View more on these topics

Hamptons calls for APRs to be scrapped

APRs should be axed as a means of demonstrating the cost of a mortgage, says Hamptons International Mortgages.

The broker believes the popularity of remortgaging, the inability to predict long-term trends in standard variable rates and lenders’ retention strategies make APRs useless as a tool as they are calculated over 25 years.

Technical director Jonathan Cornell says: “The APR is based on the highly unrealistic scenario of a client finishing their rate and being too lazy to switch products and spending the remaining 23 years or so on a standard variable rate which remains the same.”

Compliance consultant Adam Samuel says: “APRs need to be reset. The problem with scrapping them altogether is that you end up with no measurement as they take into account other charges.”

Mortgage Intelligence managing director Sally Laker says: “APRs are only accurate if a number of factors stay the same, which rarely happens. It needs someone to come up with something.”

FSA spokeswoman Sam Bennett says: “The APR is set in an EU directive we are following, which the mortgage industry signed up to.”


Altmann aims for Labour conference

Campaigner Ros Altmann will take the Pension Action Group’s cause to the Labour annual conference in the hope of getting the support and publicity that Gate Gourmet workers received at last year’s conference. Altmann says the group will be in Manchester for the conference to highlight the Government’s behaviour in rejecting the Parliamentary Ombudsman’s report […]

Principles of professionalism

Sesame’s chief executive Patrick Gale has made a clarion call for advisers to professionalise.He believes the financial services industry has a unique opportunity to benefit from principle-based regulation.He is also upbeat about where IFAs and standards of advice are at the moment, believing that many of the problems of the past will not be repeated […]

Don’t block scheme pension route

Further to the article in the August 3 edition of Money Marketing, headlined, Standard complains over loophole that it revealed, scheme pensions could in the future form a very valuable option for self-invested trust-based money-purchase arrangements. Historically, scheme pensions have been paid from defined-benefit schemes, where the scheme trustees take on the onus of payment […]

Adviser says IHT ‘loophole’ could help Revenue

Adviser Smith & Williamson says an SSAS inheritance tax “loophole” would benefit tax collection.Standard Life has accused Axa using a SSAS loophole which enables small businesses to pass on assets tax-free, and, in theory, allows family members to set up schemes to bypass IHT.The Revenue has pledged to clamp down on any abuses.But Smith & […]


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