View more on these topics

Rock still faces big funding commitment

Northern Rock still faces large amounts of mortgage lending funding commitments at its previous competitive rate, according to John Charcol senior technical manager Ray Boulger.

He told the round table meeting that this is on the basis that the average time for an application to complete is 10 weeks and Rock only started to be uncompetitive until six weeks ago.

Boulger said: “So at this point in time, it will still be funding a lot of mortgages. This will obviously start to dwindle in a couple of weeks time but it still has a lot of commitments over the next few weeks.”

He said John Charcol was still happy to place business with Northern Rock as long as the criteria are suitable for the client. But he admitted that at the moment, Charcol is giving the lender little business due to its rates being generally 80 to 100 basis points above more competitive leaders.

“Normally, it does not have market-leading rates but sometimes it is worth paying a bit more on the premium to get the flexibility but definitely not at 80-100 basis points more,” he added.

Boulger said Northern Rock has said it is going to keep its business development managers but it will be changing its bonus targets for the last quarter.


Ride out a recession

Investors concerned about a US recession could move to a defensive position but a better bet in the long term would be a balanced portfolio which can ride out market conditions, says Will Henley

Equitable update on Pru transfer

Equitable Life is writing to all policyholders to update them on the transfer of its £1.8bn book of with-profits annuity policies to Prudential.Over the next week, around 400,000 policyholders will get detailed information on the transaction ahead of an extraordinary general meeting scheduled for October 26.All voting members of the society will be invited to […]

ABI warns FSCS protection for large deposits is unnecessary

ABI director general Stephen Haddrill has written to the Chancellor Alistair Darling warning that reforms to the Financial Services Compensation Scheme “must not distort the market for savings or remove all risk”.


News and expert analysis straight to your inbox

Sign up


    Leave a comment


    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