Mortgage Strategy
1 March 2004

  • 27% would borrow money to have plastic surgery

    5 Mar 2004

    Research from Abbey reveals that 27% of men and women would borrow money to get a better body, borrowing on average £4,156. One in 10 would consider going under the surgeon's knife or have already done so and of those, women outnumber men by nearly three to one. However, the men surveyed are prepared to borrow more than women for cosmetic surgery and claim they would borrow up to £4,190. Their female counterparts would borrow just £3,900. Abbey ...

  • 43% of brokers get further referrals from PAA leads

    1 Mar 2004

    Research by the Professional Advisor Alliance reveals that of the brokers who receive a lead from the firm, 43% get a further referral from the original client. PAA commissioned research group Mintel to survey 200 intermediaries and director Stuart Glendinning says: "These results illustrate the value our lead service represents. Not only do intermediaries typically get four sales out of 10 leads but nearly half also get a least one referral per sale. "PAA is generating ...

  • 760,000 retiring homeowners will be millionaires by 2010

    2 Mar 2004

    The Centre for Economic and Business Research has predicted that by 2010 retiring homeowners will have £161,113 to spend and 760,000 will be millionaires. In a report out this month, the CEBR says that the great house price adjustment to low interest rates has largely taken place and that in future house price rises will be driven on the one hand by the balance between supply and demand and on the other by the cyclical variations in interest rates. Douglas McWilliams ...

  • A home less ordinary

    1 Mar 2004

    Some clients yearn for a home which is a little more individual than a purpose-built flat, terraced house or four-bedroom executive box. Disused barns, mills, castles, windmills, follies and tramsheds are increasingly being pressed into residential use, mobile homes on retirement parks are fetching six-figure sums, while a hardy band are making their home on the water. Now disused grain silos have been tipped as the next big thing. Converted into two-bedroom homes at £80,000 ...

  • A view from the floor

    1 Mar 2004

    Announcing Britannia Group's annual results earlier this month I called on the government to boost financial education by making it a compulsory part of the national curriculum. Educated consumers are the best way to ensure a fair market in financial services. Of course, financial services companies have a duty to ensure transparency of product terms and conditions and regulators must ensure a level playing field, but informed consumers are the best way to ensure the market ...

  • Accord launches new build service

    3 Mar 2004

    Accord Mortgages has launched a new service exclusively available to intermediaries who specialise in the new build market. The service includes a 10 working day offer issue standard, access to a dedicated processing team, pre-site valuations for large developments and an extended mortgage offer period. In addition, the specially designed products include a free valuation, discounts for a guaranteed period from the date of completion and cashback or MIG free options. Linda ...

  • All your network questions answered by the industry's leading experts

    1 Mar 2004

    Does becoming an appointed representative mean paying over a percentage of my income? Richard Griffiths is managing director at Network Data Limited Some networks charge a flat monthly fee to cover costs such as compliance, sourcing software and PI cover. They pay out their published scale of proc fees for brokers. What you see is what you get. Other networks charge a percentage of a broker's income - generally around 10% - and claim to pay out the full proc fee ...

  • Alliance forms one-stop shop

    1 Mar 2004

    Bankhall and Paymentshield have joined forces to provide mortgage advisers with a one-stop product and compliance service under the forthcoming FSA regulation of mortgages and general insurance. This move follows Bankhall's recent acquisition of Premier Mortgage Services from Prudential and creates a combined agency network of more than 25,000 advisers. Simon Taylor, Bankhall joint chief executive, says: "At the announcement of our alliance with PMS we said the Bankhall ...

  • ARLA asks MPs for help in tackling deposit abuse

    3 Mar 2004

    The Association of Residential Letting Agents has asked an all-party group of MPs for help in tackling deposit abuse in the private rented sector by giving letting agents and their landlords an explicit choice. They can either meet the standards of an appropriate lettings industry body or hand over tenants' deposits to a mandatory custodial scheme run by a government body. Speaking to the MPs at Westminster, Adrian Turner, chief executive of ARLA, said that it is ...

  • Average price now £150,000

    1 Mar 2004

    Hometrack's February survey of the housing market reports a 0.9% rise in house prices across the country, increasing to an average of £148,500 from £147,200 in January. This is the biggest rise since October 2002, which saw a 1.2% increase in all 52 counties across England and Wales. The highest rises last month were in the Isle of Wight where there was a jump of 2.5%, Greater London experienced a jump of 0.9%, in line with the national average. Wiltshire ...

  • B&W highlights Deep discounts

    1 Mar 2004

    Bristol & West has issued its response to the Miles Review of long-term fixed rate mortgages saying it disagrees with the proposals for the reform of deep discounts, arguing these are essential for first-time buyers. The lender says it supports Professor David Miles' view that the market is basically working well but like him recognises there is "always room for improvement in any industry". But based on data and comment from B&W economist Laurence Sanders, ...

  • B2L buyers think long-term

    1 Mar 2004

    Mortgage Trust's first survey of buy-to-let investors reveals that the most common reason for becoming a landlord is to supplement a pension. The survey of around 500 landlords - who will be questioned quarterly to get a snapshot of trends in the sector - shows that 35% say the primary trigger in purchasing a residential investment property was to fill a gap in income in old age. And 46% rank funding retirement as the most important objective of operating as a residential landlord. Au

  • Be bold when it's time to move on

    1 Mar 2004

    You are on top of the world, ecstatic about that fantastic job offer and thinking you know what will happen when you offer your resignation to your current organisation. Your boss will confirm your notice period and leaving date. The company might even thank you for your support and efforts over the years and then surely wish you ever-increasing success in your brilliant career with the new organisation. Guess again. It is increasingly likely that it will be a much more intense experience ...

  • Best of both worlds is available to brokers, says Bankhall

    4 Mar 2004

    Bankhall are telling mortgage brokers that they do not have to make a choice between appointed representative status and direct authorisation come FSA regulation inOctober 2004. By joining Bankhall Point One, the company says that brokers can benefit from AR statusinitially while at the same time receiving the necessary training and support to enable them to become directly authorised within two years. Point One believes that direct authorisation is preferable to AR ...

