View more on these topics

Advisers back LibDem plan for simple starter loans

Advisers are supporting Liberal Democrat calls for a “no frills, no fees, safestart mortgage”.

The party says it is “kite-flying” the idea of a simple five-year, fixed-rate deal with a interest rate ranging at around 4.5 per cent.

It says that with repayment-only, a deal like this could help borrowers pay off as much as 10 per cent of their homeloan. The LibDems also say that the loan could be covered by the Government with a mortgage indemnity guarantee.

LibDem Treasury policy adviser Chris Saunders says: “We think that there is a simple, safe product missing in the mortgage market. This safestart is just kite-flying right now and it is not a grand solution but it is us starting to look forward for borrowers.”

Unleashed Advice IFA Adrian Kidd says: “We have had a lag in fixed rates recently and many people are looking to lock into a longer-term fix. If a party can think of ways to restore con- fidence that is great, people just have no faith in financial services right now.”

London & Country broker David Hollingworth says: “Lots of people go for the no-frills deals and there is an appetite for five-year fixes, so this idea is a good place to start. It is essentially like any simple five-year fix on the market now but it is at 85 per cent LTV. This proves what brokers have been saying for a while – we need more deals with low rates and higher loan to value ratio.”


Drawdown double whammy

Investors face lower retirement income if they move their entire pension pot into income drawdown, says Skandia.

Investment clock economic update

In the latest Investment Clock economic update, Ian Kernohan, Senior Economist at Royal London Asset Management, discusses the implications of the US Federal Reserve’s recent hike in interest rates and upcoming French presidential election. The value of investments and the income from them is not guaranteed and may go down as well as up and […]


News and expert analysis straight to your inbox

Sign up


    Leave a comment


    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