Of course there are also the rants, usually from anonymous individuals who can’t spell, that don’t really help anyone, but sometimes there is a point that needs clarification, as now.

A couple of weeks ago I did something for BBC Online,  http://www.bbc.co.uk/news/business-12704172 where I answered various questions from those who wanted some mortgage assistance. It was a lot of work but enjoyable and good to do, especially as I feel passionate about the fact that too many people enter into a mortgage without taking proper advice.

A few days later I received the following from our website enquiry form :-

Enquiry_email: no.thanks@hah.com
Enquiry_regarding: Lies.
Subject: Saw you commenting on a BBC article, and was astonished at Question 6:

Why not simply state that houses are ridiculously overpriced at the moment, hence the requirement for decent deposits? Oh, thats because you have a vested interest in propping up the bubble. Good luck in the next few years.

Now of course everyone is entitled to their opinion, as am I by the way, so I thought I should answer the point directly. It is one that I have heard levelled at fellow commentators, that we have a vested interest in keeping property prices high. This is a very naive statement.

As a mortgage broker, the one thing we want above all is more transactions. High property prices do not generally help this. Brokers would much rather have a fluid property market, where houses are affordable and in plentiful supply.  A market where people are priced out of stepping onto the property ladder means that transactions fall, which is the opposite of what we want. The more transactions, the more advice we can give, the more mortgages we recommend, the busier we are and of course the more money we make.

To say brokers have an interest in keeping prices high is ludicrous.

One argument I have heard is high property prices mean brokers earn higher commissions. How? When property prices are high many first-time buyers are squeezed out, which means, as we are seeing especially in London now, that there are many cash buyers coming into the market, which means fewer mortgages, which mean less commission. In any case, many professional brokers work on a fee basis and the days of the commission only cowboys chasing the highest procuration fees are thankfully behind us.

There will of course be some who will probably lambast my argument, or state “where do they get these ‘experts’ from?”. Most usually on websites such as housepricecrash.com that seem to be a breeding ground for conspiracy theorists, unfairly hammering people just for putting out their views when asked – as witnessed by a shameful campaign against Ray Boulger a few months ago.

So for the record, I believe my views are as valid as everyone else’s, especially as I am a fully qualified advisor who still sees clients as part of my day job rather than just a spokesperson. I would like to see a sensibly priced housing market, one that is robust and avoids the booms and busts of previous cycles. I want to see a high level of transactions and ensure that everyone who takes out the biggest loan they are ever likely to has access to full independent advice, in fact I believe it should be mandatory.

I do not however, believe that property is ludicrously overpriced at the moment, especially in certain areas. Supply and demand is the one economic theory that I believe always holds true and, at present, supply of decent property is at a premium.

The main issue is not brokers, or even estate agents who will probably tell you the same thing, but with vendors themselves. They still believe that their property is worth higher prices and refuse to consider lower offers. Thus there is a gap between buyers and vendors that is not being closed.

Even with this, I believe that anyone buying the right property now will look back in 5 or 10 years time and see that they bought well.

There will be many who disagree with me and healthy debate should be encouraged, but let’s keep the arguments constructive rather than personal.

Anyway, keep the comments coming, positive or negative I am happy to be challenged and I have never said that I am absolutely right all the time. What I do say, is that my views are honest and honed from my own experiences talking to clients, lenders and estate agents.

Have faith, the majority in the property industry passionately believe in what they are doing – ultimately helping the consumer.

I guess that is why in much online writing and message boards many use the kind of annotation symbols I used to find rather annoying but have now embraced with glee, you know the ones; lol,
:-0)* (no idea on the last one, but you get the idea).

Anyway, the point is that because much of what I write, certainly in the banter with colleagues over company issues, is tongue in cheek, I think I am going to have to go further and start annotating my expressions after almost every line. Maybe I should do that with all my writing so people understand the tone in which I am addressing them.

In fact maybe all people in business should do that, and it could be very useful in our own industry. I would love to see new rate release emails from lenders with a bit of honest annotation, as well as some media releases.

Go on, try it

I know you may well be asking what is mortgage related about that, but not everything in this blog needs to be about that does it (genuinely furrowed brow)? I often think my best blogs are when someone says to me, “what the hell were you on yesterday?” (self-obsessed smirk as if anyone actually reads this).

But, talk about mortgages I shall (stifling yawn), after all that is ostensibly what I do!

There does seem to be a bit more get-up-and-go about the market at the moment with a plethora of new product releases, some of which fly in the face of recent SWAP rate increases, especially on a fixed rate basis. Lenders do seem to be a bit more relaxed about the future and are starting to concentrate on the core business of actually lending money again, (about bloody time to).

Whilst there is an undoubted return of a semblance of competition to the market, I still feel it is highly likely that the fixed products available in the first part of the year will be better than those available in the latter.

