In addition GE Money Home Lending have said innovation in technology and the growth of buy-to-let (BTL) are seen as biggest opportunities for over three quarters of brokers
GE Money Home Lending research also finds “treating customers fairly” as high on their agenda in 2007.
Gerry Bell, head of mortgage marketing at GE Money Home Lending, commented:“As a leading provider in the specialist mortgage market we are always interested in the issues that effect our partners and their customers. Once again the potential for increases in the Bank of England Base Rate is a key concern for many mortgage intermediaries over the coming year, with technology and BTL seen as the possible drivers of growth. It is important that lenders ensure they are offering intermediaries products that help them drive growth, as well as providing quality products and peace of mind for consumers.”
As the Monetary policy Committee meets today (11th January) to discuss its Base Rate, new research by GE Money Home Lending finds that the potential of future interest rate increases is the key issue for UK mortgage brokers in 2007.
The research, amongst 100 mortgage brokers, credit brokers and packagers, indicates that the market in 2007 offers great opportunities and challenges for both themselves and for UK consumers.
A wide variety of issues affected the market in 2006 with the average intermediary claiming to have been impacted by at least five key issues through the year.
BTL emerged as a key growth story in the market along with the rise in self certified mortgages and the implementation of new technologies. Areas of concern included the potential of Base Rate rises as well as the increased criticism of interest only mortgages.
BTL again looks set to be a key growth area throughout 2007 with three quarters of intermediaries indicating that this will be an opportunity for them (75%). The uncertainty over Bank Of England base rates has emerged as the main concern for mortgage intermediaries with almost 9 out of 10 claiming this to be the key issue for them in 2007. Interestingly, technology has increased in prominence on 2006 with over two thirds claiming this will play a part in their business in 2007.
Bell added:“Our research has shown that whilst the market continues to offer great potential and growth in areas such as BTL, it also offers challenges for consumers and intermediaries alike. Mortgage providers need to continue to provide their intermediaries with attractive products and technology to help facilitate future growth whilst trying to meet the needs of consumers with new product development and innovation.”
In August 2006 GE Money Home Lending (GEMHL) announced major improvements on its self-cert range. Including self-cert proof of income threshold rising and loans being made available up to 95 per cent LTV.
In September 2006 GE Money Home Lending launched a 100 per cent LTV on its First National product range, enabling intermediaries to offer eligible customers 100 per cent lending on GEMHL’s First National first-time buyer plus and near prime ranges.
In November 2006 GE Money Home Lending, under its First National brand, announced its entry into the BTL market with the launch of a new product range.
