Mortgage Strategy
10 June 2002
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Abbey chief's job on line
12 Jun 2002
Ian Harley, chief executive of Abbey National, was under intense pressure last night after the bank issued a profits warning that prompted a sharp fall in its share price, the Guardian reported yesterday. Harley's position at the helm of Abbey, which has often looked precarious, was described by one investor as "on the line" after Abbey said that profits would be "substantially lower" than last year's £1.9bn. The scale of the warning - largely the result of ...
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Abbey delivers profit warning as shares tumble
11 Jun 2002
Abbey National delivered a shock profit warning on Monday, blaming bad debts provisions and write-offs at its wholesale division for a "substantial'' drop in earnings that hammered its shareprice, Reuters reported yesterday. Britain's sixth biggest bank also said sales of its with-profit-bonds, a type of long-term savings product, were below expectations partly because of shaken investor confidence in falling equity markets. Abbey shares tumbled more than 10 ...
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Abbey National launches new personal accident insurance
13 Jun 2002
Abbey National Insurance has launched a new personal accident plan to its existing customers. The personal accident plan provides a lump sum of up to £60,000 in permanent disability benefits and other benefits in respect of a range of injuries and physical disablements resulting from an accident. It can also provide a daily amount of up to £60 per day to cover a stay in hospital. Abbey National Insurance already offers its mortgage and other customers a range ...
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ABI welcomes Treasury consultation
10 Jun 2002
The Association of British Insurers (ABI) has welcomed the launch of the Treasury's consultation on the role of non-executive directors. Peter Montagnon, head of investment affairs at the ABI, says: "We welcome the debate on the role of non-executive directors. Having the right checks and balances within Boards without undermining entrepreneurial flair is vital to the prosperity of British companies and the broader economy. "We are pleased at the broad range of questions ...
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Bank of England hints at rate hike
14 Jun 2002
The Bank of England governor, Sir Edward George, today hinted at imminent action on interest rates when he warned that the bank would have "no option" but to raise rates if domestic demand growth did not slow. Speaking to a parliamentary committee, Sir Edward warned: "If it doesn't happen that domestic demand slows, and the external situation picks up, that's when it would generate inflationary pressure. At some point we will have to moderate the rate of growth of domestic ...
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Bank pegs rate again
10 Jun 2002
The Bank of England's Monetary Policy Committee last week voted to peg interest rates at 4%. The most recent change in interest rates was a reduction of 0.5% to 4% on November 8 2001 - seven months ago. Reasons for the rate freeze will not become known until Wednesday next week when minutes of the meeting are published. But the Confederation of British Industry praised the move. The employers' organisation said that the MPC had made the right decision, given that inflation ...
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Barclays to sell Firstplus
12 Jun 2002
Cardiff financial services company Firstplus could soon come under new ownership, The Western Mail reported yesterday. The company, which specialises in second mortgages and loans, is understood to have been put on the market by its parent company, Barclays, with a price tag of £300m. The business, which uses celebrity Carol Vorderman to front its TV commercial campaign, employs more than 100 people, but is in the process of recruiting a further 60 staff. Barclays ...
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Britannic Money says long live the 15-year mortgage
12 Jun 2002
Britannic Money believes that 25-year mortgages could soon be a thing of the past. The lender believes that although an extended mortgage term may help some to get a foot on the property ladder, it does not have to remain a life-long burden. According to Britannic Money, first-time buyers should consider taking out a flexible mortgage. This would allow an initial term in excess of the traditional 25 years (keeping initial repayments to a minimum), but it will also give ...
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Buyers warned over stamp duty scam
10 Jun 2002
Homebuyers are dodging increases in stamp duty by getting sellers to reduce the asking price of properties and accepting additional payments for household fixtures and fittings or other extras. Since 1997, the Treasury has raised the stamp duty threshold repeatedly for houses worth more than £250,000. Land Registry figures suggest that the ratio of properties sold below £250,000 to those above has almost doubled over five years. Some 2,007 properties worth between ...
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Buy-to-let boom to continue, says Capital Home Loans
14 Jun 2002
Buy-to-let lender Capital Home Loans is predicting strong growth for the residential investment property sector, despite downbeat assessments of buy-to-let by the national media. In response to recent newspaper articles that have likened the sector to a bubble waiting to burst, the lender is forecasting that there is considerably more growth left in buy-to-let lending. CHL's forecasts concur with those of Mintel, which suggests the buy-to-let market will rise from ...
