Mortgage Strategy
1 April 2002
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A&L says DIY soars as Britons sit tight
4 Apr 2002
DIY has continued to soar through the winter months as intentions to move have steadily decreased, the latest findings from Alliance & Leicester's movingimproving quarterly index have revealed. Britons intend to spend an average of £1,243 this quarter, up 65% from £752 a year ago whilst intentions to move have decreased from 9% to 5% over the same period. Changes in Intentions to move and DIY spend over past 12 months Whilst industry commentators ...
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Abbey National appoints new regional business managers
5 Apr 2002
Abbey National Business has appointed three new area business managers to oversee product portfolio development in each of its geographical regions. Mark Clarke will be responsible for the Essex region, Jane Wagstaff for Leicestershire and David Lyons for South London. The trio have 51 years combined banking experience between them. Gary Hockey-Morley, director of Abbey National business banking, says: "We are delighted to have Mark, Jane and David on board. Their overall ...
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ACCA warn of pitfalls of buy-to-let
4 Apr 2002
Landlords should be fully aware of what is involved in letting out properties, the Association of Chartered Certified Accountants (ACCA) has warned. John Davies, ACCA's Head of Business Law, says: "Any purchase of property carries certain risks, most notably falling house prices and insufficient income for mortgage repayments. "Buy-to-let investors should also be aware of the law as it applies to the landlord and tenant. Within this framework, potential investors ...
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Bank holds interest rates at 4%
4 Apr 2002
The Bank of England has held interest rates at a 38-year low of 4%. A freeze on the cost of borrowing was predicted by city analysts. Halifax and Nationwide - which today reported house prices up 0.9% in March and 3% over the first quarter - both point to the easing of house price rises by end of Q4 2002. The drop-off in house price inflation is seen as a sign that consumer spending and debt levels may be easing. The Halifax said annual house ...
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Benefit reforms weakened homeowner safety net, says CML
4 Apr 2002
Extending the qualifying period for state help with mortgage payments may have weakened the safety-nets for home-owners, the Council of Mortgage Lenders claimed yesterday. While benefit reforms carried out are credited with having helped the Government cut spending on benefits the lender representative claims the 1995 reforms weakened the safety net for home-owners Though the reforms extended the waiting period for reforms to 39 weeks for mortgage interest benefit entitlements, ...
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Bristol & West launches standard portfolio
2 Apr 2002
Bristol & West today launches a new standard mortgage proposition in response to broker feedback. First-time buyers, movers and remortgagers have also been targeted by the west-country lender, with income multiples of up to four times salary. The move comes in part from recognition that thousands of potential homeowners are being priced out of the market in certain areas. Dominic Toller, head of marketing at Bristol & West, says "Bristol & West has always been ...
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Broadhead appointed head of intermediary sales at NatWest
4 Apr 2002
NatWest has appointed David Broadhead as the head of mortgage intermediary sales. Broadhead, formerly mortgage intermediary development manager at the bank has been in the mortgage industry for eight years, working previously for The Royal Bank of Scotland and Barclays. Charles Haresnape head of NatWest mortgage services says: "I'm delighted that David will take a more active role in shaping our intermediary strategy. His experience and industry contacts are second ...
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Brokers urged to warn of DIY danger
3 Apr 2002
Brokers offering second charge loans for home improvement should warn inexperienced clients of the potential dangers of DIY spelled out in a recent DTI report. Spring is officially the worst time of year for aspirant DIY experts, with up to 20,000 injured during April, according to DTI figures. Up to 70 people a year are killed in DIY accidents, with over 200,000 injured, and the DTI is currently sending safety leaflets to thousands of DIY and hire shops around the ...
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Buying leaves homeowners 30% better off than tenants
2 Apr 2002
Buying, rather than renting, property could save house buyers up to 30%, according to figures released by Abbey National. Abbey estimates it could be up to £101,679 cheaper to buy a property over a 25-year period than to rent one. The average rent for a two-bedroom flat in the UK is £528 a month or, spread over 25 years and allowing for inflation of 4%, a total of £263,785. Though buying the same property would require a deposit, properties with an average ...
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Catholic Building Society scheme to boost The Railway Children
5 Apr 2002
The Catholic Building Society has announced plans for a new cause-related marketing campaign that it hopes will help raise £130,000 for the UK's charitable sector over the next four years. The society plans to build loyalty among members through a 'member-get-member' initiative providing financial support for the international charity The Railway Children. The society donated £18,000 to the charity in the year 2000 and hopes to increase its contribution ...
