Edeus managing director Alan Cleary says 125bn could be wiped off the value of the mortgage market due to the growth of retention schemes.At Money Marketing Live in Manchester on Tuesday, Cleary said the market could shrink from projections of around 345bn for this year to just 220bn in future as he claims lenders’ retention strategies are designed to kill off the remortgage market. He says one lender has already wiped 10bn off the remortgage market because of its retention strategies. Cleary claims a fairer way to keep customers, rather than paying a full proc fee, is to offer the same deals to new and existing clients. His latest comments come a week after he said retention schemes were beckoning brokers into a “web of sin”. Cleary said: “Since retention strategies have come in, 10bn has been wiped off the remortgage market by one lender. Some estimates say we will have a 345bn market this year but it will be 220bn soon. What will the 25,000 mortgage brokers do then? “The way to fix the problem is to equal the value of the front and back of the book by pricing like Nationwide has done.” Society of Mortgage Professionals chief executive Richard Fox said: “If retention is good for the lender then someone is suffering and it is probably the client.”
Aegon is entering the bulk annuities market and will target closed defined-benefit pension schemes in smalland medium-sized companies by spreading the cost of buyout over a number of years. The life office says it is the first to offer a phased-fund approach for smaller schemes in the bulk annuities arena, enabling employers to gradually reduce […]
Standard Life has brought in Scottish Power finance director David Nish as group finance director.
Premier Cru Fine Wine Investments, a company specialising in fine wine portfolios has established a portfolio management service that is designed to pay off an interest-only mortgage.
Bee believes court challenge would follow abolition
Welcome to the latest update for The Merchants Trust PLC from the Trust’s portfolio manager, Simon Gergel. Portfolio Review In February, the House of Commons passed a draft law to trigger article 50 of the Lisbon treaty for the UK to exit the EU. In corporate news, Warren Buffett backed Kraft Heinz in its takeover […]
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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 […]