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Secured loan rule change raises second charge fear

It was recently announced by Mark Hoban, financial secretary to the Treasury, that the regulation of secured loans was being transferred from the Office of Fair Trading to the Financial Services Authority (Mortgage Strategy Online, January 26).

This was off the back of a consultation launched in December by the Treasury looking at switching the regulation of consumer credit from the OFT to the FSA and subsequently the newly established Consumer Protection and Markets Authority.

The move will take the protection from all second charge borrowers of section 140 of the Consumer Credit Act 2006.

It will be more to the detriment of borrowers when this happens as the FSA does not have such a powerful piece of legislation. But then maybe this is the aim – to pretend it is for the good of second charge lending?

As a result I’m not sure about this at the moment. If this legislation is transferred to the FSA rule book then I am in total agreement. If not, I have concerns for all.

Brian Grace



Brokers can beat banks hands down

The national media is encouraging people to review their mortgages as rate rises becomes a hot topic of conversation. This should help increase mortgage activity, which is at an all-time low. Net lending was a meagre £8.5bn last year compared with the £110bn at the peak. If it was not for the few securitisations done […]

Let’s step back to the old school style of underwriting

Labour MP George Mudie was right in his criticisms of the Financial Services Authority and the Mortgage Market Review – it is going to damage the market, and it’s almost dead anyway. What they are failing to address, which will be the problem over the next couple of years, is that borrowers are stuck with […]

Conor Murphy

Good brokers add value in recession

Any time of great change will offer opportunities for some people and brokers can thrive, even in the current marketplace, as long as they focus on certain key areas. Being realistic is key – the days of stretching a mortgage, whether via income or criteria, are long gone. The starting point for any application should […]

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Guide: Johnson Fleming produces auto-enrolment checklist

For a job as big as managing the auto-enrolment changes, it’s important to know what has been completed and what still lies in front of you to give you the reassurance that everything is in hand. Getting the planning and project management right at the outset can help you see the path ahead and ensure everyone knows their roles and responsibilities. To help with this, Johnson Fleming has produced a checklist outlining every step that needs to be taken when preparing for auto-enrolment.


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