View more on these topics

Interest rise could send loan PI up

A rise in mortgage-related misselling claims is set to send PI premiums soaring for mortgage brokers, according to PI broker Collegiate.

Head of claims Martin Archer believes rising interest rates and higher unemployment will mean a number of borrowers feel over-committed on their mortgages and may go to the ombudsman.

Archer says until now affordability has only been lim-ited by what the provider will lend but, with statutory regulation, mortgage brokers will consider it their jobs to advise on affordability despite confusion over the level it should be set at.

If the FOS decides that only loans of 3.5 times income are appropriate, then a tidal wave of claims could ensue.

Archer says: “The reason IFA premiums are very high is that not many underwriters are happy to dabble in high-risk business.

“If mortgage brokers are perceived as equally high-risk, then insurers will not want to take the risk.”

Recommended

A simple request can turn into a paper mountain

Fulfilling a client&#39s simple request for a mortgage protection policy, it seems I have to send him at least four pages of illustration, 12 pages of key features and 20 pages of application form, these latter two items covering every protection product in the insurance company&#39s armoury. Not only is this a waste of paper, […]

MPs told that shock rise in rates is needed to stop property spiral

Leading economist Roger Bootle has told MPs that the Bank of England monetary policy committee needs to shock housebuyers by raising interest rates. Speaking at the Treasury select committee meeting last week, three of the UK&#39s leading housing market economists expressed concerns about the impact on the economy of a collapse in the housing market. […]

Conservative Party reshuffle

Conservative Party Leader has moved to reorganise his frontbench ahead of Labour and the next general election. As part of the reshuffle David Willetts&#39s portfolio is being split into two. He previously combined the job of Shadow Secretary of State for Work and Pensions with the role of Head of Policy Co-ordination. Willetts remains in […]

Standard fears Revenue tax move will hit offset loans

Standard Life is warning that a tax crackdown by the Inland Revenue may mean that borrowers with an offset mortgage will have to register their loan with the Revenue. Tax specialist Simon Burke says although there is no evidence that offset mortgages are being targeted, they do fall within the scope of regulation published two […]

European Opportunities: 'It’s nice when stock selection results in a macro tailwind'

Amid significant macro headwinds in August, Mark Page explains why his fund’s focus on stock selection has helped it outperform a falling market in August. BESbswyBESbswyBESbswyBESbswyBESbswyBESbswyBESbswyBESbswyBESbswyBESbswyBESbswyBESbswy

Newsletter

News and expert analysis straight to your inbox

Sign up

Comments

    Leave a comment

    Close

    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

    Email: customerservices@moneymarketing.com