It was also a little bit sad to see the Abbey and Bradford & Bingley brands disappear into the ether of the past and it is a shame to lose something so quintessentially British , certainly where B&B were concerned.  However, Santander is a strong brand with a good reputation and I like what they have been doing, (slight crawl).

Anyway that’s progress folks, something we badly need and I am all for that.

QXRSUDQZ6FTK for all those wondering this is my Technorati claim reference I have to post into a blog – I don’t really know why either

For those that don’t know, according to Wikipedia “Philippe Starck is a French product designer and probably the best known designer in the New Design style. His designs range from spectacular interior designs to mass produced consumer goods such as toothbrushes, chairs, and even houses.”

Anyway, he calls his staff “The Tribe” and implores everyone to look behind the story, ignore the obvious, engage, don’t just sell products nobody needs, think differently. As he himself says, “”You don’t make good design if you think about design. You make good design if you speak about life, sex, flesh, sweat. I shall open ze zip of myself and say ‘Now take what you want’.”

So what has this got to do with anything at all? Has Monty gone off on another of his surreal fantastical ravings? Possibly.

To me the point is that we can all learn from taking a step back and thinking about things differently, in fact I would say we owe it to ourselves to.

Whilst the mortgage industry is hardly rocket science, we all need to reinvent ourselves and stop just thinking “we have to sell”. No. We have to engage our clients, we have to show them things they have not thought about, give them an opportunity to discuss openly with us, feedback and enter into meaningful dialogue.

Just like the quote above about design, you don’t just sell a product by talking about the product. You talk about real life, real needs, and maybe a little touch of sex, flesh and sweat!

People are generally more sophisticated in my book, especially if you are aiming to be a leading mortgage broker in London, you specialise in the large mortgage arena or just want to offer people something different.

Too many companies nowadays still think they can take customers for fools, especially in the financial services arena. With the amount of information around at the moment, lenders spouting that their products are the best since time began, or misleading comparison websites confusing the hell out of people, or even brokers claiming to be the “Uk’s leading independent mortgage advisor” or largest mortgage broker ever, it can be very hard for people to really know not just when they are getting good advice or bad advice, but whether they are really getting any advice at all.

Many brokers say they are the best. They claim to have the best rates, provide the best service and do things no other broker can do. But, instead of saying “we will always get you the best deal on the market” when you can’t, perhaps what people really want is a little honesty, an “anti-claim” or in fact no claim at all.

I like to think that this is what we have done, and I know there are already other good companies out there who do the same thing. That is to try not to make outrageous claims, but just concentrate on the basics.

Professional and genuine independent advice, high levels of service, engaging clients and looking beyond the “sale”.

That way, I suspect that your clients will do the singing and dancing for you, and your own tribe will grow very nicely.

This time I was slated for my comments that appeared yesterday on the BBC News website by a blog entitled Back Office Wine. The nameless person writing writes very well and has some very valid points, although I thought I should clarify my remarks and share with you a precise of my response.

The question arose around my remark that “the general consensus is that fixed rates are as cheap as they are likely to get”, therefore those at higher LTV’s should be looking to fix now.

The world is full of opinions, and especially in these times they vary dramatically, but it does not mean that an opinion is wrong just because you happen to disagree with it.

I am an independent mortgage and financial adviser, I am not just a salesman and I like to think I understand my industry which I have been a part of since the early ’90’s.

My honest opinion, shared by many and disputed by many, is that fixed rates are indeed as low as they are likely to go. Bank Base is not going down any further and lender margins at present dictate that unless competition dramatically changes lenders will not want to reduce their rates further.

My point is generally aimed at those who took out mortgages a couple of years ago at 75% LTV or above. Are the rates going to be that much better in the near future, or is the downside of a potential rate hike in 12 months time a greater risk? Property prices will probably take much longer to recover, and lenders much longer to get competitive again at 90%+ LTV, than it will take for rates to go up.

So if you can fix at historically low and affordable rates now, or risk not being able to remortgage at all in the near future because your LTV has increased beyond lenders acceptable levels due to falls in house prices, why would you not?

Why leave yourself at the mercy of a lenders variable rate which, let’s face it, they will be quick to raise as soon as they can, meaning that mortgage payments will go from being affordable to being uncomfortable?

My job is to put those questions out there for people to discuss, I don’t mind if people disagree with me, and I have evidently succeeded if blogs like this continue to raise issues.

A journalists job is to present a story from a source and to provide comments around it. Exactly like this blogger has done, albeit just presenting one argument.

If it relates to mortgages and property why would you not get a comment from someone who works in that industry?

Seriously, all comments are welcome, blogging like this is a very valuable tool and it would be great if more people offered their opinions like this.