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Northern Rock leaves broker in KFI Catch 22

A broker has been left in a Catch 22 situation after Northern Rock was unable to issue a compliant KFI for a further advance on a lifetime mortgage.

Chris Crane of Mortgage Check advised his client to take out a further advance of a lifetime mortgage after they ran out of money for home improvements. But NR was unable to issue this because it says it doesn’t have the facility to set up an additional KFI with brokers’ fees incorporated.

In a letter, the lender told Crane: “The KFI you have been sent by Northern Rock Direct is a direct only KFI produced by Northern Rock and is therefore not compliant for an introduced case where an intermediary is giving advice.”

It went on to say: “…there is no facility available to produce a compliant indirect KFI for an introduced case, only a direct case. Therefore it is not possible to provide your firm with a KFI, only the client.”

Crane adds: “I don’t want my advice to the client being undermined by someone at NR.”

NR says it is in the process of resolving the issue directly with the broker.


GMAC-RFC introduces sub-prime products

GMAC-RFC has introduced a range of sub-prime products designed for its panel of packagers and remote processors. Jeff Knight, head of marketing services at GMAC-RFC, says: “We have seen a dramatic increase in our packager business over the last few months. We are further supporting this sector with an exciting range of products. The reaction […]

Two million properties valued at more than IHT threshold

Halifax research calculates that the number of properties in the UK valued at more than the 275,000 Inheritance Tax threshold now stands at an estimated 2.1 million or 12% of all owner-occupied properties. There has been an almost three-fold increase in the number of properties above the threshold over the past five years from 800,000 […]

NLA says landlords are struggling with HHSRS

The latest research from the National Landlords Association indicates Britains landlords are struggling to get their heads around the new Housing Health and Safety Rating System. The HHSRS covers 29 different areas of risk, considerably extending the nine point housing fitness standard currently in use. However, just over one in 10 of landlords say they […]

Leeds launches 10-year fixed rate deal

Expectations of lower rates in the future have re-emerged following the issue of the Bank of England’s quarterly inflation report.This resulted in falls in money market rates yesterday. Taking advantage of this reversal, the Leeds has launched a best-buy 10-year fixed rate mortgage at only 4.69% for sale via its intermediary network. The product is […]


Guide: how to change your auto-enrolment support

As we approach the two-year milestone of auto-enrolment, employers have had the opportunity to truly assess the capabilities of their chosen support. They are also now realising that getting to the staging date was the easy part, and that support is required for almost every aspect of the day to day running of their scheme. With the three-year re-enrolment window coinciding for many with the total removal of commission and Active Member Discounts from pension-related products and services, as well as the introduction of the pension charge cap in April 2015, many employers will have no choice but to review their support options. But, what is involved in transitioning your auto-enrolment scheme away from your current support options? This guide from Johnson Fleming aims to outline some of these key areas and provide information and discussion points on what you need to consider.


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