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Lenders accused of profiteering on protection insurance

A survey of the UK&#39s ten largest mortgage lenders reveals that, while falling over themselves to offer keenly priced mortgage deals, the same cannot be said about insurance and MPPI products.

The survey, conducted by Essex-based protection broker Goodfellows, found that the average cost for key benefits including 60-day excess, 12 months benefit, no free cover, no portability, and no unemployment-only cover, was £5.80 per £100. Goodfellows own Mortgageprotection plus product, offers additional benefits for £5.50 per £100.

Simon Burgess, managing director of Goodfellows, says: “Lenders are clearly profiteering at the expense of their borrowers! We all obtain this cover from the same source, the only difference is that Goodfellows and other independent brokers retain less commission and so are able to purchase more benefits for their clients whilst maintaining comparability of cost.”

Mike Williams, chief executive of the British Insurance Brokers&#39 Association, shares this view, saying: “Brokers provide policies that are better in price and cover than lenders and are clearly putting a fundamental element of best advice back into the sale of MPPI.”


RJ Temple launches lifeline to benefit clients and charity

IFA RJ Temple PLC has kicked off a campaign to save clients money and benefit the Southern Africa Crisis Appeal. The Lifeline campaign offers people a free quotation service for life assurance. For each quote that is lower than the person&#39s current premium, RJ Temple will donate £10 to the charity appeal. Even if it […]

New rules on business loans

The FSA has reviewed its earlier plans for the regulatory status of business loans, proposing a “lighter touch” regime for lower risk business loans. The regulator says in its latest consultation paper 146, that contracts for a limited term of twelve months or more and contracts for a limited amount, suggested as £10,000, should be […]

Treasury releases regulation update

The Treasury finally published its overdue legislation for mortgage advice last week.Ruth Kelly, financial secretary to the Treasury, says: “Buying a mortgage is the biggest financial decision most people will ever make. It is vital that they make the right choice – these regulations will make it easier to do that. We will not be […]

GMAC-RFC launches two-year fixed rate

GMAC-RFC has launched a new two-year fixed rate deal at 5.74% for the non-conforming sector. GMAC Residential Funding is offering two fixed rate options. The first is at 5.74% up to 90% LTV, adverse credit allowed, up to £3000 CCJs in the last three years; up to two missed payments in the last 12 months […]

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Preparing for the changes to the pensions market

As more and more providers start to reveal their stance on the charge cap and removal of commission and active member discount pricing, we thought it would be worthwhile to look at what these are, and the steps businesses should be taking to prepare for this.


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