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A&L advertising claim for B2L product is misleading

I would like to draw attention to a lender’s misleading advertising and marketing.

Alliance & Leicester insists on associating a specialist buy-to-let rate with the words ‘100% rental cover’. But its calculation doesn’t refer to the pay rate which is in fact derived from the Bank of England’s base rate plus 1%.

I suppose the justification for the 100% rental cover claim is that there is a distinction relating to the amount of cover required based on LTVs.

For prime buy-to-let deals, it must either be 100% up to a maximum 75% LTV or 110% up to a maximum 85% LTV. However, both 100% and 110% rental cover requirements are still calculated on an interest-only basis using the BoE base rate plus 1%.

Can I request that advertising to fellow professionals be fair and that rental cover calculations reference the pay rate? It doesn’t fool anyone and if it was marketed accurately it might also show up on Trigold correctly.

Gary Williams
MAST Financial Consultancy
By email


PMPA launches self-cert with TMB

The Professional Mortgage Packagers Alliance has launched an exclusive product with limited distribution through The Mortgage Business.The rate of 5.44% is offered on TMB’s Self 85 range, which is for self-cert applicants up to a maximum LTV of 85%. Early repayment charges of 6% apply up to August 31 2008 and 5% apply to August […]

Mortgage Next is not practising what Tomlinson has been preaching

I’m an appointed representative of Mortgage Next and feel Justine Tomlinson makes a lot of sense about the industry in which we work. But in her letter headlined ‘Richard, network size doesn’t matter as much as quality’ in the May 28 issue of Mortgage Strategy, she commented on her own network from an aspirational rather […]

Burns-Anderson appoints Money Partners Touch to lender panel

Burns-Anderson has appointed Money Partners Touch to its lender panel.The arrangement will give the 500 advisers in the Burns-Anderson network access to Money Partners full range of specialist mortgage products.The benefits include access to flexible e-decisioning tools, including real-time automated valuation models, free credit searches, pre-populated applications and full Key Facts Illustrations.Brokers can also access […]

DB launches fixed and tracker deals

DB Mortgages has launched a series of two-year trackers and two and three-year fixed rates. The two-year fixes start at 6.05% with an early repayment charge of 6% and the three-year fixes start at 5.95% with an ERC of 6% in the first three years.

How to use wills to protect your clients’ wishes

March was Free Wills Month! Free Wills Month brings together a group of well-respected charities to offer members of the public aged 55 and over the opportunity to have their simple wills written or updated free of charge by using participating solicitors in selected locations around England and Wales. Research by the Law Society* highlighted that only 64 […]


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