Kent Reliance Building Society has hit back at criticism of its interest-only mortgage that can be passed down the generations.A number of commentators have claimed over the past week that the mortgage fosters a debt culture as the loan can be passed on to children. It has also been attacked for costing more than a conventional mortgage if borrowers or their heirs keep the mortgage for longer than 25 years. Kent deputy chief executive Rob Procter defends the product and claims jealous rivals are trying to undermine the package as Kent came up with the idea first. He insists the proposition gives more flexibility to borrowers and their children as they can opt to pay off the loan at any time or continue it. It works as an interest-only loan where, in theory, no capital needs to be repaid at any point, making it a never-ending mortgage. The mortgage can also be used to mitigate inheritance tax as any debt left outstanding is subtracted from the value of the estate. If the heirs cannot afford repayments on the loan, then the mortgage will have to be redeemed by selling the property or in cash. Procter says: “It is a simple product as it is allowing a conventional mortgage to be passed on. There is no misselling issue as some people have suggested. It is jealousy that people have not thought of this first. I would be happy to have that debate with anyone as we are comfortable with the product.” Chase de Vere Mortgage Management director Nick Gardner says: “It is a welcome development and there is no reason why you should have to repay something in 25 years.”
New Star has recruited Robert Jeffree, formerly of Principal Investment Management, as a senior funds analyst on its fund of funds team. The team is led by Mark Harris and manages eight fund of funds, including New Star cautious portfolio.
Burns-Anderson is offering five non-member firms an all-expenses-paid invitation to its national adviser conference and event to be held in St Andrews Bay in Scotland. The event takes place from September 13-15 and will include travel, two nights’ accommodation at the five-star luxury resort, conference attendance, gala dinner and one day of leisure activities. Delegates […]
It is time we saw real progress in opening up borders for pan-European marketing
Hopes of a rise in mortgage market activity in July were dashed while house hunters watched Wimbledon and the World Cup in June, says Moneyextra.
By Kunal Desai, head of Indian Equities, Neptune India is officially the world’s fastest-growing major economy and remains firmly on track to become the third-largest economy by 2030, overtaking Japan and Germany. As an accelerating labour force combines with increasing labour productivity, is India getting too big to ignore? Click here for full article […]
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As the outlook for the UK’s economy remains uncertain, how can advisers prepare portfolios for any change in inflation? As higher inflation fails to appear on the horizon and wages grow faster than expected, fund managers are weighing up their portfolio moves for any potential changes in the economy. The UK consumer prices index rose […]
IFA directors Kevin and Cheryl Neal have been banned from being company directors by the Insolvency Service for six and four years, respectively. The married couple ran the now-defunct Hertfordshire-based Kevin Neal Associates Wealth Management. They were disqualified for taking assets from an insolvent company. The firm had been incorporated to take over the business interests […]
Hartley Pensions has bought the “untainted” assets of the Lifetime Sipp Company, which went into administration earlier this year. An update published today on the website of Lifetime’s administrators Kingston Smith & Partners says Hartley Pensions has also agreed to administer the tainted Sipps held by Lifetime Sipp. The administrator described tainted assets as those where […]