Mortgage Strategy
11 November 2002

  • Buy-to-let yields in central London drop sharply

    13 Nov 2002

    Rental yields on buy-to-let investments in central London have dropped far more than in previous slowdowns due to an oversupply of rental properties and depressed demand from finance professionals, according to research by estate agents FPD Savills. Until 2000 changes in rents and employment in the capital's financial district broadly tracked each other. However, FPD Savill's head of residential property research, Richard Donnell said "the fall in rents since 2001 has greatly ...

  • Abbey National pulls in the pub business

    13 Nov 2002

    Despite the increasing popularity of the takeaway and six-pack, the British are still queuing up for a pub-pulled pint, according to figures released by Abbey National business. The bank has seen a 45 per cent leap in people taking out mortgages for public houses over the last six months.1 The increase in leisure time and a greater range of entertainment facilities and activities at pubs have boosted the numbers of prospective publicans. Abbey National business' ...

  • Annual house price inflation exceeds 30%, says Halifax

    11 Nov 2002

    House prices rose by a monthly record of 4.7% in October bringing annual house price inflation to a new high of over 30%, Halifax announced last week. Further confirmation of soaring house price inflation also came from Land Registry figures, generally regarded as the most accurate indicator of house price movements, which showed East Anglia led the way in house price inflation with an annual increase of nearly 24%. Halifax chief economist Martin Ellis says: "Last month's ...

  • B2L market bouyant, but cautious

    11 Nov 2002

    The buy-to-let market remains buoyant but cautious, according to the latest survey of trends among the Association of Residential Letting Agents' (ARLA) panel of mortgage lenders. The average monthly total of actual loans for buy-to-let investment rose by 30% compared to the previous six months. However, an average loan figure of £82,141 was only 2.4% more than the previous average of £80,100. Prime central London continues to have by far the largest loan ...

  • Bank to publish inflation report

    13 Nov 2002

    The Bank of England will today publish its quarterly inflation report and pundits say it will justify the Bank's decision to hold interest rates at 4% by showing a rise in underlying inflation. The Office for National Statistics has already said its key underlying inflation measure, which strips out mortgage repayments, rose 0.1% in October to an annual rate of 2.3% from 2.1% in September. The rise beat economists' forecasts of an increase to 2.2%, but remained below the ...

  • Birmingham Midshires scoop Investors in People award

    13 Nov 2002

    Birmingham Midshires has been recognised with the prestigious 'Investors in People' award for the fourth time in succession. Investors in People is a government-backed initiative, recognising companies who are committed to investing in training and developing their employees. Birmingham Midshires' success is based upon a recent assessment of their commitment to training their people. The financial services provider employs over 2000 people, at its Wolverhampton ...

  • BMS counts benefits of MPPI

    14 Nov 2002

    Birmingham Midshires Solutions is urging consumers to take mortgage payment protection insurance to safeguard against accident, sickness or unemployment. Figures from the CML show that only 31% of Britons have insured their mortgage payments against the worst happening. The BMS campaign involves flagging up the benefits of MPPI. These include protected mortgage payments if borrowers lose their job, or are too ill to work. It gives mortgage cover for up to 12 months. Policies ...

  • Brokers told: "Stay independent"

    11 Nov 2002

    Mortgage brokers are being urged to remain independent and stay out of networks - by the chairman of IFA network Whitechurch Securities. Kean Seager says mortgage brokers will be subject to lighter regulation than IFAs dealing in higher-risk business. This means that brokers can handle compliance themselves and enjoy cost savings by choosing direct authorisation over a network. Seager says: "Where possible, I strongly advocate going for direct authorisation. This is for ...

  • Brokers warn of 50% insurance hike

    11 Nov 2002

    The price of critical illness insurance is set to rise by around 50% over the next few months, while cover for 'lifestyle' conditions such as diabetes will be withdrawn. Four of the six largest insurers in the market told broker LifeSearch that they will hike premiums in the new year to pay for rising claims, The Guardian reported last week. Simon Burgess, managing director of insurance underwriters Goodfellows, says: "There is a high incidence of claims and policies ...

  • Buy-to-let borrowing stays on even keel

    14 Nov 2002

    The latest buy-to-let figures find the average monthly total of actual loans has risen by 30% compared to the previous six months. However, the average loan at £82,141 was only 2.4% more than the previous average of £80,100. These are the latest findings from the Association of Residential Letting Agents Survey of Trends, compiled for the ARLA panel of mortgage lenders. John Crossley, chairman of ARLA, says: "When you consider the soaring house prices, this ...

  • Buy-to-let market is buoyant but cautious, says ARLA

    11 Nov 2002

    The Association of Retail Letting Agents has found that the buy-to-let market is buoyant but cautious, based on its Survey of Trends among the ARLA panel of mortgage lenders. The average monthly total of actual loans for buy-to-let investment rose by 30% compared to the previous six months. However, the average loan at £82,141 was only 2.4% more than the previous average of £80,100. John Crossley, chairman of ARLA, says: "When you consider the soaring house ...

  • Can you afford not to be in a network?

