lenders? Well, I think I can best explain this with the use of the A - Team. We will have our villains, our "extras" if you will, that will have bit parts in our A - Team film. They will play the role of the people that seldom speak, or if they do they will over act in an attempt to get noticed, but mainly there will be several extras that will play roles pivotal to our film, but nothing so big as to over overshadow our A-team.

So lets focus on the A - Team of lenders. Or should I say, who I will be casting as my A - Team.

"Hannibal" Smith (Halifax)

Yes, we all know the catchphrase. "I love it when a plan comes together". Hannibal is the strategist of the A - Team, the one they all depend on, the leader of the pack and the one who is most stable. Hence, there could only be one lender in this role. For me personally, Halifax has always been my favourite lender but they went a little of the pace in 2011. The reason for this was pretty simple. They wanted to. Halifax never topped the leaderboard with their rates in 2011 but I think they will have a strong 2012. Service levels never faulter with them and they remain the constant for brokers, the one we all relie on when others have let us down. With a little more agression in their pricing, I expect Halifax to have one of THE major roles in the mortgage industry in 2012.

Templeton "Faceman" Peck (Northern Rock AKA Virgin Money)

What can I say about Faceman AKA Northern Rock. He is all about smooth charisma, attraction, seduction. Expect all these things from the new look Northern Rock. As approachable as Halifax in their undewriting Faceman will play a big role in my film of 2012. I see them getting stronger and with their strengths we'll see branding and attention to detail that will kick others into touch. With a variety of talents (and product range) they will be one of the leading roles that the public will really warm to. Aesthetically pleasing, they will be a lender that others will want to be. Above all, they will always be your best friend and will always try to help and maybe even...take a bullit for you. If you pick up a phone and call Faceman, he WILL answer your call.

H.M. Murdock (Woolwich)

Murdock. Slightly crazy in persona, very unpredictable but every now and again pulls out a piece of magic. Woolwich, through all my time in the industry can be one of the most frustrating lenders. Sometimes, they can completely steal the show with their product range and offerings, but will let themselves down with levels of craziness, mostly from their service centres. When levels of service are good with them, they really are one of the best lenders in the industry, but this is pretty rare. They are one of the characters in my film that is full of potential, full of promise but more often than not will let themselves down just a little bit. Woolwich are very much like Murdock. You don't want to get in a plane with them, but sometimes you are in a situation whereby they are the only ones that can fly you where you need to go.

B.A. Baracus (Abbey For Intermediaries)

The muscle, the power, the strength and the aggression. That is what B. A. is all about and so to is Abbey. I expect them to play a similar role this year in 2012. With the addition of a buy to let range added to its portfolio this year there will simply be no messing. They will be big, they will be bold and i expect another year of Abbey being near the top of every best buy and increasing its market share more. Levels of service starting to slip a little towards the end of the year but there were reasons behind that. Rather like B.A. and his aversion to flying, Abbey have but one real pitfall as a character (the levels of service), but if we can sort that out we will have quite possibly the most favourite character in our film. Halifax or should i say Hannibal will command the lead for his stability and reliability but B.A. has the power and strength to take over should they wish to.

So there we have it. Our A-Team for mortgage lending in 2012. We hope no offence has been caused to others that have not made our casting. Many auditioned for the role, but we have taken a view of where you have been, where you are going, and most importantly who your agents are! This is going to be a challenging year, we all have a part to play, but with our leading cast above, some enthusiastic "extras" and perhaps a good bit of Direction, we will all be involved in a Blockbuster.

I do love it, when a plan comes together.

Oh shut up...Fool.