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ECU Group opens up loan service to IFAs

Currency debt manager the ECU Group is offering its mortgage service to IFAs with the aim of helping their clients slash their loans by taking advantage of exchange rate movements.

The service tries to reduce the balance of a mortgage by switching part of it to foreign currencies not performing as well as sterling, including the yen, the dollar and the euro. It says borrowers can make additional savings bec-ause interest rates will tend to be lower.

The ECU Group is targeting intermediaries with clients earning over £75,000 with a minimum mortgage of £100,000 and who understand the risk of sudden swings in exchange rates.

It is offering intermediaries three initiatives. First, it will pay commission of 0.25 per cent of the loan to those who introduce business.

Second, it is aiming for bigger firms, with the aim of developing an introducer broker relationship by paying commission and a management fee for taking on some ongoing responsibility in managing the service.

Third, it is talking to brokers such as Charcol about white-labelling the service in return for commission, a management fee and a performance fee.

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