From Bob Adams
It occurred to me today as my car insurance renewal papers arrived in the post, that given rising car crime, ambulance chasing activity and traffic accidents, the premium is probably fair.
Within a few minutes, I was reviewing a new suite of products from a major lender that still charges the same higher lending charge for loans over 90% LTV. This fee has never been fair by its very nature let alone its cost. But purely on cost, millions of pounds have been collected from the most hard-pushed of customers by lenders and insurance providers for years during which the risk to lenders has been negligible.
Property prices have consistently risen, so why has the cost not dramatically fallen? Why is there no suggestion of a refund for clients who have paid upfront and now have sufficient equity for it to now be of no use? Should it not be charged annually and reappraised on the basis of the current risk? Of course, it really does need to be banished completely.
Many brokers have had no trouble placing this type of borrowing with lenders that don’t charge and still manage to secure better rates. Surely if we all did this, we could hasten its departure.
Adams Newman Partnership