Mortgage Strategy
12 April 2004

  • £30bn alliance now has 36,000 members

    12 Apr 2004

    Bankhall and Paymentshield now control mortgage lending of more than £30bn and have a combined membership of over 36,000 intermediaries as a result of their strategic alliance. Bankhall also revealed last week that it is to spend a further £10m on developing its IT systems as it works towards eliminating unnecessary paperwork. The organisations last week completed a series of joint nationwide roadshows highlighting the benefits of the alliance between the two ...

  • A popular alternative to a further advance

    12 Apr 2004

    Peter Mounty, head of communications and quality, Cheltenham & Gloucester Remortgaging is a popular alternative to a further advance because consumers are happy to search for a better deal, fuelled by media cajoling and better financial awareness. Also, lenders are keen to use remortgaging as a retention tool as well as to attract new customers. But those considering remortgaging should be mindful of a few things. Firstly, they should think why they are remortgaging. Increasingly ...

  • A view from the floor

    12 Apr 2004

    Britannia members have again strongly endorsed the building society's mutual strategy by voting overwhelmingly in favour of pro-mutual candidates in the annual board elections. More than 284,000 members returned their voting forms - that's 23% of those eligible to vote - even though there were no contentious issues on the ballot paper and no challenge to the board's recommended candidates. Around 95% of those voting supported each of the board's five recommended candidates ...

  • Abbey aims for flexibility

    12 Apr 2004

    Abbey for Intermediaries has extended completion deadlines from three months to six months on all new variable rate tracker business as part of a drive to offer more flexibility to clients and to smooth the process for intermediaries. The deadlines came into effect for applications made by intermediaries from March 15 this year. Intermediaries are also able to offer their clients a buffer of £750 on all Abbey mortgage applications below 90% LTV on all applications. These ...

  • Abbey goes live with integrated outsourcing solution

    16 Apr 2004

    Brown Brothers Harriman has announced that Abbey has gone live with Infomediary, BBH's integrated communications outsourcing solution. Abbey is using the messaging capabilities of Infomediary to overcome the data communication challenges of collecting trade instructions from its many external sub-advisers and feeding them directly into its own internal accounting system. Andrew Tucker, partner and head of Europe at BBH, says: "We are excited that Abbey has chosen ...

  • Abbey launches Reward Mortgage

    15 Apr 2004

    Abbey has launched its Reward Mortgage which gives borrowers regular cashback every two years. The product has a guaranteed lifetime tracker rate of 1.24% above the Bank of England base rate, with no booking fees or early redemption penalties. Reward Mortgage customers will get back 1% of their outstanding mortgage balance every two years, which they can use to reduce the balance and pay the mortgage back earlier, or take as cash. Abbey says this is the only mortgage ...

  • ADMA defends forms claim

    12 Apr 2004

    The Association for Direct Mortgage Authorisation says the Association of Mortgage Intermediaries has demonstrated a lack of understanding of the needs of intermediaries applying for DR status. AMI director Chris Cummings last week criticised ADMA's comments that brokers can complete an FSA application in as little as 90 minutes. ADMA is running workshops until the end of April to help brokers complete the forms accurately and quickly and explain issues surrounding ...

  • Advance Home Loans launches S500 product range

    14 Apr 2004

    Advance Home Loans, the branded lending arm of mortgage packager AdvantageMortgage Services, has launched its S500 product range funded by Southern Pacific Mortgage Limited. Advance already offers exclusive product ranges funded by Platform, GMAC-RFC, Mortgages PLC, First National and now SPML. Advantage believes that the Advance Home Loans product range will offer its brokers the best competitive products in the industry. Due to the success of the Advance Home Loans ...

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

    12 Apr 2004

    Which of the AR or DR options will maximise the time spent with my clients? Chris French is chairman of the Mortgage Marketing Centre About the same because you will still have the same number of clients and the same processes. But the DR option means more time after-hours spent on compliance, doing returns, etc. Richard Griffiths is managing director of Network Data The AR route is the better path to save you from a huge amount of compliance ...

  • Amber sells B2L mortgage assets worth £23m to Newbury

    13 Apr 2004

    Amber Homeloans Limited has sold buy-to-let mortgage assets worth in excess of £23m to Newbury Mortgage Services, a wholly owned subsidiary of Newbury BS. Amber is a lender in the specialist mortgage market. Its management team has gained extensive experience over the last few years in selling and purchasing prime and specialist mortgage portfolios, the value of which is approaching £2bn. This portfolio sale will allow NMS to further develop its mix of lending ...

  • AMI guide to FSA regulation

    12 Apr 2004

    The Association of Mortgage Intermediaries has produced an intermediaryfocussed guide to FSA regulation. The 230-page guide, priced at £55, offers a practical and easy-to-read commentary on the new regime, giving a detailed explanation of the rules, the reasoning behind them and how they impact on the day-to-day business of mortgage advice. AMI and AIFA members qualify for a 10% discount. Almost 5,000 intermediaries have submitted applications for direct ...

