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Press comment: Treasury issues three line whip on mortgage lenders

If you’re covering the letter from John Glen, Economic Secretary to the Treasury, to Stephen Jones, Chief Executive Officer of UK Finance on mortgage prisoners please see the following comment from Gemma Harle, managing director of Quilter’s mortgage network:

"The door to many lenders has been closed for many of those who took out a mortgage when the criteria was more straightforward. And the consequences can be substantial.

"The letter from John Glen today is a sign that the Treasury has issued a three line whip to the lending community to offer mortgages to mortgage prisoners. The Financial Conduct Authority introduced new rules around mortgage affordability to help tens of thousands of these customers but this still requires the lenders to actually participate.

"This also applies pressure on intermediaries to offer advice to these customers, an element which is crucial. Under the FCA rules a customer is deemed as affordable if the new monthly payment is less than they are currently paying. However, when an adviser first speaks to a customer and confirms income and outgoings as part of the fact find it may look unaffordable and so it is up to the adviser to work with the client and the lender to ensure the client is getting the best mortgage possible."

For more information contact

Kathleen Gallagher
02380 726293
07990 004932
kathleen.gallagher@quilter.com

Notes to Editors:

About Quilter plc:

Quilter plc is a leading wealth management business in the UK and internationally, helping to create prosperity for the generations of today and tomorrow.

Quilter plc oversees £95.3 billion in customer investments (as at 31 March 2020).

It has an adviser and customer offering spanning: financial advice; investment platforms; multi-asset investment solutions; and discretionary fund management.

The business is comprised of two segments: Advice and Wealth Management and Wealth Platforms.

Advice and Wealth Management encompasses the financial advice business, Quilter Financial Planning; the discretionary fund management business, Quilter Cheviot; and Quilter Investors, the Multi-asset investment solutions business.

Wealth Platforms includes Old Mutual Wealth UK platform and Quilter International, including AAM Advisory in Singapore.

The Old Mutual Wealth Heritage life assurance business was acquired by ReAssure Group Plc on 2 January 2020.

Since its IPO in June 2018, Quilter plc’s businesses have progressively rebranded to Quilter, as follows: 

  • Quilter Financial Planning (previously Intrinsic)
  • Quilter Private Client Advisers (previously Old Mutual Wealth Private Client Advisers)
  • Quilter Financial Advisers (previously Charles Derby Group)
  • Quilter Financial Adviser School
  • Quilter Cheviot
  • Quilter Investors
  • Old Mutual Wealth (becoming Quilter Investment Platform in 2020)
  • Quilter International (previously Old Mutual International)

This press release is for journalists only and should not be relied upon by financial advisers or customers.

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This communication is issued by Quilter plc.  Registered office: Millennium Bridge House, 2 Lambeth Hill, London EC4V 4AJ, United Kingdom. Registered number: 6404270.  Registered in England.