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New equity players

Centrica, which trades as British Gas, and Abbey National are among a number of companies planning to enter the booming equity market this year.

Centrica will target customers on its massive database, and will launch a roll-up mortgage, where the interest on the loan rolls up until the homeowner dies and the property is sold.

Abbey National is to pilot a similar roll-up scheme in Eastbourne and Tunbridge Wells, with a national launch later this year if the pilot is successful. It will be available to people over 60.

Nationwide is the only major mortgage lender that is not actively looking to launch an equity release scheme, and has instead called on the government to tighten up the regulation of the market to avoid the possibility that equity release could become the next mis-selling scandal.

The FSA is due to take over the regulation of equity release mortgages in 2004.


Co-op expands with two new members

Advantage Mortgage Services and Pavillion Securities have joined The Mortgage Distributors Co-operative taking the total membership to nine companies. Between them, MDC members including The Mortgage Operation, Pink Home Loans, ICMG and Genesis Home Loans expect to distribute £7bn worth of completions in 2003. The MDC is not actively recruiting new members but it is […]

Scot Provident ad campaign tackles concern over industry&#39s future

Scottish Provident has addressed concerns over the future of the protection insurance market in its latest advertising campaign. Recent changes in the insurance market have resulted in much speculation about the future and general condition of the protection insurance market. The &#39Turbulent market&#39 advertising campaign aims to reassure intermediaries about the future of the protection […]

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.

HFS Loans customers to benefit from OFT ruling

HFS Loans Ltd has agreed to fairer terms and conditions in its interest-back loan agreements following action by the OFT. Under the HFS interest-back scheme customers could borrow up to £25,000, with the interest paid refunded after the five year loan period – subject to a maximum refund of £4,000 – provided that the borrower […]


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