  • BM launches subprime, self-cert and buy-to-let range

    4 Mar 2004

    BM Solutions has launched a new range of sub-prime, self-certification and buy-to-let products. There is a two-year tracker with a rate of 5.95% and £300 cashback, giving customers the chance to re-mortgage from expensive lenders. Also available are three and four year trackers. The good payment step products also offer a competitive rate and are an ideal chance for customers to repair their credit rating. There are no extended tie-in periods with any product ...

  • BM outperforms group subsidiaries

    1 Mar 2004

    Birmingham Midshires has achieved the biggest jump in profits for net lending out of all HBOS subsidiaries, the group's 2003 results reveal. BM's net lending at the end of the year increased by £4bn while its gross lending increased by over £5bn to £11bn. This compares with a £1.5bn jump in net lending for Halifax and Bank of Scotland from £11.5bn to £13bn, while The Mortgage Business only saw net lending increase from £2.1bn to £2.5bn. Micha

  • BoS denies delaying procuration fee payments

    1 Mar 2004

    Bank of Scotland has denied accusations that it is delaying the payment of procuration fees by over a month. The denial comes after claims from a packager that BoS has not paid proc fees that were due to brokers as far back as early January. He places an average of 15 cases a month and estimates that BoS now owes him payment on up to 30 cases. The packager says: "The FSA expects packagers to pay out proc fees on time but some lenders get away with murder. BoS' reply ...

  • Bristol & West launches two-year discount mortgage

    2 Mar 2004

    Bristol & West Mortgages has launched a two-year discount mortgage at 3.89%. The move follows the revelation by the Council of Mortgage Lenders last week that the proportion of new mortgage business being lent at fixed rates declined in January to 26%. With increases in swap rates and long-term lending leading to fixed rates becoming more expensive, in today's rate-driven environment borrowers are keen to shop around for the best rates in the market. The ...

  • C&G campaign targets the desire for flexibility

    1 Mar 2004

    Cheltenham & Gloucester today launches a promotional campaign designed to appeal to the changing needs of customers. It has been devised in response to research that found borrowers want to be able to mix and match their mortgage type and view mortgage flexibility as essential. C&G is ditching the boy at the centre of its old campaign to feature different types of people in a range of scenarios. The picture of the person with the rhino goes with its no charge remortgage facility ...

  • C&G offers bonus on TESSA ISA

    1 Mar 2004

    Cheltenham & Gloucester has launched a special bonus on its TESSA ISA giving a tax-free return of 4.50%. The bonus of 0.40% will be paid until October 5 2004 on top of the standard rate of 4.10%. The offer is open to all investors who have a matured TESSA to invest. The no-notice account provides penalty-free access and can be opened with a minimum of £1,000.

  • CBI backs MPC rate decision

    5 Mar 2004

    Reacting to the Bank of England's decision to leave interest rates unchanged the CBI says it backs the Bank's 'gradualist' approach to rate rises. Ian McCafferty, chief economic adviser, says: "A second successive rise would have surprised business and the financial markets, undermining business confidence. "With manufacturing joining the recovery in the service sector and consumer spending particularly resilient, the CBI accepts that rates will rise further ...

  • CBI urges government to improve links with business

    3 Mar 2004

    The CBI will today urge chancellor Gordon Brown to improve the government's relationship with business following complaints of relentless and damaging rises in company tax bills. CBI director-general Digby Jones will make recommendations on how the government can use the tax system to arrest the decline in the UK as a place to do business. In the employer submission to the Budget, he will acknowledge that finances are tight but suggest a modest package of incentives, ...

  • Clear Cut advises borrowers to fix now

    5 Mar 2004

    Clear Cut Mortgages is advising borrowers to fix now, following the base rate hold at 4%. The company says fixed rate mortgages represent better value as odds of an April interest rate rise shorten. Two-year fixed rate mortgage deals are looking more competitive compared to two-year discounts, it says. Two-year fixed rate products were priced 95 basis points higher than two-year discount products before the last Bank of England interest rate rise. However, that gap has ...

  • Completing the picture on mortgage services

    1 Mar 2004

    Complete Mortgage and Loan Services Complete Mortgage and Loan Services has been a mortgage packager in the prime, sub-prime and secured loan markets for more than 10 years and the company is a founder member of Professional Mortgage Packagers Association. In 2003 it set up the Complete Network, offering compliance and operational support across all options including appointed representative, directly authorised and introducer-only. With its headquarters on the Hampshire coast, ...

  • Constructive input, please

    1 Mar 2004

    From Roger Morris How refreshing to read Neal Smith's article (Mortgage Strategy February 23, 2004) complimenting RAMP on what it has achieved. I look forward to my weekly dose of MS but am often dismayed by certain individuals who are dismissive of others' attempts to improve our industry. N4 approaches and we find ourselves faced with many options. And with each decision comes the burden of responsibility. Make the wrong one and the consequences could be awful. So, ...

  • Consumer spending unaffected by rate rises, says CBI

    3 Mar 2004

    The CBI has reported in its Quarterly Distributive Trades Survey that retailers have shown healthy sales growth in February, suggesting consumers have yet to react to the recent rises in interest rates. Sales volumes slowed only modestly from January's 20-month high along with expectations. Of the respondents polled 47% said sales were up on a year ago while 21% said they were down. The balance of plus 25% compares with plus 38 in January and plus 33 in December. Although ...

  • Consumers given a fair deal in credit disagreement proposals

    1 Mar 2004

    Consumer Minister Gerry Sutcliffe has announced that proposals designed to make it easier for consumers caught in unfair credit agreements to take lenders to court will also apply to loans still running when they become law. Under current law, when a consumer wants to challenge a credit agreement they must prove that it is extortionate before a court can look at their case. But under new proposals there will be a broader fairness test which will make the process easier. ...

  • Conti launches Mexico repayment mortgage

    1 Mar 2004

    Conti Financial Services has launched a repayment mortgage scheme for Mexico in response to interest from UK buyers. The mortgage terms are available from three to 15 years, up to age 70, with a maximum of LTV of 80%. Rates are currently 14% for a scheme fixed over 15 years in Mexican pesos only and there are no early redemption penalties for any fixed rate mortgage under the scheme. Conti's US manager Kevin Fleury says: "Prices are competitive in Mexico. It is possible ...

