From Wesley DavidsonWhy has almost every buy-to-let lender decided to charge fixed rate 1% and 1.5% fees? It seems there is a ‘low rate, high fee’ bandwagon on the move. The Mortgage Works started the wagon rolling and since then lenders have jumped on it in droves. In most cases I have brokered I have found that products with a slightly higher rate but with a lower fee have, over the fixed rate period, been considerably cheaper for clients. For the sake of competition it would be good to see some fresh ideas rather than the same old product pricing strategies. I have been especially pleased with MT Select. Telling clients they can have a good rate at a reasonable fee is popular. This, coupled with minimal packaging requirements and efficient processing, makes these products a breath of fresh air. I also wonder if from the clients’ point of view, having to pay a fee to the consultant for advice and then a 1.5% fee to the lender looks costly, especially as the concept is new. Many clients coming back to their brokers to remortgage their buy-to-let deals will be in for a shock. Lenders should increase competition through innovative ideas rather than jumping on the high fees bandwagon.
The Finance Centre has promoted Jayne Emery to head of field sales. Emery, who has been with TFC for three years, had previously been regional sales manager and brings nearly 15 years of experience to her new role.Her core responsibilities will include control of the national sales team and their personal and professional development.Andy Brown, […]
A report published by Standard Life Bank says 41% thirtysomethings would consider buying a prefab house. The UK market for prefab housing is worth 1.6bn and growing at 30% per year. Prefab penthouses – worth up to 2.5m, built off-site and delivered by helicopter to your rooftop – solid timber lodges built from wood from […]
Smaller brokers are shying away from the equity release market following the Financial Services Authority’s mystery shopping exercise into the sector, a leading industry figure claims. Dean Mirfin, business development director at Key Retirement Solutions, makes the claim in this week’s Mortgage Strategy cover feature. This comes in the wake of the FSA’s investigation that […]
Research has revealed the ignorance of the British public on mortgage matters, with only 19% able to name the Financial Services Authority as the industry’s regulator. And 20% think the acronym FSA stands for Funds Savings Account. The survey, conducted by Mortgages Direct, says the low level of knowledge surrounding mortgage issues could lead to […]
After a flat year for European equities, in which the Artemis European Growth Fund outperformed, manager Philip Wolstencroft is (cautiously) optimistic about 2016.
News and expert analysis straight to your inboxSign up