View more on these topics

Loan firms slam claims over Catmark success

The Treasury is under fire from the mortgage industry for boasting about the success of Cat standards in its Regulating Mortgages paper.

The paper claims Cat standards have created straightforward mortgages and are “stimulating lenders toward delivering fair value to their customers”. It says Cat standards have encouraged lenders to calculate interest daily, allowed overpayments and cut early repayment charges.

But broker franchise Mortgageforce says Catmarking has not even dented the surface. Instead, it says market pressure and competition has modernised products.

Mortgage broker Charcol says Catmarks&#39 shortcomings are shown in the way Nationwide has got round the rule against charging arrangement fees on Cat products by putting a 7.99 per cent cap on some of its tracker products, allowing charges to be levied.

Charcol senior technical manager Ray Boulger says: “Full marks to Nationwide for innovation and finding a way round the system but this shows its shortcomings.”

Nationwide spokesman Steve Blore says: “The cap provides additional reassurance for consumers and although 7.99 per cent is high, it is not beyond the realms of reason that it would be reached. The cap does allow us to make all our products Catmarked.”

Recommended

Philip Williamson

Lives: Haywards Heath, Sussex.Born: December 11, 1947.Age: 54Education and qualifications: Caldy Grange School, Wirral; degree in economics from Newcastle University.Career to date: Lloyds Bank 1970/88; UK Land director 1988/91; Nationwide 1991 to date, promoted to divisional director in 1994, appointed to board in 1996, chief executive since January 2002.Career ambition: Achieved. “Happy to retire in […]

Investment update

Schroders is offering a 2 per cent discount on its medical discovery fund until the end of March. The discount will reduce the fund&#39s initial charge to 3.25 per cent from 5.25 per cent. Annual charge of 1.5 per cent. Minimum investment is £1,000. Artemis has set up a 24-hour online dealing service, enabling investors […]

Pop goes the pension

Pop stars may be condemned to become ageing rockers after an Inland Revenue ruling which prevents them from retiring early.The Revenue has received early retirement applications from entertainers whose careers are on the wane and want to draw their occupational pension but it has rejected the move in pensions update 120.Professional sportspeople can take retirement […]

Newsletter

News and expert analysis straight to your inbox

Sign up

Comments

    Leave a comment