  • Co-op dumps self-cert deals

    1 Mar 2004

    The Co-operative Bank has pulled all its self-cert products across its branch and intermediary network as it reviews whether to remain in the market at all. In a letter to brokers the bank says the review will give it the opportunity to assess business received so far and to monitor self-cert performance against other product offerings. The results of the review will determine whether The Co-Operative Bank re-enters the self-cert market. But brokers believe the ...

  • Create relationships with the specialists

    1 Mar 2004

    Kevin Paterson, managing director, Park Row In much the same way as you can pretty much insure anything if you have the money, so it is with finance. Anything can be financed as long as it has a saleable value. But as I have said in the past, lured by the big sale or just wanting to help your client, you will do them no favours by trying to raise the finance they need on a property or purchase unless you know what you are doing. You would do well to steer clear of markets you have no experience

  • Curriculum Vitae - Simon Bucknell

    1 Mar 2004

    Name: Simon Bucknell Age: 32 Company: Chelsea Mortgage Management Job Title: Business development manager Where do you live? Limpley, Stoke, near Bath Describe your current job: Basically a mortgage broker, but other responsibilities include broker training, compliance, maintaining relationships with our lenders and dealing with problem cases. We are also opening an office in Hong Kong so we are ...

  • Don't let your clients build their hopes up

    1 Mar 2004

    A key area of lending for N&P is what the society calls its brown mortgages. The society provides the finance to allow properties to be converted or renovated to residential use, including barns, oast houses, windmills and even completely derelict buildings. Barns are harder to come by these days and are no longer available at bargain prices. But there are other opportunities out there. Sadly a great many small village schools have closed and these convert to homes well because ...

  • DR shortfall will mean FSA fees hike

    1 Mar 2004

    How many brokers have already applied to the FSA? This is a multiple-choice question; select one from the following: 20,000; 9,000; 7,000 or 250. From some of the comment appearing in the trade press brokers could be forgiven for thinking that thousands of their colleagues have already applied to the FSA for direct authorisation. Let's get a few facts straight. The FSA is expecting around 20,000 new applications for authorisation in 2004. This number features ...

  • EU consults on European system for cancelling credit cards

    2 Mar 2004

    The European Commission has launched a public online consultation on the possible establishment of an EU-wide system for cancelling lost and stolen credit and payment cards. The consultation aims to assess whether card customers are satisfied with existing card blocking services and invites their views on the usefulness and possible features of a possible new pan-European service. It would allow customers who have lost their cards or had them stolen to get in touch ...

  • First National contributes $0.7bn to GE profits

    3 Mar 2004

    First National Bank contributed $0.7bn to General Electric's consumer finance revenues and net earnings, GE's 2003 annual report reveals. The report says that the most significant acquisitions affecting consumer finance 2003 results were First National Bank, which provides mortgage and sales finance products in the UK, and the retail sales unit of Conseco Finance Corp, both of which were acquired by GE during the second quarter of 2003. GE's commercial finance ...

  • Free Homebuyer Show tickets

    1 Mar 2004

    Mortgage Strategy has 20 pairs of tickets to give away for Europe's largest residential property event, the Homebuyer Show, being held at London Dockland's ExCel centre from March 5 to 7. Each ticket, normally costing £7.50, gives access to a show offering information on buying, selling or letting property from exhibitors including builders, designers, estate agents, lenders, surveyors and buy-to-let specialists. There is also a programme of seminars that includes ...

  • FSA issues publication scheme under Freedom of Information Act

    1 Mar 2004

    The Financial Services Authority last week issued its publication scheme under the Freedom of Information Act. The scheme, as required by the FOIA, sets out the types of information the FSA will publish, the way in which the information will be published and whether or not it will charge for providing published information. The FSA says the scheme, which has been approved by the Information Commissioner, willbe of particular interest to authorised firms, approved ...

  • FSPP launches survey of financial services firms

    5 Mar 2004

    The Financial Services Practitioner Panel is set to launch the first stage of its 2004 survey of regulated firms to obtain an authoritative industry assessment of the performance of the Financial Services Authority. This survey, which is carried out every two years, is aimed at gathering industry views on the FSA and establishing a track record of the regulator's performance. The panel plans to publish the final report findings later in 2004. It will use the information ...

  • FTB confidence still riding high, says assertahome.com

    2 Mar 2004

    Research from assertahome.com shows first-time buyers in the South-East are prepared to pay 50% more for property than the rest of the UK. In February's Housing Market Confidence Monitor, it shows that first-time buyers in London and the Home Counties are willing to pay far higher prices both absolutely and relative to income than the rest of the UK. However they are more bearish on the outlook for their region's house prices, expecting 6.3% for the next 12 months. While

  • FTBs will pay 50% more just to live in London

    1 Mar 2004

    STARTLING figures reveal first-time buyers in London are prepared to pay 50% more for a property than buyers in the rest of the UK. A study of housing market confidence by assertahome.com published today shows first-time buyers in the South-East and the Home Counties are willing to fork out far higher prices, both in absolute terms and relative to their incomes. The survey also shows the average house hunter was willing to pay 4.8 x income in February for their new home, ...

  • Funny names are no joke

    1 Mar 2004

    From Bill Stevenson I have just received an email from Apple Home Loans extolling the virtues of its range including the prettily named Mollie Delicious mortgage. This is the latest in a range of inappropriate names for mortgages and mortgage providers - Bananas Inc springs to mind. Call me old fashioned if you will but I think this type of labelling accelerates the downward spiral our industry is getting itself into. Last year's Mortgage Expo and the self-cert ...

  • GE Capital frontrunner to buy West End property firm

    1 Mar 2004

    GE Capital is reported to be one of the frontrunners to buy West End property company Benchmark. It is speculated that a bid will be made by GE Capital of up to £292m. It is understood that its executives were negotiating with Benchmark's management last week to agree terms for a buyout ahead of the property company's interim results published today. Benchmark, which specialises in buying properties within the area covered by the Circle Line on the London ...

