Mortgage Strategy
10 May 2004

  • A View From The floor

    10 May 2004

    We know how important it is to listen to our members but it's even more important to respond, using their feedback to help shape the products we provide. One recent example of this approach is our two-year capped discount mortgage which is designed for first-time buyers and was launched in response to membership surveys and panel meetings. It offers repayments at 1.25% less than the SVR for two years - currently 4.5% - and is capped which means no extra interest is ...

  • 'We will gain access to new sources of capital'

    10 May 2004

    Standard Life Bank launched in January 1998 as a subsidiary of Standard Life insurance group. It is head-quartered in Edinburgh (pictured above) where it has 1,000 staff. All its business is transacted online or by telephone, and 80% of its business is done through intermediaries. The bank's parent group announced in April that it is planning to demutualise in 2006 as a result of the bottom falling out of the with-profits market but the bank, which moved into profitability ...

  • 42,100 new house building starts in the quarter to March

    14 May 2004

    Figures from the government show that there were 42,100 new house building starts and 31,900 completions in the quarter to March 2004. Starts were up 4% on the same period in 2003 and completions remained level. The figures show that trends have varied across the regions. In the North and Midlands regions, starts were up in 2003 and 2004 compared with 2002 and 2003. In the North-East starts were up 12% the North-West at 9%,Yorkshire and the Humber at 3% and West Midlands ...

  • A good precaution against misjudging future interest rate movements

    10 May 2004

    Neal Smith, compliance manager, The Whitechurch Network Lenders seem increasingly nervous about offering attractive long-term fixed rates - understandably with so much uncertainty over future base rate increases. Pundits are predicting rate hikes the proportions of which none agree upon. With so much uncertainty, what do you say when your customer asks for an opinion on future interest rates? Do you err on the side of caution and recommend a fixed or a capped rate or do you look at the ...

  • Advance Home Loans launches three-year stepped discount

    12 May 2004

    Advance Home Loans has launched a three-year stepped discount with an initial discount of 2.25%, followed by 1.5% and 0.25% and no extended tie-ins. The branded lending arm of Advantage Mortgage Services also offers a prime buy-to-let scheme with a two-year fixed rate with no redemption overhang from 5.75% as part of its S500 range. Other products within the Advance range include P100, funded by Platform; G200, funded by GMAC-RFC; M300, funded by Mortgages PLC and F400, ...

  • Amber Homeloans reprices adverse mortgage range

    12 May 2004

    Amber Homeloans has repriced its adverse mortgage range, covering borrowers from the lightest to the heaviest end of the adverse credit scale. The revised range offers increased discounts on the full status products linked to Amber's variable mortgage rate, with reduced redemption penalties and no arrangement fees. The improved range includes two feather adverse discount mortgages with rates from 4.34%; two light adverse discount mortgages with rates from 4.84%; two ...

  • ARs will only get FSA visits in extreme circumstances

    10 May 2004

    From John Lee Regarding your Network Strategy feature last week (Mortgage Strategy May 3), I would like to place on record that I responded on the basis of the compliance visiting regime that Genesis, as a responsible principal, will be employing post-Mortgage Day. Had I been asked whether the FSA had the powers to visit appointed representatives I would have confirmed that it has. The point surely is that in all but extreme circumstances, an AR is ...

  • ASU boom could cause PI hike

    10 May 2004

    COMPLAINTS over accident sickness and unemployment cover, general insurance and non-investment life products are at a record high, one PI provider claims, forecasting that the end result could be an increase in premiums. The firm says that although complaints are rising across the financial services industry there has been a particularly sharp increase in complaints surrounding ASU. In a 'damned if you do, damned if you don't' scenario, complaints range from ...

  • Average house price up in March, government index reveals

    11 May 2004

    The mix-adjusted average house price in March stood at £161,306, up from £160,937 in February, the latest government house price index reveals. The index shows that annual house price inflation in March 2004 was 7.8%, down from 9.8% in February. Annual house price inflation in London was 4.9% in March 2004, down from 5.7% in February. Apart from Northern Ireland, the home countries saw a fall in annual inflation. The largest fall was in Scotland, down from ...

  • B&B denies The Marketplace sell-off rumours

    12 May 2004

    Bradford & Bingley has denied speculation that new chief executive Steven Crawshaw is looking to axe The Marketplace as part of a brand revamp. Rumours have emerged in the press that B&B may want to concentrate on selling its own range of products rather than distribute a range of products through its Marketplace IFA arm. Siobhan Hotten, spokeswoman at Bradford & Bingley, says: "With a new CEO in place it's obviously inevitable that people start to speculate and the ...

  • B&B says more space and kids are top reasons for moving

    10 May 2004

    More space to work from home and accommodating a growing family were the top reasons for wanting to move, a survey by Bradford & Bingley Estate Agents has revealed. The firm surveyed the reasons behind why buyers are looking for new homes. Of those who responded 38% said they need more space to either allow them to work from home or to accommodate a growing family. Next on the list, with nearly a quarter of the vote was an aspirational move to a better location or ...

  • Bankhall and e.surv announce partnership

    10 May 2004

    Bankhall and e.surv have revealed a new partnership between the two firms in relation to the provision of valuation services.  This new arrangement follows Bankhall's acquisition of the Norwich Union Mortgage Club and is the latest in a series of strategic developments from Bankhall regarding the mortgage market. John Malone, head of Premier Mortgage Services, says: "The company is delighted to have secured a long-term relationship with e.surv, who are recognised as ...

  • Barclays and The Woolwich increase SVR by 0.25%

    10 May 2004

    Barclays and The Woolwich will increase their standard variable mortgage rate by 0.25% to 6.29% for both new and existing borrowers from June 1 2004. They says this will cost the average homeowner with a £75,000 mortgage an extra £11 a month. As with previous rate changes, savings rate increases from Barclays and The Woolwich will be effective from the same day as the new mortgage rates. However, savings rate details have yet to be announced.

  • Base rate rise could stabilise housing market, says Mortgage Talk

    11 May 2004

    The recent base rate rise could stabilise the housing market, says Mortgage Talk. Last Thursday the Monetary Policy Committee of the Bank of England decided to raise interest rates by a quarter of a point to 4.25%. Andrew Frankish, operation director at Mortgage Talk, says: "The Bank is acting to try and dampen the runaway house inflation that we have seen throughout the UK's property market over the last three years. Only last year, experts were arguing that house ...

