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Fiver fee &#39carved out&#39

Fee-charging brokers are looking forward to the Treasury&#39s pledge to “carve out” Section 155 of the Consumer Credit Act – the cap that stops them charging more than £5 for advice not leading to a mortgage contract.

The Treasury acknowledges there are occasions “when the appropriate advice is not to take out a mortgage” and could pave the way for brokers to claim fees that reflect this.

Kevin Morgan, managing director of Hertfordshire-based EZI UK, says: “This is excellent news, quite right and long overdue. It&#39s nice to see IFAs will get recognition for the added value they put into advice.” Britannic Money&#39s James Mayne says: “I&#39m sure consumer groups will push for some kind of cap on the fees brokers retain. If the FSA can set a more reasonable figure of £150 or £200 it will get universal support.”


Staffordshire launches new discounts

Staffordshire Building Society has launched two new discount mortgage products, with rates starting from 3.79% for two years The first product is a straight 1.95% discount rate off the society&#39s standard variable rate – currently 5.74% – for two years, making a pay rate of 3.79%. The product comes with free accident, sickness and unemployment […]

Skipton joins self-build panel

Skipton Building Society has become the latest lender to join the BuildLoan self-build mortgage lending panel with an exclusive flexible two-year stepped discount mortgage. The key features of the BuildLoan self build mortgage are: Up to 95% of land purchase, so clients only require a minimal deposit to buy their land. Up to 95% of […]

Mortgage debt collection to be regulated

Debt collection in relation to mortgages will be regulated under the FSA, as requested by respondents to the Treasury&#39s consultation paper. The Treasury says the regulated activity of &#39administering&#39 a regulated mortgage contract expressly includes “taking any necessary steps for the purposes of collecting or recovering payments due under the contract from the borrower.” This […]

Authorisation, supervision, enforcement powers laid down

The FSA has laid out its full framework of powers and responsibilities in Consultation Paper 146, detailing the process of how firms can register and, where appropriate, be punished. The FSA has already set out its plans for the authorisation process in the Authorisation Manual, which forms part of the FSA Handbook, and firms will […]


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