  • Genesis ties up with lenders to offer Red Letter Days

    2 Mar 2004

    Genesis Home Loans is linking with five buy-to-let lenders to launch an incentive for mortgage intermediaries.   Capital Home Loans, Royal Bank of Scotland, Paragon Mortgages, Mortgage Trust and Mortgage Express have all joined forces with the Peterborough branded lender and packager to offer brokers the choice of a variety of Red Letter Days.   Applications that complete on buy-to-let products with the above lenders between February 20 and April 30, 2004 will receive either ...

  • GMAC does U-turn on non-FSA firms

    1 Mar 2004

    GMAC-RFC now says it expects to continue accepting business from specialist unregulated buy-to-let brokers post-October 31, despite saying the opposite earlier this month. In a Vox Pop in Mortgage Strategy on February 9, GMAC-RFC head of marketing services Jeff Knight said it would deal only with regulated brokers on buy-to-let mortgages. At that time Knight told Mortgage Strategy that the lender would only accept buy-to-let cases from authorised brokers, saying: "This ...

  • GMAC-RFC completes £750m securitisation

    5 Mar 2004

    GMAC-RFC has closed its latest securitisation, valued at £750m through its RMAC programme. This is GMAC-RFC's 14th transaction in the UK RMBS market, and total issuance since 1998 exceeds £6.3bn. This transaction has been divided into seven publicly funded tranches. The issued notes, which have been given the highest long-term ratings by Standard & Poors, Moody's Investors Service and Fitch Ratings, are equivalent to £750m sterling, and have been ...

  • Gooding gets backing of AMI board

    3 Mar 2004

    Charles Gooding has been given the backing of the AMI board to remain as its chairman following revelations last month that he is planning to launch a mortgage network - despite some seeing the move as a clear conflict of interest. Mortgage Strategy was first to reveal Gooding's controversial plans to launch The Complete Mortgage & Loan Partnership with the chief executive of the National Association of Commercial Finance Brokers, Keith Heron, after he started taking the ...

  • Gooding strikes back in AMI controversy

    1 Mar 2004

    Charles Gooding, chairman of AMI, is defending his position at the top of the trade body following revelations in last week's Mortgage Strategy that he is planning to launch a network. MS last week highlighted growing concern in the industry over a potential conflict of interest as a result of Gooding's plans to set up the Complete Mortgage and Loan Partnership with NACFB chief executive Keith Heron. Gooding last Friday issued a statement to Mortgage Strategy saying: ...

  • Halifax warns government over failure to reduce tax thresholds

    4 Mar 2004

    The Halifax warns that the government's failure to increase tax thresholds in line with house prices has led to a major increase in the number of properties potentially subject to inheritance tax. In Febuary's house price index, it calculates that over the last year the number of properties valued at more than the inheritance tax threshold of £255,000 has increased by 390,000 to 1.94m with more than two-thirds of the rise in areas outside London and the South East. In ...

  • Headline-grabbing doesn't make for a good housing debate

    1 Mar 2004

    By Matt Grayson If you believe the end is nigh, don't despair - you can always offer your services as a quote machine to the national media. Never a day goes by without Capital Economics et al sounding the death knell for the housing market. The most recent attempt at headline-grabbing was a particularly bearish report from investment bank Durlacher. Overall the bank predicted the market could fall by 30% and that any housing market bust could be messy. No doubt Durlacher ...

  • Heritable launches LIBOR linked interest rate options on buy-to-let

    5 Mar 2004

    Heritable Bank is launching a series of LIBOR-linked interest rate options on its buy-to-let mortgage range. A 1.5% margin over the three month LIBOR rate for the life of the mortgage is offered for loans representing less than 75% of the property value, giving a current rate of 5.54%. For loans over 75%, the rate is LIBOR plus 1.75%. Colin Stevens, head of mortgage lending, says: "The three month LIBOR rates offer a money market linked option for those customers who ...

  • IFA warns of illness cover pitfalls

    1 Mar 2004

    AN IFA HAS warned that mortgage brokers must be vigilant when offering clients critical illness insurance or risk possible legal action. Roy McLoughlin, senior partner at IFA Master Adviser, says brokers must ensure that they fully explain in their reasons why letter the factors that led a client to a particular product. And if the client decides not to take out cover at all, they should be asked to sign appropriate documentation stating that this was their choice. He ...

  • Increasing interest in interest-only

    1 Mar 2004

    I wonder how many people are uttering the words: "How can we ever get on the property ladder?" With ever escalating house prices now spiralling far beyond the reach of most, could the answer be through interest-only deals? My pragmatic view, with one eye on compliance and the other on good advice (no they are not the same), is that an interest-only mortgage can be the saving grace for first-time buyers, those seeking to go upmarket and brokers looking to increase their sales. Illustrated

  • Increasing numbers of FTBs hit by Stamp Duty, says Nationwide

    5 Mar 2004

    Nationwide has revealed that increasing numbers of first-time buyers across the UK are being hit by Stamp Duty. The tax, which was originally designed to target people buying only the most expensive homes, now affects three in every four first-time buyers. Nationwide's regional Stamp Duty report published yesterday, shows the impact this tax is having on first-time buyers across the UK. The society has called on the government to take action to help already ...

  • Internet Insite

    1 Mar 2004

    I'm back in London this week on my round-Britain tour of mortgage intermediary websites with two broker sites - London Mortgage Advice and Just Mortgages - and an internet portal, About Mortgages. London Mortgage Advice's site is sourced from Moneysupermarket, with Mortgage 2000 powering the mortgage information. I'm surprised, then, that the site is not up to the mark - one can forgive the odd typo (although one shouldn't) but lack of indexing within the lengthy mortgage guide ...

  • Is giving equity release advice over the phone as good as dealing face-to-face?

    1 Mar 2004

    Dean Mirfin is business development director of Key Retirement Solutions London & Country is a reputable mortgage adviser looking at how it can transfer this experience to the more specialised equity release market. We at IFA firm Key Retirement Solutions know the issues to look at before entering this market and deciding how to deliver advice to what can be seen as a vulnerable client base. This is now even more vital with the FSA set to regulate the lifetime mortgage part ...