  • Base rate rise makes Europe more appealing, says Conti

    14 May 2004

    Conti Financial Services says last week's Bank of England base rate increase has made the cost of buying in Europe even more appealing. Simon Conn, senior partner at Conti, says: "Although mortgage rates have increased in UK, the rate for a euro mortgage has stayed at approximately 2.75% to 3.25%. The property market remains buoyant for all key European destinations and so, although there may be gloom at home, there has never been a better time for UK buyers to invest abroad ...

  • Bishops launches system to fast-track remortgaging

    12 May 2004

    Solicitors Bishops has launched a system for processing residential remortgaging which it believes will set the industry standard. Bishops says homeowners can slash the amount of time taken to process their remortgages from months to a matter of days. The system, called Sprint, enables brokers to process remortgages in 10 days,drastically improving the current process which can take from between sixweeks to four months. The firm has invested £150,000 in ...

  • BM Solutions retains five star service standard

    11 May 2004

    BM Solutions has retained its five star service standard for the first quarter. In a recent survey brokers said that BM Solutions Online helps take the headache out of arranging mortgages by allowing brokers to submit applications online. Improved efficiency and the One Minute Mortgage were the main reasons for going online, and a massive 98% would recommend others to register. Jane Bottomley, broker at Your Mortgage, uses BM Solutions Online regularly and says that the ...

  • BoS says it is here to stay

    10 May 2004

    Bank of Scotland has confirmed it has no plans to withdraw from the mortgage market. Growing discontent among intermediaries that the HBOS subsidiary has not much to offer and is little more than a "dying brand" forced BoS to declare its commitment to the market last week. Brokers readily dismiss Bank of Scotland as having little to offer compared with other members of the HBOS family. But Paul Fincham, spokesman for HBOS, says the group is committed to each ...

  • Bristol & West launch Islamic mortgages

    11 May 2004

    Arab Banking Corporation has joined forces with Bristol & West to launch an Islamic home finance scheme tailored to the needs of the Muslim community in the UK. Through its London subsidiary, ABC will market the product under an Islamic brand name, alburaq, that will also be used to market financial services in the Arab world. Financing for the product and full back-office support services will be provided by Bristol & West. The agreement will bring together Bristol & ...

  • Brokers in a spin over watch

    10 May 2004

    Chesterfield brokerage Mortgage Trackers is facing an unusual dilemma - exactly what to do with the Monaco Tag Heuer Chronograph the firm won in a national competition organised by Chelsea. Paul Stringer, who works for the firm, says that suggestions have ranged from selling it to the highest bidder some of the suggestions have been to frame it and place it in their new office to signify everybody's team effort at Mortgage Trackers. But he says: "The watch is a classic ...

  • BSA Conference: Barker calls for end to Right to Buy

    10 May 2004

    Kate Barker, the author of the recently published review of housing supply commissioned by the Treasury, says she would like to see Right to Buy replaced by a new scheme as it has gone too far in depleting the social housing stock. Speaking at last week's Building Societies Association conference in Manchester, Barker told delegates: "The government should move away from Right to Buy to help local authorities keep equity in their housing stock. It has taking too much housing ...

  • BSA Conference: BSA criticises regulation burden

    10 May 2004

    The Building Societies Association warns lenders are buckling under the burden of regulation from the FSA and Europe and that in the end borrowers may have to pay. New BSA deputy chairman and Nationwide chief executive Philip Williamson, speaking at last week's BSA conference, says: "We now have more people working in compliance and control than marketing. It is difficult to be in business and the burden of regulation is becoming absurd." He adds: "The burden ...

  • BSA Conference: Miles proposals in limbo

    10 May 2004

    Professor David Miles would not confirm whether any of the recommendations in his recently published review of longer term mortgages will be implemented when questioned at last week's Building Societies Association conference in Manchester. Miles told delegates: "I'm absolutely exhausted and to be honest I've not been back to the Treasury since I published the report - I've been trying to recover. I believe the Treasury has asked the FSA to consider the proposals, ...

  • BSA Conference: N&P to pilot online application system

    10 May 2004

    Norwich and Peterborough technology spin-off Lynchwood Services is launching an online mortgage application system for brokers this year and is planning to white-label it for other societies. N&P will be piloting the system with selected brokers from July before rolling it out to the whole market. Head of IT David Matthewman says: "There is a gap in the market we have identified from research that found 40% of brokers do not use sourcing systems offered by Mortgage ...

  • BSA Conference: Platform growth exceeds expectation

    10 May 2004

    Gerald Gregory, Britannia managing director, capital investment group, says the growth of Platform in the year since the merger with Verso has been better than he had expected. Gregory tells Mortgage Strategy: "I am very pleased with the merger of Verso and Platform, it was exactly the right thing to do. Platform has performed better than the best case scenario I put forward to the Britannia board. Platform is a very key part of Britannia's business and will continue to ...

  • BSA criticises 'absurd' burden

    10 May 2004

    The Building Societies Association is warning that lenders are buckling under the burden of regulation from the FSA and Europe and that in the end borrowers will have to pay. New BSA deputy chairman and Nationwide chief executive Philip Williamson says: "We now have more people working in compliance and control than in marketing. It is difficult to be in business and the burden of regulation is becoming absurd." He adds: "That burden has to be absorbed by business and ...

  • Buyers ready to pay increasing multiples of income, survey shows

    12 May 2004

    House-hunters across the UK have steadily increased the multiples of household income they are prepared to pay to secure their new home, assertahome.com's April survey reveals. The survey shows House-hunters prepared to pay increasing multiples of income to secure their desired home, from 4.1 x income in January to 4.6 x income last month. Buyers in London and the South-East stretch themselves to 5.2 x incomes, far further than the rest. Lower income households ...

  • Call for crusade on Stamp Duty

    10 May 2004

    Andrew Messenger, chief executive of the West Bromwich, has issued a battle cry to the nation to join him in a crusade to persuade Chancellor Gordon Brown to "raise the roof" on Stamp Duty in his next Budget. Messenger says he was disappointed for first-time buyers and people on low incomes after the level at which Stamp Duty is paid was again frozen by the chancellor in the Budget. He says: "At present, the first band of Stamp Duty is charged at 1% on properties over ...

  • Chelsea increases SVR by 0.25%

    14 May 2004

    Chelsea is increasing its standard variable rate by 0.25% from 5.99% to 6.24% in response to the recent Bank of England base rate rise. The rate will come into effect for new borrowers on May 15 2004 and will come into effect for existing borrowers on June 1 2004. The society has also announced the introduction of a range of fixed rate and discount mortgage products, to take effect from May 15 2004. The existing fixed rate and discount mortgage products have been withdrawn. ...

