Markets seem to want to jump off the cliff before they are pushed
The financial markets are reacting as though it’s 2007 Lehman. It’s more 2016 lemming!
Michael White, Boutique Capital
‘Help me with lender court cases – or we are all going to drown’
I hope the mortgage industry backs me at Property 118 because the sharks have tasted the blood in the water now. My efforts to date will be a pyrrhic victory if the PI insurers don’t back us to take BoI and Skipton to court.
Remember, the FoS decision still stands on those cases and over 150,000 borrowers are affected. Claims quantum is thought to be over £600m excluding legal costs and compensation, let alone the disruption to the industry.
I am like the little boy who stuck his finger in the dam. If I don’t get help soon, we will all drown!
Mark Alexander, Property 118
We can’t benefit from new-build if builders won’t let clients use us
I was interested to read Tony Fullbrook’s letter last month (‘As the new-build sector picks up, well-informed brokers will benefit’). I am sure most brokers would agree with his sentiments.
However, brokers are hampered by the fact that builders often insist on purchasers using their own in-house advisers and solicitors. I have just had a case when, fortunately, my client insisted on using me and I had obtained a decision in principle. The trade-off was that he still had to use their solicitor.
Coupled with this, we have certain corporate estate agents that carry out similar practices. Qualifying a purchaser’s mortgage prospects is quite acceptable; attempting to place the mortgage usually with the same lender is not.
I had a case when an agent tried to use a carrot of £1,000 off the purchase price “if you use our adviser and solicitor”. When studying their quote for conveyancing and a fee for financial services plus a separate fee from that of the lender for the valuation, it was found that the ‘carrot’ had cost an additional £500.
Practices as described above should be stopped. Brokers in the main are fully aware of the new-build opportunities but please give us a level playing field.
James Town, Mortgage Decisions
Article 50 could hinder repayments of Help to Buy equity loans
Regarding Mortgage Strategy’s recent cover story, ‘Brexit fears rock new-build sector’, the real question is how Help to Buy equity loans will perform when they become due for payment in 2018.If we’re deep in Article 50 arrangements, uncertainty there could mean a bumpy ride ahead.
Charlie Blagbrough, Building Societies Association