UK: DUAL INTEREST MORTGAGE RATES EXAMINED BY OFT
Article Abstract:
The OFT is investigating complaints that dual interest mortgage rates, introduced by lenders such as Nationwide and Halifax, are unfair. Halifax's new borrowers pay 6.5% while existing borrowers pay 7.25% and Nationwide has an SVR of 6.49% (6.24% as from 1 May) but special deal borrowers, with extended tie-ins, pay 6.99% (6.74% from May) but a spokesman for Nationwide says it is happy to meet the OFT as it has confidence in its pricing policy. However, HSBC, with one SVR, currently of 6.25%, says that existing customers should not pay more than new borrowers and the Yorkshire Building Society, with an SVR of 6.65% from May, agrees. The issue is also being examined by the Banking Ombudsman.
Publication Name: Financial Adviser
Subject: Business, international
ISSN: 0953-5276
Year: 2001
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UK: PIA WANTS FIRMS TO ADVISE ON SELLING ENDOWMENTS
Article Abstract:
The UK Personal Investment Authority (PIA) believes that life insurers should advise customers that they can sell endowment policies through the alternative traded policy market (Teps) rather than surrender them. The PIA cannot, however, enforce this view. According to campaigners in the Teps market, those who use the market can obtain as much as 40% more than if they surrendered their policy. According to the Financial Services Authority's Michael Folger, who believes that consumers should be advised on the alternatives, endowments should really be seen as long-term investments.
Publication Name: Financial Adviser
Subject: Business, international
ISSN: 0953-5276
Year: 2001
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UK: LIFE OFFICES MAY HAVE TO ADVISE ON TEP MARKET
Article Abstract:
The Association of Policy Market Makers (APMM), after over two years of campaigning, has applauded a move by the FSA to ask the PIA to give advice about the traded endowment market (Tep) to those considering surrendering endowment policies. The APPM said that people needed to be informed of all the options when such financial decisions were being made. The Association of British Insurers has agreed to advise clients of the Tep market, should it be requested by the PIA to do so.
Publication Name: Financial Adviser
Subject: Business, international
ISSN: 0953-5276
Year: 2001
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