  • Clubs fume in proc fees row

    10 May 2004

    Mortgage Intelligence is accusing rival club Optoma of potential restrictive practice for contacting brokers who are members of MGM Home Finance asking them for all their business from selected lenders. The dispute came to light after Mortgage Strategy contacted MI regarding letters received by Optoma from Primary Mortgage Centre, which handles the payment of proc fees from lenders to MGM members, stating that Abbey and Northern rock had paid MI rather than Optoma in several cases. MI ...

  • CML welcomes government response to low-cost home-ownership task force

    11 May 2004

    The Council of Mortgage Lenders has given a qualified welcome to the government's response to the recommendations of the low-cost home-ownership task force. The task force reported around five months ago, and the government's response was published last week. The CML urges the government to convene a meeting of its established stakeholder group to take forward implementation of the recommendations, and to commit to a follow-up report by December to report on progress. The ...

  • CML welcomes regulation of home reversion schemes

    11 May 2004

    The Council of Mortgage Lenders has warmly welcomed the Treasury's announcement that home reversion schemes will be regulated through the FSA. The CML has long argued that home reversion schemes need to be regulated to ensure a level playing field across the equity release market, matching the regulation of lifetime mortgages that takes effect under the FSA mortgage regime from October 31 this year. The Treasury says that it received 53 responses to its consultation ...

  • Colin Sanders to quit igroup in August 2004

    10 May 2004

    Igroup CEO Colin Sanders is to leave at the end of August for personal reasons and will pursue his career outside the GE family of businesses. From now until the end of August, Sanders will hand over to Colin Shave, previously CEO of First National Home Lending, who will assume overall responsibility for the igroup and First National brand businesses. Sanders will continue to be associated with the business in a consultative capacity after his departure on August 30. ...

  • Complacency will not bring results

    10 May 2004

    The debate over whether more brokers will opt for direct authorisation or appointed representative status is coming to a head. The FSA announced last week that only 3,684 mortgage firms applied for DA by the April 30 deadline. It says it received 15,046 registrations for application packs and 5,580 applications for authorisation. A total of 8,675 registrations related to insurance business and 6,371 to mortgages, while for authorisation applications the breakdown was 3,684 from ...

  • Coventry launches offset deal

    11 May 2004

    Coventry has launched an offset deal tracking the base rate plus 0.75% until May 31 2009. Key features of the product include no early redemption charges; free valuation; free remortgage transfer service; daily interest; no arrangement fee and a £199 booking fee. The product is available to borrowers who want to combine their mortgage and savings and benefit from this type of mortgage.

  • Creative tension looms in marketing

    10 May 2004

    The idea of this week's article is to outline the impact mortgage regulation will have on your approach to marketing and to offer some guidelines on how to meet the challenges that lie ahead, whatever status you choose to adopt in the FSA-regulated world. The underlying principles of marketing and regulation are far from harmonious. Marketing is about grabbing attention and attracting target customers with short, sharp, benefit-led messages and images. Regulation, on the other ...

  • Curriculum Vitae - Justine Tomlinson

    10 May 2004

    Name: Justine Tomlinson Age: I think I'm still 23 Company: Mortgage Next Job Title: Marketing director Where do you live? In a village in north-west Kent Describe your current job: I am the joint founder and shareholder of Mortgage Next as well as having responsibility for developing and implementing the company's marketing strategy. This includes both strands of our business: a network proposition ...

  • Dear Dippy

    10 May 2004

    Jack White earns £17,000 a year as a telephone salesman. His wife Meg earns £20,000 a year as a trainee social worker. This will soon rise to £26,000 when she qualifies. They live in a rented flat in Gloucester and are looking to buy in the same area. But with no deposit and a bad credit history on Jack's part, can the pair get a start in the housing market? Dippy says: This is a typical case of first-time buyers struggling to get into the property market without ...

  • Digital Pen to improve efficiency in mortgage sector

    11 May 2004

    Quest Associates has joined forces with Destiny Wireless to provide increased efficiencies in remote data capture for the residential mortgage valuation sector. In an exclusive deal, Quest has become the sole distributor of Destiny's Digital Pen and Paper, developed with Anoto technology - a fourth generation technology which sees remote hand written site notes downloaded to any PC within 30 seconds. The Digital Pen works like an ordinary pen and is used in the ...

  • Doctor, doctor, I think I need a specialist

    10 May 2004

    Last week I overheard a doctor bemoaning the fact that GPs are undervalued by the NHS and patients. He felt he lacked the glamour of his surgical colleagues and yet the GP, using just skill, a notepad and a 60 watt light bulb, is expected to diagnose widely differing patients who have just walked in. On hearing this, I thought of the resonance between the GP and the financial intermediary, whose customers walk in with a variety of financial challenges. Not all will have credit ...

  • Double dealing

    10 May 2004

    Ask five experts where the Bank of England base rate is going to be at the end of the year and you'll get five different answers. Interest rates are still near their lowest level for around 40 years but have started to tick up, rising 0.25% to 4.25% last Thursday, a widely expected move. Alarm bells will be ringing for any client who has stretched themselves to get onto - or move up - the property ladder. Uncertainty makes it much more difficult for both borrowers ...

  • Dr Doom is right, says chairman

    10 May 2004

    Outgoing BSA chairman John Goodfellow last week warned that a slowdown in house price growth is inevitable. In his chairman's address to the BSA conference he told delegates: "Dr Doom is right. There will not be a collapse but house price growth cannot go on at its present pace." Commenting on the state of the housing market Goodfellow said that the rate of price increases will slow but given low unemployment, low interest rates and a low rate of supply of new homes ...

  • em-financial launches exclusive product range with RAMP

    12 May 2004

    em-financial has launched an exclusive product range in association with the Regulatory Alliance of Mortgage Packagers. The products are being introduced through The Mortgage Business and include rates available on individual buy-to-let, self-certification and portfolios. Highlights of the range include the Self-Cert 85 scheme which tracks Bank base rate plus 0.85% until June 30 2005 and the Flexi 85 scheme which tracks Bank base rate plus 1.35% for the life of the loan. ...

  • em-financial to unveil online conveyancing service at Expo

    12 May 2004

    em-financial will unveil its latest online service, em-conveyancing, at the Manchester Mortgage Business Expo. In association with the PSM Law Group, em-financial is bringing intermediaries a simple, streamlined online conveyancing tool from May 19. em-conveyancing uses PSM's multi-award winning, user-friendly technology, requiring only a PC connected to the internet. PSM already processes 3,000 online cases every month and states to have cut conveyancing ...