    11 Nov 2002

    I am sure that CP146, the FSA's approach to regulating mortgages sales, has proved to be very interesting reading for everyone involved in the mortgage industry. The deadline for responses was, of course, today, but its being issued on the August 8 ensured that we all had the best-seller just in time for our summer holidays. And for those of you who enjoyed the gripping CP98, there should have been no major surprises. The consultation focused on the mortgage sales ...

  • CBI welcomes Queen's speech

    14 Nov 2002

    The CBI said yesterday that business would give "six out of ten" to the legislative programme set out in the Queen's speech. John Cridland, Deputy Director-General, said: "The government is making huge strides with planning reform and communications regulation, but there will be real concern about regional assemblies, business rates and ...

  • CIS helps kick-start the Lifeshare Christmas project

    15 Nov 2002

    Homelessness charity Lifeshare is kick starting its Christmas recruitment campaign, with help from Manchester-based financial services provider Co-operative Insurance Society (CIS). Over the Christmas period each year, Lifeshare opens a drop in centre for homeless people, those in temporary accommodation and those in crisis. From December 20 to 30, Lifeshare needs around 200 volunteers to ensure this project runs smoothly carrying out a range of tasks from general assistance to ...

  • City Residential to help make Liverpool living affordable

    17 Nov 2002

    A Liverpool-based estate agent has launched an offer to make city living more affordable.

  • CML urges Chancellor to reform Stamp Duty

    13 Nov 2002

    The Council of Mortgage Lenders has written to the Chancellor urging him to scrap the current Stamp Duty system in favour of a graduated structure. The CML argues that the current "slab" system of stamp duty (which has seen stamp duty revenue increase by 590% since 1993/94) should be replaced. The CML has decided to undertake research on the distortive impact of the current system on the housing market and how this could be addressed, and will present the findings ...

  • Don't knock self-certification, says BMS

    15 Nov 2002

    Birmingham Midshires Solutions says that the small minority of brokers abusing self-certification mortgages by overstating the income of their clients, putting the industry's reputation and the client's future at risk, should not put people off these products. Steve Sandiford, head of borrowing products at BM Solutions, says: "Self-certification is a very valuable weapon in a mortgage adviser's armoury. It is ideally suited for those whose income does not come in regular ...

  • Double whammy

    11 Nov 2002

    The second charge, or secured loan, market caters for those seeking to borrow for non-house purchase related expenditures such as home improvements, debt consolidation, holidays and other consumer durables. The proposed mortgage regulation excludes second charge - potentially making this an area of great confusion. After all, your client's property is still at risk if they do not keep up with repayments on a secured loan. Why then, if second charge poses such a risk, ...

  • Euro-block on Brown's stamp duty giveaway

    11 Nov 2002

    A policy devised by the Chancellor for a £1bn cut in stamp duty for some of the most deprived areas in the UK is being blocked by the European Commission. Gordon Brown had pledged to cut stamp duty entirely on all purchases of commercial property and on house purchases up to £150,000 in 2,000 rundown areas across Britain. The move, announced in last November's pre-Budget Report, was designed to encourage buyers to choose homes in cheaper areas, persuade firms to ...

  • Extra £70m annually for affordable housing

    15 Nov 2002

    New proposals to amend local authority regulations on capital receipts could release up to £70 million each year for the provision of affordable housing. A consultation published yesterday on regulations, allowing councils greater freedom and flexibility to manage their housing assets, is proposing to enable them to replace inefficient housing with modern dwellings better suited to the needs of today's tenants. Housing Minister Jeff Rooker says: "We expect local ...

  • Filling the endowment gap

    11 Nov 2002

    Equity-release providers have been urged to offer products to fill shortfalls on endowment policies held by thousands of homeowners. Though products would likely be limited to those of a set age, using equity in policyholders' homes could be one way to overcome disappointments when policies mature below target. Mark Goodale, general manager of equity release specialist Ecclesiastical Financial, says: "The norm at the moment is for people to have substantial equity ...

  • Genesis Approved adds the Derbyshire to lender panel

    11 Nov 2002

    Genesis Home Loans' intermediary mortgage club, Genesis Approved, has appointed The Derbyshire Building Society to its lender panel, allowing its members to access the Derbyshire's full range of both residential and buy to let mortgages. Frank Thurlby, head of operations for Genesis Approved, says: "We are very pleased to have completed the deal to offer the Derbyshire's services to our members, as it has a wide range of products, that regularly feature in 'best buy' ...

  • Genesis pursues growth through outsourcing

    11 Nov 2002

    Packager Genesis Home Loans is to outsource some business as part of its plan to increase mortgage volumes. Genesis managing director Barry Robson says: "We are virtually at full capacity, but we don't want to appoint another 20 underwriters or have to find another 2,000 square feet to put them in. "The margins that we would earn on outsourced business are not as good as if we did it in-house, but it does represent a way of doing extra business with minimum fuss. It ...

  • Give us a break on tax and regulations

    11 Nov 2002

    Today, the Confederation of British Industry calls on the government to halt the "relentless and damaging" rise in business taxes, which will cost firms an additional £47 billion between 1997 and 2005. It also publishes its submission to Chancellor Gordon Brown ahead of his pre-Budget report, due out later this month. Protecting the UK's competitive position in the world is the most strongly-worded statement the CBI has submitted to this Chancellor. The CBI says ...

