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Consumers hop off merry-go-round deals

Thomas Reeh, chief executive at says the two-year discount product is losing its appeal for consumers and brokers.

He says offset and base rate trackers are on the increase as consumers are looking for alternatives to two-year discount sting in the tail deals.

Reeh says: “Consumers are getting tired of the two-year discount merry-go-round. The churn and burn model is not working for anyone but lenders, and switching lenders every two years appeals to customers about as much as going to the dentist.

“It stands to reason that if brokers sell longer term solutions they should be remunerated accordingly. Many brokers do not like these products because their models are based on a two-year churn.”

He adds: “The rates of broker remuneration on two-year discount products are not sustainable and the intermediary industry has been its own worst enemy. So if a better balance is available, why wouldn’t the lender share some of the margin with the introducing broker.”

A spokesman for Money Partners says: “Everyone predicted discount products were going take off three months ago but they never did. Short-term fixed rate are the product of choice for consumers. People like the financial stability of fixed rates. They are moving away from discounts and towards fixes because of the product’s transparency and simplicity.”


RICS says rate rise will help to cool housing market

The Royal Instiutution of Chartered Surveyors welcomes the Bank of England’s decision to raise interest rates by 1/4% to 5.0%.Milan Khatri, RICS chief economist, says: “By acting in a timely manner, the modest rise in interest rates will help to cool the housing market but at the same time promote wider economic stability and prevent […]

IDDs and affordability is a worry, says FSA

The Financial Services Authority says it still has concerns about Initial Disclosure Documents, with one out of two containing five or more errors.Speaking at the Mortgage Business Expo, Clive Briault, managing director of retail markets at the FSA, says although the regulator has been encouraged by the fact that consumers find Key Facts Illustration and […]

Conveyancing Mobile launches case tracking system

Conveyancing Mobile has launched its new mobile tracking system, allowing clients and conveyancers communication through mobile Internet technology.The Mobile Phone Progress File is updated from Conveyancing Mobile’s standard online file where solicitors can update clients’ case progress via manual input or integration to their case management software. The software integration is set up with law […]

Does the environmental impact of your house matter to you?

Nolh Clements, 27, events managerI am not in a position to buy a house now, but the environmental impact of a property is definitely something that would be important for me, especially as being environmentally-friendly is a big issue at the moment. Sam Wilson, 30, managerIt would depend on where the property was. Buildings in […]

Time for a new approach to asset allocation

Trevor Greetham, RLAM’s head of multi asset, introduces the recentlylaunched RL GMAPs. Asset allocation has become an increasingly difficult challenge for investors and advisers in the years since the financial crisis. Sometimes violent price swings in stock and commodity markets coupled with the collapse in the rate of interest on bonds have made it harder […]


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