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C&G considers position over mortgage rates
14 Jun 2002
Cheltenham & Gloucester is pondering whether to appeal against an Ombudsman's ruling over its two-tier mortgage rates. C&G says the Financial Ombudsman Service's ruling relates to the circumstances in which it applied its standard variable mortgage rate and its lower C&G variable rate, which was introduced to reward loyal customers. The mortgage bank, part of the Lloyds TSB group, introduced its C&G variable rate on April 30, 2001. But it withdrew it on ...
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C&G dual mortgage rate unfair
13 Jun 2002
Up to half a million Cheltenham & Gloucester mortgage customers could be due compensation after the Ombudsman ruled the lender's dual rate practice was unfair. The regulator found in favour of a C&G customer who had complained against having to pay the higher rate of the two-tier variable rate system, which the bank introduced on May 1 2001. New customers to the bank were on a new lower rate. C&G would not disclose how many customers are currently paying its higher ...
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CA condemns regulator inaction over endowments
10 Jun 2002
The Consumers' Association has accused the Financial Services Authority of failing millions of endowment mortgage holders by refusing to conduct a full review of mis-selling. Last week, the FSA ruled out the CA's call for a full-scale review of endowment mis-selling on grounds that the estimated £5bn cost is "disproportionate". Some six million homeowners face a mortgage shortfall thanks to underperforming endowments. But, as revealed on www.mortgagestrategy.com, the ...
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Charcol celebrates with redesigned website
12 Jun 2002
Charcol is celebrating passing the £1bn milestone for online mortgage business by unveiling its revamped website, www.charcolonline.co.uk. The new site will be live from 9am on June 13, with a streamlined and more personalised approach. This is the result of an extensive review of customer feedback, consultation with direct marketing specialists and a period of face-to-face usability testing with customers. The site includes a new part interest/ part repayment ...
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CII backs calls for more streamlined pensions system
10 Jun 2002
The Chartered Insurance Institute is backing calls for a more streamlined and flexible pensions system. The CIII has endorsed a report by Alan Pickering, former chairman of the National Association of Pension Funds, which will recommend enhancements to state, company and private pension provision when it is delivered to government later this month. Sandy Scott, director general of the CII, says the institute would back any move to simplify the current arrangements: ...
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Consumer panel calls for centrally-funded advice service
11 Jun 2002
The Financial Services Consumer Panel yesterday called on the government and the Financial Services Authority (FSA) to establish a new service which will offer financial planning advice to the majority of consumers, including those on middle and lower incomes. In its second response to the FSA's Consultation Paper 121 on reforming the polarisation rules, the Panel says that financial planning advice will be vital for consumers as they are having tomeet the challenge of taking ...
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Credit card debt stress makes you ill
14 Jun 2002
A telephone survey by The UK Insolvency Helpline suggests that people who are stressed about debt, particularly from credit cards, tend to be in worse physical condition than other people without money worries. The survey found that the price of financial anxiety ranges from heart attacks, insomnia and explosive emotions to difficulty doing such simple tasks as walking up stairs and carrying shopping and the people ailing the most are those with big chunks of their income tied ...
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Demand for commercial property slows in first half of 2002
13 Jun 2002
Demand for commercial property slowed in the first half of 2002 as the after-effects of September 11 and the economic slowdown took their toll, claims a report by the CBI and property advisers GVA Grimley. But the company says this is set to change over the next six months as the market picks-up in tandem with the strengthening economy. The twice-yearly property trends survey shows 16% of companies increased their property holdings over the last six months, while 7% ...
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Doing a stirling job in debt management
10 Jun 2002
ECU group The ECU Group formed in 1988 to manage-down levels of debt built up by clients during the 1980s. Over the past decade, the costs of servicing debt denominated in other major currencies have been up to 75% lower than those in sterling and debt is eroded through speculation and related interest rate savings. ECU, a wholly owned subsidiary of ED&F Man Holdings, is based at Hay's Lane (pictured above), close to where HMS Belfast is moored in London. Q: How is ...