  • Government promises a better deal for council tenants

    15 Nov 2002

    Local authorities are to get increased subsidies to improve the quality and management of their council homes. Councils in England will receive £3.86 billion in Government subsidy next year (2003-2004), including extra cash to spend on housing management and maintenance. This represents an average cash increase of 8.1% for management and 5.7% for maintenance, amounting to about £63 per dwelling. Housing Minister, Jeff Rooker, says the additional resources, ...

  • Government to publish monthly housing index

    11 Nov 2002

    Shortcomings in the collection of housing market data has led the government to begin publishing its own monthly housing index, starting next summer. The National Statistics house index will seek to build a more sophisticated picture of the housing market than that provided by large banks and building societies such as the Halifax, and Nationwide's monthly surveys. Though Halifax and Nationwide both produce their own monthly surveys of house price inflation, their ...

  • Homeowners 'ripped off' over MPPI

    11 Nov 2002

    Personal finance site moneynet has warned that many of the 2.5 million homeowners that have mortgage payment protection insurance could be paying up to 33% more than they need to. Moneynet claims that mortgage lenders are taking advantage of borrowers on the basis that most are ignorant of the fact that they can shop around for their MPPI. Over 2,534,000 of UK homeowners now have MPPI and the take-up rate for new policies is increasing. In 1998, 23% of new mortgages were ...

  • Honorary Doctorate for financial mastermind Martin Ritchley

    13 Nov 2002

    Coventry University is conferring Martin Ritchley, one of the most influential men in the City of Coventry and the building societies world, with an Honorary Doctor of Business Administration. The award is conferred in Coventry Cathedral at 2.30pm on Friday this week for his outstanding contributions to the Building Societies industry and to the local economy. Martin joined Coventry Building Society in 1970 as Chief Accountant and progressed to his current role as Chief ...

  • House price rises will drag more homeowners into the tax net

    15 Nov 2002

    Research from the Halifax, based on official figures, shows that tax revenue raised from both stamp duty on residential property and inheritance tax attributable to housing wealth is estimated to have risen almost five-fold from £735 million in 1992/93 to £3,638 million in 2001/02. This dramatic increase has been driven by the failure of successive governments to raise tax thresholds in line with house price inflation. Halifax also calculates that the stamp ...

  • House prices rise at fastest-ever rate

    11 Nov 2002

    House prices are rising by 30.6% a year, the latest Halifax house price index reveals. The figures record price growth of 4.7% for October - the fastest rate ever - and take the average price of a UK home to £122,377. HM Land Registry also confirmed an 18% surge in average prices in the year to September 2002. This takes the average price for England and Wales to £146,150. Volumes of sales have risen by 6.4% to 328,184 in 2002, from 308,323 for the same period in 2001. Land ...

  • HSBC to buy Household International

    15 Nov 2002

    HSBC is set to acquire leading US consumer credit provider Household International in a deal reportedly worth £9bn. Founded in 1878, Household provides personal loans, credit cards, motor finance and credit insurance to customers across Canada, the UK and the US. The deal will see Household become a wholly-owned subsidiary of the HSBC Group and will promote the bank to become one of the top ten credit card issuers in the world. In the UK Household operates primarily ...

  • Igroup breaks through £300m lending mark

    11 Nov 2002

    October saw specialist lender igroup break through the £300m new lending figure for the first time in its short history. Jonathan Sadler, igroup's director of sales and marketing, says: "This is a fantastic result for the team. Since we launched igroup in April 2000, we have seen the business grow month-on-month - and especially since our acquisition by GE last year. "We continue to attract a satisfying mix of business from across the niche lending spectrum, ...

  • IMLA looks ahead as chairman quits

    11 Nov 2002

    The Intermediary Mortgage Lenders Association is in the process of electing a new leadership, with current chairman Tony Ward stepping down. Ward, also chief executive of Britannic Money, has opted to step down following two years in the post. Seven unnamed nominations have been received for the posts of chairman, vice-chairman, and two additional management committee positions. Nominees have been entered into a members' ballot and winners will be selected on a first-past-the-post ...

  • Industry responses may force FSA's hand

    11 Nov 2002

    Responses to CP146 are putting the FSA under increasing pressure to amend controversial proposals for non-advised sales, as consultation on mortgage regulation closes today (November 11). CP146 plans for filtering questions - framed to provide information, not advice - have repeatedly come under attack. Gavin Hunt, compliance manager at Southern Pacific Mortgage Limited, told Mortgage Strategy: "I think the FSA has been taken aback by the response to filtering questions, ...

  • Insurance regulation and you

    11 Nov 2002

    OK, CP146 is history - although if you have not already done so, this is the last day (November 11) that you can download the response template from www.mortgagestrategy.co.uk and email your own personalised reply to the FSA. Before the FSA issues its own consultation paper on general insurance, due out later this month, we have had the Treasury publish its 'Regulating Insurance Mediation Consultation' on October 21. This is part of the Treasury's responsibility to implement ...

