View more on these topics

Market prices Research from Halifax Estate Agents shows that 73% of market towns have higher average house prices than neighbouring towns in the same county.

Lenders have defended ex-tended early repayment charges following criticism from Hamptons Mortgages.

The brokerage has de-nounced lenders that offer low initial rates accompanied by heavy ERCs for borrowers who apply for an extended period following the initial rate deal.

It claims that this type of hangover rate is considerably worse value than other deals without such tie-ins.

Jonathan Cornell, technical director at Hamptons Mortgages, says: “People tend to look at the headline rate, not the tie-in period or SVR.

“Lenders have a duty to ensure that the costs and consequences of such deals are made clear and intermediaries must make sure their clients are aware of the implications of sign-ing up to deals with hangover rates.”

But Rebecca Osbourne, sales and development officer at Market Harborough, which offers a low fixed rate with an extended early redemption charge, says: “We wouldn’t offer this product if there wasn’t demand for low initial rates.”

And Paul Howard, director of intermediary sales at The Mortgage Works, says: “Choice is important in the mortgage market. There is no point in throwing the baby out with the bathwater by killing something that offers choice.”

John Webster, chief executive of Swift Group, says this sort of product is ideal for borrowers such as young families who want a low rate until their circumstances change.

He adds: “The role of a broker is to find the best product for a client de-pending on their circumstances. As long as the overhang is disclosed this product has a place in the market.”


TMA teams up with TMO

The Mortgage Alliance has chosen TMO to be its sole packager.TMA members submitting business to TMO, under the TMA umbrella, will qualify for enhanced proc fees on TMO’s near-prime and sub-prime packaged panel products.Jon Haynes, director at TMO, says: We are delighted to have been chosen by TMA as their sole packager of choice. Feedback […]

DCA reveals rise in mortgage possession figures

The Department for Constitutional Affairs has revealed that the number of possession orders on mortgage arrears has risen by 15% in the last year.Possessions are ordered as a way for lenders to firmly take action on unpaid mortgages, but can be abandoned as soon or as late as the tardy payments are met.During Q3 2006, […]

Select & Protect unveils commercial proposition

Select & Protect has launched a commercial insurance proposition called Bonus Underwriter.A range of commercial insurance products, underwritten by Norwich Union, have been launched by the company to enhance their introducer status offering.In addition to buildings, contents and MPPI policies, brokers and intermediaries can now offer their clients a range of commercial insurance cover for […]

Abbey news gets warm reception

The fact that Abbey is prepared to openly state that it will lend 5 x income is good for aspiring buyers and the news was greeted calmly by consumers and the media, says Drew Wotherspoon

Sub-Saharan Africa Near-Term Outlook

By Paul Caruana-Galizia, Neptune Economist

Sub-Saharan Africa’s economic renaissance continues. After growing at an average rate of five per cent over the past decade, the IMF projects an acceleration to 5.5 per cent growth among Sub-Saharan economies in the next two years, as developed economies emerge from the crisis. We expect this growth to be sustainable for three broad reasons.


News and expert analysis straight to your inbox

Sign up