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 someone training to be a cricket umpire, fair play matters to Fortitude Financial Planning director Chris Bowmer. Doing the right thing for clients is something he has adhered to from the start of his career, even in a 1980s sales environment with nothing to gain by delving beyond a client’s surface requirements. While he acknowledges […]
Fund managers who have helped pay compensation over the collapse of life settlement bond provider Keydata will receive a £12m refund, the Financial Services Compensation Scheme has announced. Keydata’s management has been embroiled in a multi-million-pound legal battle with the FCA since it collapsed in 2009. The total bill for compensation stands at more than […]
With no employer to fall back on, the self-employed are on their own when it comes to retirement saving. Irregular income patterns can make it harder to save regularly into a pension and commit to locking money away until age 55. Those who are building a business may see that as their biggest asset and […]