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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Chancellor Philip Hammond has said the UK will set aside £3bn over the next two years in preparation for its exit from the European Union. Delivering the Autumn Budget today, Hammond said the Government had already invested £700m in preparation for the UK leaving the 28-nation block in March 2019. He added that for the […]
Productivity growth continues to be stagnant, resulting in the lowering of growth forecasts, Chancellor Philip Hammond has announced in his Budget today. Hammond announced that the productivity estimates from the Office for Budget Responsibility had remained “stubbornly flat”, meaning that GDP growth will have to be revised down. In 2017, growth is now expected to […]
Openwork is to launch a UK equity income fund and a strategic bond fund for its advisers network as it aims to diversify its new range, Money Marketing can reveal. Available from 5 December initially through the firm’s newly-launched model portfolios, the Omnis Strategic Bond fund will be run by Fidelity International veteran bond manager […]