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Keep track of borrowing

Do brokers and advisers believe that what is needed in the mortgage market today are generous income multiples as high as seven and even higher on fast-track loans?

Are we losing what should be a restraint on borrowing levels in financially more difficult times if people believe that they have some sort of divine right to overstretch themselves to get that dream home?

This week one broker, Andrew Oliver, warns that he believes people are being offered loans they cannot afford.

Are lenders meeting their requirements for responsible lending? It is difficult to say.

If we do have an indebted country in addition to an indebted population and, of course, an indebted economic superpower across the pond is it not time for a bit of readjustment?

And would it not be better if that readjustment came with people readjusting what they are borrowing, at least until we see what happens in the economy as a whole and interest rates in particular?

The world economy has taken a massive body blow, with imprudent mortgage borrowing and lending in the US at the heart of the problem and yet in many parts of the world there is still an inflation risk.

Some economists even worry about one of the grimmest of economic scenarios – stagflation in the UK.

Money Marketing has to wonder if many people would not be better being a little more careful. These are difficult times for a lot of lenders and brokers. But the path that people should be steered down is surely a prudent one.

The challenge at all levels whether from the chairman of the Federal Reserve, the Chancellor and the governor of the Bank of England and lender, broker and borrower is to take the heat out of the situation but also to manage things so that we get back to a position of long-term stability. Fast-track loans offering huge income multiples just do not feel like the correct approach in these difficult times.


Fears grow for fast-track loans

An IFA believes that fast-track mortgages could be leaving the mortgage industry open to unscrupulous brokers.Andrew Oliver and Co managing director Andrew Oliver says he is very concerned about what he considers to be the abuse of fast-track mortgages.Oliver says a former client who wanted a mortgage for £210,000 on a salary of £13,000 with […]

Pressing engagement

Maintaining consumer confidence is pivotal to the success of any industry so it is extremely important to find answers to questions such as how to ensure consumers believe in the industry enough to buy the product and how to reassure them that what they are buying will be there when they need it most.

Core benefits

Greater choice has become the expectation in everything we buy but too much choice can confuse us to the extent that it destroys our ability to make decisions. Tax wrappers are no different. When it comes to self-invested personal pensions and Isas, the investor has never had it so good.

Offshore move by Winterthur

Winterthur is venturing into the offshore market with an investment bond and discounted gift scheme.It says pre-Budget report proposals created uncertainty but it believes offshore products are becoming a core part of financial planning. Operating from Axa Isle of Man, the new Winterthur International business is offering a unit-linked single-premium investment bond for life or […]


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