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Sesame is slammed on mortgage choice

Sesame&#39s new mortgage offering has come in for heavy criticism from some of its leading rivals.

The company allows brokers to choose between Mortgage Select, with a small panel of lenders and higher procuration fees, and Mortgage Market, which covers every lender in the market but the deal is believed by some not to be in the best interests of consumers.

Charcol senior technical manager Ray Boulger says from a consumer perspective, the deal is not very attractive as Sesame is saying it will either offer a deal which is best for the broker with higher procuration fees or one that is best for the consumer with more deals.

Boulger says: “The concept is somewhat questionable and does not fit in very well with the spirit of what the FSA is trying to achieve, even if it meets the letter.”

Premier Mortgage Service managing director John Malone says IFAs are looking for a true whole-of-market product range and this should not be driven by higher procuration fees from a few lenders.

Malone says: “I think this is against what the regulator is looking for.”

Mortgage Intelligence managing director Sally Laker considers the offer will not be attractive to mortgage brokers who do not want to be restricted to a small panel of lenders.

But Sesame says it is in the consumer&#39s interest for the adviser to get paid well, as they are more likely to work hard for the client.

Commercial director Martin Davis says: “An adviser is looking for the best deal for the client. If he can do this and get more commission, then he will. Our internal processes will not allow advisers just to recommend a product because of commission – they have to demonstrate they have been through every stage of advice.”


B&B chief executive Rodrigues resigns

Bradford & Bingley group chief executive Christopher Rodrigues has resigned to take up a position as president and chief executive of Visa International in San Fransisco. He will be replaced by Stephen Crawshaw, currently in charge of the group&#39s core lending and savings business. Crawshaw says: “I am clear about our priorities in both the […]

Treasury&#39s move risks misselling

The Treasury is loosening its grip on advice in the workplace in an effort to boost take-up of group personal pension and stakeholder schemes but concedes that the move could lead to more misselling. The Treasury&#39s two-year review of the Financial Services and Markets Act includes a reworking of regulation to improve accessibility and take-up […]

Gartmore does balancing act

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Trusts and Taxations

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