  • APS Europe adds Northern Rock to residential panel

    13 Apr 2004

    APS Europe Mortgage Club has appointed Northern Rock to its residential lending panel. Intermediaries will now be able to take advantage of the lender's dedicated telephone mortgage decision service and online facilities, whilst receiving their procuration fee via APS Europe. Northern Rock, whose product portfolio includes the 125% LTV - max 95% secured - together range, also offers standard, flexible, offset and buy-to-let mortgages as well as a rapid remortgage service ...

  • As an industry we are important and we should start acting like it

    12 Apr 2004

    The mortgage industry gathered en masse in London for the CML's annual lunch last week which boasted nearly 1,000 attendees. It was a show of strength and a timely reminder of how important we as an industry are to the public, the economy and therefore politicians. Ruth Kelly, financial secretary to the Treasury, gave the keynote speech. Widely regarded as one of the government's rising stars, it is telling that Kelly has kept what used to be known as 'the City brief' ...

  • Average house price falls in February, says government index

    14 Apr 2004

    The mix-adjusted average house price in February stood at £160,937 - down from £162,559 in January, the government's house price index reveals. The Office of the Deputy Prime Minister reports that UK annual house price inflation in February 2004 was 9.8%, up from 9.7% in January. The index shows that annual house price inflation in London stood at 5.7% in February 2004, up from 5% in January. Apart from England, all the home countries saw a rise in annual ...

  • Bananas Inc launches three-year buy-to-let tracker deal

    14 Apr 2004

    Packager Bananas Inc has launched a three-year buy-to-let tracker deal at base rate plus 0.8%. The deal has a current rate of 4.8% with LTVs available up to 85% with a lending limit of £300,000. Borrowers receive a £650 cashback payment upon completion of themortgage, which is being launched by Bananas Inc with the support of Platform Home Loans. The full-status product is available to the employed, self-employed, purchasers and remortgagors, whilst a clean ...

  • Bankhall and Paymenshield control £30bn worth of lending

    13 Apr 2004

    Bankhall and Paymentshield have revealed that they now control mortgage lending of in excess of £30bn and have a combined membership base of over 36,000 intermediaries as a result of their strategic alliance. Bankhall also announced that it is to spend a further £10m on developing its IT systems as it works towards the elimination of unnecessary paperwork. This was the hard-hitting message delivered to intermediaries by directors of Paymentshield and Bankhall during ...

  • Banking-Insurance Services appoints mortgage adviser

    14 Apr 2004

    Banking-Insurance Services has appointed Richard Marsden as independent mortgage adviser for the DE postal region. Marsden established his partnership in November 2003 and offers in excess of 50 lenders and 7,000 products. The company also have access to the insurers from across the market covering buildings and contents, life cover and ASU and MPPI.

  • Banks should delay Basle compliance, says research

    15 Apr 2004

    UK banks could make substantial savings by delaying compliance with controversial and costly international regulations set out in the final version of the Basle II Accord, research shows. The FSA is allowing UK banks to choose whether they adopt basic or more advanced levels of compliance to Pillar 1 of the regulations when it is implemented in 2007. They can choose between standardised capital allowances for credit risk, broadly similar to those in the old 1988 accord, or capital ...

  • BDS gets positive feedback from roadshows

    14 Apr 2004

    BDS Mortgage Group has reported positive feedback from its recent roadshows, with 58% of delegates indicating their intention to go for direct authorisation. BDS has also announced the four winners of its competition to win tickets to watch the Euro 2004 England vs Croatia at a football evening to be held at Southampton Football Club. A large number of mortgage intermediaries attended the BDS roadshows held at Reigate, Portsmouth, Bournemouth and Reading. One winner ...

  • Berry Birch and Noble launches equity release division

    14 Apr 2004

    Berry Birch and Noble, a subsidiary of Berkeley Berry Birch, is launching a specialist equity release division to help clients release the millions of pounds of equity held in property. The specialist advisers from the division will be able to select appropriate products for clients from the entire range of Safe Home Income Plans approved schemes on offer. Brian Thornley, manager of BBN, says: "The increasing confusion, bordering on distrust, surrounding the equity ...

  • Borrowers take long-term view

    12 Apr 2004

    Over a quarter of mortgage holders say they would opt for a fixed rate of more than five years if they were taking out a loan tomorrow, a survey by the Council of Mortgage Lenders reveals. The CML's annual survey of consumers also shows that just over one in five respondents would prefer an interest rate fixed for five years or less while just over one in 10 would choose a variable rate. Nearly a quarter of those who would pick a fixed rate of more than five years thought it ...

  • Broker team looks to topple Arsenal

    12 Apr 2004

    A Chase de Vere Mortgage Management football team is to play an Arsenal celebrity team to raise money for Shelter, the charity that helps the homeless and people in poor housing. They will be playing for the inaugural Shelter Challenge Trophy, an annual event created by Chase de Vere Mortgage Management. The Arsenal team includes exArsenal players as well as celebrities such as Ronnie O'Sullivan (world snooker champion), Ralf Little (Royle Family), Tony Hadley (Spandau ...

