View more on these topics

Sesame warns loan advisers over torrent of complaints

Sesame is calling on mortgage advisers to protect themselves against a potential rash of complaints caused by higher levels of irresponsible borrowing.

It says the credit crunch and turbulence in the hou-sing market could lead to a sharp increase in the number of repossessions, in turn leaving many borr-owers looking to shift the blame onto the lender or the adviser.

Sesame has issued a mortgage affordability White Paper which calls for clearer lines of responsibility to be drawn between the adviser, lender, regulatory and consumer perspectives.

It says that while the regulator is keen to highlight the responsibility of the lender and broker to prevent consumers borrowing more than they can afford to, it believes that the FSA also has a role to play.

Head of compliance services Neil Walkling says he believes mortgage advisers need to protect themselves.

Walkling says: “The cre-dit crunch has put the question of affordability firmly in the spotlight so it is vital for mortgage advisers to get the basics right such as robust affordability assessments and clear suitability letters.

“This means that consumers will be able to make informed decisions and avoid taking on commitments which they have no hope of meeting. But getting the basics wrong may have damaging consequences for both advisers and their clients.”

Walkling says these turbulent times offer good mortgage advisers a prime opportunity to demonstrate their value, giving them a source of competitive advantage over banks and big lenders.

He says: “In the end, if advisers believe customers have little chance of affording the repayments, then they must have the courage not to accept the business. In the long run, they will be acting not only in the customer’s best interest but also in their own.”


‘Means-test poses threat to Thoresenscheme’

Otto Thoresen’s plans for a national money guidance service will fail unless the effect of means-testing on personal accounts is addressed, says Royal London executive director John Deane.The service would offer the public information and guidance on saving and borrowing, budgeting, retirement planning, protection, tax and welfare benefits.Deane says there is “nothing not to welcome” […]

Leadership qualities

It seems that my wee firm finds itself disapproved of at the ABI. This seems to happen whenever we urge providers to be open and honest and so regain the moral high ground that an insurer should always seek to hold.

EIS a sign of good breeding

Breeding Capital II and III is an enterprise investment scheme that aims to raise up to £4m to invest thoroughbred horses for horseracing and in related assets such as stallion shares.

Business boost for PMS

Premier Mortgage Service ach-ieved over £780m more business applications in January than it expected, totalling just under £4bn for the month.Managing director Joh Malone says PMS was pleasantly surprised by the figures but February’s figures are likely to be lower due to the withdrawal of products and the cost of borrowing.He says: “The purchase market […]


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