The Labour Party has announced it will be hosting an emergency mortgage summit with mortgage brokers this week. The summit will be overseen by shadow chancellor Rachel Reeves and shadow housing secretary, Lisa Nandy.
The AMI will be involved at the summit as the association’s chief executive Robert Sinclair explains.
“AMI has helped co-ordinate a group of intermediaries who will discuss the issues facing the housing and mortgage market with representatives from the Labour Party. AMI is pleased to be able to assist in ensuring a deeper understanding of the issues, as political parties are considering their policy positions for the approaching general election.”
Sinclair said there would be no other comments until after the event.
What would brokers ideally like to see come out of this summit and what opportunities might it offer?
365ifa director Jonathan Miller insists 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.
R3 Mortgages director Riz Malik comments: “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”.
He adds: “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.
Peak Mortgages and Protection director Rhys Schofield says that in regards to questions, he’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 six-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”.
Coreco managing director Andrew Montlake believes the summit 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”.
He adds: “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”.
Altura Mortgage Finance managing director Rob Gill points out that 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”.
He concludes: “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”.
