The events of the week centred around home reversion regulation with many of the industry’s leaders taking part in discussions to ensure there is clear and consistent feedback to consultation documents from the Treasury and the Financial Services Authority.Remember that the deadline for responses to the Treasury is June 23 and to the FSA July 21. It is anticipated that regulation will be in place next spring. In looking at the consultation documents, the greatest impact on the home reversion market will be felt by those who are not providing home reversions or advising on them in the context of a regulated environment – for example, at the same time as offering either lifetime mortgages or advising on them. Issues centre on which activ-ities will be captured within the regulations and in particular the implications for existing providers, should they choose not to offer home reversion products in a regulated environment. One of the key issues will involve home reversions arranged prior to regulation. The proposed regime will look to capture some changes to contracts which may be classed as regulated activities, such as clients selling further stakes in their properties. Providers that choose not to offer home reversions after regulation may well find their activities when it comes to existing contracts are limited. The implication for advisers offering lifetime mortgages but not home reversions is that they will be required to provide greater clarity to consumers, highlighting that advice is limited to lifetime deals only. They will also have to provide stronger evidence to prove home reversion would not have been more suitable. The positive for the industry is that providers and advisers are taking these consultations seriously. With deadlines looming, make sure that you take the opportunity to help shape this market. Dean Mirfin is business development director at Key Retirement Solutions
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InterBay Funding, the UK’s new commercial lender, has announced thatunderwriting manager, Tim Shutler, is one of the first in the industry totake and pass the Certificate of Commercial Mortgage exams.The CeCM were launched in May 2006 by the Institute of FinancialServices, as an additional qualification to the CeMAP exams.Shutler joined the InterBay team on February […]
Apparently there’s a World Cup going on. Being from the other side of Offa’s Dyke, you’ll forgive me if I don’t use this article as a chance to pledge my allegiance to Rooney’s meta-whatsit before running out to attach a St George’s flag to the window of my white van. “Sour grapes,” I hear you cry, and you may be right.
Mortgage Intelligence has reduced the rental calculation on a three-year fixed rate buy-to-let product from Mortgage Express from 130% to 125%. The MEX buy-to-let product has a fixed rate of 5.34% until June 30 2009. It features a 1% completion fee which can be added to the loan and an early repayment charge set at […]
Paul Rumbold, sales and operations director at bridging lender Cheval will speak about bridging finance and its place in the mortgage market at the Council of Mortgage Lenders sub-prime lending conference in London on the June 20. Cheval, the only specialist bridging lender to become a full member of the CML, has recently delivered a […]
By Douglas Turnbull, Head of Chinese Equities at Neptune Following recent stimulus efforts from Beijing, Neptune’s Douglas Turnbull examines how the government’s long-term reform agenda can be balanced with supporting growth and addressing structural challenges, and the investment opportunities arising from this.Click here to read more Important information: Investment Risks Neptune funds may have a […]
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