Advisers welcome the return of the 100% LTV mortgage

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More than half of Avelo Exchange users surveyed believe it could be a positive move for the industry

A survey of Avelo’s Exchange portal users suggests advisers welcome the recent return of the 100% LTV mortgage, with two-thirds of advisers (66%) stating that it was good news for the mortgage industry – three-quarters of those adding that this was providing the correct professional advice is given. Only one in seven (14%) felt that it was a negative step, stating that products of this ilk should be banned.

Among those Avelo Exchange users who saw the re-introduction as a positive step, just under one fifth (16%) said they believe that an increasing number of mortgage options in the market can help to kick start the economy and provide valuable extra choice for homebuyers.

The survey also looked at the re-emergence of the buy to let market, with a total of 75% of those questioned seeing it as a viable option. Of those regarding buy to let positively, almost half (47%) are now considering buy-to-let a viable prospect as rental yields are growing once again. The remaining 53% had always considered buy-to-let an attractive option.
Just under one fifth (18%) of those surveyed wouldn’t recommend buy-to-let as a viable option as they felt the associated risks were too great.

When asked their views on the prospect of fixed mortgage rates changing in the next quarter, an overwhelming majority (71%) of respondents saw rates remaining at current low levels, with just under one third (29%) of those surveyed believing rates will change – either up or downwards over the same period.

Gary Muchmore, Enterprise Director, Avelo, said, “The return of the 100% LTV mortgage market suggests an encouraging sign of market diversification after a fallow period. This innovation should be embraced by the industry and welcomed with open arms by first time buyers struggling to get onto the property ladder - as long as providers and advisers work together to ensure these products are correctly positioned and advised to end users. The same is true of the buy to let market which is a great option provided it’s seen as part of a broader investment strategy not as an alternative to good financial retirement planning.”

Results based on 170 users of Avelo Exchange poll carried out in September 2011 .
Journalists, for further details, please contact:
James Terry/Andy Martinus
Teamspirit Public Relations
t: +44 (0)20 7360 7877
e: avelo(at)teamspiritpr(dot)com

Debra Knott
t: +44 (0) 1926 621 410 / 07796 271 584
e: debra.knott(at)avelo(dot)com

About Avelo
Avelo is the technology partner that connects the entire industry more effectively than ever before.

It’s reshaping financial services and redefining how companies interact with each other. Avelo has intertwined 1st Exchange, N4 Solutions and Screen Business to create a new force that will power the industry end to end.

From sole trader IFA to global financial players alike, Avelo can help make those powerful connections, across the board. So whatever challenges businesses may face in distributing products end-to-end – in all stages of the sales process, Avelo can help power the process.

  •     The Exchange is the largest provider of online comparative quotations and electronic new business applications in the UK financial services portal market. Its main product is the Exchange Portal, which is the UK’s leading intermediary trading platform in the financial services market, used by over 32,000 registered users within authorised advisory firms. It provides online information and transaction services, with over 360 million client illustrations processed between March 2008 and March 2011.
  •     1st develops, markets and supports software delivering financial planning, client management and full back office administration to financial intermediaries. 1st’s ‘Adviser Office’ software, is the market-leading client management solution used by more than 1,250 Adviser firms offering wealth management and financial advice, both Multi-tied and Independent. Based on Microsoft SQL Server and .net Technology, Adviser Office links with over 70 partners, including product providers, portals and fund supermarkets to aggregate client data and avoid any data re-keying.
  •     N4 Solutions (N4) is the UK's leading provider of multi-channel point-of-sale distribution and application processing technology for mortgages and wealth management. N4’s offering supports multi-channel distribution from a single platform. A typical implementation would see an incremental deployment of components across all channels. Furthermore, the system is designed to be easily integrated with existing enterprise systems, to deliver seamless straight-through-processing to existing back-end servicing systems.

It’s estimated that 1 in 4 UK mortgages currently touch Avelo point-of-sale and originations systems.

  •     Screen Business has a 10 year history of providing self-service websites to IFAs which automate key client sales, servicing and administration processes. For larger firms and financial product providers, Consumer solutions include Annuity, protection and investment direct distribution, as well as portfolio management and, employee benefit services.


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Andy Martinus
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