  • Focus Solutions in deal with Kensington for online applications

    12 May 2004

    Focus Solutions has signed a contract with Kensington Mortgages for the provision of online mortgage applications. Focus will provide Kensington with an online mortgage application system to enable brokers and intermediaries to transact electronic new mortgage business directly with Kensington via the internet. The online mortgage application system will be built using Focus' XML toolkit, goal:technology, that is already used by some of the UK's largest distributors ...

  • FOS chief says mortgage brokers won't be burden

    10 May 2004

    It is unlikely that mortgage intermediaries will be a major source of complaints to the Financial Ombudsman Service once they fall under its remit from October, says principal ombudsman David Thomas. Speaking to the Building Societies Association conference in Manchester last week, Thomas said he does not expect mortgage intermediaries to have a "significant economic impact" on the Ombudsman, although he admits it is difficult to estimate what the real effect will be since anywhere ...

  • FSA predicts four-tier advice market

    10 May 2004

    A senior official at the Financial Services Authority has predicted that regulation will herald a drastically reduced, four-tier advice market. David Kenmir, sector leader of retail intermediaries for the FSA, says he foresees widescale change to the intermediary market post-regulation with a shrinking client base and increased professional indemnity cover. Taking the UK's current population as 60 million, he says that with 20,000 or so advisers in the country, each ...

  • FSA warns on responsibility

    10 May 2004

    FSA chief executive John Tiner has reminded lenders that one of the elements of its forthcoming mortgage regime will be responsible lending. Speaking at last week's Building Societies Association conference in Manchester he told delegates that he wanted to "unpick" responsible lending and "relate it to its mirror image - responsible borrowing". He warned societies of the dangers of being attracted by the rewards of lending to "distressed" borrowers without considering ...

  • FSA web wording confuses brokers

    10 May 2004

    The Association of Mortgage Intermediaries has demanded clarification from the FSA over wording in the charging section of the frequently asked questions feature on its website. Brokers have been dismayed at a section on the site which dictates that for intermediaries to call themselves independent they have to charge a fee, giving the client any commission. It says: "If you wish to describe yourself as 'independent', you must intend to offer a whole of market service ...

  • FSA will fuel the compensation culture and ruin our industry

    10 May 2004

    From Warwick Tidy The time will soon be upon us when we have to submit our annual complaints reports to the MCCB. I don't understand why there is no annual gratitude report detailing all the clients who are more than satisfied and demonstrate this by sending in cards and thanks for a job well done. Never mind - perhaps the FSA will bring this in. But if the FSA steps up its campaign to invite complaints from members of the UK Compensation Culture Club, the ...

  • Get the most out of your IT trainer Tips on training management

    10 May 2004

    One of the problems I come across in the financial services software business is a reluctance to invest in technology training. The primary arguments are: "We don't have time for training" or "We can't afford it". As a result many users resort to feeling their way around, which often means tasks being done in the least efficient way. Training ensures you develop efficient work practices and provide better quality service to clients. It also improves staff morale - there is nothing ...

  • GMC director: "Coughtrie nothing to do with my business"

    10 May 2004

    James Sharp, director of Glasgow Mortgage Company, has emphatically denied that Edwin Coughtrie, the former boss of failed London packager TMPC, is involved in his business. Sharp was forced to make the statement following reports that Coughtrie was working from the offices of GMC. But Sharp says that although Coughtrie has been his friend for over 15 years he has never had any business dealings with him. He says: "I would like to set the record straight and ...

  • Half of buy-to-let investors believe rental demand is rising

    12 May 2004

    Nearly half of buy-to-let investors believe that rental demand is increasing, the latest buy-to-let confidence report by Mortgage Express reveals. The report also shows that there appears to be no significant change in the length of void periods, with only 6% saying they had increased in the last six months and 86% saying they had stayed the same, with 7% saying they had actually decreased. During this period, 63% of respondents had no void periods and 24% had one to ...

  • Halifax increases SVR in line with base rate rise

    11 May 2004

    Halifax will be increasing its standard variable rate from 6.00% to 6.25% following last week's base rate rise. The increase for existing borrowers will come into effect at the same time as the increase in savings rates on June 1 2004. Tracker mortgage customers will also see an increase in rates, again effective from June 1 2004.

  • Halifax launches first-time buyer and remortgage range

    14 May 2004

    Halifax has launched a range of first-time buyer and remortgage deals. The first-time buyer range includes a three-year tracker at base rate plus 0.59% until October 31 2007 and the choice of an added extra of £250 cashback or refund of valuation or conveyancing fees paid. A rate of 0.69% above rate is also available where the client can choose two extras, and a rate of 0.79% above base rate with three extras. All deals have a maximum LTV of 97%. Five-year fixed ...

  • Hedge your clients' bets but check on lenders' arrangement fees

    10 May 2004

    Mark Underhill, commercial director, Accord Mortgages For most clients, their first thoughts upon arranging a mortgage are "How much can I borrow?" and "What's it going to cost?" With cost, it is usual to look at the rates applying to the whole mortgage but there are a number of reasons for considering dividing a mortgage between products. Many borrowers come across the split arrangement almost by accident - when they move home or require an additional mortgage, this will ...

  • Heritable Bank enhances buy-to-let and self-cert deals

    13 May 2004

    Heritable Bank has announced enhancements to its lending criteria for both buy-to-let andself-certification mortgages. For buy-to-let mortgages the maximum loan per property is increased with immediate effect to £1.5m, and the maximum total aggregate lending rises to £5m. For self-certification deals the maximum loan available is now £1m. In addition, Heritable Bank has increased its maximum LTVs for remortgages for these types of lending. Mark ...

  • HOME REVERSION PLANS TO BE REGULATED

    10 May 2004

    HM Treasury today announced that home reversion plans will be regulated by the Financial Services Authority. The decision is the result of a full public consultation. Ruth Kelly, financial secretary, says: "Buying a home reversion policy is a huge financial decision involving the most important, and sometimes only significant, asset of elderly people. It can have significant implications for tax, benefits, inheritance and long-term financial planning. Regulation will help people ...

  • Hotel B2L scheme success prompts expansion plan

    10 May 2004

    An innovative buy-to-let hotel scheme whereby in-vestors buy a hotel room and let it out to guests is to expand to include a 300-room hotel, just six weeks after it was launched. GuestInvest, which introduced the deal at the end of March, started the scheme at west London boutique hotel Guesthouse West, where 18 of the 20 rooms have now sold for £235,000 each. Mortgage Strategy understands that Jonny Sandelson, owner of GuestInvest, is now looking to expand the scheme ...

