View more on these topics

Industry questions Treasury&#39s &#39modest&#39 costs

The Treasury says that it will take into account the cost of implementing the regulatory regime for both lenders and brokers, writes Helen McCormick.

Most respondents agreed advice should be regulated – provided the approach taken by the FSA was “proportionate”. But many believe that it is not possible to state categorically “that the costs of changing from one system to another will be relatively modest”.

Mike Fitzgerald, sales director at Brentwood-based IFA Brentchase Financial Services, says: “Lenders will be looking to see how they can speed up processes. Efficiency will have to be improved to help to contain costs, which can only benefit intermediaries.”

Ray Boulger, senior technical manager at Charcol, says: “Costs will be more significant for smaller brokers, yet another reason why we will no longer see small players in the mortgage market, combined with the fact that they might not feel it is worth their while taking the exams.”


Scottish Life Mortgages ties up Bristol & West deal

Scottish Life Mortgages (SLM) has announced an exclusive 4.79% discount deal with £1,000 cashback through Bristol & West. The product is available up to 95% LTV at 1.16% below SVR for 48 months with no extended tie-ins. Steve Scholes, director of SLM, says: “Brokers want good discount deals with no extended tie-ins. The £1,000 cashback […]

FSA unable to rule out some dual regulation

The FSA has outlined the scope of the mortgage regime, but warns that some firms will still need a consumer credit licence. To avoid dual regulation, mortgages that meet the definition and which could presently be regulated under the Consumer Credit Act (CCA) will become the FSA&#39s responsibility when the new regime goes live. However, […]

Home reversion to escape regulation

Home reversion schemes will not join mortgage-based equity release products under FSA regulation, the Treasury announced today. The Treasury does not consider that is has the power to give the FSA responsibility for regulating home reversion products, which are equity release schemes that involve the sale of the property by the &#39borrower&#39 to the person […]

CIS tells borrowers not to overstretch

As house prices continue to increase faster than income rises can keep pace, Co-operative Insurance Services is warning frustrated borrowers to think carefully before stretching their income multiples too far. An increasing number of lenders are offering four and five times people&#39s salary and beginning to stretch to 110% mortgages in an attempt to plug […]

Navigating volatility

The making of any fund can be seen in how it responds to crises and opportunities. In this short video, Head of Multi Asset at Royal London Asset Management Trevor Greetham outlines how the Royal London Global Multi Asset Portfolios or GMAPs navigated through Brexit and the US election cycle. He also highlights the importance […]


News and expert analysis straight to your inbox

Sign up