View more on these topics

Lenders face court action over Meafs

The FSA is warning that lenders which continue to vary the terms of the charges within their mortgage contracts may face enforcement or court action.

The regulator has released a statement saying it is disappointed by the findings of its latest research which shows that a third of lenders are still varying the terms of their charges.

Letters will be sent to these lenders demanding that their fee terms are frozen and that they alter current contracts to ensure there are no more changes.

In January 2007, the FSA released a statement of good practice on mortgage exit admin fees which demanded that lenders stop varying the terms of the fees but it says many lenders have not met its orders.

The Mortgage Practitioner principal Danny Lovey, who is a long-time campaigner against Meafs, thinks the FSA action is not enough. He says: “Lenders think they can get away with everything and this is just toothless enforcement from the FSA. I welcome any action against lenders which charge Meafs but we need to address the lenders, such as Halifax and Abbey, which have merely re-labelled their Meafs. It is the principle of it. It is naked profiteering.”

Halifax and Abbey claim their charges are valid admin fees covering the length of the mortgage.

London & Country mortgage expert David Hollingworth says: “A third is a pretty sad statistic as the FSA gave pretty clear guidelines last year. I think this review has gone further than Meafs and probably will include all tariffs in a mortgage that are subject to change.”


Product matters Nigel Callaghan

Standard Life’s launch of a structured product – capital guaranteed plus – exclusively within its Sipp wrapper offers the safety net of a guaranteed minimum return together with exposure to equities.

Windsor change blows no good

Windsor Life gets worse and worse. We sent in a £1,000 single premium for a personal pension in February. Not only could it not do the fund that GE Life originally had but it also turned out that it would not pay commission, which I know is something that Windsor Life is not really used to. Apparently, with the GE Life contract, it used to do a separate policy for increments and Windsor Life does not have that facility.


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