View more on these topics

Loan advisers losing out to direct players

CML survey reveals how lenders have turned to other sources to replace lost business

Intermediaries are losing significant amounts of mortgage business to direct players under the current regulatory regime.

A Council of Mortgage Len-ders survey also shows that M-Day has had a devastating effect on lenders.

Three-fifths of lenders have lost intermediary business since regulation due to the changing composition of panels.

Nearly half of the lenders which have lost business have replaced it through other sour-ces, much of which is sold direct, but that leaves around 30 per cent of lenders seeing big amounts of business vanish completely.

This week, Direct Line set up an online mortgage service, where advice is cut out, and Standard Life Bank is set to follow suit later this year.

CML spokesman Bernard Clark says: “We think that some intermediary business could have been lost to direct channels while lenders may have picked up business from other panels they are on.”

AMI director general Chris Cummings says: “It is a problem when you have lenders doing business that cuts intermediaries out of the loop.”

Alliance & Leicester head of mortgage intermediaries Mehrdad Yousefi says: “Maybe smaller lenders and building societies have lost out, as I would not have thought many of the top 10 lenders would have seen business disappear.”

The CML is to submit a damning report on home information packs to the Government this week amid speculation that they could be delayed.

The CML criticises the Office of the Deputy Prime Minister for failing to publish a timetable for implementation nearly three months after announcing the June 2007 launch date.

An ODPM spokeswoman says: “We are progressing well towards the target date. The current system causes huge stress to homebuyers and sellers and wastes 1m every day.”


Fees release me

Regular readers of this column will know that the Financial Ombudsman Service case fee has never sat particularly easily with me. Paying a case fee when a firm has behaved professionally, sought to resolve a client’s complaint, been reported to the ombudsman and found not to be at fault seems to be against the natural order of things.

Frosty reception

Fishburn Hedges may have been able to hire the fancy Sway bar in the City for its Burns Night celebrations but left its ever-suffering staff to brave the Arctic conditions without coats after deciding that the cloakroom should be reserved solely for hacks while PRs were ordered to leave their outdoor attire in the office. […]

Cofunds sets up onshore bond and plans pension wrapper

Cofunds is offering an onshore bond and is lining up a pers-onal pension wrapper which is set to go live at A-Day. The portfolio bond, set up in conjunction with major shareholder Legal & General, will offer IFAs and their clients a choice of around 200 funds from 40 providers. The bond is a single-premium […]

Boosting our annuity strategies

Targeting annuity purchase in lifestyle strategies isn’t anything new but we’ve just lifted the bonnet and injected an enhancement shot into the end-point of these solutions. The recent volatility has shot short-term volatility into equity markets and painted a very turbulent backdrop but we’re also equally faced with a stressed fixed interest environment. This can […]


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 thought leadership.

    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