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Don't be spilt over the best system
10 Jun 2002
The GMAC product matrix, and those that will follow it, present a new challenge to mortgage-sourcing engines. We know precisely what we need to do to the mortgageLink engine and this will be put in place over the next few months, enabling it to quote the correct pricing (interest rate) for all clients, while still retaining the product as a single product (or at least a small handful of split products) on the database. Further to ...
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Don't postpone learning about tacking
10 Jun 2002
In my last training column I focussed upon the importance of having a good knowledge and understanding of the meaning and application of the technical terms that appear in the syllabuses and study materials of the mortgage advice qualifications. Three particular examples were mentioned - the borrower's equitable right of redemption, consolidation and tacking. The first two have already been covered. This week, consideration is given to the process of tacking. Tacking is the process ...
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European survey highlights differences
10 Jun 2002
House prices in the UK are overvalued - but prices in Germany are heavily depressed. Latest research from PricewaterhouseCoopers shows that, although trends in national housing markets diverge significantly across the EU, house prices are above their long-run values in the UK. House-price cycles in the major EU economies have shown little evidence of synchronisation over the past 30 years. There are major variations between countries in owner-occupation rates - such as mortgage-lending ...
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Fathers feel the strain
14 Jun 2002
New research from Norwich Union finds that nearly three quarters of fathers said that spending time with the family would be their ideal Father's Day. However, 61% of fathers said they will be watching the World Cup on Sunday. Overall nearly three quarters of parents said they make a point of celebrating Mother's Day and only half celebrate Father's Day. In addition, 61% of men thought don't think Father's Day is considered to be as important ...
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Flexing your future
10 Jun 2002
As more and more lenders pile into the flexible mortgage market, rates will continue to tumble. But will it mean a return to lenders competing on rate alone? Harvey Jones investigatesThe flexible mortgage has shot up from being an exciting novelty to something close to the norm in just a couple of years. The straitjacket of the traditional mortgage has been cast aside, liberating millions of homeowners from the 25-year grind of set monthly interest repayments and annual interest calculation. ...
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Future Mortgages releases Future 500 survey results
12 Jun 2002
Future Mortgages has released the results of its first Future 500 survey, for which 500 UK mortgage brokers were asked theiropinion on a range of market issues through a survey conducted via an email link to the online form. The survey showed that 96% of brokers hold, or are scheduled to take, the mortgage qualifications required by the FSA; 86% of brokers have seen a rise in mortgage business over the past three months; 98% of brokers would support an intermediary trade body ...
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Graduates offered 102% pass rate
10 Jun 2002
Scottish Widows has launched a 102% mortgage product designed to offer graduates an opportunity to step onto the property ladder. The Graduate mortgage allows individuals to borrow up to 100% of the property's value plus a further 2% to cover associated costs such as stamp duty and legal fees. The mortgage, available to those who have graduated within the last 5 years, is a base rate tracker mortgage with a 0.25% discount off Bank base rate for the first six months, before ...
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Green 4.99% two-year fix from the Co-Op
11 Jun 2002
The Co-operative Bank yesterday extended its range of mortgages with the launch of a two year fixed rate product, which offers an interest rate fixed at 4.99% until 31 May 2004. The deal provides borrowers flexibility in repayments, plus environmentally friendly features. The fixed rate mortgage is available for house purchase and for re-mortgaging, with a maximum advance of 95%t of the property value. For re-mortgages, the Bank will pay legal and valuation ...
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Halifax pilots Saving Gateway
13 Jun 2002
Halifax has been selected by the government to act as a partner in piloting the new Saving Gateway account, an initiative to encourage and support individuals from lower-income groups in developing the saving habit. Launching in August, the pilot will allow the government to see how the initiative will run in practice, allowing any practical difficulties to be identified and resolved before the Saving Gateway is rolled out countrywide. Pilots will be established in four locations ...
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Hiscox launches new holiday home insurance product
13 Jun 2002
Hiscox has launched a new holiday home insurance policy. The company says that because holiday homes stand empty for most of the year and are often rented out, many UK insurers see them as too much of a risk and will avoid covering them or charge a substantially higher premium with restrictions on cover. This leads to hundreds of holiday home owners buying a policy from a foreign insurer instead. With most policies written in another language, Hiscox says policyholders can end ...
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House price confidence at record levels say The Woolwich
10 Jun 2002
The housing market shows no signs of slowing, consumer confidence figures from The Woolwich reveal. Research reveals that average consumer confidence soared to 61% throughout the UK during April 2002, the highest recorded figure within the last four years. In the UK as a whole average consumer confidence relating to house prices has increased by 13% over the last three months, and year on year the same 13% confidence growth applies. In April 2001 average confidence ...
