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L&G warns buyers must prove mortgage offer

House-hunters may str-uggle to have offers accepted if they do not have mortgages arranged, claims Legal & General.

L&G says homebuyers without an agreement in principle for a mortgage could be left in the cold by sellers, who will prefer todeal with buyers with a provisional mortgage offer from a lender.

Legislation due to be introduced in 2003 will allow sellers to block potential buyers they suspect are unable to afford to buy their house.

The Homes Bill will permit homeowners to refuse to provide a seller&#39s pack, containing vital information on the house being sold, to buyers they believe are “unlikely to have sufficient means to buy the property in question”.

L&G claims there is already evidence to suggest that sellers will exploit the new regulations.

Its latest survey shows that 86 per cent of homeowners expect people viewing their house to have established their ability to get a mortgage before making an offer.

L&G believes intermediaries could benefit from the new regulations.

PR manager (housing) Peter Timberlake says: “We believe the use of AIPs will become standard market practice once the Homes Bill becomes law. This is good news for intermediaries as it locks borrowers in early and attracts the serious buyer.”


Six fund firms to rescue EMX if rights issue fails

Six of the UK&#39s biggest fund providers are to step in and save EMX if its rights issue fails to raise a minimum of £6m over the next two weeks. EMX has appointed a new chief executive and redesigned its business plan following failed attempts to get the rights issue under way as planned in […]

Scottish Mutual with-profits bonus rate cut

Scottish Mutual annual bonus rate on its unitised with-profits pensions is down to 6 per cent from 6.75 last year. Unitised with-profits life annual bonus is at 5.25 per cent, down from 6 per cent. On traditional with-profit life policies reversionary bonuses stay at 2 per cent on the basic benefit and 4 per cent […]

Elms moves up to become IFAP chief

IFA Promotion has promoted David Elms to chief executive officer from head of PR and marketing. Elms, 37, has been running IFAP since Ann-Marie Martyn quit as chief executive last May to set up My Money Adviser. He joined IFAP in 1998 from Eagle Star, where he was editor of Eagle Star Magazine and responsible […]

Class divide to open up after polarisation

The scrapping of polarisation under phase two of the FSA review could lead to a new class system for financial advice. Clerical Medical believes axing polarisation would lead to IFAs offering multi-tied advice to the masses while independent advice would become the preserve of high-net-worth clients. Clerical says a number of big IFAs are already […]

Tax allowances and exemptions

Helen O’Hagan, Technical Manager at Prudential, looks into the planning strategies that can deliver considerable tax savings for your clients. Inheritance tax (IHT) Consider Margaret, featured on our Planning Matters family hub, who is a sprightly eighty year old with four children and several grandchildren. She’s recently been widowed and IHT planning is high on […]


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