'Storming' Future despite service concerns

Future has come under continual scrutiny over its service problems, said to have been brought on by huge demand for its 100% LTV deals – which it eventually withdrew from the market last November.

BestAdvice.net can reveal Future will be undertaking a three-phase strategy to get back into the market and win back confidence from brokers and its packagers.

Phase one will see the launch of a range of buy-to-let (BTL) deals, to be distributed via nine packagers initially, and is said to include some of the most competitive and adventurous BTL products to be provided by a lender. They are expected to go live next week.

The BTL range includes a 5.75% rate at 85% LTV and 5.95% rate at 90% LTV, with a 100% rental to interest calculation.

The nine packagers involved in the initial launch include All Types of Mortgages (AToM), Opus Mortgages, Mortgage 2000 (m2-d&p), em-, Solent Mortgage Services and Mortgage Times Group.

Phase two will see more packager partners coming on board, when Future will also launch a broader range of sub-prime deals.

Phase three is believed to involve the re-introduction of its 100% LTV deals.

Packagers involved in the launch said the lender has reassured them about its service, but have warned Future it cannot afford to slip up again. Tony Jones, managing director of Pink Home Loans, said: “Our product guy has looked at the new deals and believes they will make a big impact in the marketplace. The products look very good and will no doubt generate high volumes of business. Our first question did concern its service. But it must be confident it can deliver a good service, because if it falls down this time it could lose a lot of credibility.”

Lockhart Bruce, managing director of Opus Mortgages, said Future will be providing onsite underwriting to help ensure the required service levels are met. He said: “We’re not concerned about its service. We made it clear to Future that it cannot afford to trip up and had to ensure its service has a dedicated team behind it. We also said we wanted onsite underwriting. We think they’ve got it right this time.” Guy Garrard, director of business development at em-, said it was giving Future its full support. “The senior management team at Future clearly recognises it isn’t enough to provide simply product, but that a service to back the product is essential. I’m absolutely convinced Future will get it right this time.”

Sean Hornsby, managing director of Mortgage 2000, commented: “I am aware Future is looking to come back into the market quite heavily. There have been issues surrounding its service. But in order to get back into the market, a lender will provide good offerings like this.”

Vic Jannels, group managing director of AToM, said it has been in ‘open and frank’ discussions with Future on a regular basis. “Its 100% product was a cracking deal and created a vast amount of business which perhaps it did not anticipate. Because Future has been open with us we consider this to be the basis of a strong relationship and whilst we have not been happy with its turnaround times, we at least do know it can manage its business accordingly,” he said.

And Chris May, director of Mortgage Times, said: “We have some big plans with Future. We are quietly confident that the service proposition will be much improved. We said if it gets it right, we will commit the volumes. It will be launching some very good BTL deals, as well as concentrating on its online technology.”

Mark Charlesworth, managing director at Future, told BestAdvice.net that it is eager to re-establish good relations with brokers, admitting they may have been reluctant to use the lender over the last few months. He said: “We have completely restructured the business so we can offer the service required. We have recruited more staff, outsourced existing customer calls and have the systems to alert us to any delays in the process.

“We do not want to offer bad service, so we have initially limited the distribution of the BTL deals. We are confident the business mix is now right.”

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