Labour stages emergency mortgage summit

Brokers have revealed what they would discuss at the summit

Labour stages emergency mortgage summit

Brokers have been sharing what they would want to say at today’s emergency mortgage summit, staged by The Labour Party.

The summit is being overseen by Shadow Chancellor, Rachel Reeves and Shadow Housing Secretary, Lisa Nandy.

Mortgage Introducer asked brokers and intermediaries what they would say if they were in attendance.

Success of the summit

Jonathan Miller (pictured), director at 365ifa, said that for this summit to be successful, the conversations needed to be with independent brokers, ranging from smaller to larger ones.

Corporates and trade bodies, Miller said, were too far removed from the coalface to make a meaningful input.

“Are people who have not been in front of a client for 10 to 15 years the people that can provide the feedback Reeves and Nandy seek in such times?” he asked. “In my opinion, no.”

Miller believed they needed to under how individuals were coping with the current rates being thrust upon them, which he said could only be provided by those giving mortgage advice.

Justin Moy, managing director at EHF Mortgages, said that given around 80% of all mortgages were via intermediaries and brokers, 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,” he said.

If given the chance, Moy said he 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, Moy said, the base rate would become redundant, and questioned how else the government and Bank of England would control inflation.

“Would increasing spending taxes, like VAT, be a better way to control inflation, and spread the responsibility to everyone, not the minority?” Moy asked.

Rhys Schofield, director at Peak Mortgages and Protection, said it would benefit the market for brokers to be involved in the conversation.

“Brokers have their finger on the pulse like no one else in the industry; we are the ones talking to clients and seeing the very real issues at the coalface,” Schofield explaind.

Regarding the points he would raise, Schofield said he would ask what actions could be taken for clients who simply could ot afford their new payments. He suggested options like a stamp duty holiday for people downsizing, or a six-month payment holiday.

“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 does not actually have to cost too much money,” he added.

Rome is burning

Lewis Shaw, founder and mortgage expert at Shaw Financial Services, did not believe talking to mortgage brokers would help.

“Every political party is fiddling while Rome burns; tinkering at the edges with short-term gimmicks is not the way forward,” Shaw said.

The only way to solve the housing crisis and most economic woes, Shaw said, was to transform the taxation system.

Shaw believed the current tax system should be scrapped altogether and, in its place, he said, a land value tax should be implemented, because land as a commodity was almost perfectly inelastic.

“This would increase productivity across the board; it would rebalance the grotesque wealth inequality in the UK, make homes more affordable and lessen the amount of rent-seeking, unproductive behaviour that is preventing genuine innovation,” he said.

Unless we saw that kind of radical policy, Shaw said, all that would happen was homeownership rates would continue to reduce and wealth inequality would worsen.

What would you discuss at the summit given the chance? Let us know in the comment section below.