View more on these topics

Sub-prime suspect

The grey area between sub-prime and prime lending candidates could result in advisers giving inappropriate advice, say a panel of mortgage industry experts.

Contributors to a Money Marketing round table on the mortgage industry expressed concerns that sub-prime could result in the next misselling scandal.

Bradford & Bingley head of product operations David Bitner warned that many borrowers who respond to a sub-prime offer are capable of going straight to a high-street lender and advisers are not always steering them in the right direction.

Purely Mortgages managing director Mark Chilton said some mortgage intermediaries are driven by the promise of higher fees from sub-prime lenders. Chilton expects this area to be one of the main targets for the FSA this year.

Mortgage 2000 managing director Sean Hornsby also believes lenders need to take responsibility for making it clear which customers lie in which areas – prime or sub-prime – and argues that this needs to be put in writing.

Advantage Home Loans managing director Keith Dearling said: “The sub-prime market is so incredibly diverse. How are you going to stop the demand when 60 per cent of business debt consolidation mortgages come from the broker community?

Hornsby suggested: “We always talk about sub-prime fees being too high. Why don’t prime mortgage fees rise to meet them? No one has thought of that.”


Brown starts McKechnie foundation

Chancellor Gordon Brown has set up a foundation to recognise individuals excelling in charitable campaigning in memory of former Which? director Sheila McKechnie.

Investment trust Isa purchases increase by 2 per cent

The total purchases of investment trust Isas increased 2 per cent in 2004 to 62.33m from 60.96m in 2003.The global growth sector was the most popular sector with investment trust Isa investors in the last quarter of 2004, accounting for 32 per cent of purchases, some 5 per cent of which were through financial advisers. […]

Reforming India: just the beginning

By Kunal Desai, Neptune India Fund

As global investors continue to scour emerging markets through the lens of reform potential, India shines bright. Indeed, we think it can sparkle even brighter. We anticipate India’s self-imposed 10-year ‘policy holiday’ to turn into one of the most pro-growth and pro-investment policy calendars seen in Asia in years. The Indian electorate has engineered a historic verdict. We now have the strongest Indian government since 1984, with the pro-market Bharatiya Janata Party (BJP) achieving an absolute majority for the first time in the party’s history.


News and expert analysis straight to your inbox

Sign up


    Leave a comment