View more on these topics

TFC says borrowers should have a choice to pay HLCs

TFC Homeloans, the branded lending division of mortgage distributor The Finance Centre, believes that borrowers should be offered the choice to pay higher lending charges or not when taking out a mortgage.

TFC has confirmed that these charges are definitely being shunned by some mortgage advisors, as they favour products which do not force borrowers to pay HLCs as an additional separate cost.

Simon Snape, head of products at TFC Homeloans, says: There is no doubt that some advisors are actively avoiding mortgage products which force borrowers to pay for HLCs as an additional cost. There is now a far wider choice of competitive HLC free products available and advisors are selecting products which dont require their clients to use cash which they would prefer to put
towards a deposit or moving costs. At the same time, many borrowers are happy to pay the one off charge in order that they can get the lowest interest rate possible.

Amongst those lenders which have recently launched HLC free products is Mortgages plc.

Peter Beaumont, sales & marketing director at Mortgages plc, says: At Mortgages plc our policy has always been to provide both brokers and borrowers with as much choice as possible. Few Borrowers understand higher lending charges. Selling products which do not carry this as a separate cost enables brokers to remove a sales barrier. Lenders have to charge more to cover
the additional risk of higher LTV loans, but this cost can be either passed on within the mortgage rate or as a separate charge. Were happy to let borrowers choose which option suits them best.


The Mortgage Mole

NEW IMAGE Celebrity stalker and MS hackette Natalie was at it again last week at the London premiere of Pride and Prejudice. Having rushed to Leicester Square after work, Natalie stood for two and a half hours waiting to see her Mr Darcy only to find that, when the great man arrived plumb in the […]

3,000 Brokers pre-register for standalone MTE

The Mortgage Trading Exchange says almost 3,000 brokers have pre-registered for its standalone system, primarily thanks to Mortgage Strategy’s MTE For All campaign. Following a successful pilot and an unprecedented level of pre-registrations, common trading platform MTE is now available to all introducers. Regardless of what sourcing or point of sale systems they use, brokers […]

Moneyfacts reveals results of bank consumer survey has revealed the results of its latest online user survey.The August poll highlights that when visiting their bank branch 53% of consumers find that bank staff try to sell them more financial products.85% of consumers think charges imposed on late payment of credit card bills are excessive.Only 27% of consumers think house prices will […]

Identifying best-in-class UK stocks — Mark Martin, Neptune UK Opportunities Fund

FE Alpha Manager Mark Martin assumed management of the multi-cap UK Opportunities Fund at the beginning of February. As manager of the highly regarded UK Mid Cap Fund, Martin has begun restructuring the new portfolio to focus on our very best UK stock ideas from across the FTSE All-Share Index. In this video, update Martin addresses:

– Themes informing the UK Opportunities Fund
– The multi-cap structure of the fund
– UK equity valuations


News and expert analysis straight to your inbox

Sign up