  • It's never too late to change your mind

    1 Mar 2004

    We are now in a crunch period. By the end of this month, you should have made up your mind whether you are going to apply for direct regulation under the FSA. If you are inclined instead to go down the appointed representative path, you don't have to decide which network to join by the end of March - indeed you have the luxury of a few more months before you need make up your mind on that score. But if you are going DR, make sure you get your FSA application in by ...

  • Kensington enhances medium adverse range

    1 Mar 2004

    Kensington Mortgages has enhanced its medium adverse range of products. Borrowers who have missed up to two payments in the last six months can now benefit from a medium adverse mortgage. In addition, the maximum level of CCJs for a medium adverse has been increased to £10,000. Kensington has also increased the maximum level of CCJs for its low adverse mortgage from £3,000 to £5,000. The company has also announced a reduction in its one-year ...

  • L&G stops promoting Abbey

    1 Mar 2004

    Legal & General has dropped Abbey as one of the lenders it promotes through its mortgage club following an internal review, partly due to the low number of exclusives being negotiated. L&G director of housing marketing Stephen Smith confirms that from this month it will not be promoting Abbey deals but says intermediaries remain free to deal with Abbey directly. Smith adds: "This is not a big deal from our point of view - it's just a matter of where we devote ...

  • L&G Insurance reveals 27% rise in business for 2003

    1 Mar 2004

    Legal & General has announced its full year results for its general insurance business for 2003, revealing a 27% increase. Net written premiums grew to £387m in 2003, compared to £304m in 2002. L&G says this was achieved through a range of business improvements and key partnerships. L&G Insurance managing director Ian Viney says: "In 2003 we welcomed several important partners, including Barclays General Insurance, the Chelsea, the Lambeth, Birmingham Midshires ...

  • L&G shortlisted for best employer award

    2 Mar 2004

    Amicus, the UK's biggest private sector union, has shortlisted Legal & General for its coveted Britain's Best Boss Award. Legal & General is the first company in the UK to be singled out for a nomination. The nomination was secured for a number of practices including its promise not to outsource jobs abroad and a commitment to a final salary pension scheme. It was also praised for promoting union membership within the company, consulting staff on issues including ...

  • Late action could cost HBOS

    1 Mar 2004

    THE PLEDGE by HBOS to tighten lending criteria has been branded too little too late by market pundits who fear the group will suffer from any drop in the housing market. The group last week announced record pre-tax profits of £3.8bn, claiming a 26% share of UK mortgage lending. Gross mortgage lending was at £71.8bn, the retail book growing by £25.5bn. But HBOS says there is no room for complacency and will be tightening its lending criteria to put the breaks on ...

  • Leek United signs five-year contract with Lynx Financial Systems

    1 Mar 2004

    Leek United has signed a five-year contract with Lynx Financial Systems for the ongoing supply and maintenance of the society's banking systems. Leek United says it made a strategic decision early in 2003 to review its existing IT infrastructure and the contract signing follows an extensive review of the marketplace by the society to investigate the cost and functionality of alternative systems. Leek United has an existing relationship with Lynx that goes back to 1998 ...

  • Lending rises £10.6bn in January

    2 Mar 2004

    The latest figures out from the Bank of England shows the total lending to individuals in January 2004 to have risen by £10.6bn or 1.1%. Seasonally adjusted this is £1.4bn higher than the rise seen in December 2003. Secured lending outstanding grew by £8.7bn or 1.1% in January. Gross advances were also £0.3bn stronger at £25.0bn. However, the value of all loans approved was £25.7bn, £1.1bn lower than the average in ...

  • LIA ballots members on board restructure

    2 Mar 2004

    The Life Insurance Association, which represents over 20,000 individuals in the financial services industry, is to ballot its members on a board restructuring. This is the culmination of the first phase in a five-year strategic plan to confirm the LIA's position as a champion of professional practice amongst financial and mortgage advisers. The association's officers and board are proposing an overhaul of the organisation, which would see it redefined as a professional ...

  • LIA may change name to be mortgage-friendly

    1 Mar 2004

    The Life Insurance Association is considering changing its name to include 'mortgage' in the title to make it clear that it has evolved to represent mortgage brokers as well as insurance intermediaries and other financial advisers. Of its 20,000 members, 1,000 are pure mortgage brokers, all attracted during the past six months. And it estimates about two-thirds of its IFA members are also involved in mortgage business. LIA head of public affairs John Ellis says: ...

  • Lib Dems call for curb on irresponsible lending

    5 Mar 2004

    The Liberal Democrats have called on the government to urgently curb the irresponsible lending fuelling the house price boom. Responding to yesterday's decision by the Bank of England's Monetary Policy Committee to keep interest rates unchanged,Vince Cable MP, shadow chancellor for the Liberal Democrats, says: "The Bank of England is hoping desperately for a happy ending to the house price boom without sending bankruptcies soaring. "The Bank cannot be expected to ...

  • Lib Dems warn against soaring mortgage lending

    2 Mar 2004

    The Liberal Democrats have accused soaring mortgage lending of fuelling an unsustainable house price bubble. Commenting on the Bank of England's latest figures on lending to individuals, Vince Cable MP, Liberal Democrat shadow chancellor, says large numbers of people are gambling on the house price boom - a gamble they may regret if house prices start to fall. He says: "The chancellor is failing to take responsibility for the level of lending by banks. It is time for ...

  • Marketing Brief

    1 Mar 2004

    My A to Z of lenders' intermediary marketing material this week reaches two regional building societies in the shape of Coventry and The Derbyshire. Both societies source a proportion of their mortgage business from the intermediary martketplace and both produce material that is intended to support that business. The fact that both have a website aimed at intermediaries is to be commended with Coventry's site somewhat more developed in its intermediary services as you might expect ...

  • MEX acquires GMAC-RFC portfolio for £480m

    5 Mar 2004

    Mortgage Express has completed the purchase of a mortgage loan portfolio from GMAC-RFC for around £480m. The purchase is the first arising from an agreement announced in December 2003 to acquire from GMAC-RFC up to £1.4bn of loans in 2004. All lending in the portfolio is secured on UK residential property and has a similar credit risk profile to previous portfolio acquisitions. The acquired mortgages are buy-to-let, self-certified, and standard mortgages. Th

  • MEX reveals 100,000 cases registered online

    4 Mar 2004

    Mortgage Express reveals that it has registered 100,000 cases on its online system. The milestone coincides with the third anniversary of the system, which the firm says has become increasingly popular with intermediaries. Since it was launched in February 2001, over 5,000 intermediaries have registered to use the service. In 2003, online completions reached £1.6bn. Online features include real time case tracking, automated decisions linked to credit scoring, ...

