What are we to make of the apparent growth in the bridging finance market? Is it purely a genuine reflection of legitimate market needs, or could there also be other influences at work? In this article, we explain the differences between regulated and unregulated short term secured lending, and set out some of the FSA’s recent views. We consider how this niche part of the market interacts with mainstream buy-to-let and owner-occupier mortgages, and outline some of the issues affecting the bridging sector.
We also look at mortgage funding, and explain why relying on retail savings alone is unlikely to be the best long-term strategy, despite reflecting the current funding scenario in the light of continuing Eurozone jitters. We outline why a healthy funding market should include wholesale funding (including covered bonds and securitisation) as well, and hint that some unrealistic expectations may exist about what the Funding for Lending scheme can deliver in terms of pricing impacts.
Our quarterly mortgage lending data for Scotland, Wales and Northern Ireland was published last week and we review the similarities and differences between the trends in these national markets and the UK as a whole.
Finally, we welcome our first credit union member – No1 CopperPot Credit Union – into CML membership.
We hope you find something to interest you in this week’s News & Views.
Head of member and external relations
tel: 020 7438 8924
P Before printing, think about the environment
We have a full and busy events schedule in 2012, keeping the mortgage industry up-to-date on the various important issues happening in the market. View the full list and book at www.cml.org.uk/events.