A small packager has slam-med lenders’ cascade systems for offering no incentive to packagers looking to place prime business.Paul Suchet, director of Alexander Finance Services, says he’s fed up with losing business when sub-prime cases are cascaded up-wards to prime because the client’s case is referred back to the broker who then app-roaches the lender direct. He says: “As packagers, why are we allowed to package sub-prime but not prime with the same lender? Surely the qualities needed are the same for both types of products. Or is sub-prime a second division product?” But industry pundits say the idea is uneconomical and impractical. Roger Morris, managing director at em-financial, says: “With clean prime products there’s no need for packagers. It’s not worth it and we won’t get much money for prime cases. If we can’t get our hands dirty we don’t want to get involved as it might be making money under false pretences.” Optoma Broker Solutions is a packager that deals with prime and sub-prime and says that although prime is not a highly profitable business, it increases distribution. Harpal Singh, operations director at Optoma, says: “The difference with prime is the lower margin. Most prime lenders have simple products and a robust service proposition so a packager may struggle to add enough value to a broker.” Linda Will, managing director of Accord Mortgages, says: “The bottom line with prime business is that there is not enough fat in it to feed an extra mouth. We will offer the packager a prime rate if a case is cascaded from sub-prime to prime but this would only average around 35 basis points and most packagers would say it’s not worth it. “The packager would not make enough and the broker would probably prefer to approach the lender direct.”
Safetyfirst.co.uk has launched a flat rate income protection product. Standard policyholders can be charged different premiums according to factors such as their age, occupation, smoking habits and gender. They can also have to wait several weeks for the underwriting process to be completed before cover starts. But the Safetyfirst.co.uk product charges everyone the same flat […]
The government last week revealed that it has given 120m to fund financial inclusion initiatives and 45m to fund more free face-to-face debt advice. With UK debt at an all-time high, the government has issued a report – the third of its kind – outlining what government actions and industry initiatives have been launched to […]
GMAC-RFC awarded Praxis Mortgage Solutions the top prize at its inaugural quarterly Partners marketing awards. The judging panel was made up of Jeff Knight, director of marketing at GMAC-RFC, Roger Brown, director of GMAC-RFC Partners and Robert Thickett, news editor at Mortgage Strategy. The panel chose Praxis as the winner for its online marketing campaign […]
The papers are full of concern over the huge amount of outstanding unsecured personal debt in the UK. The base rate has edged up 0.25% and the Monetary Policy Committee is widely acknowledged to be ready to recommend raising the rate further. Property possessions are on the up and more people are failing to meet their financial liabilities.
International private medical insurance (IPMI) can be a complex business, especially when you need to find cover that complies with all the local legislations and regulations of a chosen country.
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