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Cheshire BS announces 2001 figures
2 Apr 2002
Cheshire Building Society announced a £15.3m increase in pre-tax profits today, an improvement of 15.9% on last year's figures. The Macclesfield-based lender increased gross lending from £479m in 2000 to £535m in 2001, with total assets growing 12.4%, from £2,605m to £2,928m. Cheshire also reported a significant improvement in the quality of loans, with a 25% reduction in mortgage arrears. Chief executive Colin Whittle says: ...
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Cost of moving comes down
4 Apr 2002
The cost of upgrading home from £100,000 to £150,000 in England and Wales costs £4,303 - a decrease of 4% compared to last year despite rocketing house prices, research from The Woolwich has revealed. At the higher end of the market it now costs £21,133 to move from a £300,000 to £500,000 home, just under 4% less than last year. This year's reduction in England and Wales has been largely due a fall in solicitors' and estate ...
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DTLR target neighbours from hell
3 Apr 2002
The Department for Transport, Local Government and the Regions (DTLR) yesterday issued guidelines outlining new powers for social landlords to crack down on anti-social behaviour. Tackling Anti-Social Tenants, a three month consultation, outlines eviction, prevention and rehabilitation as primary defences against offensive and destructive behaviour. Secretary of State for the DTLR, Stephen Byers, has called on social landlords to take action against anti-social tenants. ...
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Former BoS chief exec joins LMS
2 Apr 2002
Legal Marketing Services (LMS), the UK's largest independent network of solicitors, has appointed Robert Mee as a new non-executive director. Mee, who retired from the Bank of Scotland Group in January, became chief executive of the Bank of Scotland's Retail Banking Division and a member of the Group Management Board, spending 30 years with the Edinburgh-based lender. Mee spearheaded the Bank of Scotland's strategy to become a major Partnership Bank, working ...
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FSA issue guidelines for ad regulation
4 Apr 2002
The FSA is to step up efforts to stop advertising for financial services firms which it deems misleading. The government regulator's plans are set out in a policy statement on financial promotions published yesterday. In a separate consultation paper, consultations will also be taken to strengthen existing rules on the use of information on past performance and bond yields in advertising. Regular bulletins, monitoring work and a consumer hotline will be established ...
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FSCS declares nine firms in default
3 Apr 2002
The United Kingdom's Financial Services Compensation Scheme has officially declared nine firms to be in default. Among the closed firms is Portsomuth-based adviser H Moss Insurance & Mortgage Services; Brittain & Booth Limited, Orpington; Bradstock Financial Planning Limited (formerly Crossways Financial Planning Limited), Hornchurch; Independent Insurance & Financial Services Limited, Hitchin; Bobetro Finance Company Limited, Leicester; Bradstock Insurance Brokers Limited ...
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Half of first-time buyers borrow deposit from banks
5 Apr 2002
Some 47% of first-time buyers plan to borrow deposits for mortgage products from banks, according to research from the Association of Investment Trust Companies (AITC). Many first-time buyers have not started saving for a deposit and will face additional monthly payments as they strive to meet existing mortgage applications. With the UK average deposit estimated to be in the region of £13,000, borrowers could face additional costs in the region of £260 a month ...
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Hodge Equity launches equity release calculator
5 Apr 2002
Hodge Equity Release has launched the UK's first web-based equity release eligibility calculator. The service, which is available to financial advisers and members of the public, is free and is available on its new website, www.hodgeequityrelease.com. As the only equity release firm dealing exclusively via financial advisers, Hodge Equity Release has launched the site to provide an information source and to 'de-mystify' the equity release market. Site ...
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Homeloan Management wins loan rating award
5 Apr 2002
Homeloan Management Limited was yesterday awarded for having the highest ratings for residential loans of any European residential loan servicer. International rating agency Fitch rates mortgage loan primary and special servicers on a scale of one to four, based on a company's servicing capabilities. The highest ratings available to UK residential mortgage loan servicers are RPS2+ (prime) UK and RPS2+ (sub-prime) UK. Ron McCormick, chairman of HML, says: "We are delighted ...
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House prices soar 16%
4 Apr 2002
House prices soared by 16% over the last twelve months and there seems to be little chance of a Nineties-style collapse, the Halifax said yesterday. The UK's largest mortgage lender said house prices rose by 0.4% in March. The average house price has now increased to £102,227 and Halifax suggests first-time buyers are continuing to find it difficult to buy property in many parts of the country, as supply shortages and high prices are making house purchase difficult. ...
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Millions gambling security through poor numeracy
5 Apr 2002
As bookies and punters gear up for the Grand National on Saturday, research from the Department of Education and Skills suggests one in five adults may not be able to calclutate their winnings or identify which bet offers the best potential return. With such a large proportion of people unable to understand such basic arithmetic, what chance would the group - potentially seven million strong - have of calculating mortgage repayments? £100m of bets are expected over ...
