Michael Bolton, the controversial former head of mortgages at BM Solutions, con- tinued his vitriolic attack on the packager market last week stating that it was the “clear loser of mortgage regulation”.Bolton, fresh from a two-week break in Barbados, says: “Since Mortgage Day, the clear losers have been mortgage packagers. Their position remains as grey today as before M-Day. If you are a principle with large appointed representative distribution, you are in the firing line more than ever if you have packagers on your lending panel.” Bolton says that if one of the principle’s ARs were to take advice from the packager to place a client and the deal turned sour, the packager would merely “crawl back under the stone from which it crawled out from, leaving the principle to pick up the pieces”. Bolton cites Personal Touch Insurance as one example of a network that has taken the threat seriously. PTI, ranked the fifth biggest distributor in the UK, recently asked all packagers on its panel for their last three years’ audited accounts. Bolton adds: “If PTI is so concerned you have to wonder about the health of that market. Packagers are, in most cases, banking the lending fee and, if you are a principle, you have to be prepared to be liable to pay a six-figure compensation sum if a packager goes belly-up.” Bolton’s sustained attack comes just months before he is expected to launch an as yet unnamed lender for The Oakwood Group. That lender, expected to launch in mid-September, is heavily rumoured to have three shareholders – Oakwood, Michael Bolton and investment bank Merrill Lynch, owner of Mortgages PLC. Bolton declined to comment on market speculation but it is widely believed that any new lender from The Oakwood Group would use limited distribution across all sectors of the market, including prime, self-cert, buy-to-let and sub-prime.
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- Top trends
Paragon Mortgages and BM Solutions dispute claims from Landlord Mortgages that further regulation will stifle the buy-to-let sector. Research from Landlord Mortgages has disclosed that the Tenancy Deposit Scheme will lead to an increase in the number of landlords using letting agents. In 2005, 22% of landlords who used letting agents intended to manage their […]
A free online worldwide service that allows home owners to sell or rent their property without an estate agent was launched last week. Called Eureka247.com, property owners can upload details and photographs of their rental or sale property onto the website. Those search- ing for property can then select various criteria to receive details of […]
Solent Mortgage Services has appointed Goldsmith Williams as the companys preferred conveyancing partner.By working closely with Goldsmith Williams and taking advantage of its 10-day completion guarantee on remortgages, SMS says it can now offer a significantly enhanced service to mortgage brokers. SMS will have more control over the conveyancing side of the mortgage process through […]
Solent Mortgage Services has launched its 10th mortgage brand, Collingwood Homeloans, in association with Kensington Mortgages. Collingwood will be the first fully branded partnership launched by Kensington. Paul Robinson, chief executive officer of SMS, says: “Kensington has been a long-term partner for a number of years and we are thrilled that it has chosen SMS […]
EEF stated in its 2015 EEF Manifesto that the UK’s growth prospects depend on people being fit, working and productive. Keeping people in work and helping people return to work is very important for the manufacturing sector. It means boosting productivity by getting people back into work as early as is possible, as well as fostering workplace cultures and environments that proactively manage individuals’ health conditions so that all can benefit from lower sickness absence outcomes.
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