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MPLC tells packagers to &#39shape up or ship out&#39

Mortgages PLC has informed one third of its packaging partners that their agency agreement will be terminated by March 18 unless their performance picks up.

Pete Thomson, Mortgages PLC&#39s head of sales, says in a letter to packagers: “During the past 12 months, the business we have received from you has not been of a level that warrants the maintenance of a packaging agreement.”

Julian Wells, head of marketing at MPLC, insists the company is just “rationalising” its panel. He says: “We are not saying that other packagers aren&#39t worth dealing with, just that we&#39re focusing on packagers we have good relationships with. A lot of firms have packager status that don&#39t deserve it, and a lot of lenders are wising up to that. Packagers are supposed to introduce volume business. Why should lenders pay 2% on that business when a packager only supplies two or three cases every six months?” Meanwhile, Kensington Mortgages has denied industry claims that it too plans to consolidate its panel of around 80 packagers.

Chief executive John Maltby says: “Packagers are a fundamental delivery channel and we have no plans to pull back.”

Instead, Maltby says KMC will continue its existing strategy of vetting packagers – albeit more thoroughly than before.

He says: “An ongoing review depends on making sure it makes sense for those 80 packagers to continue with KMC. We&#39ve always had vigorous processes to ensure packagers can provide volume business. With impending regulation we&#39re also looking to make sure that when we add to the packager panel it is someone that has a longterm future.”


Bank of England figures show record equity release

Mortgage equity withdrawal increased from £10bn between April and June 2002 to £12bn from July to September, Bank of England figures reveal. The latest figures are a record high and show consumers drew down near double the amount of equity compared to the same July to September period in 2001.

Estate agency website on the lookout for brokers

An estate agency website is looking for more mortgage brokers to join its lead generation scheme.The national website, based in Bromley, allows potential housebuyers to register on the site, which then passes on their details to local estate agents, saving repeat visits.The site also sends these leads to 120 financial advisers, based in every […]

Half of UK&#39s &#39poor&#39 adults own homes

As many as half the adults defined as &#39poor&#39 in Britain are either buying their homes with a mortgage or own their properties outright, a study for the Joseph Rowntree Foundation reveals. Another 41% of poor adults live in social housing and 9% in the private rented sector. The foundation says the findings challenge the […]

Saving rates fall despite base rate freeze

Savings rates have continued to fall despite the Bank of England base rate remaining unchanged since November 2001. Selections of saving accounts on Moneyfacts&#39 website show a cross-section of the best deals available in the savings market. Recent tables show a considerable decrease in the interest received by savers. Cheque and internet-only accounts saw the […]

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Changes to capped drawdown tables

The tables used for capped drawdown maximum income calculations have been updated. We look at the reasons for the change and what the impact could be. Changes to capped drawdown tables Capped income drawdown involves taking a pension directly from a fund instead of buying an annuity. However, there’s a limit on the maximum amount […]


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