View more on these topics

Mortgage regulation faces APR shake-up

Self-regulation of the mortgage market is to be strengthened following Gordon Brown&#39s decision to force a uniform system of mortgage payment quotations.

Lenders say a uniform system of providing information will give borrowers more accurate information about repayments and prevent allegations of misselling.

They argue that the pol icy, to be enforced from April 2000, will strengthen the mortgage code and reduce the likelihood of statutory regulation.

The Department of Trade and Industry is set to enforce a uniform method of annual percentage rate calculation following a detailed investigation to strengthen the initiative in the wake of the Chancellor&#39s announcement.

It is understood the DTI will force lenders to calculate repayments on the assumption that mortgages will revert to the current standard variable rate when the fixed-rate benefit period expire. Currently, there is no standard method.

Scottish Amicable national mortgage manager John Malone says: “I believe these moves will lead to a far better self-regulated mortgage market.”

Council of Mortgage Len-ders press officer Sue Anderson says: “We really hope the DTI will enforce a uniform system of APR calculation because it is a move which is long overdue.”

The Chancellor, as widely expected, announced he was ditching Miras. Some lenders predict the move could hit economically depressed regions. Bristol & West general manager Richard Brown says: “It may only be worth £17 a month but to borrowers with a small mortgage this could have a significant impact.”


Chancellor expected to ditch MIRAS

Chancellor of the Exchequer Gordon Brown is widely expected to ditch Mortgage Interest Relief at Source in today&#39s Budget.MIRAS offers homebuyers 10 per cent tax relief on the first £30,000 of the loan. The Government is expected to take advantage of the low interest climate to soften the blow.It is estimated that the loss of […]


&#39Double jeopardy&#39 warning on Esops

IFAs are warning that the Chancellor’ proposed new all-employee share ownership scheme could jeopardise investors and compete head-to-head with AVCs. Industry experts fear that people who take up the schemes to enhance their pension provision could face the risk of double ruin if their companies run into trouble. The scheme is set to allow employees […]

Callers get their lines crossed on loan ad

Inept callers are filling Scottish Widows&#39 coffers by mis-dialling after seeing Standard Life Bank&#39s £2m mortgage advert on television.Scottish Widows Bank claims it has received more than 100 calls from customers who have mistakenly called Widows after watching Standard&#39s television mortgage advert.Its call-centre number is 0845 845 0845 – the number on Standard&#39s ads is […]

AITC highlights investment in Ireland

With the approach of St Patrick&#39s Day, the Association of Investment Trust Companies is urging investors to consider placing their money in trusts invested in Ireland.It says that two investment trusts, the First Ireland and Gartmore Irish Smaller Companies have both outperformed the average European size weighted investment trust over the three years.If you had […]

DB transfers – one more factor to consider

Jim Grant – Senior Product Insight & Technical Support Analyst We look at how higher DB transfer values could cause a lifetime allowance issue and how that affects the advice process. Advisers are receiving an increasing number of requests from clients looking to transfer their pension from final salary schemes to personal pensions. This is a […]


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 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