Brokernews@Lords - GFC hit UK market for six

by BN10 Sep 2009

The mortgage market in the UK was reined in somewhat by the introduction of regulation, but it was the GFC that hurt it the most, according to Ray Boulger senior technical manager at UK broker group John Charcol.

Statistics like new mortgages written reducing in value from £316bn ($606bn) in the year before its onset to just £150bn ($287bn) last year, or that falling house prices have 2.5 million mortgage owners in the UK in negative equity  - in spite of them being current with their bank payments - supported his sentiments.

Boulger also said that the GFC had impacted on the competitive makeup of the market and that the drying up of wholesale funding has forced many of the remaining lenders to "choose between volume and margin".

Consensus amongst the St.George Flame brokers and aggregator delegates was that while the details might be different, the conversations about the two markets (Australia's and the UK) are a lot more similar than they had anticipated. 

But today wasn't only about the business. After lunch it was also about a tour of the hallowed cricket ground.

It started in the overseas team's change room and balcony, passed through the spaceship replica media centre and ended in the Museum, where we were up close and personal with the tiny Ashes urn. 

Related stories:

Day one: London report: Aggregators upbeat - In the first of his exclusive diary entries from London, Brokernews reporter Tim Neary sets the scene for the St.George regulation study tour