New lender comes to market!

Each week in this column I attempt to explain what happens behind the scenes in the world of mortgages and try to keep you, the consumer, updated on information that is not readily available to the general public. At the same time, trying to keep the detail clear, concise and, where I can, positive! Although the latter has been very difficult of late!

As you know, the mortgage market is heavily regulated by the Financial Services Authority (FSA). But even I find it difficult at times to understand the breadth and depth of legislative requirements which are becoming an everyday way of life in the mortgage and financial services sector.

I am an unashamed supporter of consumer protection, but now, it seems, Brussels are to get in on the act and are looking to issue regulatory impositions which will steamroller the FSA. One of its stated initiatives is to insist on a ten day cooling off period on all mortgage business. This is fraught with potential problems, not the least of which being the additional time added to an already lengthy house buying process.

Our own regulator has issued such strict rules and restrictions that mortgage lenders are already constrained on what they can and cannot do and this is being felt in every area of mortgage lending. Impositions on mortgage types such as interest only, lending into retirement, self employed and (thankfully) self-certification have already had a major impact. The thought of further restrictive regulation is frightening! Watch this space..

On a more encouraging note, October was a fantastic month for new business for AToM. Not since July 2009 have we seen those levels of new business. We have also seen a new mortgage lender come to market. Portal Portfolio is to provide secured second charge mortgages specifically to people with pension portfolios. AToM is the sole launch distributor for this lender. And Precise Mortgages have recently launched in to the Residential mortgage sector, having previously been in the Buy to Let arena. Both lenders have their own niches and I will explain more in the coming weeks. Suffice to say though that their launches have given the sector a much needed boost.