Mortgage firms target credit-impaired
Inter-Alliance Mortgage Service and Preferred Mortgages are teaming up to offer a step-down adverse-credit mortgage. The mortgage allows borrowers with a poor credit history to move to a lower rate of interest as their credit status improves, eliminating the need to remortgage and giving an incentive to make punctual mortgage payments. The initial rate is 9.2 per cent, which falls to 7.2 per cent within three years if all monthly payments are made on time.
Britannia in loan protection deal
Britannia Building Society is offering all borrowers buying a new home free cost protection insurance. The insurance covers borrowers against financial loss if a purchase falls through and includes application and valuation fees and legal costs. Britannia says the insurance protects against gazumping, negative survey or local authority search results and the loss of employment while buying a home.
Goldman Sachs chief joins mPower
mPower Europe, the parent company of online IFA sort.co.uk, has recruited former head of Goldman Sachs Asset Management's UK business Charlie Metcalfe as managing director. Before joining Goldman Sachs, Metcalfe was Merrill Lynch's fund management arm managing director. He also worked with JP Morgan. mPower founder and chief executive Drake Mosier says Metcalfe's knowledge of the institutional funds marketplace will be invaluable as it builds its UK operation.
A&L offices target homeowners
Alliance & Leicester is set to open a new chain of offices offering financial advice to people looking to move house or improve their property. The outlets, called movingimproving, will provide financial advice on the bank's range of mortgages, credit cards and personal loans but will not offer banking facilities. The offices will give customers information on the local area, such as new housing developments and schools, and will eventually be able to recommend cheap deals for A&L customers through partnerships with local suppliers, builders and plumbers.
Unum takes over Zurich income protection
Unum is taking over Zurich Life's group income protection business following Zurich's decision to concentrate on individual protection. The claims book of 1,000 will be managed by Unum subsidiary Claims Services International. The transfer took effect on April 1. Unum says the takeover will allow it to further its strong presence in the group income protection market.