  • igroup and First National unveil senior appointments

    11 May 2004

    GE Consumer Finance Home Lending, which comprises igroup and First National, has announced two appointments to its senior management team. Sean Webb has been appointed chief commercial officer with overall responsibility for secured sales, marketing and insurance activities. He reports to chief executive Colin Shave. Jonathan Sadler and Patrick Bamford, sales leaders for the igroup and First National brands respectively, and David Harvey, marketing leader, will report to Webb ...

  • Illustrating a tricky point for brokers

    10 May 2004

    I have covered the issue of sourcing software systems - produced illustrations in previous articles. However, this area still gives cause for concern. We've already had a clear indication from the software companies following the Mortgage Code Arbitration Scheme award for software inaccuracies. Despite their assurances, checks and procedures, ultimately they will take no responsibility for the accuracy of their literature. Accordingly it is the responsibility of the adviser to ensure ...

  • IMB launches broker incentive scheme

    10 May 2004

    IMB has launched an incentive scheme for brokers who write quality-based, volume driven business using its Liberator range of specialist mortgages. As of today, IMB is offering the chance for both new and old intermediaries to share in its £250,000giveaway on its Liberator range of specialist mortgages. To qualify for a share of the payout - which equates to £250 per completed case - an adviser simply needs to submit a sub-prime or non-conforming case to IMB before ...

  • Infinity to provide caricaturist at Mortgage Expo in Manchester

    13 May 2004

    Infinity Mortgages will be giving every broker who attends Mortgage Expo in Manchester on May 19 and 20 the opportunity to see what sort of character they really are - thanks to the skills of internationally renown caricaturist Mike Bryson. Bryson will be on the Infinity Mortgages stand on both days and will be happy to draw anyone's caricature if they are willing to sit still for 10 minutes. He has drawn the images of the rich and famous, sporting super-heroes - and even ...

  • Intelligent Finance increases offset rate following base rate rise

    14 May 2004

    Intelligent Finance has increased its rates following the 0.25% increase in the Bank of England base rate. Intelligent Finance's offset mortgage rate will be 5.45% (previously 5.2%) and its three-month discount will change to 1.60% (previously 1.66%), giving a rate of 3.85% for the introductory period. These changes are effective from May 24 2004. IF says the average effective rate for those customers who have savings and/or a current account offsetting their ...

  • Internet Insite

    10 May 2004

    Here's an interesting threesome. I'm in south Wales in my tour of broker websites and looking at three websites all from the same company - 1st for Everything Ltd. All three sites feature their association with Park Row Independent Mortgages and Park Row's success in last year's Mortgage Strategy Awards. The sites for 1st Direction Mortgages and 1st for Remortgages UK, once you ignore the layout differences, are similar in content and look and feel as though they ...

  • Key Retirement Solutions welcomes home reversion regulation

    12 May 2004

    Key Retirement Solutions has welcomed the Treasury's announcement oN the regulation of home reversion schemes and considers it to be the right decision for both the industry and the consumer. The equity release and retirement specialist IFA believes that the newly-proposed legislation will give the consumer increased protection, confidence and choice. KRS says the decision to regulate shows acknowledgement by the government that customers need to be advised on a level playing ...

  • Lack of guidance from lenders will mean more credit checks

    10 May 2004

    From Danny Lovey The FSA is concerned about credit checks - or more precisely that consumers are protected against unnecessary checks that then show up as nasty 'footprints' on their credit files. I have no argument with this principle but I seriously doubt the FSA's ability to do anything effective about it. I always remind my clients not to allow credit checks without their express permission. And I always ensure that they appreciate exactly what they are authorising me ...

  • Lib Dems say 2003 was another record year for bankruptcies

    10 May 2004

    The Liberal Democrats say that recently published insolvency figures for April 2003 to April 2004 make it abundantly clear many people are overstretching themselves. Malcolm Bruce MP, Liberal Democrat shadow DTI secretary, says: "Between April 2003 and April 2004, 38,500 people were served with bankruptcy orders. Last week's rise in interest rates can only aggravate the situation. "Debt isn't just hitting those who can't pay off their credit cards, it's affecting ...

  • Lost post could be the last post for the royal mail

    10 May 2004

    The recent news from consumer group Postwatch that Royal Mail loses 14.4 million letters each year could account for some delays in mortgage applications. Postwatch suggests that although thousands of letters go adrift each week consumers don't complain to Royal Mail. Naturally we can only hazard a guess as to how many mortgage application forms are amongst those lost letters but all this further endorses the benefits of online transactions. Electronic transactions ...

  • Marketing Brief

    10 May 2004

    I was chatting with the marketing boss of a well-known lender the other day when he took me to task over one of my reviews. His argument was that while he enjoyed reading my column (thanks) it's all subjective anyway. Yes, of course it is. It's my view of the material I see. But if, as a marketer, he takes this line, he's in danger of ignoring how brokers will react, subjectively, to the communication pieces they see. My point is that if I, as a reasonably knowledgeable ...

  • MCCB welcomes regulation of home reversion schemes

    13 May 2004

    The Mortgage Code Compliance Board has welcomed the Treasury's announcement that the Financial Services Authority will regulate home reversion schemes. The MCCB has campaigned for this regulatory loophole to be closed and to bring home reversionary schemes under the same regulatory requirements as those for lifetime mortgages. The MCCB argued that reversionary schemes had the same impact on consumers as lifetime mortgages with the added disbenefit of surrendering legal ownership ...

  • Memorial today for Dame Sheila McKechnie

    14 May 2004

    A celebration of Dame Sheila McKechnie's life is to be held today at 2.30pm at Central Hall, Westminster. Sheila McKechnie died on January 2 2004, having lived with cancer since 1997. She was a pioneer for her generation and a champion of people's rights. She is hailed as never being afraid to make a stand against the corporate and political establishment. The event, which will be attended by friends and colleagues from throughout Sheila's life, will feature ...

  • Merger exceeds expectations

    10 May 2004

    Gerald Gregory, Britannia managing director, capital investment group, says the growth of Platform in the year since the merger with Verso has been better than he had expected. Gregory says: "I am pleased with the merger of Verso and Platform. It was the right thing to do. Platform has performed better than the best case scenario I put forward to the Britannia board. Platform is a key part of Britannia's business and will continue to be so." But he does admit Britannia ...

  • MGM Home finance to offer £50,000 incentive to brokers at Expo

    13 May 2004

    MGM Home Finance will be offering mortgage brokers a two-day £50,000 incentive to make a decision over their regulatory future at Mortgage Expo in Manchester on May 19 and 20 2004. Mortgage firms visiting the stand on those two days will be able to take part in an incentive that, depending on the result, will give them each a share of a £50,000 when they subsequently join Home Finance. Stephen Maskens, manager of Home Finance, says: "This is a light-hearted ...