  • Brokers face their deadline of doom

    12 Apr 2004

    For mortgage intermediaries seeking direct authorisation by the FSA the discount period may have come and gone but a far more important deadline now looms large on the horizon. The FSA has, by statute, six months to vet an application so firms not sending their applications in by April 30 this year risk being left out of the market come Mortgage Day. In the past, when regulation has come to a new part of the financial services market there has been a 'grandfathering' ...

  • Brokers warned about financial promotions rules

    15 Apr 2004

    Mortgage brokers have been issued with a wake-up call over potential serious penalties that the FSA could impose on them if they fail to comply with regulations surrounding financial promotions. SQ2 managing director Steve Clawley says marketing and advertising issues should be a serious consideration when advisers are making their regulation decision. He says: "The choice for brokers over who they want to have overall responsibility for all their promotional material ...

  • Buyers knock down prices with tough negotiation

    12 Apr 2004

    Tough negotiation and reduced fees can save buyers as much as £24,750 on the average property price of £163,000, reveals the annual Cost of Moving survey from The Woolwich. Over one-third of house buyers negotiate between 6% and 15% off the asking price. The cost of moving from a £150,000 home to one worth £200,000 has also fallen by £300 from £5,523 to £5,202 in the past year. Andy Gray, head of mortgages at The Woolwich says: "It ...

  • CBI praises Bank of England's gradualist approach

    13 Apr 2004

    The Confederation of British Industry has praised the Bank of England's decision to leave interest rates unchanged. Ian McCafferty, chief economic adviser at the CBI, says: "The manufacturing recovery is fragile, inflation prospects are well under control and the previous two rate rises have not fully fed through. "If the recovery continues as is hoped, the CBI recognises that rates will have to increase over the course of this year. But the Bank of England's gradualist ...

  • CEBR revises GDP growth for 2004

    13 Apr 2004

    The Centre for Economics and Business Research has revised its GDP growth forecast for 2004 from 2.4% to 2.5%. Forecast growth for 2005 has also been revised up, from 2.1% to 2.3%. Beyond 2005, growth is forecast to be stable in the 2.2-2.5% range. But the CEBR says the forecasts show, and this is supported by the new GDP data released on Friday March 26 2004, that the underlying trend for UK economic growth remains sluggish at 2.3% and that the slightly faster growth ...

  • Charlie Bean reappointed to Monetary Policy Committee

    15 Apr 2004

    Charlie Bean, executive director for monetary policy and chief economist at the Bank of England, has been reappointed as a member of the Monetary Policy Committee with effect from June 1 2004. The reappointment is for a further three-year term.

  • Credit card debt hits record high, Datamonitor report reveals

    15 Apr 2004

    Credit card debt has hit a record high, a report from Datamonitor reveals. The report shows that average credit card balances outstanding per adult in the UK rose by 59%, from £719 in 1999 to £1,140 in 2003. Datamonitor argues that any sudden increases in the base rate of interest will put pressure on mortgage repayments and may have a knock-on effect on the ability of some consumers to repay their credit card balances. Credit card balances in the ...

  • Curriculum Vitae - Barry Robson

    12 Apr 2004

    Name: Barry Robson Age: 56 Company: Genesis Home Loans Job Title: Managing director Where do you live? Oundle, Northants Describe your current job: Directing and leading our management team. It is enjoyable but regulation makes this one of the most challenging work environments I have experienced. However, I can see the light at the end of the tunnel. The signing up of appointed representatives ...

  • Dear Dippy

    12 Apr 2004

    Dear Dippy Mr Strummer has been a self-employed IT consultant for just over two years. His accountant has been depreciating new equipment costs so his net profit is low. Mr Strummer earns about £40,000 a year. He wishes to remortgage but wants to raise extra capital for home improvements and computer equipment. His property is valued at £185,000 and the outstanding mortgage is around £120,000. What are his options? Dippy says: This case throws up interesting ...

  • Demanding compensation questions

    12 Apr 2004

    The CeMAP paper one syllabus is divided into three parts and each part is allocated an indicative weighting as follows: • Part (a) Legislation, regulation, enforcement and compliance: 40% • Part (b) Legal, taxation and economic factors: 30% • Part (c) Products, services and providers: 30%. The allocation of the nine units in the IFS' study manual into three sections reflects the above division of the syllabus as can be seen from the contents ...

  • em-homeloans adds to Platform-funded product range

    15 Apr 2004

    Branded lender em-homeloans has announced three additions to its product range funded by Platform. The additions include a minor adverse self-certification product with a maximum LTV of 75%. There is a range of rates available from one to two-year trackers, where the reversion rate is LIBOR plus 2%. There are also two exclusives offering £650 cashback including a buy-to-let three-year tracker at base rate plus 0.80%. This is a self-financing product where no proof ...

