Lenders ‘let down’ by brokers over interest-only
What a ridiculous study! When is everyone going to stop banging on about this? Consumers DO understand that their mortgages are on interest-only – They DO understand that they need a repayment vehicle and they DO want to have cheap mortgage payments.
How can this be micro-managed without reverting back to the assignment of investments to the lending institution? The changes in the market place regarding interest only have closed a section of the market that has allowed cheap home ownership to those who perhaps could not afford otherwise.
Some consumers ARE wanting to take the risk and consider the ultimate sale and downsize in 30 – 45 years’ time a credible and safe exit strategy. No-one is to blame, not lenders, not brokers. Consumers and their demands are to blame perhaps with the exception of the tail end of the endowment mis-selling.
Winchar
Developers marketing new homes minus government subsidies
That is one of the most ludicrous comments I have ever seen on Mortgage Solutions.
For Luke Southgate to actually believe that the Help to Buy scheme has been introduced in order to enable people to buy at a higher value and stretch affordability is both naive and dangerous.
One of the MMRs key directives is to ensure that mortgages are affordable both now and in the future; You would think from Southgate’s comments that the 20% deposit was a gift which was free until repaid whereas in reality interest will be charged after year 5 and the buyer has to repay 20% of the value of the property on sale and not just the original loan.
This is a typical example of how an industry fails to appreciate a government backed scheme which will automatically generate more activity (and more profit) for the new build sector and instead tries to manipulate the scheme for their own interests.
Let’s hope that Southgate has not conveyed his thoughts directly to his broker panel as there could be a conflict of interest. Roll on 2014 when the scheme opens up to pre-owned property and buyers do not have to be forced to purchase cardboard houses at over-inflated prices.
Pointed
Public ‘let down’ as govt rejects regulation of will-writing
The Law Society pushing for regulation of will writing – now there’s a surprise! Are they looking for another closed shop for solicitors who never, ever do wrong by their customers?
If the dog’s breakfast of financial services regulation over the past 20+ years is anything to go by then this seems a sensible decision by the Lord Chancellor. If will writing is regulated, the increased costs of compliance would be passed on to consumers by way of higher prices and an even smaller percentage of the population would bother to make a will.
A K Narey
Public ‘let down’ as govt rejects regulation of will-writing
I have seen many wills written by ‘expert’ solicitors. Solicitors give no advice and simply churn a standard will held on computer and then lace it with mistakes and omissions.
The fact is that solicitors simply want to hold on to this lucrative little earner (often making themselves Executors and Trustees).
Much better that everyone has an easy opportunity to have a will in place than just 30% of people as now. And if the history of regulation in Financial Services is an indicator of what regulation would bring to will writing (including the unintended consequences) then the right decision has been made.
Name witheld
A third of brokers ‘worried’ about mis-selling claims
There will always be opportunists looking for a quick few pounds and they will allow CMCs to place a spurious claim in the hope of a windfall.
It’s time the claimant either has to submit a claim with a bond that would be lost if the claim was unfounded and the CMC pay for an unsuccessful claim.
Mike
Thank you for your comments this week.