  • Interest rates on hold

    11 Nov 2002

    The Bank of England's monetary policy committee kept UK interest rates at 4% last week - for the 12th month in a row, writes Harriet Williams. Pundits say sluggish economic growth overseas and a weak UK manufacturing sector had supported the case for a rate reduction. But strong house price growth and consumer borrowing must have raised fears that a cut in interest rates would fuel inflationary pressures. A cut from 4% would have been the first since November 8 2001 ...

  • Intermediary response

    11 Nov 2002

    Mike Waite, director of MortgageQuest, says the problems being faced in this case should not cause any serious delay in finding a decent mortgage Having a utility bill CCJ should not be a major hurdle to securing a half-decent rate. It should not be that large a bill and is surely not as serious as an unpaid bank loan, for example. However, lenders will lump the applicants into defined brackets. For example, a CCJ for £400 could also mean he is allowed to be a ...

  • Is the emphasis moving away from fee-based advice to a purely Lender-based fee?

    11 Nov 2002

    Most companies today, let alone mortgage brokerages, measure their performance via jargon known as KPIs, or key performance indicators, and perhaps the most salient of these in our business is the percentage recovery that each piece of work produces. An industry 'strive' factor here has long been 1% - i.e. if a loan arranged amounts to £300,000 then the broker ideally looks for £3,000 remuneration for his work, income which is usually sourced across three revenue streams ...

  • L&G revamps online IFA centre

    14 Nov 2002

    Legal & General has given its IFA Centre extranet a major facelift to simplify the navigation and make the site far easier to use . Legal & General has introduced a tiered access approach enabling all IFAs to reach a range of general information and product literature when they first visit IFA Centre. Logging on will only be required when IFAs want to access information specific to their clients such as fund values and case tracking as well as undertaking transactions ...

  • L&G warns advisers dangers of regulation

    13 Nov 2002

    Mortgage advisers were yesterday warned that the significant changes facing the industry will strain their businesses or sink them unless they gear up now. Mortgage regulation, general insurance regulation, margin pressures and Sellers Packs are just some of the major upheavals due to impact the housing industry within the next few years. Unless mortgage advisers act now and plan their business strategy accordingly they risk being left in the cold as the new marketplace ...

  • Leeds & Holbeck opens Gibraltar office

    12 Nov 2002

    Leeds & Holbeck Building Society is opening for business in Gibraltar in the mutual's first venture outside the United Kingdom, The Society will initially offer a range of mortgages to Gibraltarians and British ex-patriots. Once the Gibraltar operation is successfully established, L&H plans to expand its business in 2003 to lend in Spain and to take deposits. It is envisaged that the Gibraltar office will provide a platform from which Leeds & Holbeck can expand its ...

  • Lender response

    11 Nov 2002

    Steve Sandiford, head of borrowing at Birmingham Midshires Solutions, says that a BMS product would be the best solution as it takes into account previous arrears This is not an unusual scenario at all. Without doubt the reason John has been refused credit is to do with the CCJs 'acquired' during his time at university.First things first. before settling down to arrange a mortgage, John should be advised to settle any outstanding amounts ...

  • Lenders and packagers fail to meet intermediaries technological needs

    13 Nov 2002

    A surveycompiled by sub-prime specialist mortgages & loans etc reveals that an overwhelming majority of mortgage intermediaries remain unimpressed by the latest IT offerings from lenders and packagers and complain that many systems are not "user friendly". According to the research, conducted among 350 mortgage brokers and IFAs by mortgages & loans etc during October 2002, over 70 pr cent of respondents reported that the on-line services did not enable them to write greater volumes ...

  • Lenders and packagers fail to meet intermediaries' technological needs

    11 Nov 2002

    A survey compiled by sub-prime specialist mortgages & loans etc reveals that an overwhelming majority of mortgage intermediaries remain unimpressed by the latest IT offerings from lenders and packagers and complain that many systems are not user-friendly. According to the research, conducted among 350 mortgage brokers and IFAs by mortgages & loans etc during October 2002, over 70% of respondents reported that the on-line services did not enable them to write greater volumes of ...

  • LIA responds to CP146

    11 Nov 2002

    The Life insurance Association has warned that its ability to comment on CP 146 is "severely hampered" by not having information which will emerge in consultations later in the year on the regulation of general insurance, polarisation and product disclosure. It its response to the FSA, the LIA stresses that consistency between the mortgage, insurance and investment regimes is essential. John Ellis, LIA head of public affairs, says: "This is not just consistency for consistency's ...

  • Loans, wives and the Etridge effect

    11 Nov 2002

    Fact: in the UK, small businesses comprise 95% of all businesses and two-thirds of householders own their own homes. Finance raised by second mortgages on those homes is a significant source of capital for the start-up of small businesses. Here's a typical scenario. A wife is asked to sign a charge over the family home to support her husband's business obligations. She signs the charge without fully understanding the risks involved. The husband's business fails, the lender ...

  • MCCB voices concern over clarity in sales process

    12 Nov 2002

    The Mortgage Code Compliance Board released its response to the FSA's Consultation Paper 146 yesterday, outlining the proposed approach to regulating mortgage sales. Drawing on its regulatory experience, the Mortgage Board has reviewed CP146, highlighting areas which it feels deserve comment. The Mortgage Board's chief concern centres on the proposed introduction of a new level of service, "non advised sales using filtering questions", which it fears could be perceived by ...

