View more on these topics

Europe votes to ban bundled mortgages

European MPs have voted to ban mortgages that are tied to other products like savings accounts.

Last week, ECON ­ the European Monetary and Economic Affairs committee ­ voted through a number of draft proposals on the directive.

One of these stipulates that lenders will not be allowed to sell mortgage deals linked to savings accounts where the account is not used solely for the purpose of repaying the mortgage.

This would mean deals such as Lloyds group’s Lend a Hand, where only a 5 per cent deposit is needed and another 20 per cent in savings as security for the mortgage, would not be allowed.

Econ shadow rapporteur and British MEP Vicky Ford was involved in the voting.

She says: “The amendments I wanted regarding the language on tied products did not get through.

“The proposal states that borrowers can use a savings account but only where the sole purpose of it is to repay the principal interest on the mortgage ­ clearly that is not how savings-linked accounts work.”

Ford is now campaigning to get the proposals amended.

Also under the proposals voted through last week, buy-to-let will be exempt from the regulations and the key facts illustration will not be scrapped for five years from the time the proposals are introduced.

After this time the KFI will be replaced by a European standardised information sheet.

A 14-day cooling off period after customers sign a mortgage deal has been proposed by MEPs to allow customers some time to reflect on the deal after it has been agreed, but it is still not clear whether member states will be given the power to decide whether they want to introduce it.


Barclays C&ES signs business protection deal with Aegon

Barclays Corporate & Employer Solutions has signed a deal with Aegon to supply business protection products with enhanced features to its customers. Barclays offers advice and services from the whole of the market for business protection but the arrangement with Aegon will offer its small and medium sized business customers a number of enhanced features […]

What advisers are saying- professional connections

Against a backdrop of change and uncertainty, there has arguably never been a better time to work with professionals. Solicitors and accountants are more open to working with financial advisers and there are a couple of big drivers: 1: Regulatory framework The regulatory framework has changed enormously with the Legal Services Act and the Jackson […]

Connaught looks to wind up two Ucis funds

The board of Connaught Asset Management is proposing to wind up its income fund series two, which is currently suspended from trading on the Channel Islands Stock Exchange. Money Marketing’s sister publication Mortgage Strategy understands Connaught has also taken the decision to wind up its income fund series one fund. The income fund series one […]

Don’t play chicken with the Bank of Japan

By Josh Ausden, Head of Client Investment Strategy, Neptune Short-term yen strength has hurt the Neptune Japan Opportunities Fund but recent events have only added weight to our conviction that the Bank of Japan will act to ease policy, boosting multinationals’ profits and weakening the yen. In recent weeks the performance of the Japanese stockmarket […]


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