  • Miles proposals in limbo

    10 May 2004

    Professor David Miles would not confirm whether any of the recommendations in his recently published review of long-term mortgages will be implemented when questioned at last week's Building Societies Association conference. Miles told delegates: "I'm exhausted and to be honest I've not been back to the Treasury since I published the report. I believe the Treasury has asked the FSA to consider the proposals but it is under a statutory obligation to consult and do cost ...

  • Moneyextra sees housing market ease in April

    11 May 2004

    The Moneyextra website has reported a reduction in the size of mortgages that potential homebuyers shopped for in April. The overall average amount searched for on Moneyextra's Compare and Buy mortgage tool dipped by 0.5% in April to £108,277, from £108,842 in March. Those looking to move searched for an average of £135,474, also down by 0.5% from £136,146 in March. The average amount searched for in April by first-time buyers also fell - down ...

  • More than one in three homebuyers would not buy new property again

    13 May 2004

    More than one in three new homebuyers would not consider buying a new home again, a survey conducted by new homebuyers' information service Snagging.org reveals. Snagging.org founder Tony Bright, whose own experiences with a new home riddled with faults led him to launch the service, claims the results are symptomatic of the volume and severity of faults in new-build homes. Bright says: "When people buy a new home they quite rightly think that everything will work ...

  • Mortgage Choice to offer support service for all intermediaries

    14 May 2004

    Mortgage Choice has announced it will offer a support service for all mortgage intermediaries regardless of their regulatory position. For brokers deciding to opt for FSA direct authorisation, Mortgage Choice has joined up with Swaine and Associates, offering compliance services at preferential rates and the facility to provide a bespoke package tailored to individual needs. For appointed representatives Mortgage Choice is busy finalising its network panel. It has three ...

  • Mortgage Excellence announces distribution deal with youatwork

    13 May 2004

    Mortgage Excellence has announced an exclusive distribution deal with employee benefits provider youatwork. Under the terms of the deal Mortgage Excellence will offer mortgages to the hundreds of thousands of employees who are able to access the range of discounted products and services offered by youatwork. Robin Williams of Mortgage Excellence says: "We are delighted to be working with youatwork - it is a leading player in its market and we believe the choice offered ...

  • Mortgage Next launches two self-cert deals

    11 May 2004

    Mortgage Next has launched two self-certification mortgages exclusively available to its members, funded by BM Solutions. The self-cert mortgages are both Bank of England base rate trackers. The first deal is available at base rate plus 0.55% for two years, then base rate plus 1.75% for life. No extended tie-ins are applicable, while a 5% penalty is charged if repaid in year one and 4% if repaid in year two. The product is available up to a maximum LTV of 75%. The second ...

  • Mortgages PLC to use software to reduce reporting timescales

    14 May 2004

    Mortgages PLC has announced it will use Eclipse Computing's business and accounting software to improve management information and reduce reporting timescales by 50%. The lender has placed an order in the region of £30,000 with financial software provider Eclipse Computing, for new accounting and business management software that enables the delivery of consolidated management accounts and reporting information across the business. Eclipse will implement SunSystems ...

  • MTA delay meets with chorus of disapproval

    10 May 2004

    Right now firms are huddled eagerly around their letterboxes waiting for their 'minded to approve' letters from the FSA. But last week the regulator admitted that principal firms will have to wait longer for their letters than directly authorised brokers. This has left many networks spitting blood. They believe they should be receiving these letters first as their minded to approve status is crucial to brokers in deciding which network to join. The FSA began issuing ...

  • Nationwide slams equity release industry

    10 May 2004

    Nationwide has predicted that the next big mis-selling scandal could be equity release and has confirmed it has no plans to enter this market. Nationwide commercial and treasury director Stuart Bernau tells Mortgage Strategy: "Equity release is taken out by people who are cash poor, sometimes to support healthcare and sometimes because their pension is not stacking up. It is attractive to a vulnerable group of people - just look at the advertisements on daytime TV." Bernau ...

  • Nationwide welcomes regulation of home reversion plans

    11 May 2004

    Nationwide has welcomed the Treasury's announcement that home reversion plans will be regulated. Stuart Bernau, Nationwide's commercial and treasury director, says: "The Treasury is taking a positive step for consumers. Without regulation, equity release products had the potential to be a mis-selling scandal in the future, especially given that potential customers are elderly and sometimes vulnerable. In the past Nationwide has called for all equity release products to be ...

  • Networkone appoints Competent Adviser as key partner

    10 May 2004

    Cardiff-based networkone has appointed Competent Adviser to its panel of key business partners. The alliance will enable networkone to enhance its offering to network members, particularly in relation to the delivery of a first-class training and competency service. Competent Adviser provides web-based competence testing and knowledge solutions designed by experienced mortgage, compliance, training and IT professionals who understand the changing requirements of mortgage ...

  • New homes market strengthens, research reveals

    11 May 2004

    The average price homebuyers are willing to pay for a new property rose 1.3% to £216,115 last month - an increase of 4.8% from the same time last year, research reveals. Research by SmartNewHomes.com shows that the new homes market in the UK is going from strength to strength and indicates that buyers are still finding the means to fund more expensive homes. Yorkshire and Humberside, Scotland and the North-West saw the strongest rises with demand prices increasing ...

  • Ombudsman admits it is a 'fuzzy compromise'

    10 May 2004

    The Financial Ombudsman Service admits the way it was created is rightly seen by some as a "fuzzy compromise". Speaking to the BSA conference, principal ombudsman David Thomas said there was a discussion before the FOS was set up as to whether it should be a department of the FSA or have nothing to do with the regulatory body. He says: "Being British, we ended up with a fuzzy compromise somewhere in-between. Overlap and confusion in some areas is not to be concealed." Thomas ...

  • Packagers slam CML talks

    10 May 2004

    Packagers have criticised the Council of Mortgage Lenders over suggestions last week that the trade body is understood to be considering whether packagers should be regulated. Scores of packagers have told Mortgage Strategy that it is not up to the CML to decide whether packagers should come under regulation and that the trade body has no idea how packagers function. It emerged last week that the CML is understood to be in talks about regulating packagers and should be ...

  • Pitocco to retire at the end of 2004

    10 May 2004

    Dennis Pitocco, chief executive officer of Preferred Mortgages, yesterday announced his intention to retire at the end of the year. Pitocco helped establish Preferred Mortgages in early 1996 and has since played an integral role in its accelerated expansion. In 2003, the company delivered a 78% growth in new mortgage completions - a threefold increase since 2001 - and increased its intermediary network by 15%. Preferred's 2002/03 annual profit before tax of more than £5m ...

