Brokers are calling on The Woolwich to rethink its client retention policy which leaves customers unprotected by regulation if their policy was completed before M-Day and they later switch deals.As it stands, a customer with The Woolwich who took out a retention product before M-Day is not issued a Key Facts Illustration or protected by regulation if they change to a different product within that period. Jonathan Cornell, technical director at Hamptons International Mortgages accuses The Woolwich of missing the point of regulation. He says that despite the broker being paid a proc fee, the retention product is not seen by The Woolwich as a remortgage so therefore does not need a KFI. Cornell says it’s a shame that customers will not be protected. Alfie Cooper, a sole trader at AC Mortgage and Finance Services, was recently renewing deals with The Woolwich when he came across its policy. He says: “This seems contrary to everything brokers have been told in the past, that if you have any dealings with the customer everything should be written down. It doesn’t seem right to not issue a KFI.” The Financial Services Authority says that if a mortgage offer has all the features of a new mortgage offer, it should be regulated. However, it also says that if it was written into the customer’s contract that the mortgage would not be protected, then The Woolwich is within its rights not to issue a KFI. Robin Gordon-Walker, spokesman for the FSA, says: “The Woolwich will not have made this decision lightly and I’m sure it will have been checked thoroughly by its lawyers. “Our rules are for contracts that were issued from October 31 onwards. However, it would need to be written into the person’s contract.” Andy Gray, head of mortgages for The Woolwich, says that if a client is not borrowing any more money and the terms of the agreement have not changed, there is no need for a new KFI to be issued.
- Top trends
Figures from the Halifax House Price Index show house prices increased by 1.2% in September, and 1.8% in Q3. The annual rate of house price inflation, at 3.0%, is significantly lower than the 20.5% recorded in 2004 Q3. The latest Bank of England figures show the number of mortgage approvals to fund house purchase increased […]
The Exchange, the leading supplier of portal services to IFAs and a key part of the Financial Services Division of Vertex, has entered into a strategic partnership with Just Retirement, the annuity and equity release specialist.Under the terms of this partnership, The Exchange is offering 10,000 Exweb subscribers 12 months free access to its Equity […]
Bradford & Bingley has published its quarterly mortgage market review. Duncan Pownall, mortgage development manager at Bradford & Bingley, says: “After a slow start to the quarter gross mortgage lending rose in August to an estimated 27.5bn one of the highest figures on record. “All types of lending increased, although the most marked was remortgaging […]
MortgageStream has launched a special offer to all 24,000 Trigold users. By visiting the MortgageStream website brokers can sample the case management software free for 14 days. Benefits include the ability to import data and documents to and from MortgageStream and Trigold’s Prospector sourcing system.
New research shows those customers who receive financial advice can be better off on average by £40,000 We’ve sponsored a research project with the International Longevity Centre – UK (ILC-UK) to produce ‘The Value of Financial Advice’ report. This independent research demonstrates that customers who take financial advice can, on average, be £40,000 better off than those […]
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