Leap Years Day, and love is all around.

Following similar recent announcements from Alliance & Leicester and Nationwide, more reductions have been announced in the amount lenders will lend as a maximum percentage of the purchase price. Step forward Cheltenham & Gloucester, who have now reduced maximum loans from 95% to 90% across their product range. The lender said that the move was part of its 'prudent approach to lending,' adding that the ranges which had been withdrawn or had their maximum LTVs reduced only accounted for a tiny part ( just 1.7% of the lender's mortgage book had been 90% + loan to value deals) of its overall business. The lender is now refocusing efforts on its core business. C&G also apologized from giving intermediaries 'less notice than usual' after informing them of the developments on Thursday, for a withdrawal that evening. At least we got an apology this time ! Interestingly, parent company Lloyds TSB will continue to lend up to 95%. C&G said the decision was made in order to focus on improving service levels to its core products. As a broker, I find it is usual that lenders are swamped with business they cannot handle due to staffing issues when they have ultra-competitive deals. This leads to an ever decreasing spiral of service levels, so eventually lenders withdraw from a product range or market entirely (witness above) so that they can rein in the application levels, which allows them to get their service back to an acceptable level, that attracts more business that lets them make a profit (not that any product is unprofitable for them, heaven forbid.) As I said, it's a merry-go-round !

It's been a week of 'doom and gloom', with more redundancies announced, lenders making amendments to product ranges at short - or no - notice, technical problems with provider's web sites, and other issues such as poor service and outright stupid things like the inefficiencies I mentioned on Wednesday. For my point of view, I've been busy trying to arrange mortgages for people with bad credit history, and people who have come back to me after 'disappearing' whilst they searched for the perfect property, and trying to arrange buildings insurance on a property in a ex-mining area. I'm very glad to say that all 'problems' were able to be resolved. That's what I'm here for after all.

Today is the 29th February - Leap Years Day. Love is in the air, supposedly. Maybe I'll get that marriage proposal after all! My other half better hurry up as her parents are coming to stay for the weekend, which may put a dampener on such things ! On that note, I hope you have a good weekend. I intend to !

Today's thought: "Where there is love, there is life". (Mahatma Gandhi)

Inefficiencies at my cost really irritate.

I am amazed at how inefficient companies can be. I moved home (and office) last autumn, and I informed many organisations of my new address. Around the same time, I also changed the network that I affiliate my business through. You'd think that telling a company just once of the change of details would be sufficient, especially as on any product application I give them, it reiterates my current details. Today I received a cheque from Norwich & Peterborough Building Society, not only addressed to my old address, which I'd let over 6 months ago, but also for the wrong amount. The wrong amount was due to them not updating my Network details correctly, which I'd told them about in October. Luckily, I had arranged a mail re-direction service with the Royal Mail for 6 months, but this ended on the 20th February, even though I received this letter over 1 week after my re-direction service was supposed to end. So, it's not only the lender who was inefficient, but also the Royal Mail (even though I have benefited from their inefficiency). The time and cost of other people's inefficiency is something that really riles me, but this is the times we live in. I will continue to 'name and shame' the organisations that I deal with and who don't seem to make changes at the time of request, or are as efficient as I am, which cost me time and money. Why should I be the one to show them the error of their ways, at my time and expense? And don't get me started on 0870 numbers !!

Following on from last week's withdrawal of all 6 providers of 100%+ products, it's been announced today that RBS Intermediary Partners (that’s the Royal Bank of Scotland, Nat West bank, the One Account, and First Active) has lowered its maximum loans to 95% of the property value. They used to lend up to 100% of the property value. Another sign of the increasing 'credit crunch' and it's long-lasting effects. I fear they won't be the last to make such changes.

Hi there,

This is my very first blog, ever.

As I like to be at the forefront of technology, and I like to have an 'open access' availability for my business contacts, it's time to join the world of Web-logging, popularly known as Blogging. In reality, I've probably waited too long, but now is the time to bite the bullet and move on with one of those things I've been meaning to do for quite some time.

I'll be using this blog to keep anyone who's interested in the world I live in, which is that of an Independent Mortgage Broker. Using my 27 years of experience is something I'm very proud of, as well as counting many clients, both old and new, amongst my friends. My greatest thrill is to see someone's dreams come to reality, and my occupation gives me that possibility on a regular basis.

I'll be posting things such as my latest deals (with complete anonymity of my clients, i. e no names mentioned) as well as news of what's happening in the mortgage lending world. Although the principles are the same (i.e. a mortgage is a mortgage is a mortgage), the speed at which matters move is sometimes incredible. For example, many lenders nowadays are removing their products with little more than 12 hours notice, which can be incredibly frustrating when I have a client interested in a product, only for it to be whipped away without adequate notice. Just today, I received an email from Cheltenham & Gloucester (at 1.45pm on a Friday) to say their latest range is being removed at 5pm on Saturday, and is being replaced by a yet-to-be-announced new product range on Monday (which could be higher or lower rates and/or fees, better or worse, who's to tell today!). This leaves me with under 4 hours to tell any client who I may have been recommending the C&G product range to, to arrange a Decision in Principal and sort out a Full Application. As I said, incredibly fast moving, and nearly always frustrating all round.

I think that's enough for a first post. Come back soon, and see what other 'pearls of wisdom' I have to share with you.

Best wishes, as ever.

Des