View more on these topics

Malone says churning rising in loan market

Premier Mortgage Service managing director John Malone says churning is becoming as big a problem in the loan market as it is in long-term savings.

He claims some lenders already refuse to do business with certain brokers, typically London-based, that are involved in “rebroking” mortgages.

Malone says these intermediaries are not treating customers or lenders fairly. He says: “Some brokers will only support products without redemption fees so they can churn. Some of it is being done for very short periods such as nine or 10 months. There are some lenders that are unhappy about that and it mainly applies to big ticket lines.

“I know some lenders have stopped doing business with those brokers. Some advisers may say it is justified but you can’t keep using lenders as a dumping ground. The FSA is looking at it as, if you keep churning, you could have a loan that is larger than you started with, that is still being paid into your retirement.”

Malone says PMS is likely to launch a debt management service in future. He is concerned the unregulated sector is damaging consumers and the expected 345bn of gross mortgage business in 2006, from 288bn last year, is because of a rise in second-charge lending and remortgaging.

Malone says: “Organisations such as ourselves will get involved in this but we will do it in a different way. The market needs regulation.”

Recommended

IFAs say Asps are as important as annuities

IFAs view alternatively secured pensions as an equally important tool for post-retirement planning as conventional annuities, says Defaqto. According to the firm’s Pensions Report, 55 per cent of the 500 advisers surveyed view Asps as an important part of their post-retirement business and 25 per cent say they are very important. This compares with 54 […]

‘Poor should not pay for the rich’

NPSS savers should not be forced to subsidise the rich by being herded into annuities, says IMA chief executive Richard Saunders. Speaking at the Money Marketing/Cicero pension summit in London last week, Saunders argued that low-income NPSS savers with lower life expectancy will end up paying for the retirement incomes of the rich if pushed […]

Flight defends under-fire IFAs

Howard Flight has attacked the “middle-class intelligentsia” intent on attacking IFAs on the current pension reform debate. Speaking at the Money Marketing/Cicero Consulting Summit, the former Conservative shadow Chief Secretary to the Treasury said he found it unacceptable the way IFAs have been treated when they have been a “crucial part” of the distribution model. […]

FSCS processing 501 claims against BIA

The Financial Services Compensation Scheme is processing 501 claims against Berkeley Independent Advisers, 354 of which relate to endowments. Berry Birch & Noble Financial Planning (Weston) has now been declared in default by the FSCS, with five claims against the firm.

Three stocks due a Brexit boost

By Mark Martin & Holly Cassell, Neptune Mark Martin and Holly Cassell highlight three high-conviction holdings in the Neptune UK Mid Cap Fund that they believe are well positioned to benefit from Brexit. Read more Important information Investment risks Neptune funds may have a high historic volatility rating and past performance is not a guide […]

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