  • Enable will provide PII to ARs within published costs

    12 Apr 2004

    From Michael Ward Regarding my contribution to last week's Mortgage Strategy (Network Strategy, page 25) I would like to make it quite clear that Enable Mortgage & Insurance Network will be providing professional indemnity insurance to our appointed representatives within the costs we have already published - unlike some of the others in last week's panel. Enable has therefore effectively already priced PII whereas many others have yet to work out what their costs ...

  • Exclusive: Enterprise appoints Paradigm Consulting

    16 Apr 2004

    Enterprise Homeloans, the exclusive non-conforming mortgage packager for Zurich, has appointed Paradigm Consulting to manage their marketing and PR. Michael Clapper, CEO of Enterprise says: "Enterprise is entering a new phase in the development of its proposition to Zurich's intermediaries and having put the internal processes in place to provide a first class service, we are now turning our attention to the optimum presentation of our service, to all our ...

  • Exclusive: Thomas joins Opus

    16 Apr 2004

    Paul Thomas, who quit as chief operating officer of Mortgages PLC on March 31, is joining the board of Opus Commercial as managing director. Mortgage Strategy exclusively revealed in December last year that Thomas, 48, was leaving the specialist lender. On joining Opus Commercial he is to take responsibility for turning the company's commercial arm into one of the most respected business finance funding organisations in the UK. Opus says his wealth of senior ...

  • Experience in specialist lending pays dividends

    12 Apr 2004

    Bank of Ireland mortgages Bank of Ireland Mortgages entered the market in the early 1980s as Bank America Finance, one of a few specialised lenders. In 1987, acquisition by Bank of Ireland helped to consolidate the firm's market position. It is now a significant subsidiary of Bank of Ireland UK Financial Services. Based in Reading (pictured above) with 250 staff, the company administers over 40,000 mortgage accounts for customers in the UK and Northern Ireland and ...

  • Fewer fraudsters targeting industry

    12 Apr 2004

    The number of fraudsters targeting the mortgage lending industry has sharply declined, the CIFAS UK Identity Fraud Index reveals. The index, which is designed to show which business sectors are being worst hit by fraudsters and organised crime, is based on an average index figure of 100. A figure below 100 indicates that the sector is being targeted by fraudsters on a less-than-average basis. In the mortgage lending sector the index for fraud based on false identity fell ...

  • Former Alexander Hall PR manager joins Kensington Mortgages

    15 Apr 2004

    Laura MacKendrick, former PR manager at Alexander Hall, has been appointed PR and communications manager at Kensington Mortgages. Until recently Financial Dynamics had been managing the PR for Kensington Mortgages but the decision was taken to bring the function inhouseunder MacKendrick's management. Financial Dynamics will continue to support Kensington Group. MacKendrick left Alexander Hall as PR manager at the end of last month after spending just under two months ...

  • FSA must highlight April 30 deadline, says ADMA

    13 Apr 2004

    The Association for Direct Mortgage Authorisation says it is concerned that the FSA's application discount, which was available until the end of March, attracted mortgage applications from only half of the mortgage firms who had applied for packs. It says that there is still some way to go in making sure that brokers who have applied for direct authorisation are aware of the deadline at the end of April. Jason Rogerson, spokesman for ADMA, says: "The FSA must be disappointed ...

  • Getting a taste of manual labour

    12 Apr 2004

    Now that March 31 has passed, the FSA has published figures on numbers applying for authorisation. Of the 3,545 existing FSA authorised firms who registered for variations in their permission, 2,811 application forms were received before the financial incentive deadline. For those of you who have chosen the appointed representative route, your principal - should its application be successful - will receive a 'minded to authorise' letter from the FSA later this month. I expect ...

  • Good outlook whatever the economic climate

    12 Apr 2004

    Caroline Havers, partner, client Relations, Salans solicitors Will the popularity of remortgaging continue if market conditions change? I think so, whether the economic climate remains stable or worsens. If the climate remains benign, with interest rates and unemployment rates low, consumers will want to continue accessing the £2 trillion worth of equity that exists within UK properties. The attractive rates on offer will also make borrowing against equity much more attractive ...

  • Gooding must trade or lose board status

    12 Apr 2004

    Ami chairman Charles Gooding will not be eligible to stand for re-election to the board if he doesn't get his proposed network up and running in time. AMI last week announced that the existing board had drawn up the constituencies and timetable for the elections which will take place over the next 12 weeks. Chris Cummings, director of the intermediary trade body, confirmed last week that all board members have to be practicing intermediaries. But he refused to comment ...

  • Growth outstrips the mainstream

    12 Apr 2004

    Growth in the non-conforming market has overtaken the mainstream sector as one in four UK adults struggle to borrow from mainstream lenders despite the non-standard population being at a historic low, research by Datamonitor reveals. Datamonitor estimates that 9.4 million people of working age in the UK would have been systematically refused credit by mainstream lenders in 2003. This is down by 600,000 on 1999 levels. The research reveals that growth in the non-conforming ...