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IF adds fee to its mortgage deals
10 Jun 2002
Intelligent Finance has introduced a £125 arrangement fee on all newly completed mortgage deals - despite the Bank of England freezing rates for the sixth time in a row last week. Until now the telenet bank has offered its mortgage deals fee-free. But IF defended its latest move, claiming uncertainty in the City had meant the cost of the Bank's borrowing had actually risen. IF spokeswoman Jennifer Blackwood says: "Although interest rates haven't changed, wholesale money ...
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Increasing premiums put household insurers back on path to profitability
12 Jun 2002
Independent market analyst Datamonitor's new report, Household Insurance, finds that frequent and severe claims and low premiums have seen the sector's underwriting result continue to nose dive. However, the latest insurance company FSA returns reveal an industry trying to claw its way back to profitability. The severe floods that occurred in 2000 and are currently affecting parts of Britain in 2002 will lead to an increase in premium income by both forcing insurers to ...
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Insurance cost warning
10 Jun 2002
CETA last week warned intermediaries that recommending the cheapest ASU policy they can find may not be in the best interests of their clients. CETA - the UK's largest general insurance network - says clients are often too focussed on the price of an ASU policy and fail to take into account the overall 'package' of benefits they are purchasing Director Sandie Schofield told Mortgage Strategy: "Intermediaries should be looking for the policy that is best suited to their ...
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Insurer scraps cover in flood areas
13 Jun 2002
Internet-based insurer esure has announced it will no longer insure properties at risk from floods. The company says it does not want premiums for other customers to be pushed up by the few who live in flood-prone areas. The change comes into effect immediately and means that home insurance will no longer be offered for houses built on flood plains or in areas prone to repeated flooding. esure estimates that the savings for customers who do not live in these risk areas ...
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Interest in Islamic products causes problems
10 Jun 2002
Lenders have been urged to show more flexibility towards the needs of Muslim or Islamic borrowers by introducing products that do not profit from interest-rate variation. Many British Muslims are avoiding buying homes as it is against Islamic law to borrow or lend at a rate of interest. And although the Treasury and Bank of England has encouraged the development of Islam-friendly mortgage, investment and current account products, at present only the United Bank of Kuwait offers halal ...
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Intermediary response
10 Jun 2002
Sohan Jheeta, director of Leeds-based Personal Investment Planning Service, says there are a number of issues that Matthew should consider before he decides to take the plunge There is no doubt that buy-to-let is an expanding market and, as such, it's only natural that more people want a piece of the action. However, Matthew should heed a word of warning. To manage relationships with all manner of tenants requires a certain amount of skill. The first lesson ...
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Jim White pockets web deal with Homes-On-Line
10 Jun 2002
Jim White's Mortgage Solutions has linked up with property website Homes-On-Line. The Bournemouth-based broker, which last month won 'Best Mortgage Broker (Non-Conforming) in the Mortgage Strategy Awards 2002, specialises in sourcing mortgages for the self-employed. Homes-On-Line managing director Guy Baker says: "By linking with Jim White we will be able to offer estate agents and members of the public a respected and recognised mortgage-finding service that specialises ...
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Landlords urged to remortgage
14 Jun 2002
Coventry Building Society is introducing new incentives to encourage landlords to remortgage their buy-to-let investment and save money on their monthly repayments. A new discounted mortgage is being launched today and has been designed to help landlords refinance their current mortgage with the minimum cost and effort. The product offers a 0.84% discount to January 31 2005 (discount off buy to let variable rate - currently 5.99%); a current applied rate of 5.15%; a ...
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Lender's response
10 Jun 2002
Colin Dale, head of mortgage lending at Skipton Building Society, says if Matthew adheres to three golden rules then entering the buy-to-let market should prove a sound decision The buy-to-let market has enjoyed sustained growth over recent years and a proliferation of lenders have been ready and willing to help the buy-to-let investor achieve their aim. Much of the growth is attributed to the rising student population and, with the high cost of property, many ...
