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Defaqto on the Abbey For Intermediaries/Santander 3-Year Tracker

View of Defaqto insight analyst for banking Kevin Bray

Bray says: “The product is pitched in the highly competitive 75 per cent LTV bracket. The arrangement fee differs from other Abbey products by charging 1 per cent of the mortgage loan instead of a fixed price. This fee structure fills the gap that was left in the intermediary product range following the withdrawal of the Alliance & Leicester brand that is also owned by Santander. A mortgage account fee of £225 added at completion should also be considered, but it is not interest bearing during the mortgage term.

“Abbey attaches its usual features to this mortgage including the homebuyer solution package comprising of a free valuation and £250 contribution towards legal costs. A 10 per cent overpayment facility a year without penalty is also available.

“All purchasers have the option of a repayment or interest only mortgage. Abbey also continues to fast track applications that meet its criteria but advisers should be aware that Abbey could request income verification at any time in the future. Brokers must be able to provide suitable documentation otherwise the facility will be restricted.

“With the FSA’s mortgage market review consultation period drawing to a close, it appears unlikely that Abbey’s fast track facility will be allowed to remain. ‘There is more cause for optimism for interest-only mortgages, but they could be restricted to 75 per cent LTV and have tighter restrictions on suitable repayment vehicles.”



MPs oppose pension indexation switch

The Government is facing mounting pressure over its decision to switch pension indexation from RPI to CPI after MPs, the Royal Statistical Society and a pensioner group expressed concern over the move. Last week, Labour MP for Glasgow North West John Robertson tabled an Early Day Motion highlighting the risks of the proposal. Robertson noted […]

Which? wants early warning of FSA action

Which? is calling for the FSA to make a public announcement about firms when they face enforcement action rather than waiting until a fine has been issued. At last week’s Treasury select committee hearing, Which? chief executive Peter Vicary-Smith said the public have a right to know if the FSA finds problems within a firm. […]


‘FSA never wanted to ban interest-only’

FSA director of conduct policy Sheila Nicoll says it is not the regulator’s intention to ban interest-only mortgages. It has proposed that interest-only borrowers should be assessed on a capital and repayment basis and has suggested that lenders should check to see if the customer has a suitable repayment vehicle in place to pay back […]

Clarkson Hill has shares suspended for second time in 2010

Clarkson Hill has had its shares suspended on AIM for the second time this year. The national IFA requested that trading in its shares was temporarily suspended pending clarification of the company’s regulatory position. Clarkson Hill originally had its shares suspended on July 1, 2010, after the firm failed to publish its annual accounts. Clarkson […]

Key themes for 2017

Capital Market Notes, December 2016 Dave Lafferty, chief market strategist at Natixis Global Asset Management, assesses the accuracy of his 2016 outlook and provides his thoughts and outlook for 2017. Click here to read the full article


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