Your Views

Some say there’s no need to probe broker/lender relationship…

Last week, the outgoing chief executive of the CML told Mortgage Strategy it was important for the FCA to examine the broker/lender relationship to stop questions being asked on the process. But some said there was nothing to look into…

Proc fees are pretty much at 2007 levels. I don’t think the regulator’s got a lot to investigate there; it’s not like brokers are getting rich off the relationship!

Perhaps the FCA would like to have a word instead about ‘direct’ deal pricing or retention incentives?

Stuart Gregory

…but others believe RDR-style rules would remove chance of bias

There is nothing wrong [with] direct pricing or retention incentives; it’s a commercial decision for lenders and any good advice would factor those in. If an adviser can’t compete it’s because their own proposition to clients isn’t strong enough.

Saying a commission ban is not appropriate is also questionable. I personally see nothing wrong with applying RDR-style remuneration rules to lending and insurance. It’s clearer, and removes the possibility for bias.

Daniel Leach

Survey on higher SVR costs is called a waste of time and money

Meanwhile, a report that found borrowers were paying more when moving from fixed mortgages onto SVRs was met with criticism…

I’m sorry, am I missing something? Someone’s just paid for a survey to confirm that borrowers’ rates go up after the end of the fixed period?

Surely a quick look at Mortgage Brain tells you this for all LTVs except 95 per cent (where it still goes up in the majority of products).

Then someone else comes out saying they are glad it’s been confirmed.

Then a call for lenders to tell customers it’s going to happen, which they already do.

Surely the story here is that somebody likes wasting money, not that the SVR is higher than the product rate in the majority of cases.


Election result will bring more uncertainty – but some good may arise

And of course the biggest news last week was the general election, which resulted in a hung parliament. Many believed this would cause a further slowdown in the housing industry, but some positives were found…

Given the unprecedented turn of events as the UK election results are announced, there will undoubtedly be an impact on the UK and London housing markets.

While it is most likely that the Conservative party will form a coalition with the DUP to create a working majority, the UK looks set to face an extended period of uncertainty – historically unattractive to inward investment.

However, as it does not appear possible for Labour to form a rainbow coalition with the other remaining parties, the uncertainty caused by a possible second EU referendum may have receded. In addition, the weakened position of the Conservative Party, in conjunction with a pro- ‘soft border’ DUP, would suggest that the UK will be on course for a softer Brexit.

This outcome may well be attractive both to institutions considering their position in the City of London and to international investors looking at the UK, particularly as global events such as the Trump-Russia affair and continuing destabilisation in the Middle East are causing even greater economic and political flux outside the UK.

Lauren Kemp