Did the Bank of England really expect all lenders to pass on the rate cut?
Regarding the news that less than half of lenders have passed on the Bank of England base rate cut to their SVR customers, we all knew this would be the case and it was naive of the BoE to expect otherwise.
The downside for borrowers is that the margin between SVR and base rate has effectively increased, which means that, when base rate starts to rise, borrowers are likely to have to pay even more than they might have done otherwise.
On the other hand, fixed rates continue to tumble so the remortgage market is well and truly open for business.
Chris Hulme, Clayton Hulme
HCA just keeps on making life difficult for everybody
On the topic of the HCA enforcing rules that block brokers from seeing the ongoing progress of a client’s application for an equity loan, it is typical of the HCA to make life difficult for everybody. All it has to do is change the contract to include brokers.
Some of the schemes it has come out with in the past, without thought for or the opinion of those on the front line, make me cringe. Some of us remember the Expanded Open Market HomeBuy scheme. Those involved with affordable housing held a meeting where we told them it was a stupid scheme but their response was: “It’s coming; we need to make it work.”
The scheme disadvantaged everybody who entered it.
Martin Fairchild, JCD IFA
Offering incentives to new-build clients means that brokers lose out
Since we are on the topic of new-build development issues, I have a big problem with my local Persimmon Homes development.
I have had two clients (one of them my daughter) who have approached Persimmon’s sales office regarding buying and been told in no uncertain terms that they have to use Persimmon’s nominated mortgage broker firm based in Nottingham (about an hour away).
I challenged the sales adviser about this, asking: what is the problem with applicants being validated by their own local broker? What is the difference?
She initially said that not every broker was experienced in new-build – which I am – and Persimmon has had problems with brokers who got it wrong. I continued to press the point and she said: “All applicants need to be validated by our broker or I cannot apply any applicable incentives that may be available on particular plots.”
I said: “Why not?”
She said: “It is company policy and I would lose my job if I allowed this to happen.”
I said: “What about consumer choice for their mortgage? Why should they use a broker they don’t know and who is based miles away?”
She replied: “It’s company policy. I am not trying to poach your clients.”
No, but Persimmon is making damned sure the clients have no choice if they want their incentive package, which could be stamp duty paid and £500 towards legal fees. Can anyone else relate to this?