Solving short term staffing issues
The reluctance to increase fixed costs as growth forecasts remain unpredictable is completely understandable and we would say, necessarily prudent, in the current climate. With increasing regulatory oversight, it is crucial to ensure that not only is the customer getting good service delivery, but also that operational efficiency is maximised. What is needed in the […]
Is forbearance finished?
Paul Diggle at Capital Economics recently tried to quantify how important a role forbearance has played in propping up the UK housing market. He estimated that without lenders – leniency, arrears and repossession could be double the current rate. He also suggests that had banks been less forgiving, then the proportion of mortgages currently three […]
Interest only back books
The FSA announced, in the most recent “Retail Conduct Risk Outlook 2012” review, that a thematic review is about to be commenced. Their concern is that in the medium to long term, the outstanding balances, as well as the LTV percentages of these maturing mortgages, are expected to increase significantly. It is hoped that the […]
Buy to let lending – solicitor conflict of interest
It appears that a number of solicitor firms are just starting to test the subtlety of some of the requirements and provisions of the recent changes to the Solicitors Regulation Authority Code of Conduct 2011. One challenging area relates to conflicts of interest in respect of “buy to let” transactions. Chapter 3 of the SRA […]
An investment opportunity or millstone?
Research shows that there has been a 184% increase in the availability of buy-to-let (BTL) products over the last six months. Another recent survey revealed that 74% of mortgage intermediaries felt that BTL investments would provide attractive returns over the next five years. Their enthusiasm to ‘talk up’ this sector is understandable, with many self-certification […]
Data held by Institutions
It didn’t come as a surprise to us when we saw the recent comments by the chair of the Committee of Public Accounts where it was stated that both RBS and Lloyds Banking Group “found it difficult to provide the Treasury with appropriate and robust data on their assets”. We find that holders of assets […]
Buy to Let Equity Erosion
As long ago as December 2001 John Tiner, the then Managing Director of the FSA, referring to buy to let lending at a CML conference, said “We would not wish to see, for example, a relaxation of loan to value or rental cover without lenders first making a clear analysis of the risks.” Clearly such […]
DB Mortgages fined £840,000 by FSA
The FSA is not letting up the pressure on lenders as evidenced by another significant fine issued against a UK lender. Yet again the amount was substantial and the resultant customer redress program comprehensive and costly. However, there was one noteworthy departure from the regulators language in this decision notice; for the first time the […]
Interest Only – a thing of the past?
Even before the FSA Mortgage Market Review consultation, true interest only mortgages were coming under fire. Lenders are tightening their criteria and making it more difficult for customers to obtain interest only mortgages. Some lenders are now forcing customers with loans over a specific loan to value or even loan size to pay their mortgage […]
FSA Regulation
Regulation of the Mortgage Trading Market The Financial Secretary to the Treasury announced a package of measures last month, intended to enhance consumer protection in the mortgage market. As part of the measures third party administrators and firms that buy mortgage books will now need to be regulated by the Financial Services Authority. It notes […]
