View more on these topics

Sub-prime probe welcomed

Lenders have welcomed the Financial Services Authority’s pledge that sub-prime will be one of the first parts of the mortgage industry to be probed.

Speaking at the Council of Mortgage Lenders’ annual conference last week, Clive Briault, manager of retail markets at the FSA, told delegates sub-prime would be one of the first areas to be targeted under the new regime. As well as checking on firms to ensure that they are not carrying out any unauthorised business, the FSA will police marketing, financial promotions, on top of specific ‘higher risk’ product areas.

Briault told delegates: “We will be visiting some firms to review their marketing strategies in these product areas.”
Feedback from lenders is that this is the perfect opportunity to clean up the market. BM Solutions says no sub-prime lender should have anything to worry about, providing their products are transparent and offer good value to customers.
Alan Cleary, head of sales at BM Solutions, says: “If I were the FSA, sub-prime is the first area I would look in to. Some lenders are paying silly proc fees, where customers are paying through the nose.

“Our offering is transparent and good for the customer. In our opinion, those companies that are doing it properly have nothing to fear.”

And Peter Stimson, head of product development at GMAC-RFC, says: “In a regulated environment it was perhaps to be expected that the FSA would concentrate on these high profile segments of the market first.

“As the UK’s largest non-conforming lender we look forward to working with the FSA on current and future regulatory issues.”

Recommended

eMoneyfacts launches buy-to-let search facility

eMoneyfacts has extended its range of product searches with a full whole of market buy-to-let search.The buy-to-let search facility includes all the unique eMoneyfacts filtering and sorting features, and continuously updated product data. Advisers can also provide buy-to-let clients with mortgage illustrations for non-regulated lending.Advisers simply input client details and requirements and are presented with […]

GMAC-RFC completes 800m securitisation

GMAC-RFC has closed its latest securitisation, valued at 800m, through its RMAC programme. It is GMAC-RFC’s 17th transaction in the UK RMBS market, and total issuance since 1998 exceeds 9bn. This deal is backed by 41% prime/near prime and 51% non-conforming mortgages.This transaction has been divided into five publicly funded tranches all denominated in UK […]

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 […]

Website for landlords proves a success

LandlordTrader.co.uk is giving property investors a new outlook on buying residential property.Having launched just two months ago, the site now hosts a property portfolio worth around 38m, with investors advertising more than 190 properties online.Set to revolutionise the way landlords invest in buy-to-let housing, Landlordtrader.co.uk allows investors to trade residential property online for the first […]

Europe: why persist with value today?

By Rob Burnett, Neptune’s Head of European Equities The Neptune European Opportunities Fund remains committed to a value bias. We see a broadening array of opportunities in diversified industries at compelling valuations today. The most complicated part of the market is the European banks. We are currently overweight in this sub-sector as many banks are […]

Newsletter

News and expert analysis straight to your inbox

Sign up