View more on these topics

&#39Death of dual pricing and discounts&#39

Virgin One is claiming the current trend of rem-ortgaging into cheaper

discounted loans has become a victim of its own success and will be extinct

by 2005.

The lender reckons many consumers have wised up to the mortgage industries

practices and are using this knowledge to dodge paying the standard

variable rate on their loans by churning their mortgages.

Virgin is citing switches in stance on discount rates by the likes of

Nationwide, which is offering the same rate to new and existing borrowers,

as the shape of things to come.

It also says according to Council of Mortgage Lenders figures only 40 per

cent of all mortgage borrowers are paying standard variable rates as the

take-up of discount rates has increased.

Virgin One Marketing manager Scott Mowbray says: “Together, these figures

sound the death knell for dual pricing and discount deals for homeowners

looking to remortgage. If current trends continue we estimate lenders won&#39t

be able to continue to offer these deals for more than another four to five

years and some lenders will have to stop before then.

“Transferring to another rate just won&#39t be an option. Consumers have

wised up and aren&#39t prepared to sit on standard variable rates long enough

for traditional lenders to recoup their loss on funding the discount.”

Recommended

Charitable drive targets advisers

IFAs are the target of a new campaign encouraging people to maketax-efficient donations to charity as part of their financial planning. The independent Giving Campaign was launched last week with support fromthe Government and the voluntary sector. It hopes to boost charitable donations by at least £500m over thenext three years. Total donations in 2000 […]

£400k fine and £15m redress bill for Royal London

Royal London has been fined £400,000 by the PIA and ord-ered to pay£15m in compensation to 65,000 customers for breaches relating to thesale of investment products. Royal London is now conducting a review of the past sales of its fullproduct range, including endowments, wholeof-life policies and savingsplans, and will provide further compensation where customers have […]

NU setting up a fund supermart exclusively for IFAs

Norwich Union is planning to launch a new fund supermarket exclusively forIFAs early next year which is poised to rival Fidelity, Cofunds and Legal &General. The supermarket is still in the early development stages but Norwich Unionhopes to launch the venture in the first quarter of 2002 following thelaunch of its online wealth management service […]

iShares – iBloomberg European Industrials

Monday, 23 July 2001.Type: Exchange traded fund.Aim: Growth by tracking the Bloomberg European investible industrials index.Minimum investment: Subject to negotiation with stockbroker.Maximum investment: None.Investment split: 100 per cent tracking the Bloomberg European investible industrials index.Place of registration: Dublin.Isa link: Yes.Pep transfers: Yes.Charges: Annual 0.5 per cent.Commission: None.Tel: 020 7668 8007.

Newsletter

News and expert analysis straight to your inbox

Sign up

Comments

    Leave a comment

    Close

    Why register with Money Marketing ?

    Providing trusted insight for professional advisers.  Since 1985 Money Marketing has helped promote and analyse the financial adviser community in the UK and continues to be the trusted industry brand for independent insight and advice.

    News & analysis delivered directly to your inbox
    Register today to receive our range of news alerts including daily and weekly briefings

    Money Marketing Events
    Be the first to hear about our industry leading conferences, awards, roundtables and more.

    Research and insight
    Take part in and see the results of Money Marketing's flagship investigations into industry trends.

    Have your say
    Only registered users can post comments. As the voice of the adviser community, our content generates robust debate. Sign up today and make your voice heard.

    Register now

    Having problems?

    Contact us on +44 (0)20 7292 3712

    Lines are open Monday to Friday 9:00am -5.00pm

    Email: customerservices@moneymarketing.com