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Better in the promise than in the execution

Kevin Paterson, managing director, Park Row Independent Mortgages. Recent research indicates that a third of IFAs believe that offset mortgages will represent more than half of all borrowing within five years and blame the lack of recent growth in this market on lack of customer understanding. The only thing this demonstrates is that IFAs have a poor grasp of the fundamentals of the mortgage market. Anyone who knows mortgages, and in particular offsets, will tell you that they are better in the promise than in the execution.

I always found it ironic that a mortgage should attract a client who wants to invest – especially in these bear market times – with the promise of reducing the mortgage interest by offsetting the interest earned on their capital. Repaying debt is the new investment. Certain offsets have been popular among brokers as a stopgap to a longer term solution, especially where the client wants to draw down additional funds in the short-term. But we invariably see a move to a more competitive option within a year of taking out the mortgage. The most dangerous offset is The One account, a current account mortgage which gives the client an agreed overdraft limit and requires iron discipline to retain control and not spend the entire overdraft.


Ian Menzies-Gow takes the chair

Neil Hannah is stepping down as chairman of the Derbyshire and will be replaced by current deputy-chairman Ian Menzies-Gow. Hannah retired last month having joined the Derbyshire&#39s board of directors in 1992. He became deputy-chairman in 1998 and chairman the following year. A fellow of the Royal Institution of Chartered Surveyors, he has practised for […]

Football star to open West Bromwich branch

Former England football star Paul Merson will officially open the new branch of the West Bromwich in Tamworth, Staffordshire on Tuesday November 25. Merson, who is currently enjoying a season with Walsall FC, will open West Bromwich&#39s branch at the Ankerside Shopping Centre. As well as cutting a ceremonial cake with chief executive Andrew Messenger […]

Lifelink to become principal under FSA regime

The Lifelink Group says it will apply for principal status under forthcoming FSA regulations. The firm currently has 300 member firms transacting general and mortgage business and says that it will continue to give its membership access to the entire Life, general and mortgage markets under FSA regulations. Mike Gosnell, director of Lifelink, says: “We […]

networkone to inject the sound of music into Mortgage Expo

The world-famous Treorchy Male Voice Choir is set to make special guest appearances at this years Mortgage Expo, thanks to networkone. A 32-strong section of the choir, which has sung at some of the world&#39s most prestigious venues and appeared in scores of television and radio programmes, will make six appearances at the networkone stand. […]


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