The mortgage broking community is reeling from the shock news that research conducted by UCB Home Loans indicates people in the 16-21 age bracket are not particularly keen on becoming mortgage brokers.And there is even worse news for brokers as the research – undertaken in October among more than 1,000 young people – reveals that two-thirds of those interviewed would rather be an estate agent than a mortgage broker! Quite why is anyone’s guess but two-thirds of 16-21-year-olds would rather sell bricks rather than the finance to purchase them. And as we report on page 6, it’s more or less the same throughout the country with London being the only region in which more youngsters would prefer to be mortgage brokers. Estate agency might seem a strange career choice but you have to remember that in this unregulated sector, there’s plenty of opportunity to make fast money. And now, with the launch date for Home Information Packs set for June 1 2007, estate agents could emerge as the biggest threat yet to the mortgage broking community. It doesn’t take a genius to figure out that estate agents have the potential to be at the forefront of HIPs, and that most will offer clients heavily subsidised discounts on packs – provided they use the firm’s mortgage adviser. But the problems don’t stop there. Ratings agency Fitch suggests HIPs could create further conflicts of interest. A report from the agency rightly points out that the question arises as to whether lenders (or indeed buyers) should commit funds based on a ‘marketing’ pack prepared by an unregulated estate agent with no responsibility to either buyers or lenders. What’s more, it’s possible those preparing Home Condition Reports could be susceptible to pressure from estate agents motivated, as ever, by the commission they will make from the sale. Be warned. Taking your eye off the ball now could seriously damage your wealth.
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Goldsmith Williams has been appointed as the legal conveyancing partner of Freehold, a recently formed packaging cooperative made up of regional sized firms.As a result of the appointment, Freehold packagers will be able to offer brokers a branded conveyancing service allowing them to earn up to 200 per referral. Benefits afforded through the partnership include […]
GMAC-RFC has completed its seventh portfolio sale to West Bromwich Mortgage Company.
Developments in the equity release market in 2005 offer a fresh perspective for advisers. The biggest development has been the introduction of considerably more flexible drawdown products offering like-for-like interest rates for drawdown and single sums. It is wise to ensure clients get the full picture when considering these plans and to sound a cautionary note.
On November 18, Swiss Re said it would acquire GE Insurance Solutions, the global reinsurance division of GE. The acquisition, expected to be completed by the middle of 2006, will make Swiss Re the largest reinsurance firm in the world.
The world around us is changing at a faster pace than ever. Generations are changing and over the next five to 10 years the graduates who have grown up with Facebook and Twitter will start to lead corporate UK and expect modern technology as a matter of course.1
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