‘Roll out the old, bring in the new’ will be the phrase at the forefront of many people’s minds.
In 2008, do you stick or twist? More of the same? Batten down the hatches? Take a rain check?
Everybody’s talking about it – and have you noticed the clichés are getting grander and grander?
Time to reflect
When I speak to lenders, some say they will use this as a time to reflect and sort out the downstream issues in order to take care of the upstream things?
It’s the little things that need to be tweaked to facilitate the bigger ones. In fact one key account manager single-handedly planted the seed in my head to write like this.
Distributors and lenders who thought they were Mourinho-style, untouchable ‘special ones’ are now spouting tosh in earnest to try and paper over the cracks.
Chief executives that were typically unavailable for comment are now so accountable they are ending their golf rounds on the tenth hole to get out of the rough.
Everyone is seeking some light at the end of the tunnel; a new shoot to push through at the first sign of Spring. The Messiah to return, AKA Kevin Keegan, in the form a securitisation that will lighten the load for everyone in the food-chain.
But this week alone has seen more doom and gloom, with bad debt write-downs of telephone numbers than the man on the street can ratify in his mind.
Fortune favours the brave
So where do we go from here? Well fortune may favour the brave. The early bird may indeed catch the worm. Effectively while there are losers there are inevitably winners.
Balance sheet lenders have received truck loads more deposits from the Northern Rock bank run, and they may just want to go for a larger market share in 2008.
More adventurous lending is the order of the day to keep us all going, and if delivered we would see the smile return on faces, warm the cockles and have some as happy as pigs in mud.
I personally feel it is a waiting game, while not resting on your laurels. Going forwards we shouldn’t dilly dally instead we need to grab the bull by the horns and build a plan ‘B’, as variety is the spice of life.
We’re all in the same boat
It’s not a time for horseplay or to play Russian roulette with your business. Don’t worry be happy, and in the same breathe pray that time heals the wounds. The market will return and you’ll need to be poised to hit the ground running.
In the meantime it’s important that we communicate with each other; we are, after all, in the same boat. Take the opportunity to give your peers the time of the day. Otherwise at the end of the day we will all be up stream without a paddle.
If the situation doesn’t sort itself what’s the worst that can happen? Money can’t buy you love.
Mainstream
Bristol & West and Leeds Building Society have withdrawn at short notice, and Woolwich has shut the door to new brokers, all citing unprecedented demand.
West Bromwich for Intermediaries is looking for substantial growth in this sector this year.
Halifax has removed its minimum procuration fee.
Buy-to-let
Paragon’s rental calculation will be 5.50 per cent when it re-launches.
Marsden Building Society has raised the minimum valuation to £100,000.
The Mortgage Business (TMB) is now insisting on six months’ ownership before it will consider a remortgage application.
NatWest now allows up to 10 properties.
Self-cert
Amber Home Loans now requires standard security checks on all self-cert adverse cases over 75 per cent loan-to-value (LTV).
Mortgage Express is in the process of reviewing its loan sizes.
First National has increased its loadings for self-cert by 0.25 per cent. This will probably be a theme this year as pricing for risk will become more visual.
Kensington has re-entered the 90 per cent LTV arena via selected distributors.
Adverse
Future Mortgages has withdrawn its high LTV range. This leaves its core range which has a maximum of 90 per cent LTV.
First National and igroup have imposed restrictions on their high adverse products, requiring the applicant to have met the last three months’ mortgage payments on their current loan. The little-known Keyworker and Homebuy schemes are withdrawn.
Platform now insists on its title insurance be taken on right-to-buys, purchase or remortgage.
Accord Mortgages is to limit new build flats to 75 per cent LTV.
In some instances, Money Partners is insisting that the discount on right-to-buy deals is deducted from the maximum LTV.
On selective Flexi and Fresh Start products one missed monthly payment in the last three.
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