  • Money-laundering regulations come into effect

    4 Mar 2004

    New money-laundering regulations which expand the regulated sector have now in come in to effect today. Businesses covered by the new regulations are estate agents, casinos, insolvency practitioners, tax advisers, accountants, auditors, lawyers, company and trust formation agents and anyone conducting a business of dealing in goods, including auctioneers, accepting cash of £10,000 or more in a single transaction. Ruth Kelly, financial secretary to the Treasury, ...

  • Mortgage Express acquires Kensington portfolio

    3 Mar 2004

    Mortgage Express has completed the purchase of a mortgage loan portfolio from Kensington Mortgage Company for a consideration of around £108m. The portfolio has a light adverse credit profile and contains an average loan size of approximately £104,000, and an average loan to value of approximately 81%. All loans are secured on UK residential property. John Maltby, chief executive of Kensington Group, says: ''This is the second in the ongoing series, ...

  • Mortgage Next tells brokers to cover their options

    4 Mar 2004

    Mortgage Next is encouraging mortgage brokers to cover their options for Mortgage Day, by submitting applications for direct authorisation and appointed representative status at the same time. The company is providing regulatory support to mortgage advisers irrespective of whether they become directly authorised or appointed representatives. Mortgage Next will only charge brokers a £75 fee plus VAT for submitting applications for appointed representative status, ...

  • Mortgage repayments biggest concern for one in three Brits

    3 Mar 2004

    One in three Britons in debt claim mortgage repayments are their biggest concern. The latest quarterly debt report from CPP, a consumer assistance services firm, says that with interest rates continuing to rise, a third of today's homeowners with debt fear they won't be able to meet their mortgage repayments in the next three months. The report found that debt fears have intensified over the past three months, with mortgage repayments continuing to cause concern. With ...

  • Mortgage Talk appoints compliance and training director

    3 Mar 2004

    Mortgage Talk has appointed Martin Fawcett as compliance and training director. Fawcett joined Mortgage Talk in early 2003 as compliance and training manager, with a view to strengthening the company's supervision and compliance operations. He came to Mortgage Talk after a lengthy spell at several large financial institutions, including Scottish Amicable, where he supervised the training and competence of company representatives throughout Yorkshire and Lincolnshire. Prior ...

  • MPC holds Bank base rate at 4%

    4 Mar 2004

    The Monetary Policy Committee has left the Bank of England base rate unchanged for March at 4%. Following last month's unanimous decision by the Committee to raise rates by 0.25%, no change was made today. A move largely backed by industry pundits. Ray Boulger, senior technical manager at Charcol, says: "Whilst the housing market shows no sign of a downturn, the Bank of England is likely to have viewed February's reported sharp rise in house prices as a one-off, ...

  • N&P offers £10,000 to home improvement customers

    3 Mar 2004

    Norwich and Peterborough is offering its mortgage customers the chance to win up to £10,000 of the cost of their home improvement project. Whether customers are converting a building into residential use, renovating a derelict property or building an extension to their existing home, the competition is open to all N&P mortgage customers who have undertaken this kind of home improvement project or are currently carrying the work out. Mike Hounsell, N&P's director ...

  • Network Data hikes Scottish Provident commissions

    1 Mar 2004

    Network Data has increased its commissions paid for all Scottish Provident non-regulated life assurance business. Intermediaries will now receive 133% of the first annual premium for every application received from February 1 2004. This increase follows recent announcements on commission enhancements for both Norwich Union and Legal & General business. Terry Young, head of operations at Network Data, says: "We are committed to developing a comprehensive ...

  • Now is the time for financial firms to do their bit in the war on crime

    1 Mar 2004

    Nobody connected with financial services can fail to be familiar with anti-money laundering and financial crime prevention measures and the emphasis that has been placed on these since the September 11 terrorist attacks in the US. The belief is that international terrorist organisations can only operate if they have funding and one way to deal with them is to stem the flow of their money. Closer to home, dealing with money laundering is part of a strategy to crack down on drugs ...

  • One-stop options could catch on

    1 Mar 2004

    The news last week that Bankhall and Paymentshield have joined forces to provide a one-stop product and compliance service will be welcome to those of you still dithering about how to position yourself post-Mortgage Day. Final confirmation that Paymentshield will not be launching its own mortgage network was met with surprise and disappointment by some. But as Paymentshield chairman Rick Riding explains, this alliance was surely the best option. "By teaming up with Bankhall ...

  • Pink launches 10-to-let discount deal

    1 Mar 2004

    Pink Home Loans has launched a 10-to-let mortgage, with a 1% discount until July 31 2005. The 10 to let product, funded by The Mortgage Business, offers an initial pay rate of 5.1% and has a range of flexible features. Nic Ekin, product manager at Pink, says: "The complete flexibility of the 10 to let product means investors can manage their finances far more easily irrespective of whether they have one property or a portfolio of properties."

  • Pink offers 12-month discount on Platform products

    3 Mar 2004

    Pink Home Loans is offering a 2.45% discount for 12 months from completion on all of Platform's non-conforming products including Right to Buy and buy-to-let. This discount includes a 0.25% bonus discount, which applies on all cases received by Platform until end of May. The new product range has been expanded to give improved cascade options and the majority of products now allow for adverse credit and arrears in the last three months David Copland, sales ...

  • Pink promotes Dev Malle to director of operations

    4 Mar 2004

    Dev Malle, formerly head of operations at Pink Home Loans, has been promoted to the position of associate director of operations. He started his career in the financial services sector by joining the Nationwide in 1990, where he held various management positions including branch manager and senior branch manager. He then went on to join Nationwide's specialist lender UCB Homeloans in 1998. Tony Jones, managing director at Pink Home Loans, says: "2003 was a great year ...

