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Industry divided over proc fees

The industry is split down the middle on whether proc fees on sub-priA straw poll of nearly 2,000 individuals on Mortgage Strategy’s website saw 51% say they should not be standardised and 49% calling for a business should be standardised.

In August, BM Solutions said it was standardising proc fees on sub-prime business to 0.85%. There have been fears that having a range of proc fees can encourage mis-selling as it is hard to justify higher rates when the amount of work involved is the same.

Steve Sandiford, head of products, BMS, says: “Sub-prime proc fees should be standardised. There is no extra work so differing proc fees can’t be justified.”

But other brokers disagree. Paul Banfield, director of Best Advice Financial Planning, says: “I don’t think they should be standardised. A lot of work is involved in some adverse cases.”


Mortgages Direct calls for industry cooperation on KFIs

Mortgages Direct is supporting the Financial Services Authority decision to conduct a review of Key Facts Illustrations. Peter Gladdy, director of Mortgages Direct, says: “I’m relieved to see that the FSA are addressing the pressing issue of KFIs but there’s still a lot to be done. “The whole point of producing these documents was to […]

Charcol launches federal reserve mortgage

Charcol has launched a federal reserve mortgage. Its initial rate is 2.99% until June 30 2005 and itthen tracks US three months Libor, which is currently 2.50%, for 10 years.Borrowing is in sterling so there is no currency risk. After the initial period to June 30 2005 the interest rate on this mortgage will be […]

Consumer advertising tricky for brokers, claims PR

The mortgage industry – particularly those operating in the sub-prime market – is finding consumer advertising problematic under the Financial Services Authority regime, claims Llewellyn-Slade PR.However, the firm says intermediaries and lenders wanting to use public relations as a marketing tool can do so without fear of the impact of mortgage regulation.This is because, unlike […]

Keep calm and carry on?

We British are known for our stiff upper lip and just getting on with things. It’s part of our quirky cultural behaviour – like forming orderly queues, or saying sorry when it’s not our fault. Many of us just aren’t that great at talking about what’s bothering us. But if someone feels that the stresses […]


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