View more on these topics

PI costs ‘could kill off networks within a year’

Skipton Building Society chief executive John Goodfellow forecasts that the cost of PI insurance could lead to the extinction of mortgage networks within the next 12 months.

Goodfellow told the BSA conference last week that out of 79 mortgage networks which applied for registration under the new regime at M-Day, only 12 are currently trading.

He said: “In the intermediary mortgage market, my prediction is there will not be any networks in 12 months’ time. PI is just too expensive.”

For building societies such as Skipton, which has several subsidiaries, he said PI costs would inevitably be higher because of the perceived risks of having more than one type of business.

As a result, Goodfellow urged societies to look at other ways to diversify distribution and maintain business turnover. Last July, Skipton acquired a majority stake in Mutual One, a joint venture with other societies which promotes initiatives aimed at reducing risks and improving business opportunities.

He also described law firms as the next “goldmine” if, as he expects, the Law Society relaxes the rules for legal partnerships to be acquired by lenders. He said: “We will be buying them in spades.”

Recommended

Halifax predicts a stagnant UK housing market

Halifax is advising homeowners of the stagnant UK housing market, announcing house prices have not moved at all throughout April. Prices have remained stable since January, and the rate of house inflation fell to 7.8 per cent in April, the lowest for almost four years. Halifax is predicting a period of broad stability due to […]

Charity begins at Calais

Aegon head of business media Adrian Camm-idge is undertaking a gruelling 1,300-mile bike ride across France to raise money for a local cancer charity.

Britannia locks in growth

Britannia Internationals guaranteed lock-in bond is a guaranteed equity bond which locks in a minimum level of growth, depending on the performance of the FTSE 100 index.

Editorial: A hard road for Blunkett

It almost seems like a case of another day another pensions minister under Tony Blair’s Government. Former Home Sec-retary and Education Secretary David Blunkett is the new Work and Pensions Secre-tary. He replaces Alan Johnson, who had been making the right noises about pension reform although admittedly without completing any major initiatives.

Guide

Guide: day-to-day tasks ​— can your system manage?

This guide from Johnson Fleming will take you through the required communication and also give ideas for additional actions that will ensure your auto-enrolment project is a success. As well as highlighting what is required from a system to ensure it is up to the tasks, an overview of the following is also provided: data validation; data categorisation; employee communication; opt-in process; opt-out process; produce contribution schedule; contribution reconciliation process; upload of member data to pension provider; upload contribution to pension provider; manage salary sacrifice process; enrolment process; re-enrolment process; and management of increased employee queries.

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