"Young buyers are simply unable to raise the money needed even for a 90% LTV mortgage, and rising inflation coupled with salaries which aren’t keeping up isn’t helping their case."
FR: As head of operations, what does your role involve and what does a typical day look like?
I am responsible for overseeing day-to-day activities within TMA. One day I can be working with the senior management team to formulate strategy; on another I’ll be coordinating internal operations or overseeing implementation of IT systems across TMA’s key offerings.
Given the Club offers a whole suite of products and tools, and these will continue to grow as the market does, my role can vary hugely depending on which element of the business I’m focusing on. No matter what I’m doing, I’m always thinking ‘how can we ensure this benefits our members?’ Supporting our members is what lies at the heart of the Club and I am always tuned into what will make a broker’s business run more smoothly and efficiently.
FR: Where has the financial services landscape changed the most since you started just over 15 years ago?
I’d say the solutions and support available for specialist borrowers have evolved significantly since I first started in the industry. The landscape of the specialist lending market is completely different to how it was 15 years ago and it’s been really encouraging to see that as borrowers and their needs have changed over the years, so too has the mortgage market evolved to meet these shifting demands. Numerous avenues have not only opened for customers with complex situations, but also for those looking to access lending on non-traditional properties. Intermediaries in particular have been instrumental in ensuring that this growing pool of borrowers have access to the flexible and innovative solutions they need.
FR: What are some of the most common issues you see intermediaries in the market currently facing?
As the Senior Managers and Certification Regime (SMCR) comes into force in December this year, networks and clubs have already started to think about how best to support and guide advisers. Given that many brokers are likely to be concerned about how the new protocols will affect their business and unsure how they need to prepare for it, it will be key for clubs to have the operations in place to serve and address these concerns. Our Compliance bulletin, support desks, digital resources such as webinars, as well as intermediary-led events will go a long way towards doing so, as well as reassuring brokers that their network is behind them.
At TMA, events like our National Conference have allowed us to speak to our members directly, lay out exactly what they need to be doing ahead of the SMCR deadline and outline what resources and tools we have in place to help them do so remain compliant. Our team views compliance and regulation not as a barrier to business, but rather a means of supporting good customer outcomes and we remain committed to ensuring this stays the case after these new rules are implemented.
FR: What type of incentives or products would you like to see more of to help first-time buyers get onto the property ladder?
The Help-to-Buy scheme has done wonders for thousands of young buyers looking to purchase their first property. Whilst this remains the case, the market will need to ensure that post-2023, other incentives and products are in place to continue to help this community of borrowers. What needs to be addressed in particular is the hurdle of the initial deposit. So many young buyers are simply unable to raise the money needed even for a 90% LTV mortgage, and rising inflation coupled with salaries which aren’t keeping up isn’t helping their case. The reintroduction of the 100% mortgage, for example, would mean that this first hurdle is completely eradicated and providing customers are advised correctly, this may help a vast swathe of generation rent to finally become generation own.
Another solution might be to reduce stamp duty for first-time buyers – or even remove this levy completely. On top of the hefty deposit that is required, fees associated with buying are another requirement which many borrowers overlook or are simply unaware of, so restructuring the required stamp duty costs could relieve these borrowers of yet another hurdle preventing them from realising their homeownership dreams.
FR: If you could see one headline about the mortgage industry in 2019, what would it be?
'Record number of cases completed with mortgage intermediaries'.