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Lettings industry strong in the face of house price inflation, says Paragon
11 Jun 2002
New research from Paragon Mortgages, the specialist buy-to-let lender, shows a strong lettings industry that has not been weakened by the recent high levels of house price inflation. The findings of the latest quarterly Paragon Mortgages Property Investor Confidence Tracking (PICT) Index show higher than expected rental yields, low average gearing and a low level of void periods between tenancies. John Heron, managing director of Paragon Mortgages, says: "This quarter ...
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Life assurance and pensions new business remains steady
11 Jun 2002
Sales of individual life assurance and pensions products grew by 5% in the first quarter of 2002. The Association of British Insurers says regular premium life and pensions business increased by 15% to £899 million. This increase was largely due to the continued rise in the number of regular premium pensions being sold. They rose to £597 million in the first quarter of this year, from £492 million in the corresponding period last year. Sales ...
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Make the distinction
10 Jun 2002
I am writing in response to the excellent letter 'Why buy-to-let' by Sohan Jheeta in the May 27 issue of Mortgage Strategy. Surely a distinction needs to be drawn between what constitutes a business/commercial transaction and what constitutes a residential transaction. Most brokers make this judgement anyway and will charge more for a buy-to-let transaction simply because it is a business transaction and needs to be treated in a commercial way. We do not charge any broker ...
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MAQ qualifiers spring up
10 Jun 2002
More than 1,400 people passed the Mortgage Advice Qualification during April, bringing the total number of people who have completed MAQ to 7,214. A total of 2,537 people sat the exam in April, with 1,454 achieving a pass mark. At the previous sitting in January, 1,001 people passed MAQ. Meanwhile, 57,000 advisers have registered with the Institute of Financial Services for CeMAP or CeMAP 'bridge'. Statistics from the Chartered Institute of Bankers in Scotland (CIOBS), shows ...
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Marlborough Stirling to take advantage of regulatory change in Europe
11 Jun 2002
Marlborough Stirling, a provider of software, services and consultancy to the financial services industry, has expanded its operations in continental Europe by opening offices in Milan and Madrid. The move follows recent regulatory change in continental Europe that has created opportunities for Marlborough Stirling's software and services that are already proven in the UK market. Governments across Europe are recognising that there is a huge shortfall between ...
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Mortgage rates drop at Bristol & West Mortgages
11 Jun 2002
Bristol & West Mortgages are launching three 'best rate' mortgages to supplement its new mortgage range. In April Bristol & West extended its criteria to allow borrowers with a clean credit history to borrow up to 4 x income and to refinance up to 95% LTV. B&W are also claiming improved service with an answer in three minutes through its on-line application in principle facility. The criteria changes, the introduction of the AIP and its three new rates ...
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Mortgage seekers surge at A&L
13 Jun 2002
Mortgage applications have rocketed by a third at Alliance & Leicester as homebuyers plunge into the booming property market. The bank revealed the 34% surge in the value of applications for the first five months of this year in a confident trading statement ahead of its close period. "Overall performance to date is in line with general market expectations," it said, adding that it was on target to deliver promised savings and income growth. Asset quality ...
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Mortgageforce announces estate agency multi-branch deal
12 Jun 2002
Andrews Estate Agents Limited (AEA) has appointed franchise firm mortgageforce to provide mortgage advice to its clients. A number of Andrews' branches throughout Avon, Surrey and London will be serviced by mortgageforce consultants from June 24. AEA is the 14th largest estate agent in the UK with 42 branches throughout the South West and South East of England, and was one of the first independent estate agents to sign up to the Ombudsman Scheme for Estate Agents ...
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Mortgageforce offers unqualified advisers £100,000
11 Jun 2002
National mortgage franchising operation mortgageforce predicts that up to 10,000 mortgage advisers will fail to qualify ahead of MCCB's December deadline, without hands-on practical help with exams. The company claims that advisers are generally struggling to focus on a robust revision programme and most haven't the first clue about exam techniques. It claims that revision courses run by commercial training organisations are failing to address what it sees as the real problem ...
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Mortgages PLC and mortgageforce announce new agreement
11 Jun 2002
Mortgages PLC has been appointed by mortgageforce as an approved product provider for its network of independent mortgage franchises. The formal appointment will ensure that mortgageforce franchisees have access to all of Mortgages plc's extensive non conforming product range including right-to-buy and buy-to-let. Peter Beaumont, sales and marketing director at Mortgages PLC, says: "We are delighted to be forging a partnership with mortgageforce which has demonstrated ...
