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Advisers have valuable role as rates rise

The shock of this month’s interest rate rise from 5-5.25 per cent will hurt borrowers particularly because of the cumulative effect.

With the sector likely to shrink from the record of 346bn gross lending in 2006, it means there will be less business to go around.

This is mainly because the remortgage market is expected to contract due to the psychological effect that borrowers will feel after coming off fixed-rate deals only to see the choice of rates to be much higher than what they were paying initially.

Rising rates could also put some would-be first-time buyers off due to the added costs of borrowing. That all means plenty of work ahead for intermediaries to secure business this year and that is before anyone even contemplates further rate rises later this year. The message to brokers is that they may need to raise their game but at least they have the chance to prove their value to their clients in this more difficult climate.


European Court of Justice rules Government’s pension protection inadequate

The European Court of Justice has ruled the Government’s protection for those who lost their pensions when schemes went bust was ‘inadequate’, but fell short of ordering compensation.The case will now go back to the UK High Court which could then order compensation to the estimated 125,000 people who lost out when their occupational schemes […]

Administrators in at YourHealth Plus

Private medical insurance provider YourHealth Plus has gone into administration.The firm was set up in 2005 by directors Jo Clark and Jan Wilson but both directors left the company late last summer following an investigation by its investor Pearl Street Holdings.The investigation is believed to have been over underwriting arrangements and in December Pearl Street […]

Spring has sprung

Well, it’s been lovely to see a little bit of sunshine, even if it was only a brief appearance. I live in Scotland so, believe me, it was very brief.  Of course, with even the tiniest hint of spring, thoughts turn to the inevitable clearout that must take place.  And that got me to thinking […]


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