Mis-sold Mortgage Claims > Mortgage News
Mortgage brokers share mixed optimism over 2011 with lender changes
Mon, 20 Dec 2010
As the year draws to a close and the mortgage sector reflects on the turmoil of 2010, many mortgage brokers fear that there will be tougher times ahead during 2011 whilst others are hopeful that changes they have made to meet the needs of their clients will help them survive and prosper.

2010 has seen increased reaction from many mortgage lenders to possible changes in regulation under the Mortgage Market Review (MMR) carried out by the Financial Services Authority (FSA). These include continuing criteria restrictions to interest-only mortgages . Recently, Platform, announced that they were imposing restrictions to their criteria.

Brokers have hit out at the comments made by the lender saying they were playing into the hands of the FSA before changes had been considered.

One broker commented, "Brokers who have a long standing relationship with Platform feel that they should be rewarded for their loyalty with positive innovation and not restricted further during difficult times. To react to possible changes by the FSA when it has clearly stated that it remains in consultation with the industry and listening to its concerns is premature and wrong".

Many lenders are seen as attributing changes within the MMR to further "cherry pick" borrowers. With this trend continuing into 2011, it will damage the market as first time buyers are "frozen out" by lenders.

Independent Financial Advisers (IFAs) are more optimistic, one commented, "Clients need good financial advice now more than ever, borrowers who have been well advised are in a good position to ensure they plan correctly for the future during these uncertain times, many can take advantage of their good credit rating and remortgage taking advantage of low interest rates ."
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