MARKET
ROUND-TABLE
“The one thing that’s crucial in all of this is the customer And how we pull the best thing we can out of the hat for the customer to make it work for them” VIC JANNELS the final nail in the coffin for some, and maybe those aren’t [lenders] we want anyway.” Seaholme adds, along the same lines, that there has been a trend when considering the casualties so far, with the more asset-led firms being more likely to fall by the wayside, while those that are more clientfocused have tended to fare better. Vic Jannels, CEO of the ASTL notes that the fact that panels have tended to contract rather than expand during this period may also be one of the more positive side-effects: “In some of our experience that’s been a good thing. “Things have been far more keenly led and that’s a beneficial aspect.” The other way in which the market has changed is in its day-to-day processes. The use of technology has increased out of both necessity and innovation, while alternative methods of conducting core activities such as valuation have been picked up and – at the very least – trialled to a greater degree than ever before. While much of the market may revert back to its previous shape once the immediate concern of the pandemic passes – with physical valuations likely to remain the primary option, for example – the progress made during the lockdown will certainly leave an indelible mark. Seaholme says: “Tech is going to play a major part – everyone has had their hand forced, and technology is definitely moving forward. “A point that’s key for the market is [that it is] all about the client journey – that’s key now. Technology can improve that. “I’m not saying that anyone should take away the human element – obviously it’s still a risk-based decision – but the process and the journey can be made a lot easier.”
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SUPPORTING RECOVERY Specialist lenders’ role in aiding economic recovery has perhaps been hindered by issues with those offering support under the Coronavirus Business Interruption Loan Scheme (CBILs), in Mabb’s experience. He says: “Some lenders were quick off the mark to produce their [CBILS] material, but there wasn’t enough money, there was too much demand, and the bureaucracy associated with it is tremendous. “I’ve seen the documentation – it’s bloody hard work. However, you go to two different lenders with the same proposition and they have very different treatment of it. Yes it could be down to how the lender gets their CBILs money, but it’s hard work.” This is likely in part due to the fact that, as with all support systems put in place during the crisis, lessons were being learned in real time, with little in terms of a precedent or template to work from. Jannels has a similar perspective: “It’s quite confusing, because you can spend an inordinate amount of time talking the same deal through several times and getting a different perspective lender to lender.” Another key issue faced by the specialist lending market in terms of its role in supporting the UK’s economic recovery is a lack of external understanding, says Jannels. The ASTL has worked hard to gain traction and engage with HM Treasury about the role of short-term lending, resulting recently in a Zoom consultation with the head of mortgage policy. Jannels says this has helped to reinforce the importance of the role that short-term lending plays in the rest of the mortgage-led market. “You take bridging loan, you exit out quite often to a mainstream lender or a specialist lender,” he adds. “So there are other parts of the market which are rewarded as a result of that short-term loan.” →
“Certain things just wouldn’t happen if everything relied on term finance. The speed and agility wouldn’t be there” SCOTT APPS
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info@mfsuk.com SEPTEMBER 2020
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