Hero
Regulated packagers - as head of a large packager I could not even contemplate m2-d&p facing a regulated environment without being regulated ourselves. The very nature of packaging calls for a hands-on approach in order to fully exploit service potential and truly add value to the role.
This is something that cannot be achieved through the unregulated status of a mere ‘arranger’ who can have no direct contact with the applicant. For the packager, whose main USP may be their extensive lender panel, becoming regulated is a necessity in order to secure lender relations in the regulated environment. As a packager, not becoming regulated is basically shooting yourself in the foot.
Like the kid who is always last to get picked in sports lessons, no team will want to know – neither the FSA (they will have nothing to regulate pure packagers for) nor lenders (the involvement of a non-regulated packager could affect the legal validity of the mortgage agreement in the future).
Zero
Interest rates - in my book rate rises should be a ‘zero’ – literally. Where do I start? Apart from the obvious (their instant ability to reduce everybody’s disposable income while we look on helplessly), from the mortgage industry’s point of view, interest rate rises are also becoming more of a hindrance than a help.
One of the reasons the UK government instructs rate rises is to control the housing market. However, in doing so the other main goal (to reduce the drastically falling numbers of first-time buyers) falls by the wayside. These rises are even more likely to deter them and will also counteract the effects of such initiatives designed to encourage FTBs, such as shared ownership schemes.
The unsustainable pace at which we are experiencing such rises has led to a significant slowdown in the buoyancy of the once-thriving housing market.
Admittedly, it was at one point getting out of control and some form of action had to be taken, but to this extent? With more rises over the last 12 months than endowment complaints (which takes some beating), any more could spell the end of consumer confidence in the UK.