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Mortgage Promotions increases Lambeth BS loans fee
2 Apr 2002
Mortgage Promotions announced today that it will pay members a higher fee for loans put through Lambeth Building Society. Mortgage Promotions now pays its members 0.25% of the advance. Peter Todd, marketing manager at the Lambeth, says: "We have been impressed with the growth of Mortgage Promotions and are happy to support the membership with a new improved fee. Mortgage Promotions has a strong national presence and we look forward to marketing our products outside are ...
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Newcastle BS appoints new executive
4 Apr 2002
Newcastle Building Society has appointed former corporate development manager Angus Macnaughton to the role of executive. Macnaughton, 37, has been responsible for expanding the building society by establishing links with both financial and non-financial based companies. He says: "As an innovative and forward-thinking society we are continually investing in new technology. This means we can offer partner companies vital core services, such as mortgage packaging and processing, ...
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No surprise from MPC
5 Apr 2002
The Bank of England's Monetary Policy Committee voted to hold interested rates at 4% yesterday. Jeremy Peat, group chief economist at The Royal Bank of Scotland says: "No surprise here then - and there is no reason to expect rate increases will occur soon." Peat adds: "The Monetary Policy Committee will wish to take a good look at the Chancellor's Budget on 17 April 2002. "In addition, it will want firmer evidence of the sustainability of recovery in ...
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Rate review prompts Standard Life pay-out
5 Apr 2002
Standard Life Bank has announced it will make payments averaging £200 to 6,000 borrowers following a review of interest charges. The bank will make the payment to all customers with Futureperfect mortgages, the Edinburgh-based lender's 25-year capped rate mortgage. Anne Gunther, chief executive of Standard Life Bank, says: "Having considered our position in the light of recent industry events, Standard Life Bank has decided to review the interest charged to ...
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Rates expected to freeze as lending hits record levels
2 Apr 2002
The Bank of England is expected to keep interest rates on hold when it meets later this week. Though economists widely expect rates to remain at 4% for a fifth month in a row, they expect the next movement will be upwards. City analysts have touted June or August as the most likely dates for a possible rise, though some others believe strong retail sales figures could prompt an increase as early as May. Meanwhile, Bank of England figures reveal that mortgage ...
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Tax tops small firms' pre-budget worries
4 Apr 2002
Tax has overtaken late payments to become the chief concern of small business owners, according research published yesterday by Alliance & Leicester Business Banking (A&LBB) reveals. A&LBB's findings coincide with the early announcement this week of some of the Budget changes for business, including tax credits for R&D spending and tax relief on the acquisition of intangible assets (such as customer lists and intellectual property). The Budget itself on 17 April will contain ...
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UK firms top EU small business charts
3 Apr 2002
Britain's small firms - including mortgage intermediaries - rank among the best in Europe, a European business survey has revealed. Published by small business minister Nigel Griffiths, Reacte, the first European benchmarking report, compared small businesses in nine countries across Europe, measuring their performances against each other in key aspects of their businesses. Britain topped the league with the highest marks in 20 of the 70 categories. By ...
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Ulster home-ownership tops UK tables
3 Apr 2002
Home ownership in Northern Ireland has reached a record level of 72.5%, higher than anywhere else in the United Kingdom, according to the Council of Mortgage Lenders Northern Ireland. At a recent meeting in Londonderry chaired by Alliance & Leicester's Gary Mills, the CML reported an average house price of £73,261 in the town, significantly lower than the NorthernIreland average of £90,056.
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Yorkshire Bank warns of consumer apathy
2 Apr 2002
UK homeowners pay years of unnecessary interest on mortgages according to research from Yorkshire Bank. While millions would quit a job they hated or leave a failing relationship in a second, borrowers remain loyal to high-charging lenders for fear of changing to an unfamiliar outfit. The research states that, while 83% would leave from a job they felt dissatisfied with, 56% said they had remained loyal to one financial institution all through their lives and 47% still ...
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Yorkshire BS and Northern Rock join Mortgage 2000
4 Apr 2002
Mortgage 2000 has unveiled the Yorkshire Building Society and Northern Rock as the latest additions to their mortgage club. Nationwide and Portman Building Society were also unveiled as Mortgage 2000 members last month. The two latest additions take the panel up to a total of 26. Sean Hornsby, director of Mortgage 2000, says: "Intermediaries use the m2 - mortgage club because of the quality of panel lenders we have on board. It means a great choice of products ...
