View more on these topics

MS Leader: Let’s get a little bit closer

The feedback on Mortgage Strategy’s lead story last week on major lenders assessing proc fee levels based on quality was mixed.

Our Straw Poll this week was almost evenly split, with 51% giving the idea the thumbs up as opposed to 49% who saw it as a slippery slope to lower proc fees.

Lenders are already providing major distributors with information on how well advisers are packaging cases and the quality of the business that they provide.

This type of reciprocal relationship has been common within other industries for years – think of the relationship that the likes of Tesco has with its food suppliers. Obviously this is also an example of a distributor dictating business terms to its providers, and for the mortgage market those days are long gone.

But a more symbiotic relationship between advisers and lenders that boosts standards could have benefits.

That said, some are concerned that quality assessments could be extended to the performance of loans – such as whether borrowers default. Advisers make every attempt to assess whether borrowers can afford a loan but they don’t have mystical powers to see whether clients’ circumstances will change in the future. That’s all part and parcel of the risk lenders take when giving out loans.

Meanwhile, in London last week the mood was pessimistic at The HSBC Great Housing Debate on the state of the housing market. The majority of those in attendance thought it would be 10 years before we would see another housing boom – a clear sign that the problems will take a long while to unravel.

But when the audience voted on how they would spend a lottery win, 83% said they’d invest in property. Clearly it will be a long time before the UK ceases to be a property-loving nation.

Recommended

L&G unveils income-linked lifestyle cover to replace MPPI

Legal & General has launched a short-term income protection product to replace its existing mortgage payment protection insurance product for new business. The lifestyle cover product provides a monthly benefit linked to the customer’s income, rather than linking it to a specific mortgage or loan. The benefit will be paid for up to 12 months […]

ING Direct slashes interest-only LTV

ING Direct has cut its maximum LTV for interest-only lending to 50% from 75%. Borrowers can top up their borrowing to 80% LTV, as long as 30% is on a capital repayment basis. It has also changed its criteria for repayment vehicles. Where the sale of a property is being used, borrowers must have a […]

Health Shield

Product guide — health cash plans to suit all shapes and sizes

This guide, called ‘Health cash plans to suit all shapes and sizes’, provides information on Health Shield’s standard and tailored cash plans, which are designed to satisfy all business and employee needs. Each scheme can be offered on a voluntary, company-sponsored or flexible-benefits basis.

Newsletter

News and expert analysis straight to your inbox

Sign up