  • Platform extends bonus discounts

    11 May 2004

    Platform has extended the offer period of its bonus discounts September 30. Launched in Febuary, the bonus discounts are available on all of Platform's non-conforming products which include low, medium, fast-track and Right to Buy schemes. The offer, extended for an extra four months, is applicable to all non-conforming applications received by the end of September. Borrowers will benefit from an extra 0.25% for the discount term, resulting in discounts ...

  • PolicyPlus International appoints trading director

    14 May 2004

    PolicyPlus International has appointed Ann Looker to the board as trading director. Looker joined PolicyPlus as trading manager in 1997 and has been instrumental in the development that has seen the market maker grow in to a diversified financial services group. As trading director Looker will be responsible for policy trading, which includes buying strategy to ensure investor demands are met as well as the sales desk and technical services such as portfolio management. David ...

  • Pundits slated for being out of touch with industry

    10 May 2004

    Manchester-based broker Cartel says industry leaders have finally been proven to be out of touch following the release of recent FSA figures. Cartel managing director Carl Wright tells Mortgage Strategy: "A number of industry commentators have been saying during recent months that the majority of 14,000 firms operating in the marketplace would apply for direct authorisation. This has now been proved to be wildly out of line. "Considering the reputation of some of those ...

  • Regulation of home reversion plans 'only sensible way forward', says ABI

    11 May 2004

    The government's decision to regulate the full equity release market is 'the only sensible way forward', the Association of British Insurers says. Welcoming yesterday's Treasury announcement, the ABI's head of life and pensions Chris Kenny, says: "The announcement is a victory for common sense. The ABI and consumer bodies have long shared the view that the complex nature of equity release products means that the current voluntary arrangements may not give consumers ...

  • Repayment illusion exacerbates debt problem

    10 May 2004

    Nationwide chief economist Alex Bannister highlighted the potential problems of UK households loading up on debt at last week's BSA conference. Bannister points out that UK households are experiencing their highest ever debt levels and that mortgage liabilities dominate. He says that because interest rates remain at close to a 50-year low, despite recent rises, initial low mortgage payments are creating a "money illusion". Bannister warns this is potentially ...

  • Rise in manufacturing over last three months

    10 May 2004

    The CBI and Experian has revealed that manufacturers saw orders rise in most UK regions over the past three months, helping to slow the pace of industrial job losses. And the latest quarterly Regional Trends Survey suggests that 17,000 jobs will be lost over the current quarter which compares with 25,000 in each quarter of 2003. Amid a generally buoyant picture of strengthening order books, three regions in the north of England: the North-East, Yorkshire and the Humber ...

  • Second endowment scandal worry

    10 May 2004

    Concerns were raised by delegates at last week's BSA conference that there could be a future mortgage endowment mis-selling scandal as a result of people who have not complained this time round ending up with shortfalls. Yorkshire Building Society operations director Rob Jackson raised the issue of whether people who may be due compensation but do nothing about it will complain when their endowment does not eventually cover their mortgage. He wonders if this will be ...

  • Select & Protect adds Mint network to key accounts

    13 May 2004

    Select & Protect has added the network Mint to its list of key accounts. Simon Hood, chief executive of Select & Protect, says: "We are delighted to add Mint to our list of key accounts with a view to contributing to its growth. Our business model enables businesses with initially low volumes of general insurance to build their brand by having a more comprehensive service than their competitors. So we are seeking business partners, not just distribution." Andy Adwale, ...

  • SMS Mortgage Services secures £140m mortgage portfolio

    11 May 2004

    SMS Mortgage Services has announced it has secured the administration of a £140m residential mortgage portfolio transferred from Derbyshire Home Loans, following the successful completion of the asset acquisition from GMAC-RFC. John Auburn, managing director at SMS Mortgage Services, says: "SMS' experience in managing such time critical projects ensured that an effective transfer was completed on time and to our clients' specific requirements. This transaction further ...

  • Split deals mean more work but are likely to be worth the effort

    10 May 2004

    Mike Fitzgerald, sales director, Brentchase Financial Services Over the past few years the amount of mortgage deals on offer has increased dramatically, giving intermediaries a vast selection to offer their clients. First there were fixed, capped and discount rates and then came tracker rates with offset facilities. However, as loans have become larger some clients have become worried that their entire mortgage is on a tracker or discount rate. They like the low pay rate of some of the ...

  • SPML joins Network Data remote processing lender panel

    14 May 2004

    Southern Pacific Mortgage Limited has joined GMAC-RFC and Preferred Mortgages as Network Data's third lender to provide remote processing. All applications will be processed as they arrive at Network Data's head office by on-site SPML underwriters, which the lender says will make the process much simpler and reducing the risk of delays. John Prust, sales and marketing director at SPML, says: "We are delighted to be offering this facility to Network Data members. ...

  • SPPL appoints BDM for Midlands and South-West

    13 May 2004

    Southern Pacific Personal Loans has appointed Sonia Macfarlane as business development manager for the Midlands and South-West regions. A business and finance graduate, Macfarlane joins SPPL from Welcome Finance, where she worked for four and a half years as branch manager, latterly with the additional responsibility of training staff. Previous to that, she worked at Beneficial Bank for five years. Judith White,national sales manager for SPPL, says: "Second charge ...

  • Swaps up but not enough to affect pricing

    10 May 2004

    Swaps crept down slightly throughout last week before finishing up, after a sharp boost following Thursday's base rate increase. • 1-year money is up 0.02% to 4.86% • 2-year money is up 0.03% to 5.06% • 3-year money is up 0.03% to 5.17% • 5-year money is up 0.04% to 5.28% The increases are not enough to make a significant impact on lenders' pricing though and it's been another quiet week for rates. Halifax now offers its core ...

  • Taking action against bad debtors

    10 May 2004

    This week I return to the syllabus for CeMAP paper two and consider the issue of what the syllabus refers to as 'legal remedies on default'. These are the actions set out in law that a lender can take against a borrower who is in default of their obligations under the mortgage deed. There are separate legal codes in England and Wales on the one hand and in Scotland on the other. This article focusses on the situation in England and Wales where the legal remedies are set out in the ...

  • Technology provider 1st enhances Adviser Office software

    14 May 2004

    Technology services provider 1st has announced the launch of enhanced tools for mortgage intermediaries in the Adviser Office version, Adviser Office:Intelligent Workflow, due for release in July 2004. Key developments include; all applicant information will be consolidated within the mortgage component, giving users a single data entry facility for mortgage specific advice and assisting advisers during the point of sale process; an applicant-based fact find, via MS Word, which ...