  • Platform joins AToM's branded lender panel

    3 Mar 2004

    All Types of Mortgages, the mortgage distribution and packaging specialist, has revealed its latest branded lender, Platform Home Loans. AToM's branded lending facility offers a complete inhouse process from initial enquiry right through to completion. Dale Jannels, sales and marketing director of AToM, says: "The company has always had a close working relationship with Platform, and I see this as a natural and positive progression for AToM and ...

  • PlusOne awards UK domestic property contract

    3 Mar 2004

    PlusOne Services, a third party insurance administrator, has awarded its UK domestic property repair contract to Multiassistance. PlusOne currently handles the administration for a number of insurers including Select & Protect, a sister company with some 78,000 customers. With immediate effect, Multiassistance will handle an estimated 3,000 property claims each year through its network of managed trade professionals. The company says that claims costs will be ...

  • Preferred joins RAMP lender panel

    5 Mar 2004

    Preferred Mortgages has become the latest addition to the lender panel of the Regulatory Alliance of Mortgage Packagers. RAMP is a group of nine mortgage packagers that collectively handles £3.5bn worth of mortgage completions per year and which are embracing regulation. It is working closely with its lender panel to foster symbiotic relationships between packagers and lenders. it provides lenders with fully compliant applications, agreeing procedures with lenders ...

  • Price rises have tripled housing equity over past decade

    5 Mar 2004

    Rising house prices have led to a tripling in the value of housing equity over the past decade, research from the Council of Mortgage Lenders reveals. And house prices would have to fall by as much as 22% before people who became first-time buyers in 2002 were exposed to negative equity. In an article in the latest issue of the CML's quarterly journal, Housing Finance, CML economists Jennet Vass and Bob Pannell estimate the total value of unmortgaged housing equity ...

  • PTI launches online conveyancing service

    5 Mar 2004

    Personal Touch Insurance, the UK's largest financial supermarket, has officially launched its online conveyancing service, Personal Touch Conveyancing. The service is designed for use by intermediaries registered with PTI who are seeking to add extra value to their businesses. The company says it can save their clients up to 40% on their conveyancing bills and for every completion, the intermediary earns a £50 fee. It was initially rolled out on a trial basis ...

  • Pure packagers welcome Kensington's code plan

    1 Mar 2004

    Pure packagers have welcomed Kensington Mortgages' plan to introduce a code of conduct for unregulated and regulated packagers, but some pure packagers are adamant the code should not impose FSA rules. Kensington is developing a 'robust' code of conduct which both regulated and pure packagers will have to sign up to after October 31 if they want to continue doing business with it. Although Kensington says the code is not a form of regulation, it adds that it ...

  • RBoS appointed to Zurich lender panel

    1 Mar 2004

    Zurich Mortgage Network has appointed Royal Bank of Scotland to its panel of lenders. The signing brings Zurich's total number of premier panel lenders to 19. Richard Coulson, director of Zurich Mortgage Network, says: "RBoS has a winning combination of products, service and lending criteria tailored to the needs of borrowers. Like Zurich, RboS' primary objective is to make the mortgage process as simple and straightforward as possible." Joe Flynn, head ...

  • Rodrigues resigns as B&B's chief executive

    2 Mar 2004

    Christopher Rodrigues has resigned as chief executive of the Bradford & Bingley Group. The move comes just a week after the company's yearly results and two critical investment reports warning of the Group's long-term stability. Having been the group's chief executive for eight years, he leaves to become president and chief executive of Visa International based in San Francisco. Bradford & Bingley chairman Rod Kent thanked Rodrigues for his strong ...

  • Savills calls for fairer deals for homeowners

    3 Mar 2004

    Savills Private Finance has called on high street banks to provide fairer deals for homeowners following record profits at many of the firms last week. It says that whilst shareholders and staff are obviously delighted, homeowners are suffering. Simon Jones, director at SPF, says: "Most lenders have announced revised SVRs with effect from March 1 and are seeing a continued widening of profit margins. "Those borrowers that took discounts that were linked to ...

  • Sharing the burden of homebuying

    1 Mar 2004

    The ODPM House Price Index shows that at the end of last year a UK first-time buyer could expect to pay an average of £127,474 to buy their first home. Alarmingly, even with a 5% deposit the average first-time buying couple would require a joint salary of about £44,000 to take their first step onto the property ladder. Not surprisingly therefore the percentage of first-time buyers entering the market dropped dramatically from the 20-25% of all buyers in the previous ...

  • SHIP sets up product boards to lobby government

    2 Mar 2004

    SHIP, the consumer protection body for the equity release industry, is establishing two product boards to work alongside regulators and to lobby government in the development of this rapidly expanding market. First to be established is the Home Reversion Board, headed by SHIP's deputy chairman, Graeme Marshall. It will bring the combined expertise of all the larger reversion providers to bear in shaping future regulation and standards. The SHIP Mortgage Board will ...

  • Socialised mortgage lending vs capitalism

    1 Mar 2004

    In the US social security is considered the 'third rail' of politics. You touch it and you die. Housing too is something of a third rail. Any suggestion that housing isn't good for America is tantamount to treason. Last week in Washington Federal Reserve chairman Alan Greenspan took on both social security (urging a cut to retirees) and housing by saying that the goal should be to privatise the two Congressionallychartered mortgage giants, Fannie Mae and Freddie Mac. Has ...

  • Spicerhaart seeks clarification on money laundering regulations

    5 Mar 2004

    Spicerhaart has written an open letter to the Treasury in an attempt to obtain urgent clarification of key points of the newly-introduced money laundering regulations. It is looking to fill the void left by disagreements between trade bodies such as the National Association of Estate Agents, the Royal Institute Chartered Surveyors and the Association of Residential Letting Agents as to interpretation of the regulations. The new rules mean that estate agents have to double ...

  • Splinta supporter speaks out over HIPS

    4 Mar 2004

    A high profile supporter of the campaign group SPLINTA has spoken out about the hidden implications of the government plan to introduce home information packs. Trevor Kent, believes that the recent confirmation by housing minister Keith Hill MP, that a major component of every pack - the home condition report - will be held on a central databank, gives rise to fears that the information will be used for future property tax hikes. Kent says: "Two million inspection reports ...