  • Members Mortgages agrees new prime deals

    13 Nov 2002

    Members Mortgages - the Deby-based independent mortgage packager and distributor - has agreed the following prime' products with its lender partners. Bristol & West plc 4.69% fixed for five years 95% maximum loan to value with no MIG £299 administration fee No overhanging redemption penalty £99 submission fee, which includes the valuation fee to £250,000 valuation Available to first time buyers Bristol & West plc 4.24% ...

  • My mortgage week - Chris Fleetwood

    11 Nov 2002

    Monday: The day starts at 3am, consulting with number two son (aged 4) re his 'projectile vomiting without hitting the duvet' technique. At my desk by 9, feeling less than fabulous. Visit to Future Mortgages' head of sales, Clive Wilson in Reading to discuss a client's new sourcing system. Having comprehensively fried my super-modernistic laptop on Sunday, my attempts to demonstrate the software are less than impressive as the pensionable substitute computer fails to load pages. ...

  • N&P cruising with tracker mortgage competition

    12 Nov 2002

    Norwich and Peterborough Building Society is offering homebuyers the chance to win a cruise some of the beautiful islands of the Caribbean in a draw to promote tracker mortgages. The lucky winner of the nine-night fly-cruise for two will receive return flights from London to Miami and a seven-night Eastern Caribbean cruise on a Holland America Line ship in an outside twin cabin with private facilities. All meals are included in the prize, as well as the ship's full entertainment ...

  • N&P urges homeowners to grow good habits

    13 Nov 2002

    Norwich and Peterborough Building Society has revealed the results of its latest environmental survey as National Tree Week (20th November - 1st December 2002) approaches. Although three quarters (75%) of all those surveyed see climate change as something to be worried about, compared to 80% who were asked the same question in 2001, 25% still don't see that it will affect them or their homes. ? 48% say "nothing will happen for years yet" ? 28% say the change ...

  • NAMBA publishes response to CP146

    11 Nov 2002

    The National Association of Mortgage Brokers and Advisers has today published its response to the FSA's consultative paper on mortgage advice (CP 146).   NAMBA has formed a strategic alliance with the Association of Independent Financial Advisers to build an effective trade body for mortgage intermediaries. Both organisations are therefore keen to contribute to the development of a regulatory regime which allows mortgage advice and sales to flourish.  Charles ...

  • NAMBA/AIFA plan first public outing at Expo

    11 Nov 2002

    The new association between NAMBA and AIFA will appear in public for the first time at next week's Mortgage Business Expo at London's Olympia, writes Helen McCormick. Members of the National Association of Mortgage Brokers and Advisers steering committee and staff of the Association of Independent Advisers will share a stand at the event. NAMBA chairman Charles Gooding told members in a recent memo: "The strategic alliance is going well. We have had several meetings ...

  • NatWest hits the phones

    11 Nov 2002

    NatWest has launched an intermediary direct telephone application service. The service is currently being used by 60 pre-selected intermediaries throughout the country, enabling brokers to inform the bank of the client's details over the phone and receive an initial decision-in-principle. A fully completed application form is then sent to the client or the broker for signature David Broadhead, head of sales at NatWest, says: "We decided to go with a small number of selected ...

  • New 10-year fixed rate from Leeds & Holbeck

    14 Nov 2002

    Leeds & Holbeck Building Society has launched a new 10-year fixed rate mortgage at 4.95%. The new mortgage is fully portable and available up to 95% of property value. Capital repayments are allowed at up to 10% a year and there are no MIG fees up to 90% of property value. Tony Burdin, head of marketing, says: "Although some people anticipate a further cut in bank base rate, it is increasingly likely that the medium-to long-term trend will be upwards. "With ...

  • New appointment at Best Advice Mortgage Centre

    15 Nov 2002

    Best Advice Mortgage Centre has appointed a new business development manager to help market the Best Advice Mortgage Network, a new service for intermediaries which is due to be launched at the end of this year. Charles Jarrett joins Best Advice from Trigold, the mortgage sourcing company, where he was head of direct sales. Previously, he worked for The Mortgage Business as business development manager. Jarret says: "My role will be to help market the Best Advice Mortgage ...

  • New mortgage scheme for buying in Poland

    11 Nov 2002

    A new mortgage scheme for buying properties in Poland is set to be officially unveiled this week at the Mortgage Business Expo. Independent overseas mortgage specialists Conti Financial Services are the first to offer such a scheme, with Conti arranging lending up to 80% of the value of the property on a par with many of the EU states in which the broker also operates mortgage schemes. Simon Conn, senior partner of Conti Financial Services, says: "Now is a great time ...

  • OFT launch doorstep selling investigation

    13 Nov 2002

    The OFT has launched an investigation into 'doorstep selling' following a super-complaint from the National Association of Citizens Advice Bureaux. A wide range of goods and services are sold in the home - including financial services and mortgages. While this facility is useful for many consumers - and indeed for some it is essential - and many sales are trouble free there have been cases if mis-selling. The law gives consumers certain rights but ...