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Mortgages PLC launches new website
12 Jun 2002
Mortgages PLC has launched a new website which aims to provide intermediaries and consumers with a simple online source of useful information and tools when exploring the non-conforming mortgage market. The site is split into three zones - corporate, intermediary, and consumer. The company believes the site is the first in the non-conforming market to offer a section dedicated to packagers. The 'Packager Toolbox' is contained within the intermediary zone and contains bulletins ...
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My mortgage week - Mark Bergin
10 Jun 2002
Monday: This is the Monday after the Friday night before - the Caribbean-themed TMB Staff £4bn party. Was that really David Parry, director of planning and strategy, dressed as Horatio Hornblower doing the 'Agadoo'. As for the limbo dancing - Bill Dudgeon, MD, would have done well had his black wig not kept falling down. Everyone looks forward to the photos - particularly of the male ice-sculptured torso (which Bill insists was modelled on him). After-Shock ...
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Net sites ruled out of MCCB regulation
10 Jun 2002
The MCCB has shelved plans to regulate e-mortgage websites, despite continuing fears that these 'infomediaries' blur the line between information and advice. Specific rules for e-mortgages have been on the cards since November 2000, when Luke March, chief executive of the MCCB, said growth in internet mortgages made a code of conduct "essential". A working group set up to draft the final rules has been disbanded. The MCCB confirmed it was dropping plans for an e-mortgage ...
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New self-cert mortgage from Mortgage Express
14 Jun 2002
Mortgage Express, the specialist lending arm of the Bradford & Bingley Group, has launched a new self-certification mortgage. The product requires no verification of income for self employed or PAYE customers, and is available for house purchase, remortgage and first-time buyers up to 90 % LTV. It has base rate linked pricing, no MIG, and a flexible payments facility. Andrew Moss, product manager at Mortgage Express, said: " We aim to become the best provider of self ...
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OFT targets rogue estate agents
12 Jun 2002
The Office of Fair Trading yesterday launched an investigation into the £4bn estate agent sector following a sharp rise in complaints from home buyers and sellers as the housing market booms. The inquiry, to be carried out by the OFT's Markets and Policy Initiatives division, will be a comprehensive study of buying and selling residential property in England and Wales. Issues covered will include: fee structures - how they are changing and evidence on value for money; ...
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Product providers continue to support AssureWeb
13 Jun 2002
More product providers are actively supporting the AssureWeb e-trading portal for IFAs, Misys announced yesterday. Several leading providers have signed up to new three-year contracts, which will ensure the continued successful development of the portal. Britannic Retirement Solutions, AXA, Clerical Medical, Scottish Mutual and Swiss Life have all agreed to the new terms, which replace the existing annual contracts. David Child, commercial director of AssureWeb, says: ...
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Public fails to use safe letting agents
10 Jun 2002
The public still fails to make the distinction between fully bonded letting and renting and unsafe letting and renting, the Association of Residential Letting Agents claims. As a result both landlords and tenants fail to check that there are safeguards in place for their own protection when they approach a letting agent. ARLA has issued a new leaflet, "ARLA and Your Money" as part of a continuing programme of consumer information that began with the publication of the ...
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Savers without internet access miss out, says Halifax
12 Jun 2002
Millions of UK savers are missing out on the best savings rates because they do not have access to the internet, new research from Halifax shows. The latest figures show that around half the UK population have access to the internet either at home, work or through cyber cafes. This leaves over 20 million individuals who could be missing out on some of the best savings rates available from internet-based savings accounts. Savers could be missing out on around £200 ...
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Self-cert deals on cards for VirginOne clients
10 Jun 2002
All-in-one mortgage provider VirginOne has launched a self-certification option for borrowers it considers a safe bet. Employed borrowers of a mortgage up to 75% LTV and of no greater value than £350,000 will no longer be asked to supply proof of income or other supporting documents. Employed borrowers seeking over £350,000 or over 75% are asked to product three months' personal bank statements. Self-employed clients applying for a less than 75% LTVare required to ...
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Senior appointment at UCB home loans
14 Jun 2002
Mark Saddleton has been appointed as head of business development at UCB Home Loans. He moves from his current position as head of business generation in the intermediary markets department at Nationwide and begins his new role in June. Mark replaces Tony Jones, who left UCB Home Loans last month to become managing director at Pink Home Loans. With 15 years experience at Nationwide, Mark has held a number of senior posts in the building society. His current ...