  • Standard Life to slash 360 jobs across the UK

    5 Mar 2004

    Standard Life is cutting the number of people it employs from 630 to around 270 as a result of restructuring of its direct sales business. This could result in up to 360 job losses across the UK. The number of direct sales branches will reduce from 21 to 11. The company says the change has been made to provide greater efficiency and stronger growth in key markets. It says the move will ensure that the company can continue to offer quality advice and service to customers ...

  • Structured vehicles pay off

    1 Mar 2004

    From Joseph Masi Thank you Mortgage Strategy for highlighting the benefits of our Capital Repayment Plan, a structured repayment vehicle that allows borrowers to control payments and reduce their mortgage term without any investment risk. In the article, published on February 23, I stated that "a mortgage is a marathon and not a sprint". It is, therefore, crucial that over the length of the mortgage repayment cycle the borrower should have control and flexibility added to ...

  • Surrenda-link reports returns of 24% on property fund

    2 Mar 2004

    The Surrenda Link Investment Fund, the £28m property and TEP fund, says it has produced total returns of over 24% since its inception in November 1999. Figures released today in its latest quarterly update look back over the last four years, a turbulent period in which the FTSE100 has lost 20% and at one point stood 40% down. The company says the experience and expertise of the fund's board ensures they buy and sell key commercial properties when opportunities ...

  • Survey shows thousands of City staff breaking FSA rules

    5 Mar 2004

    A survey by Wide Learning shows thousands of City staff are in danger of prison and heavy fines by unknowingly breaching financial services laws. It found that some 11% are unaware that they are covered by FSA, that 28% are unsure of regulatory duties and that 23% don't know who is their money laundering reporting officer. It was also confessed that 37% have never been trained or have received very little training on compliance and 26% feel that the FSA has made little ...

  • The Mortgage Mole

    1 Mar 2004

    Guilt-edged A surprise gift for Mole this week as 200 fags (of the smoking variety) landed in the burrow courtesy of David Copland. Seems the Pink sales and marketing supremo was suffering pangs of conscience after four years on the scrounge. "David was feeling bad about never buying his own cigarettes," a source confessed. "He knows the power of Mole and decided to play it safe." Mole can only guess what might be reimbursed in the future. Strip ...

  • There is the potential to cut fixed rates

    1 Mar 2004

    It was a particularly volatile time last week in the world of swap rates, with a sharp rise followed by a drop, affecting the costs for any lender buying a tranche of money to lend as a fixed rate. • One-year money is up 0.10% to 4.52% • Two-year money is up 0.05% to 4.67% • Three-year money is up 0.06% to 4.83% • Five-year money is up 0.05% to 4.95% Despite this small rise in swaps I believe there is potential for rate cuts as lenders can still ...

  • This week's problem case

    1 Mar 2004

    Claire, 24, is a first-time buyer who has been living with her parents since moving back from university after completing a law degree. She is looking to buy a property for £112,000 on an income of £21,000 and with a deposit of £10,000. Claire is still paying off student loans of £8,000 and has no provable credit history due to her reluctance to use credit cards. Intermediary response Phil Ambler, a broker at Chesterfield-based Goodmortgages, says ...

  • Three lenders are at risk, say analysts

    1 Mar 2004

    Paragon, Kensington Mortgages and Mortgage Express could all risk collapse if the bottom falls out of the buy-to-let market, analysts are warning. A report by Morgan Stanley says MEX has a lot to lose and is likely to find it hard to hold on to borrowers due to the growth in remortgaging. But MEX says its own research shows the market continuing to perform. Tim Sturley, MEX head of business development, says: "The expectation is that the rental sector will be counter ...

  • Two rip-off companies are wound up

    1 Mar 2004

    Two companies that took advantage of homeowners in financial difficulties have been wound up following a Department of Trade and Industry investigation. London Mortgage Exchange and London Property Exchange, which both operated in Harrow in Middlesex, were ordered to wind up last Monday. However, both companies are still registered as active at Companies House. The High Court heard that LME, which arranged mortgages and offered short-term loans, offered clients unsuitable ...

  • VAT's the way to do it in your exam

    1 Mar 2004

    The topic of taxation gives rise to concern for many students preparing for CeMAP. This column has considered various aspects of taxation to the extent that they are covered in the CeMAP paper one syllabus. However, one form of taxation that has not been covered is that of value added tax. VAT is a tax on consumer expenditure that is added, when applicable, to the basic price of goods and services at point-of-sale. As far as VAT-registered providers are concerned, VAT may be paid ...

  • We will use non-FSA brokers

    1 Mar 2004

    From Jeff Knight In view of recent articles, can I place on record that GMAC-RFC expects to continue accepting business from specialist unregulated buy-to-let brokers, post M-Day. Jeff Knight Head of marketing services GMAC-RFC By email

  • We're still waiting for an answer

    1 Mar 2004

    It's now a week since Mortgage Strategy reported that the chairman of the Association of Mortgage Intermediaries is planning to launch a network and we are still waiting for confirmation from director Chris Cummings and the board on whether AMI can ensure Charles Gooding remains impartial in his position. Mortgage Strategy fully supports AMI and all that it has accomplished since its inception last year. Indeed, the fledgling trade body has achieved many great things in a ...

  • Who is this Lemar person?

    1 Mar 2004

    From Richard Griffiths Further to my appearance in Mole last week (Mortgage Strategy February 23), I can assure readers I have no connection with Lemar. In fact, I don't even know who he is. You say he is a Fame Academy reject, so perhaps Lemar was referring to actor Richard Griffiths who was the chef in the series Pie in the Sky. You can easily tell the difference between us - I am the slim one. Richard Griffiths Network Data Limited By email

  • Will pure packagers get a look in?

    1 Mar 2004

    As exclusively revealed by Mortgage Strategy last week, four of the main sub-prime lenders - Platform, Mortgages PLC, Mortgage Express and SPML - have finally confirmed that they will continue to deal with pure packagers post-Mortgage Day. With regulation drawing ever closer, some pure packagers have expressed a grievance that many lenders have failed to give a definitive answer on whether they will still do business with those packagers that remain unregulated. So, Mortgage ...

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