A good finish to 2010!

The end of the year is turning out to be quite a positive affair! AToM towers enjoyed a stunning October superseded by a better November for new business applications, as consumers reviewed their finances and looked to secure deals in time for the Christmas break. Many wanting to fix their mortgage payments for 2011, and beyond. Surprisingly, new purchase applications nearly matched the remortgages in number. Although the actual volume of loan amounts decreased by nearly £2m!

For the employed consumer, mortgages are relatively easy to come by. For the self employed, where net profits, drawings and dividends have been generally low over the last 24 months, it’s becoming slightly more difficult, despite the number of mortgage products being on the increase. There are many alternatives than can assist in these types of scenarios. Some lenders will look at adding additional properties as security for mortgage purposes; others will look at investing two or three years upfront mortgage payments as additional comfort for the lender where income is not necessarily easily provable. Whatever the scenario, and no matter how complex, there may well be a lender willing to assist.

Finally, the FSA (Financial Services Authority) has deferred implementing its approved persons' regime until 2012/13. As part of the Mortgage Market Review (MMR), the FSA announced that it would be extending the approved persons’ regime to include anyone who advises on or sells mortgages (mortgage advisers/brokers and Bank staff). The FSA says it remains committed to making these changes to the approved persons’ regime, but as part of its ongoing reprioritisation of work, it is deferring introduction of the changes from 2010/11 to 2012/13.

The MMR may be a controversial proposition, but the approved persons regime is one which most people agree could genuinely benefit the consumer and will be a positive step towards a better industry. The cynics question might be to ask, who’s not ready for these changes? The FSA internally, or the Banks in being able to train their staff in time?