  • Heritable Bank launches limited tranche of self-cert and buy-to-let deals

    16 Apr 2004

    Heritable Bank, the specialist mortgage lender, is launching a limited tranche of three-year fixed rate funding for self-certification and buy-to-let mortgages. Rates of 5.99% fixed until March 1 2007 are now available for LTVs of up to 75%. A rate of 6.24% is available for LTVs up to 85%. In addition to these, Heritable Bank has slashed early repayment charges on its range of LIBOR-linked rates for buy-to-let investors. Mark Sismey-Durrant, chief executive at Heritable, ...

  • Home finance event will look to the future

    12 Apr 2004

    UKValuation has announced the inaugural session of its 2004 Home Finance Forum Event in association with Mortgage Strategy magazine. The event, which brings together influential mortgage industry players from the lending, legal, surveying, insurance and broking sectors, will be held at Cranfield School of Management on April 23 in Bedfordshire. The day will be facilitated by Dr David Butcher, director of executive development following an opening address from Dr Michael Lea of ...

  • HSBC to pilot Islamic deals scheme with intermediaries

    12 Apr 2004

    HSBC is to pilot a scheme that will allow intermediaries to offer the bank's Shariacompliant Islamic mortgages to borrowers. From April 19 the product will be available to a selected number of intermediaries who have experience and an interest in the niche market. The Sharia-compliant mortgage was launched by HSBC in July 2003. HSBC buys a property and leases it back to the customer over an agreed term, typically 25 years. The customer makes monthly payments consisting ...

  • IMB unveils additions to Liberator range

    13 Apr 2004

    Leicester-based IMB has unveiled three major exclusive additions to its dynamic range of Liberator mortgages to cater for minor adverse, self-certification and buy-to-let clients. The company, one of the leading specialist mortgage packagers in the Midlands, launched its Liberator range in March. All Liberator products are designed to cater for the long-term financial needs of consumers and offer the highest levels of transparency. From today, its intermediary partners ...

  • In brief Policyholders punish board

    12 Apr 2004

    Over 40% of Standard Life policyholiders last week voted against the remuneration packages proposed for its directors after the company told them that demutualising was in the best interests of the company and its members. During the Standard Life annual general meeting last Tuesday policyholders expressed anger and lack of confidence in the directors with 89,091 members (43%) voting against approving their proposed remuneration package. With the value of the company ...

  • Infinity launches 'three for free' campaign

    13 Apr 2004

    Infinity Mortgages has launched a 'three for free' marketing campaign to help brokers capitalise on the busy spring mortgage period. The campaign, which runs up to May 31 2004, enables brokers to submit up to three mortgage applications on which application fees will not be charged. The campaign works on an escalating basis: the first application received by Infinity will require no application fee. When that case progresses to offer, a second application can be ...

  • Intermediaries in last chance saloon, says Amity

    13 Apr 2004

    UK brokers are deluding themselves if they believe they have several months to complete the paperwork necessary to become directly authorised by the FSA on October 31, says Amity Direct. The packager is warning that the real deadline is April 30 and time is running out fast. Julie Hamilton, operations director at Amity Direct, says: "The FSA is recommending that brokers allow six months for applications to be approved. But at this late stage, just 4,000 applications ...

  • Internet Insite

    12 Apr 2004

    After the disappointments of Swansea last week, it seemed time to revisit London, and in particular the City, to see if I could find some sites to rekindle my faith in brokers' abilities to create customer-centred websites. Well, I haven't done too badly. Hamptons International Mortgages may not be impressive but Mortgageland does pretty well, although its site needs some rethinking. Millfield's site is a cut above. Yes, I know it's a big IFA and probably has the budget to ...

  • It's time to kick out the kickbacks

    12 Apr 2004

    Some time ago I was talking to the marketing director of a sub-prime lender that I now know promotes and uses deferred marketing allowances as a tool to build volume via packagers. At the time I didn't have the faintest idea DMAs existed. Call me naïve but due to Optoma's almost exclusively prime positioning we had never been offered additional income of any sort from a lender. As the conversation went on I was informed that sizable sums were available if we agreed ...

  • Lenders face up to the remortgaging paradox

    12 Apr 2004

    Roger Hillier, product development manager at Mortgage Express Last year was the year of the remortgage and the figures speak for themselves. In 2003 industry figures demonstrated that the gross value of remortgaging was £120.8bn - an increase of 50% over the previous year. Remortgaging has undoubtedly become commonplace across the mainstream and specialist sectors but remortgaging in buy-to-let raises specific issues that provide clues to future trends. CML figures show ...

  • Lib Dems condemn increasing income multiples

    15 Apr 2004

    One in 10 borrowers have taken out a mortgage loan worth four times their salary or more, figures released by the Liberal Democrats suggest. Vince Cable MP, Liberal Democrat shadow chancellor, says: "This type of lending by banks and building societies is simply recklessly fuelling the housing boom. Many of those borrowers will find themselves in negative equity when the housing market turns down and interest rates rise. "Gordon Brown must urgently address the failures ...