  • The Exchange appoints finance director

    14 May 2004

    The Exchange has appointed Ian Teague as finance director. Reporting to managing director David Child he will be responsible for the finance and human resource departments in addition to the portal provider's commercial development programme. Within this programme The Exchange says it is committed to developing technology services that deliver practical benefits to intermediaries both in terms of writing new business and servicing existing clients cost effectively. ...

  • The Loughborough chalks up £200m in assets

    12 May 2004

    The Loughborough has chalked up a major landmark in its 137-year history by announcing assets of £200m. Stephen Peete, chief executive of the society, says: "This is a significant milestone for us and we now have £300m firmly in our sights. It took The Loughborough 127 years until 1994 to reach £100m in assets and we have managed the second £100m in just 10 years. We are helping more people than ever before and are committed to offering the best possible ...

  • The Money Centre becomes buy-to-let broker for assertahome.com

    12 May 2004

    The Money Centre has joined forces with assertahome.com to become its official buy-to-let broker. TMC will be offering assertahome's users free online quotations and its expert knowledge in the field of residential investment. Charlie Snell, marketing manager at assertahome.com, says: "The increase in the base rate this month means that more than ever, house-hunters considering investment in the buy-to-let market have to make well-informed, carefully researched decisions ...

  • The Mortgage Mole

    10 May 2004

    Watch This Space Mole hears it's handbags at dawn at brokerage Mortgage Trackers. The Chesterfield team were the lucky recipients of a Monaco Tag Heuer Chronograph watch in a national competition organised by Chelsea. But it now leaves them with the prickly problem of deciding who gets to go home with the prize. Suggestions ranging from inter-office wrestling and thumb wars to displaying it on the office wall or selling it to the highest bidder have been put forward. But ...

  • These deals provide safety in litigious times

    10 May 2004

    Kevin Paterson, managing director, Park Row Independent Mortgages With interest rates on the rise, fixed rates have come into vogue. However, more people seem to be talking about them than taking them out. CML figures show that 36% of new mortgages in 2003 were fixed rates whereas so far this year that is running at 21%. The majority of borrowers are still opting for a variable alternative. But why not have both? Brokers often forget that many lenders will allow the client to ...

  • TMB makes changes to product range and interest rates

    12 May 2004

    The Mortgage Business has announced a series of changes to its product range and interest rates. The revised rates reflect the recent Bank of England interest rate rise and TMB's need to reduce demand for its mortgages in order to restore its service levels. TMB's procuration fees have been simplified and now stand at 0.35% across the range for all products completed after June 1. TMB will also now consider mortgages where the term continues beyond ...

  • Trade associations can make a real difference with members' support

    10 May 2004

    As members of the BSA gathered in Manchester last week for the Association's annual conference, it brought to mind a piece that appeared in Mortgage Strategy a few weeks ago about the effectiveness of trade bodies. A report from Citigate Dewe Rogerson accused some trade bodies of being nothing more than old boys' networks who fail to represent their members' interests. Many reading this will be a members of a trade body, be it the AMI, AIFA, LIA or from the lender's ...

  • Trigold becomes first sourcing system to announce launch date for FSA compliant software

    13 May 2004

    Trigold yesterday become the first sourcing system to announce the launch date for FSA compliant software. The software, called Prospector AAA, will be launched on July 30 and has been given a triple A rating by Trigold for being accurate, advanced and assured. Trigold believes that by announcing a launch date it will giveadvisers throughout the market reassurance that a solution will be available. Bill Safran, joint managing director for Trigold, says: "Having the right ...

  • We are happy for brokers to use us once in a blue moon

    10 May 2004

    From Audrey Green After seeing your article on Alliance & Leicester and its refusal to deal with small brokers late last month (Mortgage Strategy April 26), I felt compelled to write in. All lenders are preparing for regulation and whatever the size of the lender, most have procedures being put in place in this regard. Unlike A&L we do not offer an online facility for applications. But also unlike the Alliance & Leicester we do not restrict our broker ...

  • We must learn to live in a litigation nation

    10 May 2004

    Last week I touched on the topic of litigation and this week offer some examples of things to watch out for. What follows are two cases showing how the litigation mentality - brought to you direct from across the Pond of course - can affect brokers. The first example may appear obscure but happens in the UK frequently - homebuyers unwittingly buying properties near those notorious neighbours from hell. As a mortgage broker you might contribute to a purchaser's misery ...

  • Welsh homes spiral beyond reach of Mr Average

    10 May 2004

    The average cost of a house in Wales has increased by 32.2% in the past 12 months making homes too expensive for the average earner, research by the Principality reveals. The society's latest house price survey shows that the average house in Wales has increased in value during the past year from £87,238 to £115,287. This means an average house is now worth the equivalent of more than five times the average annual earnings in Wales - £21,398. The Principality ...

  • Will more lenders now go direct to clients?

    10 May 2004

    Direct distribution strategies in the specialist lending market are coming under the spotlight. Kensington Mortgages has a successful relationship with its direct to consumer subsidiary The Mortgage Lender while Mortgages PLC is looking to cash in on the direct market through soon-to-be-launched sister company Spring Mortgages & Loans - its joint venture with mortgageforce. So, Mortgage Strategy asks: Will direct distribution strategies become more common and is this ...

  • Will networks have to raise their fees if more brokers than expected choose DR over AR status?

    10 May 2004

    Justine Tomlison is the marketing director of Mortgage Next By the time you read this the FSA should have published figures specifying how many brokers applied for direct authorisation before the end of April cut-off date. The FSA has said there was not a last-minute rush as some expected, but a steady stream of applications. However, any FSA figures must be taken with a pinch of salt. There will be a difference between the number of applications it receives and the ...

  • You must be insured to sell insurance

    10 May 2004

    At the time of writing the FSA has just announced that it has issued over 1,000 minded to approve letters to mortgage intermediary firms. The vast majority of these are to smaller intermediaries who can now be assured they will still have a livelihood after October 31. However, it is interesting to note that a common mistake made by those seeking direct authorisation has been to underestimate the amount of professional indemnity insurance that will be needed. Why has ...

  • Your Personal Finance makes two key appointments

    11 May 2004

    Your Personal Finance is gearing up for its latest phase of expansion with two key appointments. Rejoining Southampton-based YPF are Tammy Chalk and Emma Fay, both returning from maternity leave, who are taking on the roles of sales manager and processing team leader respectively. YPF is part of the FTSE 250 listed Kensington Group, and says it is set to make a major impact on the UK's mortgage and home loans market. Both Chalk and Fay are familiar with the ...

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