Our very own MD Matt Lowndes emailed me an idea for my blog today which was so nicely written I thought I would just make him my guest writer for today. As my ears are still ringing from seeing the brilliant AC/DC last week, it gives me more recovery time, and keeps with the musical theme. Over to you Matt…
So I spent most of the past weekend wishing I was up to my knees in a field of mud in Somerset, yes Glastonbury was on and as ever I regretted not actually buying a ticket and making the trip. As they say you have to be in it to win it. But I did metaphorically pitch up a tent in my living room and kick back and relax.
In committing to doing a blog several times a week, the biggest worry is how the hell am I going to find something to write about each time? Since I started the blog a few months before the credit crunch I needn’t have worried, events have been nothing short of sensational and yesterday’s announcement from the Lloyds Banking Group marks another historic landmark.
It is incredibly unfortunate that it has come to this, and great names such as C&G, Abbey, Alliance & Leicester, and Bradford & Bingley disappearing from our high streets is sad to see.
It already looks like a week of pressure for many, not just our beleaguered Prime Minister, who although he has survived the latest coupe is hanging by a thread after the Euro Elections. The issue is that when a Government is in this kind of position, not much of any use apart from fire fighting tends to get done.
The PM is not the only one struggling to survive in this post-credit crunch cauldron. There are many in business who are working all hours to keep things going and see out the recession. In the mortgage and banking industry the news today will no doubt focus on another banking giant following in the footsteps of Santander and rationalising its brands in order to compete in the new world.
Also posted in Credit Crunch |
Like millions of people, and after proclaiming my hatred for all reality shows, I could not help watch Britains Got Talent and getting carried away by some great performances. Whilst Stavros Flatley had me crying with laughter at their innocent high jinks, and young Aiden had me proclaiming the next great star, I thought it was apt, and more than justified, that the brilliant Diversity won.
Apt because of the name. Apt, because in these times everyone is looking for diversity. For many in business, certainly in the mortgage broking arena, diversification is key. And it got me thinking, like many others, why the hell did we all not do this sooner?
A very interesting product was released today by Lloyds Tsb which shows two things. Firstly it has renewed my faith that lenders can still be innovative when the put their minds to it, and secondly that arguably this is a step towards lenders actively encouraging first time buyers back into the Market perhaps believing that house prices will begin to recover soon.
While there are a few conditions to this new mortgage product, they are far outweighed by the positives. 4.39% fixed for three years at 95% LTV is an exceptional rate and, presuming parents still have some spare cash floating around, will be a major fillip for certain first time buyers and therefore the market as a whole.
Andrew Montlake, Communications Director at Coreco and ‘Mortgage Personality of the Year 2008’, gives his views — honest and no holds barred — on the latest developments within the mortgage and property markets.
