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Bolton attacks BM over his own mortgage offer

Edeus chief executive Michael Bolton launched a stinging attack on former employer HBOS this week in an extra- ordinary public slanging match between the two sides.

Speaking at the Mortgage Intelligence 10th anniversary conference in Wales, Bolton said BM Solutions tried to “stuff” him personally on his mortgage with an offer 100 basis points above normal rate on a retention case. He described the deal as poor value but the broker would still have received a full proc fee on it. He says he would have reported the matter to the FSA if the broker had recommended the deal to him.

Bolton also accused HBOS of “stuffing indebtedness down the throats of the young” with irresponsible lending to first-time buyers.

Bank of Scotland Mortgages managing director Charles Haresnape defended HBOS’s retention scheme, accusing Edeus of irresponsible lending by offering heavy adverse deals and high loans to value. He also goaded the former HBOS head of specialist lending by questioning whether such loans could be securitised because of their risky nature.

The latest confrontation came after Edeus managing director Alan Cleary blasted retention schemes last week for potentially wiping 125bn off the remortgage market. Bolton claimed lenders are trying to force many brokers out of business with retention.

Bolton said: “I resent BM trying to stuff me with a poor rate because of a high proc fee. Large lenders are trying to stuff indebtedness down the throats of the young, especially with HBOS happy to lend at 97 per cent LTV to a homeowner with no experience of paying off a loan.”

Haresnape said: “How does Edeus see high LTVs and lending deep sub-prime as a proposition? Can you securitise it?”

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