  • Lib Dems highlight crash worries

    12 Apr 2004

    The Liberal Democrats say that a Treasury Select Committee report on the 2004 Budget showing commentators' concerns over a housing market crash demonstrates the potential threat it poses to the economy. Norman Lamb MP, Liberal Democrat member of the committee, says: "It is clear that many independent commentators differ from the chancellor on the potential threat to our economy from rising interest rates, high house prices and consumer debt. "The deputy governor of ...

  • LMS Home Loans to start branded lending for MPLC

    14 Apr 2004

    LMS Home Loans is to start branded lending for Mortgages PLC. LMS Home Loans already offers branded lending with Platform Home Loans and intends to extend its branded lending activities with further lenders in future. LMS Homeloans director Andy Linnett says: "Unlike some other branded lenders all our branded lending activity will be carried out under the strong brand of LMS Homeloans. We hope this will soon become recognised by our introducers as the top brand for ...

  • London Scottish Mortgages appoints management team

    15 Apr 2004

    London Scottish Mortgages has appointed a management team ahead of its planned relaunch at the Mortgage Business Expo in May. LSM's team will be led by Kevin Cooke as head of secured lending, with Martin Coates assuming responsibility for sales and marketing activity. They replace the previous directors, Mike Rashman and Carl Montlake, who have left the company. Cooke has a strong track record in the secured lending market, having held senior positions at The Halifax, ...

  • M2000 makes HomeLoan its network

    12 Apr 2004

    Mortgage 2000 has taken a controlling stake in HomeLoan Partnership to turn it into its exclusive appointed representative network. The deal will enable existing network members and intermediaries who wish to become ARs access to a range of products, services and support, plus M2000's offerings. M2000 already offers m2i, a compliance service for brokers seeking direct authorisation. HomeLoan Partnership's network will offer sales, sourcing and compliance ...

  • Marketing Brief

    12 Apr 2004

    It's a funny old world. Researching the material I need to write these columns brings me into contact with various departments at lenders - press relations, marketing, intermediary sales, sometimes even their external public relations agencies. Most have agreed straight away to send me the relevant material but there seems to be an increasing proportion who say they're in the throes of revising their intermediary support communications. Pardon me for being an old cynic but could ...

  • Marketing help available online

    12 Apr 2004

    GMAC-RFC has launched an online marketing toolbox to provide marketing support for mortgage intermediaries. The toolbox has been created in response to GMAC-RFC research which revealed that intermediaries wanted tips and guidance on PR and marketing activities. Over 200 mortgage intermediaries and IFAs were interviewed and their feedback revealed that well-designed product literature, advice on advertising or public relations and information regarding regulation would ...

  • Moneyfacts offers advisers e-commerce portal

    12 Apr 2004

    Moneyfacts has expanded its operations with the launch of an e-commerce portal for financial advisers called eMoneyfacts. For the cost of a year's subscription to Moneyfacts magazine, eMoneyfacts combines the features of a printed publication with online services. The Moneyfacts Mortgage Hub will provide a single point of access to lenders. As well as a commission comparison search it gives links to lenders' websites, online applications and downloadable application ...

  • Moneyquest joins threesixty support service

    12 Apr 2004

    Moneyquest has become one of the first mortgage intermediaries to take advantage of threesixty's national support service for mortgage and general insurance brokers. Threesixty offers its own mortgage club with access to non-regulated protection products alongside compliance and technical services. Brokers signing up to the service will also get assistance with their FSA application. Paul Reynolds, operations director of Moneyquest, one of the UK's top 10 mortgage ...

  • Monty Burn announces retirement from broking

    15 Apr 2004

    Mortgage Watchdog chairman Monty Burn has announced his retirement from broking and is to join Mortgage Strategy as a weekly columnist. Burn, a former MCCB compliance officer, says it is time for him to move on and take a less active role. He says: "I have taken Mortgage Watchdog as far as I can on limited resources and the company needs to either form an alliance with a mortgage packager or have an injection of funds. "I am prepared to relinquish ownership ...

  • Mortgage Trading Exchange sees transaction volumes of over £5bn

    14 Apr 2004

    Mortgage Brain and Mortgage 2000 have announced transaction volumes exceeding £5bn per year through the Mortgage Trading Exchange. The companies say that MTE has fast become the favoured route for introducers to electronically submit mortgage applications and AIPs direct to lenders. Mark Lofthouse, chief executive officer at Mortgage Brain, says: "To see so much transacted using MTE in such a short period of time is remarkable, and a credit to mortgage introducers. ...

