June 2012

Despite the awful weather, what a wonderful weekend it was in celebration of the Queen's Diamond Jubilee. The pomp and pageantry of these occasions is what we do best and surely no other country in the world can put on such a show, truly inspirational!

In the markets it is pleasing to see that gross mortgage lending by building societies and other mutual lenders rose 23% in April 2012 compared to the same month last year. In the first four months of 2012 lending rose 36% compared to the same period in 2011. Net lending by mutuals was positive for a seventh consecutive month.

Mortgage approvals by mutuals were up 50% in April compared to the same month last year, and were 20% higher than the average over the previous six months. Showing a very healthy pipeline, approvals were up 43% in the first four months of the year compared to the same period in 2011.

Focus On.......Customer Interviews

There is no doubt that times are still hard for many throughout the country and we are seeing a growing trend by our customers in asking us to visit their debtors on their behalf.

We interview many individuals on a daily basis in an effort to get their up to date financial position and help our clients assessment of each file. Wherever possible we meet the debtor at home and complete a detailed interview form consisting of income/expenditure and assets/liabilities. As you may expect, meeting the subject at home allows us to report details that they may have not told our client, such as vehicles and other assets. We paint a picture to help our clients make cost effective decisions.

It's still home

We were asked by a bank client to visit one of their customers at home and try to interview him to establish his means and ability to repay his debt.

On arriving at the property we found it to be a two storey derelict cottage and completely uninhabitable. It was clear that there were serious structural problems with the building, and the site included a number of portacabins as well as a considerable amount of rubbish.

We spoke to a number of local residents and obtained information which led us to a new address for the subject where we were able to interview him. Clearly his circumstances were not good, and the condition of his property was such that a sale would not be straightforward. However, by being able to get a close understanding of his circumstances (our client was not aware of the property condition) and finding that he was helpful towards our enquiries we were able to go back to our client and help them reach a mutually acceptable agreement. This would not have happened without a visit to the address.

London House News

Our newest Franchise Owner, John Ginivan, has now completed his training and is up and running covering the RM (Romford) postcodes.

His contact details can be found on his web pages:

London House Services (Romford & Thurrock) Ltd

We have also taken two further deposits for new Franchise Owners and they will be joining us for training in July. More details next month.

You Asked Us

"You seem to be taking on a number of new Franchise Owners lately, how big is the London House UK network now?"

We currently have 36 Franchise Owners who between them cover 60 franchised territories or postcode areas. Our office locations stretch from Glasgow in the North to Exeter in the South West.

Mortgage lending and approvals increase in April

Gross mortgage lending by building societies and other mutual lenders rose 23% in April 2012 compared to the same month last year. In the first four months of 2012 lending rose 36% compared to the same period in 2011. Net lending by mutuals was positive for a seventh consecutive month.

Mortgage approvals by mutuals were up 50% in April compared to the same month last year, and were 20% higher than the average over the previous six months. Showing a very healthy pipeline, approvals were up 43% in the first four months of the year compared to the same period in 2011. 

Retail savings balances at mutuals increased by £99 million in April, compared to an increase of £1,468 million in the same month last year. After interest credited is removed there was a net withdrawal of £463 million in April. 

Commenting, Adrian Coles, Director-General of the Building Societies Association, said:

"Gross lending by mutuals increased again in April year on year, whilst lending by banks fell slightly. As expected gross lending was down on the March figure as mortgage lending in that month was boosted by first-time buyer activity to beat the stamp duty holiday. Approvals were strong in April running well above the previous six month average. This clearly indicates that mutuals will continue to be active lenders to homebuyers in coming months."

"Savings balances at mutuals increased in April, but it remains difficult to attract savers when household finances are still pressed. It was welcome news to learn that consumer price inflation fell half a percentage point to 3.0% in April from 3.5% in March, however this is still above the growth in average earnings, and inflation is not likely to fall back to the 2% target any time this year."

Late payment in business is becoming the norm

A survey into international credit trends shows that late payment is in danger of being a new corporate culture. According to a second annual survey of credit and finance professionals, more than 70 percent of leading international and UK suppliers are being paid late by their customers.  Of those paying late 44.8 percent are paying later than 15 days – an increase of more than seven percent on last year.

The survey also reveals that 68.9 percent of the 218 respondents have had requests to extend payment terms over the last 12 months – compared with 59 percent in last year’s survey.  

The report was undertaken by P&A Receivables Services Plc and the MSc Finance at Sheffield Hallam University Business School