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PMN encourages multiple AR applications

According to The Professional Mortgage Network many would-be ARs are making a serious mistake by committing to just one network, particularly as PMN believes that as many as 20 networks won&#39t be in a position to be offering full network facilities to members on Mortgage Day.

Dale Knight, PMN managing director, says: “Many mortgage networks simply won&#39t be able to offer a full suite of services to members come Mortgage Day. The FSAwill impose such draconian measures on them because their systems and infrastructures don&#39t meet the regulator&#39s benchmark criteria that it will be impossible for them to start trading.

“That&#39s obviously bad news for the networks concerned. It&#39s also going to be extremely bad news for any AR who has tied their colours to a network that doesn&#39t pass the FSA test. These ARs are effectively going to be out of business for a considerable period unless they have a contingency plan.”

Knight adds: “My recommendation is that anyone seeking AR status through a network should submit applications to at least three networks, including one of the big names. At least then the ARs back will be covered if their preferred choice doesn&#39t make the grade. I have no doubts that failing to have a contingency will cost an AR dear in the final analysis.”

PMN believes many networks will fail to meet strict FSA requirements at the point when the regulator makes a physical visit to the premises of the network. This unsolicited interrogation is known as an arrow visit. PMN has established that all new mortgage networks will be subjected to an arrow visit.

Knight concludes: “Many networks continue to fail to heed the FSA when it says they will only allow fit and proper organisations to become authorised networks. Many networks are crowing just because they have received an MTA letter. The truth is it is these networks that are at most risk. They have put a bit of effort in getting an MTA letter and are now relaxing, thinking the hard work is done. They&#39re in for a rude awakening when the FSA comes calling.”


Norwich & Peterborough slashes fixed rates

The rates for two-year fixed rate mortgage schemes are now 2.99% and 3.39%, the five-year fixed rates are now 5.58%, 5.98%, 5.74% and 6.34% and the 10-year rates are now available at 5.68%, 5.93% and 5.78%. Gary Lacey, N&P&#39s group product manager, says: “These reductions mean that N&P is offering some of the most attractive […]

Look for clients in the Right places

Many think the scheme&#39s glory days faded along with its creator, Margaret Thatcher. Yet tens of thousands of council house dwellers still buy their home at discounted rates under Right to Buy every year, adding to the 1.5 million who have bought property since the scheme was introduced in 1980. This accounts for one in […]

Read the application, Nick

From Andy SchleiderI read with interest and agree with most of Nick Walker&#39s letter in your August 2 issue. The only thing I ask him to do is to look at the mortgage application for The Mortgage Works (previously Sun Bank, now part of Portman). It has a non-status offering and an affordability declaration clients […]

Conti launches Bulgarian scheme

The emerging Eastern European countries including Bulgaria have gained a reputation for having legal systems that make it difficult for purchasers to establish legal title over properties. Conti has launched its scheme to ensure that lenders working with them in Bulgaria can be confident of obtaining a charge against properties in the country to give […]

A bull case for US equities?

Neptune video: a bull case for US equities?

Watch Felix Wintle, head of US equities at Neptune, discuss why he believes US equities are in a structural bull market and the key factors that can drive the S&P 500 higher.

In the video, Wintle addresses the following:

• The US market and why — despite equities rising from 2009 — he believes the structural bull market only started in 2013
• Key economic and corporate factors that can drive the S&P 500 higher
• Investment themes and sectors offering exposure to the domestic recovery


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