All Types of Mortgages (AToM), a mortgage packager, has guaranteed to pay all introducer procuration fees on completed cases, even if the lender goes bust.
AToM says it has set aside sufficient capital to pay procuration fees, even if the lender collapses. AToM says it is the first packager to announce such a guarantee, as the credit crunch begins to take its toll on mortgage lenders. The news follows an announcement by APS Mortgages that it had entered administration. Last month, Victoria Mortgages collapsed due to illiquidity in capital markets, and analysts have speculated that many more niche lenders could have difficulties. A statement from AToM says: “AToM has set aside the funds in response to some brokers’ fears that we may yet...
To continue reading this article...
Join Professional Adviser for free
Signup and gain exclusive members-only insights
- Unlimited access to real-time news, industry insights and market intelligence
- Stay ahead of the curve with spotlights on emerging trends and technologies
- Receive breaking news stories straight to your inbox in the daily newsletters
- Make smart business decisions with the latest developments in regulation, investing retirement and protection
- Members-only access to the editor’s weekly Friday commentary
- Be the first to hear about our events and awards programmes
