There are some very interesting observations to be made around some of the comments made.

One question is the recurrence of the old favourite as to whether a discounted rate linked to a lenders own variable rate or a Bank Base linked tracker is better advice. Traditionally most brokers and journalists state it would be better to take a product that tracks the Bank of England Base rate rather than a product linked to the lenders own variable rate. Simple reason really, historically speaking lenders have often failed to pass on the full cuts and increased their own rates over and above the Bank of England’s’ own rise.

However, I did note one comment that raised a very interesting point. That is the fact that the margin between variable rates and Bank Base is much larger than it has been for many a year. The question is therefore is this just the new norm? When rates rise are lenders going to keep increasing their variable rates in line or even by more as they have been known to in the past, or is the margin going to “normalise” as Bank Base rises and lenders not pass on the increases as competitive pressures return to the market?

I guess it depends on your view of lenders, particularly certain lenders, and there are more than a few cynics amongst us who would question whether lenders will look out for their customers or keep raising rates.

For me over the next 2 years at least I still see sense in linking to Bank Base rather than be left at the whim of a lender who may need to increase their rates by more than any modest increases in Bank Base we may see in the short-term.

In the long-term however it does seem more unlikely that certain lenders will be able to keep the gap between Bank Base and their variable rate so large. As ever it is another important thing to take into account when looking at which lender to go for. Headline rate is nice, but it is not the be all and end all for many when they start looking at the nitty gritty.

With the number of products increasing once more, a plethora of products available from different sources and increasingly confusing  internet based “Best Buy” tables that sometimes promote their sponsored products at the top rather than the actual very best products, advice seems more important than ever.

On the insurance side of things we have already seen providers such as Direct Line and Aviva saying their products are not available on internet Best Buy tables, so how long before some lenders follow suit?

In the Large Mortgage Loan sector this is already the case, with most of the best products not available on any search provider. At this end of the market, only an experienced Mortgage Broker can really assist, unless you have the time to contact the many private banks who dip in and out of the market at this level.

Now of course I would say that, but it is true.

It’s good to be back.

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.

It has always been the case that the top end of the market seems to move six to nine months before the rest of the market, so the question is how long it will take this time before the activity begins to trickle down to the rest of the market. 

It is in the million-plus market that a lot of properties are still being sold; these are generally the clients with large amounts of equity, and although many start off suggesting that they are cash buyers, once they see the really attractive mortgage rates on offer many decide to finance at least part of the purchase so they can use their cash in other ways.

Also, many City employees have had their basic salaries increased and less is paid in bonuses, which makes them more attractive to the lender.

This heightened activity in the High Net Worth property sector is matched by the biggest area of movement in lending terms, in the large mortgage loan arena, where lenders like lending to those with at least a 25% deposit and a decent income.

At this level products such as a 2.99% base rate tracker, a 3.99% 2 year fixed and a 3.25% variable with no penalties offer a superb incentive for those looking to borrow above £500,000 to take advantage of lower house prices and not tie up all their available cash.

It is mainly the Private Banks who are able to offer these exceptional products, together with the service and understanding of client’s circumstances that is needed at these levels, and offshore loans, currency management and all manner of weird and wonderful bespoke products can be arranged with the minimum of fuss.

However, mainstream lenders are also slowly beginning to pop their heads above the parapet and offer a greater choice, whilst slowly increasing the Loan-To-Values that their best rates are offered at.

With bonus levels set to be maintained it looks as if demand will only increase as many look to take advantage of lower prices and historically low interest rates.

This could be one of the most important signs yet that the housing market is starting its’ long and difficult journey to recovery.