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Service recovery continues slowly
10 Jun 2002
Recovery across the business to business services sector is being held back by a sales decline among companies dealing direct with consumers, reports a survey from the Confederation of British Industry. The survey shows a marked contrast in performance between companies that sell to consumers, such as private healthcare providers and hotels, and those who sell to other businesses, such as legal advisers and management In the business and professional services sector more ...
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Standard Life Bank reveal offset plans
10 Jun 2002
Standard Life Bank enters the offset mortgage market this week, with a full range of discount products. Mortgage Strategy revealed SLB's latest move in November last year but details of the Bank's plan have been kept under wraps - until now. David Macmillan, sales and marketing director at SLB, told Mortgage Strategy: "Our offset offering is a simple and straightforward way for clients to pay less interest on their mortgage by offsetting their savings." With SLB's ...
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Surrenda-link publishes overview of TEP market in 2002
12 Jun 2002
An overview of the traded endowment policy market and how it operates has been published by Surrenda-link, a leading UK TEP company. The document contains statistics from life companies, trade associations and market surveys. It has details of the TEP market in general, and details life company investment strategy of with profits policies and factors affecting the market price of a policy and its surrender value. The report points put that the TEP Market is over ...
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The flexibility to be free of the norm
10 Jun 2002
The flexible mortgage has shot from being an exciting novelty to something close to the norm in just a couple of years. The straitjacket of the traditional mortgage has been cast aside, liberating millions of homeowners from the 25-year grind of set monthly interest repayments and annual interest calculation. Innovations such as overpayments, underpayments, payment holidays and drawback of past overpayments would have made the average bank or building society manager blanch just ...
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The FSA speaks out
10 Jun 2002
An open letter to the Consumer's Association from Sir Howard Davies, chairman of the Financial Services Authority The overall FSA strategy for endowment mortgages has been to ensure that consumers are well-informed, are encouraged to complain where they are unhappy with the advice they were given and that they are treated consistently and fairly when they do so. It has also been to follow through on identifying potential 'pockets of loss' in a focussed way, in order to see ...
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The mortgage mole
10 Jun 2002
Howard's way Now Mole was delighted to take ringside seats for England's showdown against Argentina, courtesy of Sun Bank, Platform Home Loans and Birmingham Midshires Solutions. Never let it be said that Mole spreads himself too thinly. However, it was good to see Beckham ramming home a penalty against Pablo Cavallero to make the beer and goodwill flow. But at Sun Bank's soiree there was some post-match confusion about just who was the great man himself. The amassed brokers ...
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This week's problem case
10 Jun 2002
Matthew works as a sales manager and has just received his annual bonus of £25,000. His final-salary pension scheme has closed and he has read about how the booming buy-to-let market may prove to be a better long-term investment. He has a domestic mortgage of £100,000 on a property of £200,000 and earns £40,000 a year, plus bonuses. What advice would you give him?
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Two new faces announced at LMC
10 Jun 2002
Non-conforming lender London Mortgage Company has announced the appointment of Steve Barry and Mark Wilson. Barry joins the lender as risk and finance director, with responsibility for LMC's fund structuring, securitisation and risk assessment of its mortgage portfolio. He was previously working for NM Rothschild's securitisation team and also worked for Windsor-based car finance outfit On-Line. Wilson joins LMC as sales director for both first and second charge mortgages ...
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World Cup victory knocks GDP
10 Jun 2002
This weekend could see a consumer spending boost of £150 million as football fans celebrate England's 1-0 World Cup victory over Argentina. The Centre for Business and Economics Research estimates that the average English adult male will spend an extra £10 over the weekend, much of it in the leisure sector. The CEBR estimates that England's Friday afternoon fixture cost the country about one third of a day's productivity as footie followers took ...
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Yorkshire BS launches end-to-end internet mortgage-processing application
12 Jun 2002
Yorkshire Building Society has launched a website which enables the Society's customers to undertake full mortgage application processing online, from initial enquiry and quotation to online approval. Online credit bureau checking and an automated rules engine means the 'approval in principle' decision can now be delivered in seconds. In the first ten days of operation, the site generated business potentially worth £20m to the Building Society. It has ...
