Cartel managing director Carl Wright is warning the sub-prime market is in crisis and runs the risk of becoming the next big mis-selling scandal.He says the recently announced Financial Service Authority investigation into the market will discover that a significant number of brokers are wrongly advising clients to take out sub-prime mortgages when 50% of them could take out a near prime mortgage. Wright says: “A significant number of intermediaries are putting customers onto sub-prime mortgages when 50% of them could go on a near prime deal. When the FSA investigates sub-prime it is going to realise that this is not treating customers fairly and is going to want to know why advisers recommended this.” Wright says debts and arrears have increased over the past 10 years but people have reacted by borrowing more, not spending less. He says this is also contributing to a sub-prime crisis. Wright warns that while some lenders have realised they have taken on business that could be placed elsewhere, others have still not put their houses in order and will fall under the FSA spotlight when the investigation is carried out. Broker heads for sun courtesy of BM SolutionsDavid Wood (left) of Milton Keynes-based Castle Mortgages scooped BM Solutions’ luxury break to the Sandy Lane resort in Barbados. Wood was picked at random from brokers who have submitted cases on the One Minute Mortgage application system since January this year. Martin Reynolds, head of sales at BM Solutions, took Wood to lunch at Langan’s Brasserie in London to present the prize – a week for two at the luxurious resort including business travel. Wood says: “I was stunned to win. My first reaction was to check it wasn’t a joke! For me, BM Solutions offers outstanding support and service, a great underwriting process and competitive products. “Through BM Solutions I can advise my clients with certainty as to the the timescales for valuation and mortgage offer. I am never let down by it, therefore I never let clients down.”
- Top trends
From October to December the Personal Finance Society will hold a series of half-day technical seminars on pensions planning pre and post-A-Day. The courses will look at opportunities in advising clients in the run-up to April 6 2006 and afterwards. Tutor Mike Morrison, pensions strategy manager at Winterthur, will lead advisers through investment opportunities, retirement […]
Most Mortgage Strategy Online readers say they would rather use BM Solutions’ 3.75% two-year rate product than Bank of Scotland’s large loan tracker, with 62% voting in favour of the BM Solutions product. BM Solutions launched a batch of mainstream products last week in the wake of the departure of a number of key figures […]
Advantage Home Loans is to give free valuations and cashback deals on all G200 box products funded by GMAC-RFC. This ensures brokers and their clients get the same deal by going to Advantage as they would going direct to the lender. Commission should be flexible Scottish Life has released figures that indicate a growing demand […]
The Personal Finance Society has introduced an affinity benefits package designed to provide enhanced access and exclusive discounts to a range of lifestyle and business services for its members.The initial package has links to over 20 companies providing a range of products and services from legal and IT support to car rental and professional indemnity […]
On 16 September, Health Shield and six other health cash plan providers — Westfield, Engage Mutual, Simply Health, Birmingham Hospital Saturday Fund, Medicash and Hospital Saturday Fund — will come together to participate in the Cash Plan Provider Golf Day.
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