Hargreaves Lansdown says that half of the employers it surveyed recently had not been told by their adviser about the forthcoming commission ban. Oops. Now the cat will come well and truly out of the bag.
Worryingly for advisers, a quarter of employers said they were not willing to pay fees and would deal directly with a provider in future.
There are challenging times ahead. It will be for the good of all concerned if advisers really can prove their worth.
Salary cap misses the point
‘Lloyds restricts loans to four times salary’, sang a newspaper headline the other day.
Four times salary? In my day, you were lucky to get three times salary.
It is extraordinary how, as computer programs became more sophisticated, lending criteria became more lax.
Computer geeks who knew more about chips and bits than the realities of repaying a mortgage appear to dictate the lending policies of major banks and building societies.
But I wonder whether the reaction to mad lending has been to tie borrowers in straitjackets. Four times salary? Fair enough.
But will the questions borrowers are now facing –about plans to start a family, and how often they eat out – really weed out those who won’t diligently repay their mortgage? I doubt it.
Tony Hazell writes for the Daily Mail’s Money Mail Section. email@example.com