Now is the winter of our Discontent...

Now is the winter of our discontent
Made glorious summer by this funds for lending;
And all the clouds that low'r'd upon our house
In the deep bosom of the ocean buried.

Happy New year one and all. 

Its not just old tv shows and films we blog about here you know! Richard III, one of Shakespears greatest plays, opens with the above (minus the cunning insert) and I see nothing more fitting that this to sum up the market at present. Many quote this when expressing displeasure, but Bigus Dickus (Richard III) spoke it with satisfaction and content as he was so happy with the peace that fell upon England after a long civil war between the Royal family of York and and of the royal family of Lancaster (that's the end of today's history lesson...class dismissed). I'm happy with the state of the market at present, and i would suggest many mortgage brokers over the UK are as well on the strength of how busy we all seem to be.

The New Year has started very much where it left off, with a host of market commentators asking if the Funding For Lending Scheme is working. I'd like to point out that we still have in effect a year of this scheme to run so it is a little early to evaluate, but i'd urge everyone to look at its merits before berating it as a failure. We will be better served to cast judgement on its success in January 2014, but lets make no bones about it, the availability of cheap funding to lenders has given us brokers some fantastic products at our disposal, even if these savings have not filtered through as significantly as expected to the smaller businesses, it is early days. 

Like Usain Bolt out of the blocks, Clydesdale have launched the new year with great innovation and logic by launching the 80% pure interest only deal. I love it. Its innovation and logical lending that we have been crying out for since "interest only" was first labelled taboo in the industry. Clydesdale we salute you. And when backed up with their underwriting capabilities, they are going to prove strong contenders for "Lender of the year" in 2013 in my opinion. I say this not just because of the brilliance they showed on a case of mine over Xmas (it did help though), but after hearing non stop praise regarding them as a lender from a number of brokers. 

Woolwich have dared to believe as well. Their Family Springboard mortgage looks to lend at 95% albeit with assistance from the family, but lets be honest, most of our first time buyer clients of the past made a swift withdrawal from the bank of Mum and Dad before proceeding anyway, so there is little difference between then and now. The only difference is that Mum and Dad get their gift back PLUS interest after 3 years. Genius. This helps second steppers too and should have a positive step for the property market as a whole as well as the mortgage industry. Welcome back First Time buyers, and bonjour to you too second steppers. Its game on!!

Lenders are doing all they can to support us. Innovation is returning to the market and so too is logic, not to mentioned yet another 10 day sale from Accord (these sales are occuring almost as frequently as a Next sale, but no need to start queuing at 3am folks!) Sure its not 2006 but we are taking steps in the right direction and it would be nice if we all acknowledged that, rather than trying to find flaws in lenders, government schemes, lenders criteria changes. Lets start 2013 as we mean to go on, stop the damn berating, stop the moaning and whinging and appreciate what we have.

Back to Big Dick III, he was happy with the peace that fell upon England first of all. Then it all went pear shaped as he tried to kill everyone with ridiculous and callous ambition. With house sales at their highest levels for 5 years, something is clearly working! I can only see these stats getting better, so lets not get greedy, lets not get over ambitious. Lenders faith is slowly being restored and they are slowly starting to edge up higher loan to value lending at cheaper rates. As the benefits of the Funding For Lending scheme start to trickle in, lets stop the damn whinging guys or before you know it...

"The World is grown so bad, that wrens make prey where eagles dare not perch" Richard III, Act One,,Scene 3.


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