View more on these topics

Packagers want &#39advice&#39 clarification

Mortgage packagers are calling for greater clarity around their future role and a stronger voice in the consultation process.

Concerns were raised at two packager forums held by Southern Pacific Mortgage Limited last month.

Of most concern was the distinction between packagers&#39 roles in offering &#39information&#39 or &#39advice&#39 and whether the packaging process is an information-only affair.

Mortgage Strategy exclusively revealed in June that the FSA will include packagers in its plans for regulation and packagers were keen to clarify the umbrella term.

Packagers can vary from sole traders to major organisations and questions have been raised over what categories the regulators have in mind.

Mel Fordham, managing director of east London-based packager Olympian, says: “There&#39s a general consensus that the industry needs some clarification. Packagers are desperate for some interpretation from the regulators. There is not enough close liaison between brokers, packagers and the regulator and I&#39d rather have legislation explained to us in advance of its implementation than in a panic.”

Stuart Aitken, SPML&#39s director of credit, says: “The role of packagers under the proposed regulatory framework – as either agents, arrangers, advisers, or just providers of mortgage information – is far from clear. Whichever way the regulated/non-regulated divide finally falls, it is bound to result in major shifts in mortgage-market distribution, so packagers, lenders and advisers all want to be as prepared as they can.”


MPC keeps rates unchanged

The Monetary Policy Committee (MPC), kept rates unchanged before going off on its Augustholidays, because it is generally thought that the house price boom has not come to an end. It was believed that due to the unusual circumstances in June, such as the World Cup and theJubilee Celebrations, the weak retail sales figures could […]

Abbey hits out at high cost rivals

Abbey National Insurance has hit out at rivals who charge customers extra to pay their motor or home and contents insurance premiums monthly. Abbey says more than £600m is being paid each year by insurance customers just for the convenience of paying monthly and not for the actual insurance cover. Latest research shows that more […]

There&#39s no recklessness in buy-to-let

As the buy-to-let debate continues to fill column inches in the financial press, some criticism has been directed at lenders for jumping on the bandwagon and lending too much to buy-to-let investors, as fears grow that they will be the first to fall prey to a downturn in the market.Michael Coogan, director-general of the Council […]

Advice definition is final, says Treasury

The definition of advice in the consultation draft of the Regulated Activities Order is final, says the Treasury. Strategic or generic advice will not be regulated following the format for investment advice, and only advice on the merits of a particular mortgage will be captured. The Treasury registers the concerns of respondents who sought greater […]


What employers should expect over the next five years

A major feature of our articles is looking into the Jelf Employee Benefits crystal ball to predict changes and trends that may influence the short and medium term shape of UK employee benefits.  By flagging such changes early we aim to provide our followers with the tools to make sensible and informed decisions on their benefits offerings.


News and expert analysis straight to your inbox

Sign up