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Labour Party emergency mortgage summit

ended 10. July 2023

The Labour Party has announced it will be hosting an emergency mortgage summit with brokers this week. The summit will be overseen by Shadow Chancellor Rachel Reeves and Shadow Housing Secretary, Lisa Nandy. UK newswire, Newspage, asked brokers and intermediaries what they would be saying if they were to attend - and also who should attend.

 

12 responses from the Newspage community

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Jonathan Miller
Director at 365ifa
For this summit to be successful, the conversations need to be with independent brokers, ranging from small to large. Corporates and trade bodies are too far removed from the coal face to have meaningful input. Are people who haven't been in front of a client for 10-15 years the people that can provide the feedback Rachel and Lisa seek in such times? In my opinion, no. They need to know how individuals are coping and accepting the current rates being thrust upon them. This can only be provided by those giving the advice.
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Julie Bayley
Independent Financial Adviser at Fordham Financial Services LTD
I would point out that the Bank of England hiking interest rates to curb inflation simply isn't working because it's not in the main being caused by consumer spending. If it was, then inflation would be falling because there's no doubt in the current climate that almost everyone is feeling the squeeze and cutting back. The Ukraine war, Brexit and the fallout of Covid seem to have been the driving force of high inflation and those factors are being compounded by high interest rates.
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Riz Malik
Independent Financial Adviser at R3 Wealth
If brokers are being involved in the conversation this would be a great start. We are the ones who are seeing the implications on the crisis everyday. Ideally a cross party task force needs to be in place so any viable suggestions can be actioned effectively. The Chancellor still has time to arrange his own conference to put an end to this madness.
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Justin Moy
Managing Director at EHF Mortgages
Given that around 80% of all mortgages are via intermediaries and brokers, naturally they should have a proportionate percentage of the space at this summit. We see the effect of high rates every day, have to deal with the negativity it is spreading, and counsel those who need huge support and reassurance. Not those three times removed from the process, whose last mortgage may have been 20 years ago. This should reflect the largest and some of the smallest broker firms, too, as there is an impact on our people, as much as the borrowers. I would discuss the role of the Bank of England in setting rates, and the lack of tools they have around ways to curb inflation. If we adopted a more European model of long-term rates, the base rate becomes redundant, so how else would the government and Bank of England control inflation? Would increasing spending taxes, like VAT, be a better way to control inflation, and spread the responsibility to everyone, not the minority?
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Andrew Montlake
Managing Director at Coreco
This is a great initiative from the Labour Party and engaging with mortgage professionals who are working with borrowers day-to-day on the front line shows a determination to fully understand and look for solutions to the current mortgage-related issues. It is important for political parties to show an understanding of every aspect of the home buying process, rather than just focusing on one group, and this opportunity to engage with a broad spread of mortgage professionals around the table will stand them in good stead. I have said before that the housing market is of the utmost economic and social importance, which needs a long-term plan, and a cross-party approach involving a spread of industry professionals, rather than a short-term focus that is blown about in the backdrafts of ever-changing Housing Ministers.
I look forward to this engagement and a fresh approach.
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Rhys Schofield
Brand Director at Peak Mortgages and Protection
How I'd love to be involved in a summit like this. I'd say brokers have their finger on the pulse like no one else in the industry. We're the ones talking to clients and seeing the very real issues at the coal face. In regards to questions, I'd like to ask what actions could be taken for clients who simply can't afford their new payments? Options like a stamp duty holiday for people downsizing, or a 6-month payment holiday whilst they do so. Both the public and brokers are pretty darn resourceful and we could help a lot of people in a pickle with a few more tools in our arsenal. Making people's lives easier doesn't actually have to cost too much money.
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Jamie Lennox
Director at Dimora Mortgages
Real brokers on the ground level need to be the voice of the next generation of homeowners as they see and understand the struggles being faced by many first-time buyers. There needs to be some real thought around getting builders to build. The planning process is long and slow and needs to be reshaped. We then need to look at a viable scheme to replace Help to Buy, which has left a gaping hole in the market.
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Jonathan Burridge
Founding Adviser at We Are Money
To have the opportunity to have a voice is hugely valuable and they would be wise to listen to a mixture of lenders, intermediaries and trade organisations to have a balanced view. The issues with the housing market have been decades in the making and we need a fundamental shift in attitude, which will not take place overnight. Security of a home should be a basic right in a first-world society and that needs to be a starting point. Any short-term fixes will not work alone. Buy to Let and Help to Buy contributed to the rampant house price inflation of the past decade and we need to release the pressure on the market without deflating it. We need to see more housing of more variety being built. There is too much to do to fit in the 1000 characters available here.
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Graham Cox
Director at Bridging Hub
Out of this mess is a great opportunity to completely rethink UK housing policy. My message to Labour would be to allow house prices to fall, whilst implementing temporary measures that allow people to keep their homes, whether that be extended terms up to age 80 if necessary, allowing interest-only for a period, or payment holidays. We also need to ensure private tenants have easily enforceable rights, and section 21 notices are abolished. Longer-term, we must look at measures that maintain property prices at a maximum of five times average income. That means including house price inflation in the 2% annual inflation target, and giving local authorities and good housing associations the means to build truly affordable social housing at scale. We need bold, radical steps now. The status quo is simply unsustainable, economically illiterate, and deeply unfair, particularly on the young.
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Amit Patel
Adviser at Trinity Finance
Small independent mortgage brokers rather than corporates should attend the event as we have a better understanding of the situation facing our clients at a local level. The Bank of England needs to help borrowers, renters and small to medium-sized business owners with the costs of borrowing by beginning to reduce the base rate, as clearly their strategy to bring inflation down has not worked so far. Greedflation is why inflation remains stubbornly high and this needs to be addressed as a priority.
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Elliot Cotterell
Director at Windsor Hill Mortgages and Cotterell & Cotterell Commercial Finance
I would emphasize the importance of collaboration and inclusivity in addressing the challenges faced by homeowners and prospective first-time buyers. It is crucial to bring together a diverse range of stakeholders to ensure a comprehensive understanding of the issues at hand and to develop effective solutions. In my opinion, the summit should be attended by a mixture of participants, including trade bodies, small and independent brokers, as well as corporate representatives. This diverse representation will provide a holistic view of the mortgage industry and allow for a more inclusive and balanced discussion. By bringing together a diverse group of participants, the summit can foster meaningful discussions, encourage collaboration and ultimately lead to the development of effective strategies to address the housing and mortgage crisis. It is through collective efforts and open dialogue that we can work towards a more sustainable and inclusive housing market.
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Rob Gill
Managing Director at Altura Mortgage Finance
With between 80%-90% of all mortgages conducted via a mortgage broker, involving them in any response to the current situation in the mortgage market is a very sensible proposal from Labour. Brokers are very much on the front line and are seen as trusted advisers by many clients, often the first call for any borrower with questions or concerns. A Mortgage Broker Charter, clarifying and publicising what brokers do, and complementing the lender version already up and running, should be among the discussion points.