  • Pack behaviour

    11 Nov 2002

    From Phil Womack I have followed the recent exchanges of views between Mortgages PLC, Birmingham Midshires Solutions and various other industry figures with much interest and feel that the time is now right to air my own opinion and declare my support for the stance taken by Mortgages PLC and, in particular, by Peter Beaumont. I would question some of the statements made and some of the facts quoted by Michael Bolton. Synergy Mortgage Processing is a packaging company with ...

  • Peter Burt to retire from HBOS

    12 Nov 2002

    Peter Burt, HBOS deputy chairman, will retire from the group with effect from 6th January 2003. Burt, 58, has been overseeing the group's integration process. A HBOS spokesman says: "The main elements of that process are now in hand, the senior management team is in place, branch integration is underway in Scotland and all the main IT decisions have been made and are being implemented. Peter has therefore decided that the time is right for him to retire." Peter ...

  • Pink launches fees-assisted mortgage product

    15 Nov 2002

    Pink Home Loans has launched a new exclusive, fees-assisted mortgage product in association with Bristol & West Mortgages. The product is discounted until December 31 2004 and offers an initial pay rate of 4.35%. As a fees-assisted product, there is no valuation or arrangement fee to pay and borrowers are given £300 cashback, which can help with solicitor's costs. David Copland, sales and marketing director, says: "This product is ideal for existing ...

  • Platform end dates extended

    11 Nov 2002

    Non-conforming specialist Platform Home Loans has extended the end dates on its three discounted products by four months. The lender, confirmed as parent company Britannia Building Society's first choice for sub-prime lending over Verso in September, has launched a two-year discount of 1.5% until December 1 2004, an 18-month discount at 1.75% until June 1 2004, and a one year discount of 1.5% until February 1 2004. The discount rates apply across Platform's complete ...

  • Platform Home Loans offers extended discounts

    13 Nov 2002

    Platform Home Loans has now extended the end dates on its three discounted rates by four months. The lender has launched a 2 year discount of 1.5% until 1st December 2004 and an 18 Month discount at 1.75% until 1st June 2004. These products make the range of choice on the non conforming market as broad as that offered by high street lenders. A 1 year discount of 1.5% until 1st February 2004 is also available. The discount rates apply across PHL's complete range of ...

  • Portman launches new core mortgage range

    14 Nov 2002

    Portman is launching a new core mortgage range for borrowers wishing to take advantage of the continued low interest rate environment. The portfolio includes fixed, capped, discount and tracker deals. Highlights include a three-year fixed rate of 4.14% and a five-year fix at 4.79%. Both deals are available up to 95% LTV. In addition to competitive rates, the range also features a number of 'fees free' deals and an easy remortgage service is available on several ...

  • Preferred Mortgages agree bridging-loan partnership

    12 Nov 2002

    Preferred Mortgages has partnered with Cheval Property Finance Plc to offer bridging loans to provide intermediaries with access to interim funding for their clients with minimal formalities. The most common use for bridging finance is to assist people buying property before their present house is sold. Preferred believe this type of funding is much underused and can benefit customers in a variety of circumstances such as during a property refurbishment. The scheme offers ...

  • Regulation could lead to mis-selling

    11 Nov 2002

    The Chartered Insurance Institute has raised concerns that the FSA's plans for mortgage regulation could result in consumer confusion and, at worst, mis-selling. In CP146, the FSA proposes that training and competence in the form of a formal examination is not required for non-advised mortgage sales other than lifetime mortgages, but CII director-general Dr Sandy Scott warns this could distort advice. He says: "If the current recommendations are adopted we believe ...

  • Royal & SunAlliance offers brokered insurance

    14 Nov 2002

    MORE THN, the direct arm of Royal & SunAlliance, is to re-launch its life insurance proposition competitive premiums to include tailored discounts for customers. The new service is to be offered in conjunction with LifeQuote from Direct Life & Pension Services. Direct Life will take responsibility for managing the terms with insurers, and administering customer requirements from initial enquiry through to policy commencement. Quotations for a range of protection products ...

  • Rural communities need affordable homes too, says Rooker

    11 Nov 2002

    Countryside communities need their own version of an urban renaissance to prevent an affordable housing crisis, Housing, Planning and Regeneration Minister Jeff Rooker said last week. Rising house prices and low wages have blighted rural communities in recent years. Migration from the countryside has continued as people - especially the young - have found themselves unable to get onto the property ladder. Speaking at the Rural Affairs Forum, Jeff Rooker said: "I am a ...

  • Self-cert valuable weapon, says BMS

    13 Nov 2002

    Recent speculation has focused on a small minority of brokers abusing self-certification mortgages by overstating the income of their clients, putting the industry's reputation and the client's future at risk. And all for the chance of a quick sale. Cowboy brokers jeopardise the relationship with their client and also with the lender to which they refer business. But by no means is this the norm and it shouldn't put off the majority of mortgage brokers. Self-c

  • Seller's packs and e-conveyancing must work together, says CML

    14 Nov 2002

    The CML has reaffirmed its support for government aims to speed up house-buying following the announcement of a draft Housing Bill in the Queen's Speech. The CML says it is important not to overstate the potential impact of sellers' packs, and to recognise that they are not a panacea. Other initiatives, such as the National Land Information Service and e-conveyancing, are likely to have a greater impact on speeding up house-buying. And these other measures, unlike ...

