Real Estate Innovation

New Range for Trustguard and IMLA not Happy!

Introduction of New self-certification range - Trustguard.

The packager has linked up with Kensington to offer rates from BBR+1.69% for a 2-year self-cert tracker. The ‘no-overhang’ range is available to prime first-time-buyers, the employed and self-employed and for purchase and remortgage.

The National Sales Manager of Trustguard, Sian Brown was heard to say: “There is a significant gap in the market where these products used to be. Providers have recently deserted this area which has left many brokers unable to meet their client’s needs. The availability of these products has diminished to the point where they were nearly an endangered species. It’s our hope that our new range of these products will really help brokers supply the demand that is out there.”

Borrowers will have the option of a two year deal which will be fixed at 6.99% or even a 3 year deal at 6.89%. The completion fee of 1,999 can also be added to the loan ABOVE the maximum Loan to Value. There won’t be a Higher Lending Charge and you can borrow up to 500,000.

Prospective applicants should have no arrears in the last 12 months, no defaults in the previous 3 years, no CCJS in the past three years, never have been a bankrupt and have no IVAs. The reversion rate will be BBR+2% and overpayments of up to 10% will be allowed every year.

The Drapers Hall in London is to be the venue where the Association Of Financial Brokers will hold their annual dinner on the 1st of July 2008. The keynote speaker will be Philip Collins from the OFT (Office of Fair Trading) ably backed up no doubt by The Rt Hon John Gummer, MP, the AFB Chairman.

“We are really over the Moon that Philip Collins, as an acknowledged expert on European and Competition Law, has agreed to speak to our assembly.” said Mr Robert Sinclair, director of the Association of Financial Brokers. “We are looking forward to receiving some good advice and insights into the current volatile lending market and also the Competition Commission report on payment protection. It will be fascinating to get the views and opinions of the Man who rules the Office of Fair Trading.”

The IMLA (Intermediary Mortgage Lenders Association) is doubting the effectiveness of the Financial Services Authority after the publication of the 2nd stage of the Mortgage Effectiveness Review by the FSA.

Peter Williams, executive director of IMLA, said: “IMLA welcomes the publication of the second stage of the Mortgage Effectiveness Review - although in reality the key findings are unsurprising and in some respects take the industry little further. Almost all sub-prime mortgage sales are through intermediaries, who are clearly best placed to take account of the very specific circumstances that such borrowers face. Not surprisingly, customers rely on their broker’s professional advice and expertise.”

“Although the findings in general are pretty salutary for the Financial Services Authority in terms of the MCOB, This study does throw into question the how effective the current regime really is and how much it’s over-engineered. We’re hoping that these findings will be fully considered when the MCOB review is fully done.