View more on these topics

Lenders &#39staggered&#39 by FSA distribution claim

Lenders and brokers have rejected the FSA claim that less than half of all mortgages are arranged through intermediaries, saying it is a minimum of 50 per cent of all loans.

In CP146, The FSA&#39s App-roach to Regulating Mortgage Sales, the regulator states that while requiring independent mortgage intermediaries to advise on the whole of the market will protect some consumers, it “is likely to affect less than half of all transactions because a significant proportion of mortgages are arranged via different distribution channels.”

But the industry maintains that the percentage of loans through intermediaries is about 60 per cent and in some business areas, such as sub-prime mortgages, it accounts for as much as 95 per cent.

Lenders say the fact that the regulator appears to be using such assumptions in deciding how to define independent mortgage intermediaries is worrying.

The Halifax, the biggest lender with an extensive branch system, says its lending is divided evenly between branches and brokers.

Future Mortgages communications manager Richard Hurst says: “Well over 95 per cent of the business we do is arranged through intermediaries. That is the foundation of our business.”

Yorkshire Building Society corporate affairs manager David Holmes says: “The lowest proportion that we have ever had is 50 per cent through intermediaries. Generally speaking, the ratio is around 60 per cent. I find it staggering that is what they are saying.”

FSA spokesman David Cliffe says: “It is just an approximation. I do not think we are using this statement as a lynchpin of our thinking. It is a consultation paper and the industry can make the point and correct us if we are wrong.”

Recommended

Aegon buying spree gathers Momentum

Aegon&#39s buying spree continues with the outright purchase of leading national corporate IFA Momentum. The purchase, for an undisclosed sum, will not affect the firm&#39s independent status but means a third big brokerage will not place business with Aegon-owned Scottish Equitable or Aegon Asset Management until the current rules are changed. The Hampshire-based IFA was […]

EFM widens online Isa/Pep service range

Edinburgh Fund Managers is adding its range of 11 Portfolio funds to its online Isa/Pep service this week, raising the number of funds available through the website to 25. By logging on to the site existing investors will be able to access a range of services including online valuations, real-time performance data and the ability […]

Genesis adding self-cert deals

Genesis Home Loans is introducing three new mortgages to its Gemstones adverse-credit range. Aquamarine is a full-status mortgage for purchase or remortgaging for borrowers with poor credit history. Maximum loan is £150,000 up to a maximum of 95 per cent loan to value. It offers a 1.25 per cent discount, giving a rate of 6.99 […]

Standard sets up range of fixed loans

Standard Life Bank is launching a new range of fixed rate Freestyle mortgages with the first fixed until May 20, 2005 at 4.9 per cent on loans to value up to 90 per cent and 5.09 per cent on LTVs up to 95 per cent. The second is fixed until October 15, 2007 at 5.09 […]

Artemis Global Income: Making sense of global markets

The rally in cyclical ‘value’ stocks paused for breath in February, as investors took a more cautious tone and switched their attention back to defensive areas. In this article, Jacob de Tusch-Lec, manager of the Artemis Global Income Fund, explains how he has positioned the portfolio, given the many economic, geopolitical and policy risks that […]

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