The Council of Mortgage Lenders has made the startling admission that its first-time buyer statistics do not actually relate exclusively to first-time buyers.The trade body’s revelation this week casts doubt over the accuracy of its published research on one of the most emotive economic subjects. A first-time buyer is classed by the CML as someone buying a home but not simultaneously selling one, meaning people returning to the market and people buying a second home are included. The CML estimates that returners, which often include divorcees, make up one-fifth of the normal sample, which indicates that the figures are dramatically skewed. The CML stated this week that a typical FTB is 29 and borrows an average of 3.27 times income at a typical 90 per cent loan-to-value. It makes no reference to methodology issues. In August, the CML adm- itted that it does not have sufficient data on the non-conforming mortgage market to be taken seriously as an informed commentator. This week, it was slammed by GMAC for allegedly dist- orting its lender league table by not comparing firms over the same time period. CML spokesman Chris Dean says: “People buying second homes will be incl- uded in the FTB stats and so will returners.” John Charcol senior technical director Ray Boulger says: “Because the CML stats are considered to be the Bible, to then produce stats that are misleading is unhelpful. It means that stats on average deposit, income and loan-to-value for an FTB are all wrong. Estate agents’ data is more reliable and that is dis- appointing. If the CML made it clear what the stats inc- lude, then that would mitigate the problem.” Mortgages By Guy Anker
Most customers believe they understand equity release, according to a study from Just Retirement.It found consumers carrying out research both well before the sale and during the purchase, reading information and discussing the decision with family and friends as well as professional advisers. Additionally, the majority of customers appeared to be well aware of the […]
Misys chairman Sir Dominic Cadbury has moved to reassure investors after a turbulent week that saw chief executive Kevin Lomax resign and over 200m wiped off the value of the stock. Cadbury, who is acting as interim chief executive while a replacement is found, told the firm’s AGM last week that it was business as […]
There has been a lot of comment recently that the days of smaller company funds’ outperformance are over because valuations are now comparable with those of bigger companies.
Rowanmoor Pensions has launched the Rowanmoor Pensions Family Pension Trust.
A report from the Centre for the Modern Family out last week presents some interesting — and perhaps rather worrying — findings.
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