  • SELLERS' PACKS RECEIVE QUEEN'S SPEECH BOOST

    13 Nov 2002

    The inclusion of the Homes Bill in the Queen's Speech means sellers' packs are set to become a legal part of the home moving process from 2005. Sellers' packs were first touted in 1997. Critics of the sellers' pack concept fear extra costs that could slow down the mortgage market by making home owners more reluctant to move. But supporters claim sellers' packs will shorten the time from offer to exchange of contracts. Mortgage pundits say the ...

  • Skipton acquires health insurance intermediary

    14 Nov 2002

    Skipton Building Society has today acquired a new subsidiary in the shape of an 85% shareholding in the Private Health Partnership (PHP) - an independent healthcare intermediary. PHP was founded in 1988 and operates from its headquarters in Otley, West Yorkshire. It provides advice on a full range of private medical and dental insurance, to both companies and individuals. With employee sickness costing British industry £13 billion per year, Skipton anticipates ...

  • Skipton launches new buy-to-let product

    14 Nov 2002

    Skipton Building Society is launching a new mortgage for borrowers wanting to invest in the property market. The residential buy-to-let mortgage has a discount of 1.30% in the first year, offering an initial rate of 4.4%, flexible features and no compulsory insurance. There is a 0.5% discount off variable rate in year two, before reverting to variable rate in year three. The mortgage is available up to 80% LTV, and offers daily interest alongside overpayment ...

  • Skipton offers discounted buy-to-let

    12 Nov 2002

    Skipton Building Society has launched a new mortgage for borrowers wanting to invest in the property market. The residential buy-to-let mortgage has a discount of 1.30% in the first year, offering an initial rate of 4.40%, with flexible features and no compulsory insurance. The deal reverts to variable rate in year three and is available up to 80% LTV. Flexible features include daily calculation of interest, overpayments and payment holidays, while the products carries ...

  • SLB increases sales team

    11 Nov 2002

    Standard Life Bank is increasing its intermediary sales team in a bid to increase business volumes by 40% in 2003, writes Harriet Williams. The bank's current financial year-ends this week closing a strong 12 months for mortgage lending that will see Standard Life Bank smash its 2002 targets by 130%. Six new account managers are being added to the sales team to capitalise on a robust market and promote new products. Alan Dring, head of sales at SLB, says: ...

  • Stamp Duty proposals blocked

    12 Nov 2002

    A policy devised by the Chancellor for a £1bn cut in stamp duty for some of the most deprived areas in the UK is being blocked by the European Commission. Gordon Brown had pledged to cut stamp duty entirely on all purchases of commercial property and on house purchases up to £150,000 in 2,000 rundown areas across Britain. The move, announced in last November's Pre-Budget Report, was designed to encourage buyers to choose homes in cheaper areas, persuade ...

  • Standard Life staff launch 'Give it Life' Initiative

    13 Nov 2002

    Standard Life group yesterday launched its 'Give it Life' staff fundraising initiative in conjunction with the three charities chosen by Standard Life staff - Breast Cancer Campaign, The Prostate Cancer Charity and the Royal National Institute of the Blind. The 'Give if Life' initiative challenges each and every staff member of Standard Life (and retired members if they want to take up the challenge) to give or raise £25 each, over the next year, for charity, ...

  • Sub-prime packager unveils £3m incentive scheme

    11 Nov 2002

    Sub-prime mortgage packager The Finance Centre is to launch a major incentive scheme to intermediaries worth nearly £3 million over the next five months. TFC will unveil the venture at the Business Expo 2002, which is being held at London's Earl's Court and Olympia exhibition centre. At the event, a total of 8,000 vouchers - worth a minimum of £250 and a maximum of £449 - are to be released to the intermediary community. Every mortgage broker or ...

  • Tenet takes stake in Ayrshire Financial Services

    14 Nov 2002

    Tenet, the UK's largest independently owned IFA group, has acquired a 20% stake in M&E member Ayrshire Financial Services. This is the first of what is likely to be a series of equity investments in IFA firms for Tenet, whose investment programme will be aimed at supporting fast growing and ambitious businesses. Tenet says investment is needed in both monetary and manpower terms to help IFA firms increase their efficiency and meet the challenges brought by regulation. Peter ...

  • The Finance Centre unveils £3m sub-prime incentive scheme

    12 Nov 2002

    Newcastle-based packager The Finance Centre (TFC) is to launch a major incentive scheme to intermediaries worth nearly £3 million over the next five months. The Finance Centre will unveil the venture today at the Business Expo 2002, which is being held at London's Earl's Court and Olympia exhibition centre. A total of 8,000 vouchers - worth a minimum of £250 and a maximum of £449 - are to be released to the intermediary community at the event. Every ...

  • The Mortgage Mole

    11 Nov 2002

    Frying pan to fire? Sniggering and tasteless jokes all round at last Thursday's Broomstick Ball, ably organised by Bristol & West's Deirdre McManus in aid of Cancer Research UK. The auction - which raised £39,500 - was originally due to be hosted by TV scoundrel John Leslie, who inexplicably cancelled the booking last month. Kevin Duffy, managing director of Hamptons International, volunteered to step in as a more respectable compere with judo friend Brian Jacks. ...

