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Actual - Mortgages - Higher Lending Charges are Outrageous
After you scraped together a modest deposit for your new home you may think you're home and dry. Think again. On top of there's the surveyors and solicitors to pay. Then the g
According to USFDA, a combination product is one composed of any combination of a drug and device; biological product and device; drug and biological product
overnment want a slice. You've got to pay stamp duty at 1% of the property's price (if the house costs more than ?250,000 the rate of stamp duty increases see the informatio
; or drug, device, and biological product and fixed dose combination would include two or more combinations of drug.
Examples of combination products may in
Examples of combination products may in
n at the foot of this article). Phew! You're lucky you'll just make it you'll be a homeowner at last!
Then out of the blue the mortgage lender sends you a new bill anothe
Then out of the blue the mortgage lender sends you a new bill anothe
lude drug-coated devices, drugs packaged with delivery devices in medical kits, and drugs and devices packaged separately but intended to be used together.
r ?1,500 please Sir. They've called it a Higher lending Charge (HLC) and it's charged if you borrow more than 90% of the value of the house. About 75% of all mortgage lenders
here is enormous increase in the number of combination products entering the market in the recent years. Combination products have proven advantages but fixe
charge it and ?1,500 is about the average they ask for.
And guess what they money you pay won't benefit you in any way whatsoever! Not one jot. You're being charged for a f
And guess what they money you pay won't benefit you in any way whatsoever! Not one jot. You're being charged for a f
d dose combinations are still in the process of convincing regulatory authority on their advantages over the single ingredient formulations.
Combination pro
Combination pro
orm of protection insurance that protects the mortgage lender, not you. The HLC pays the lender if you default on your mortgage, your property has to be repossessed and the sa
ucts have become life saving products for the pharmaceutical companies who doesnt have many innovative molecules in their product pipeline and have been inc
le proceeds are less than the outstanding balance on your mortgage. In theory the HLC then pays out the shortfall to the lender but in practice many lenders carry the risk the
easingly used in the product life cycle management. Even the companies having product patents are trying to extend their product life cycle through the combi
selves so the HLC is just an extra fee to offset a higher lending risk.
But an HLC doesn't let you off the hook! If your home is repossessed and there's a shortfall, you stil
But an HLC doesn't let you off the hook! If your home is repossessed and there's a shortfall, you stil
nation products and maximize the revenues. But the companies involved in this practice are overlooking that they are burdening the patients both economically
l have to pay the shortfall back to your lender - they're sure to chase you for the money.
Whilst most of the lenders who charge HLC's will readily agree to add the charge to
Whilst most of the lenders who charge HLC's will readily agree to add the charge to
and physically. They need to rightly judge the benefits of the combination products and they have to even look at the risks involved when combining the produ
your mortgage, that's little consolation. In any case this means that you'll end up paying interest on top of the charge. Then, over a 25-year term, your HLC will have cost y
ts. Some of the combination products were well accepted by physicians while others suffered. Companies involved in development of combination products are fi
ou closer to ?2,700!
In our opinion HLC's should have died out with the dinosaurs. If a lender is worried you'll default, they shouldn't have lent the money in the first plac
In our opinion HLC's should have died out with the dinosaurs. If a lender is worried you'll default, they shouldn't have lent the money in the first plac
ding difficulty in defining their combination products and facing various challenges from selecting a combination to marketing it.
Following aspects would a
Following aspects would a
e. And with all today's hi-tec credit checks and the risk based assessments used to process your application, you'd think the lenders were doing enough to protect themselves.
dd to the challenges in developing combination products:
Which markets to tap where the combination products can do fairly well?
Which combination prod
Which markets to tap where the combination products can do fairly well?
Which combination prod
In any case you may also end up paying a small interest premium for a 90% plus mortgage so in practice you're being charged twice for the same risk!
The Nationwide Building
The Nationwide Building
cts are meaningful and rational?
Which therapeutic categories to select?
Which Combinations can address unmet needs of the patients?
Do combin
Which therapeutic categories to select?
Which Combinations can address unmet needs of the patients?
Do combin
Society, who incidentally do not charge HLC's, recently reported that during the last five years ?1 billion has been charged in HLC's by some 800,000 borrowers. It also found
tions increase the patient compliance?
What would be the developing cost?
How to tackle the risks encountered during combination product developmen
What would be the developing cost?
How to tackle the risks encountered during combination product developmen
that just over 500,000 were first time buyers largely youngsters struggling to buy a home. We believe that HLC's are just another money making ploy for the mortgage lenders.
t?
As combination products don't fit into the traditional categories of drugs, medical devices, or biological products, the USFDA is in the process of devel
As combination products don't fit into the traditional categories of drugs, medical devices, or biological products, the USFDA is in the process of devel
By the way, the Higher Lending Charge used to be called a Mortgage Indemnity Guarantee, but they are all the same - only the name is different!
We think it's time for the Of
We think it's time for the Of
ping new procedures for reviewing their safety, efficacy and quality.
Professional from academic institutions, pharmaceutical industries, health care indust
Professional from academic institutions, pharmaceutical industries, health care indust
fice of Fair Trading to open up the box and take a look inside in the same way as they did with credit cards. The OFT recently ordered many credit cards to reduce their charge
y and representatives from various regulatory agencies are working out to design the regulatory requirements for manufacture and sale of combination products
s by up to 40%. A bit of that magic would do wonders for Higher Lending Charges!
Current Stamp Duty rates on house purchases in the UK
Houses under ?125,000 No Stamp Duty
H
Current Stamp Duty rates on house purchases in the UK
Houses under ?125,000 No Stamp Duty
H
.
As there is an increasing trend of the combination products companies manufacturing such products should be able to tackle the problems involved in the de
As there is an increasing trend of the combination products companies manufacturing such products should be able to tackle the problems involved in the de
ouses ?125,000 to ?249,995* 1%
Houses ?250,000 to ?499,995* 3%
Houses over ?500,000 4%
*HM Inland Revenue rounds up house prices to the nearest ?5. Therefore, a h
Houses ?250,000 to ?499,995* 3%
Houses over ?500,000 4%
*HM Inland Revenue rounds up house prices to the nearest ?5. Therefore, a h
elopment. They need to be wiser in analyzing the market trends and the regulatory requirements.
Companies that provide selfless information through particip
Companies that provide selfless information through particip
ouse sold for between ?249,996 and ?249,999 will be rounded up to ?250,000 and they'll charge you 3% Stamp Duty on the lot!
Information correct as from the April Budget 2006
tion in industry events and feedback to regulatory authorities would be able to face the challenges and will be successful in developing combination products
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