View more on these topics

Fears over sub-prime fee bias

IFAs fear high procuration fees are encouraging unscrupulous advisers to inappropriately recommend sub-prime mortgages.

Advisers and rival sub-prime providers claim some lenders are paying as much as 3 per cent of the mortgage value in procuration fees, raising concerns that certain products may be favoured over others.

Many sub-prime lenders are not covered by the mortgage code so have no obligation to disclose their fees, leaving some homebuyers unaware that the mortgage they have bought may be unsuitable.

Advisers say there is no good reason for the abnormally high procuration fees, arguing lenders are only encouraging ruthless brokers to sell mortgages that benefit them rather than the customer.

Savills Private Finance managing director Mark Chilton says: “There is no commercial justification why len-ders pay such high procuration fees other than to attract high-margin business.

“You have got to question the morality and ethics of any business so driven by procuration fees.”

Future Mortgages marketing manager Michael Bolton says: “Mortgage misselling is rife in the sub-prime market. If it wasn&#39t, then why don&#39t the lenders voluntarily disclose how much they pay in fees?”


Winterthur moves to calm IFA fears over Pan

IFAs are being told they have nothing to fear following the receivership of Winterthur Life tied agent Premier Agency Network.The life office says it will continue with its commitment to the IFA market and is developing new products.Fears over Winterthur&#39s commitment to the UK advice market first came to a head when Pan went into […]

Sun Bank – First Time Buyer Mortgage

Monday, 16th October 2000.Type: Fixed rate mortgage for two years, followed by two-year capped rate.Fixed term: Until November 1, 2002.Fixed rate: 5.49 per cent.Capped term: From November 2, 2002 to November 1, 2004.Capped rate: 8.49 per cent.Minimum loan: £25,001.Maximum loan: Up to 95 per cent of valuation subject to a maximum of £125,000, up to […]

Examine the examiners

Training plays a critically important role in our profession by broadening our knowledge which, in turn, enhances the service we provide to clients.However, we do have a substantial problem within our industry caused by the need to obtain qualifications by examination.We are successful businessmen and women who are already earning substantial salaries by providing a […]

Scottish Widows – Flexible Investment Bond

Tuesday, 17th October 2000.Type: Single premium investment bond.Aim: Growth by investing in a range of Scottish Widows&#39 funds and externally managed funds.Minimum investment: £5,000 new clients, £1,000 existing clients.Fund links: Choice of ten of the following funds: mixed, consensus mixed, safety plus, European, UK equity, international, North American, Japanese, UK equity index, fixed interest, property, […]

Health - thumbnail

Healthcare predictions for 2015 from Jelf Employee Benefits

The continuing fall-out from the Competition and Markets Authority’s (CMA’s) review, the rise of the private GP and digital engagement will be the primary focuses in the private healthcare industry during 2015, according to Iain Laws, managing director, healthcare and group risk, at Jelf Employee Benefits.


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 thought leadership.

    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