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Analysis: Speculation leads to accumulation


The latest figures from the Council of Mortgage Lenders prove the strength of the summer recovery. Gross lending of £22bn in July – up 14 per cent year-on-year – shows a continued and growing demand for mortgage finance particularly as we move closer to the anticipated base rate rise.

Part of this increase is due to a notable rise in remortgages, which bears out our experience over the past couple of months with remortgaging in June up by 34 per cent year-on-year. The continued speculation about rate rises seems to be having the effect that some intended, with the Bank of England and the FCA presumably wanting more borrowers on fixed rates to reduce the perceived personal exposure of variable products.

For brokers there is an interesting conundrum here because, overall, the ‘value proposition’ may still lie in tracker and discount rates.

Weighing up critical factors such as cost savings versus rate certainty is a good problem to have because it means consumer demand for advice is there, the market remains competitive and lender appetite is strong. 

Advisers are in a position that they have waited many years to regain – so grasp the opportunities.



Analysis: Beat comparison sites at their own game

On noting the return of the famously irritating opera singer featured in the advertising campaign of a well-known comparison website, I wondered why such sites go to the trouble of advertising when often they seem to get a helping hand from the consumer press.  Indeed, in recent weeks both Which? and a prominent current affairs […]


Letters: Life/pension advisers wrong; there is no commission bias in mortgages

Star letter: Life/pension advisers have a log in their eye Last week, Mortgage Strategy reported that the FCA had ruled there was no evidence of commission bias in the mortgage market and, therefore, it was not considering a ban on proc fees in its upcoming market reviews. Then this magazine reported that life and pensions advisers […]


L&G staff vote for strike action over Kingswood closure

Staff at Legal & General’s doomed Kingswood office have voted to go on strike following discussions between Unite the union and staff. The union opened a consultative ballot for industrial action, which closed yesterday. There was a 68 per cent turnout for the ballot with 63 per cent of the total membership voting for action. […]

Frexit & contagion risk in Europe

Many commentators have suggested that the UK’s exit from the European Union will trigger a domino effect, leading to its eventual break-up. Neptune’s Rob Burnett discusses the likelihood of this happening. Read more: Important information Investment risks Neptune funds may have a high historic volatility rating and past performance is not a guide for future […]


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