  • Mortgage Trust appointed to L&G mortgage club panel

    14 Apr 2004

    Mortgage Trust has been appointed to the Legal & General mortgage club panel. The partnership is marked by the launch of a buy-to-let rate, exclusive to Legal & General mortgage club members of 5.39% fixed until June 30 2007. The rental income is calculated on the fixed rate. Mortgage Trust offers up to 85% LTV and full flexibility on the product giving investors the opportunity to save for further property purchases or budget for rental voids and maintenance costs. ...

  • MSN adds eight lenders to panel

    13 Apr 2004

    Mortgage Support Network has added eight lenders to its panel of premier partners, paying some of the highest procuration fees available. The company says that while MSN has already confirmed to its existing members that appointed representatives the ability to access every lender and not a panel. However, it says it will continue to work closely with its premier partners to bring our members the highest procuration fees possible and exclusive deals where available. Peter ...

  • Neal missed an opportunity to explain about networks

    12 Apr 2004

    From Richard Griffiths Referring to Neal Smith's letter (Mortgage Strategy April 5), I have been called many names in my time -usually of one or two short words. But Neal calls me 'perspicacious'. Not only do I not know what this means but I don't even know how to pronounce it. Fortunately it is spelt correctly, and my trusty Funk & Wagnalls dictionary informs me that it means 'clearseeing mentally, penetrating, astute'. I was expecting something ...

  • Network route will not be a soft option

    12 Apr 2004

    Compliance with mortgage regulation will be top of the agenda come Mortgage Day on October 31. Yet amazingly many brokers believe joining a network as an appointed representative is an easy way out. There is a false assumption that if you are directly authorised, the Financial Services Authority will be crawling all over you but this is simply not the case. In fact, networks are likely to be just as rigorous in terms of policing their ARs as it is they who will have the most to ...

  • Newcastle launches offset mortgage for first-time buyers

    14 Apr 2004

    Newcastle has launched a fixed rate offset mortgage at 5.40% specifically to help first-time buyers get on the property ladder. The guaranteed offset product has been designed for first-time buyers whose parents wish to offer financial support by linking a savings deposit to their child's mortgage for five years. The society says the product will enable parents to help their offspring purchase a more expensive property than they would normally qualify for. The parent ...

  • No scope for rate cuts as swaps surge

    12 Apr 2004

    Swap rates show the rough costs to a lender for buying a tranche of money to lend as a fixed rate. They continued their rise this week. • One-year money is up 0.08% to 4.79% • Two-year money is up 0.12% to 4.96% • Three-year money is up 0.13% to 5.05% • Five-year money is up 0.12% to 5.12% Rates have surged over the past month. There is no scope for cuts unless someone wants to start the fiscal year with a lot of new business at a loss. Portman's ...

  • North/South divide to return in 2004, HSBC report suggests

    16 Apr 2004

    Regional growth trends were turned on their head in 2003, a report by HSBC's economists reveals. The report shows that London, which is normally one of the fastest-growing regions, was one of the slowest, while the North-East, the worst performer in the late 1990s, was one of the best, with the strongest growth of both employment and house prices. The HSBC Regional Focus Report 2004 predicts a return of the North/South divide in 2004. However, it expects this will ...

  • Offsetting could slow the rate-chasing trend

    12 Apr 2004

    Jan Errington, group mortgage marketing manager, Abbey for Intermediaries The impact of low interest rates cannot be overlooked when considering the remortgage market. Short-term fixed rates and discounted deals have proved popular as people switch lenders to take advantage of the best deals available. However, the Miles report has called for more attractive long-term offers. The trend towards regular remortgaging has slowed a little in the early months of this year and better ...

  • Online valuations seen as most vital e-business development

    16 Apr 2004

    Four out of five advisers claim online valuations are the most vital e-business development to help their business, research by 1st Software reveals. Following a period of rapid development by providers, portals and online adviser services, the poll revealed a positive picture of growing e-business usage amongst the adviser population. A surprisingly high 40% of firms claimed they not only used online quotations and product literature, but also online valuations and e-submission ...

  • Optoma's online boost

    12 Apr 2004

    Optoma is increasing the proc fee for Abbey online submissions to 0.35%. The company says that this is to support the thousands of brokers who are now unable to claim through the Legal & General mortgage club. Andrew Seymour, chairman and chief executive at Optoma, says: "Brokers should be rewarded for submitting online as they are saving lenders millions of pounds. Optoma has increased the fee to reward the broker but also to show lenders that brokers will embrace ...

  • Packagers warned against isolating themselves from regulated market

    14 Apr 2004

    Bill Warren, network director of The Complete Network, has urged packager firms to make the most of opportunities for business development as FSA regulation approaches. Speaking at the recent IIR Mortgage World conference, Bill Warren warned packager firms of the dangers of isolating themselves from the regulated environment, which could result in business stagnating. He said that statutory regulation is a giant step forward for many packagers, who were not covered ...

  • PInk appoints BDM

    16 Apr 2004

    Pink Home Loans has appointed Lisa Broomfield as business development manager for Scotland and Northern Ireland. Broomfield joins Pink from BM Solutions, where she held the position of business development manager for the same region. Previously, she worked for traded endowment company Beale Dobie and for Legal & General as a business development manager for Scotland.

