View more on these topics

MI&#39s Laker warns brokers on networks&#39 free PI deals

Mortgage Intelligence managing director Sally Laker has cautioned brokers to be aware of offers of free PI insurance by networks, saying high excesses will still leave brokers out of pocket.

Laker says the small print of some offers states an excess of £10,000 while most PI claims for mortgages are only for around £5,000 to £7,000, which means the offer carries no real value.

She has also urged brokers to look closely at contracts, saying that some networks are tying brokers in for as long as five years, which could leave them committed for too long to a contract that might not be right for them.

After regulation comes in, some brokers might subsequently decide that being directly authorised is a better option. Mortgage Intelligence is currently only committing members for one month up until October, then for three months after regulation.

Laker says it is “absol-utely critical” that brokers look into the financial stability of a company before joining its network.

She urges brokers to look at company accounts before committing themselves because if a network gets into difficulties, there needs to be sufficient fin-ance to continue trading.

The key to choosing the right network is to look at what the broker gets for their money, whether it is a bespoke IT system or compliance online and in person.

Laker says: “I am not sure brokers are asking the right questions. We would be more than happy to give brokers a list of things they need to check before joining a network.”

Recommended

Get on platform for express service

Tom Baigrie recently argued against customers being able to buy protection on a non-advised, self-directed or execution-only basis and suggested that in some way the FSA needed to act (Money Marketing, June 10). He said he is keen for debate. So here goes, Tom, this is the other side of the coin. My company&#39s position […]

Providers won&#39t pass on charge cap rise to IFAs

IFAs look set to be left out in the cold after the stakeholder price cap rise as leading product providers say the extra money will be spent on marketing rather than distribution. The Government&#39s move to raise the cap from 1 per cent to 1.5 per cent in a bid to win over the industry […]

GMAC-RFC launches new non-conforming mortgage range

GMAC-RFC has announced new rates for non-conforming mortgages, starting at 5.24 per cent. The range of discounted and fixed rates are available on a status or self cert basis and were designed after research found that borrowers have a wide range of varying levels of adverse credit. GMAC-RFC head of marketing services Jeff Knight says: […]

Occupational hazards

Terence O&#39Halloran&#39s hard-hitting letter in Money Marketing requires a robust response. I fully agree with him that the misselling of occupational final-salary schemes was worse than endowments or split-capital trusts. With the latter, investors may have been told that the products were low-risk but with employer pensions, the members were told that the schemes were […]

Time to stop the salami slicing on tax relief

Steve Webb  – Director of Policy and External Communications As the Autumn Statement approaches, Steve Webb calls for the Government to stop tinkering with tax relief. Twice a year, in the run-up to the Spring Budget and the Autumn Statement, we face a torrent of speculation as to what changes the Chancellor might make to […]

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