  • The non-conformist path to success

    11 Nov 2002

    Mortgages plc Mortgages PLC's head office is in central London (pictured). The mortgage-processing centre is based in Glasgow. There are also regional teams for sales, underwriting and packager training. In total there are more than 100 employees. All post-completion administration and servicing is outsourced. Mortgages PLC is owned by Nikko Principal Investments Limited. Q: How is MPLC structured? A: The board is made up of four executive directors and three non-executives ...

  • The question of non-B2L lettings

    11 Nov 2002

    The syllabuses of the mortgage advice qualifications contain reference to buy-to-let mortgages which have, of course, become a significant feature of the mortgage-lending scene over recent years, with many lenders putting together special packages aimed at this type of borrower. Generally, lenders base the amount that they are willing to lend on the anticipated rental income rather than on a multiple of the borrower's income. Buy-to let mortgages are not covered by the Mortgage Code. However

  • This weeks problem case

    11 Nov 2002

    After graduating from university, John managed to secure a well-paid job as an IT manager on £35,000 a year. He has a deposit of £15,000 for his first house, which is valued at £100,000. However, after being turned down by a high-street lender, John discovered that there was a problem with some CCJs registered against his name. On further investigation he discovered these related to unpaid utility bills during his time in student digs.

  • TMO chooses new mortgage application system

    14 Nov 2002

    The Mortgage Operation has chosen a new mortgage application processing system in the form of SDS MAPS, from SDS Applications. After an extensive search TMO decided upon SDS for its system design, flexibility and user-friendliness of the system. Mark Charlesworth, managing director of TMO, says: "We selected SDS because of their strong track record and depth of expertise in mortgage systems. We found that 'SDS MAPS' was not only the most flexible packaging solution ...

  • TMPC increases distribution network

    15 Nov 2002

    With the opening of a new office in Wales, The Mortgage Placement Company (TMPC) now has a network of four offices throughout the UK supporting financial advisers. Located in Cardiff, the new office has been established to process business from advisers based in Wales thereby providing local knowledge and support from one of the leading correspondent lenders in the UK. Edwin Coughtrie, managing director at TMPC, says: "Wales has a particularly buoyant housing market that ...

  • Training & Competence conference 2002-03

    11 Nov 2002

    This year's annual Taxbriefs Training & Competence conference has been devised to analyse how T&C is working in practice, a year after N2. It is essential that all those responsible for training & competence fully understand the implications of the shortly-to-be-unveiled FSA examination regime. This conference will be one of the earliest opportunities to learn about this direct from the FSA's head of training and competence, industry training and business ethics, Professor ...

  • Two new appointments at Olympian Financial

    15 Nov 2002

    Olympian Financial, one of the UK's largest sub-prime packagers, has made two key appointments as it pushes ahead with its plans for expansion. Gary Ellis has been appointed head of underwriting at Olympian Financial. He joins from sub-prime lender, igroup where he was an underwriter and team leader. Previously, he was an underwriter at Central Trust. Ellis says: "I enjoyed a close relationship with Olympian Financial when I worked at igroup and I am very much looking ...

  • Will Mervyn King have to explain why inflation has undershot the MPC's target?

    11 Nov 2002

    The cebr says that the release of the figures from HBOS implying that UK house prices rose by 5% in October (which the Monetary Policy Committee had at the time of their interest rate decision) helps explain why the MPC didn't cut rates in November. Cebr data (and that from the Land Registry) suggests that the HBOS data is exaggerating the increase in house prices, though the cebr has always made clear that it expected that housing affordability at low interest rates would ...

  • Woolwich 'rebalances' its commercial books

    11 Nov 2002

    The Woolwich has stopped lending to limited companies seeking commercial mortgages in an effort to "rebalance" its buy-to-let lending portfolio. The Barclays-owned lender has stressed the need to balance its investment property-lending portfolio as the explanation for its withdrawal from the market area. Spokesman Perry Jones told Mortgage Strategy: "We have had a change of buy-to-let policy and what we are doing is limiting some of the maximum levels we are prepared ...

  • Woolwich pulls out stops to boost its standards

    11 Nov 2002

    The Woolwich has changed its lending policy in a further attempt to improve service standards. The lender has relaxed requirements for documentary support on all cases above 70% LTV. New applications must be supported by three months' bank statements and a payslip. The Woolwich has also ruled out requirements for references on second properties purchased for buy-to-let, provided intermediaries supply proof of mortgage payments. The changes are effective from ...

  • Yorkshire ready to sign new subsidiary Accord

    11 Nov 2002

    Yorkshire Building Society has named its new subsidiary Accord Mortgages - an intermediary-only channel to be launched in March 2003. Accord is headed by Linda Will, who takes the role of managing director and previously worked on the society's e-commerce capability. Mark Underhill joins as commercial director from Yorkshire's product development team and current intermediary sales manager Rachel Court becomes sales director. David Anderson, chief executive at YBS, ...

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