You may recall in my “Annual Address to the Nation” back in January, I warned of the problems that would be caused when the new regime regarding Mortgage Regulation started to bite. A long diatribe, couched in my usual enigmatic and sarcastic style (or practical & pragmatic, borne of experience, as I prefer to call it), going on & on (as is my wont) about the effect, both intended & unintended, these New Rules would have on securing a mortgage, alluding to the fact that I believed it would be a nightmare.
So, 9 months on this may be an opportune moment to review My Message to see how things have turned out, to see if I was right. As Regular Readers will know, I’m always right, but it gives me no pleasure whatsoever to say, on this occasion, that, once again, my forecast was spot on!!
As predicted, Lenders have gone OTT in complying with Regulation, moving the goalposts on criteria, massive log jams in process & generally making it up as they go along. Things have been gradually improving of late as they settle down, & Brokers get to grips with their demands, but placing a mortgage is still difficult, & will remain so for the foreseeable future.
It’s not impossible to get a mortgage for the majority providing you fit precisely in their Template, but fitting that Template can prove tricky – and it would appear that Lenders like it this way, and not just because they are perverse by nature. Buffeted by the Regulator, BoE & Govt restriction (despite Govt protests to the contrary), with a finite amount of money to lend, they feel that they can supply the demand as required by the “Perfect Applicant” as judged by their standards, & maintain Market Share in a No-Risk (as they see it), No Brainer World.
So, where does that leave the “Not So Perfect”, the Self Employed, Impaired Credit, anyone who cannot be Tick Boxed to Approval? (A sizeable percentage of the market place) – Pretty much up the Swannee I’m afraid!! The Big Boys in the High St have all reacted in pretty much the same manner, so not much slack there, & the Niche Lenders, who should see this as a wonderful opportunity, haven’t really grasped the nettle, fearing, perhaps, the wrath of the Regulator.
So, what’s to become of us, I hear you cry. Well, I ain’t going nowhere – like Sid James, I’ll die on the job – and, although I’m still able to take you by the hand, lead you through the murky undergrowth of the Mortgage World, I will simply not be able to help (almost) everyone, as you’ve come to expect in the past. More & more, I’m telling people they are wasting their time completely, or advising them how to put their house in order for future application.
Although, as I say, I’m still going to be around, I will be changing direction in marketing strategy – I’ll still be advising existing clients & their referrals, after all, that’s what OneCall is based on, but will be getting more active looking after those in Later Life – and I want you to help me!!!!
As I reach the Autumn of my Days, Twilight of my Years, Sinking into Senility, Attacked by Alzheimers, Dealing with Dementia, Descending into Dotage, Overpowered by Old Age, in receipt of both Pension & Bus Pass (Get on with it!! Ed.), I find I have much in common with my Target Audience-Old people, people Near or In Retirement, Parents & Grand Parents.
Most of my Clients are too young too benefit, at least directly, from this type of Advice as it has no relevance to them – But you all have Parents, Grandparents, Uncles & Aunts that might. Relations that can benefit from talking to me, just in the way you have, but they don’t know I exist – And when they need me, as they almost undoubtedly will, how they going to find me? How will they escape the clutches of the Vultures, for, believe me, they are hovering!! Believe me, Old People are Big Business nowadays, & will get bigger as we are all living longer – and will become a target for the less than scrupulous.
If you feel you would like to help me to help your Friends & Relations, I’d appreciate it – I attach a Brochure giving ideas on financial concerns of the Elderly, & you might like to pass it on. I’ll also be sending out similar info on a regular basis, just so you can keep me in mind, & as usual, if you don’t want to receive, just let me know.
Finally, you know where to find me – If you need me, just call Essex Equity Release Advice Centre or EERAC for short (pronounced Ear Ache!)