  • Pink appoints London BDM

    15 Apr 2004

    Pink Home Loans has appointed Chris Fyfe as business development manager for the central and north London region. Fyfe joins Pink from GMAC-RFC, where he held the position of regional sales executive. Before joining GMAC-RFC, Fyfe spent over five years with Mortgage Express in various departments including new business and business development, and was also intermediary sales manager. Ian Merriman, national sales manager at Pink, says: "I am delighted to welcome ...

  • Preferred adds extra 0.25% discount to larger loans

    15 Apr 2004

    Preferred Mortgages has added an extra discount of 0.25% on all loans over £200,000. The extra discount means the total discount is now from 1.75%. The limited offer is available on all core range products until July 1 2005. John Webster, business development director at Preferred, says: "With house prices continuing to increase, larger loans are becoming more common place. This additional discount is designed to give our customers extra help in the first year of ...

  • Preparing to enter the FSA's web What brokers will have to reveal

    12 Apr 2004

    Information to be sent electronically to the FSA regarding: • Changes to standing data • Balance sheet • Profit and loss (including commission data) • Regulatory capital • Client money • Professional indemnity insurance • Compliance with threshold conditions • Training and competence • Conduct of business issues • Product sales not reported by provider • Complaints • Large exposures ...

  • Property bond launched

    12 Apr 2004

    Newcastle has developed a three-year building society account in which return is linked to the performance of the Halifax house price index. This short-term property bond offers a return based on 75% of any rises in the Halifax house price index over the next three years and has a full capital guarantee. Research from the society's branches showed a demand for shorter term products. Capital is guaranteed if the price index should fall as investors will still receive ...

  • Property websites merge to create premier portal

    14 Apr 2004

    Propertyfinder and pureproperty.com are merging to create the single portal www.propertyfinder.com for areas with large stocks of mid to high end properties. The portal brings together properties for sale and rent from leading estate agents including Anscombe & Ringland; Chancellors; Foxtons; Hamptons; John D Wood & Co; Kinleigh Folkard & Hayward and Winkworth. The Propertyfinder website will be relaunched with a new image and will have a total of nearly 65,000 properties ...

  • RAMP launches exclusives

    12 Apr 2004

    The Regulatory Alliance of Mortgage Packagers has launched its first range of exclusive products - a cashback buy-to-let tracker, a cashback self-cert tracker and a non-conforming minor adverse self-cert product. The mortgages, funded by Platform, are only available through RAMP members and the alliance believes that the three deals are among the best currently available to intermediaries. John Rice, managing director at RAMP, says: "The significant position that we have ...

  • Rate hold decision a close shave, predicts Charcol

    13 Apr 2004

    Charcol has predicted that the Bank of England's decision to hold base rates at 4% was probably a close shave. Senior technical adviser Ray Boulger says that with a mixture of both positive and negative economic news emerging over the last month, it must have been a difficult decision to make. He says: "The MPC probably feel they are between a rock and a hard place, with the housing market showing renewed strength and consumer spending still buoyant, but other ...

  • rate rise in May inevitable, says Clear Cut

    13 Apr 2004

    Clear Cut Mortgages says while the Bank of England's decision to rates is good for borrowers, it now means a rate rise in May is almost inevitable. It says that the Bank has avoided exerting too much pressure on borrowers. A quarter point rise would have left households ££70 worse off than they were in November when the Bank started raising rates, and that would have been a substantial hit on the borrower's pocket. But Ben Thompson, director of Clear ...

  • Remortgages to double over next three months, predicts Amity

    13 Apr 2004

    Remortgage applications are set to double over the next three months as home owners use equity release to fund a boom in home improvements, says Amity Direct. The company says high house prices are forcing homeowners to stay in their current properties and remortgage for home improvements instead. Data from Amity Direct's four processing centres throughout Britain show that 53% of the mortgage applications they process are equity release remortgages intended for extensions, ...

  • Remortgages reborn

    12 Apr 2004

    Easter and spring are times of the year traditionally linked with fresh beginnings - out with the old and in with the new. But this year people won't just be decluttering their houses - they will also be dusting down their finances and looking around for better mortgage deals. Remortgaging remains a buoyant market with figures from the Council of Mortgage Lenders showing that remortgaging cases accounted for just over 40% of total lending in February. And brokers unanimously ...

  • Rental yields rise in April, Paragon index reveals

    15 Apr 2004

    Rental yields rose from 7.12% in March to 7.22% in April - reversing the downward drift seen over the past 6 months, Paragon's April buy-to-let index reveals. Paragon says the rise in yields occurred on the back of significantly higher rents achieved by landlords, which rose by 6.0% to £9,651 - a higher percentage than the growth in property values, which were up 4.5% this month. John Heron, managing director of Paragon Mortgages, says: "With demand for rented ...

  • RICS says no to regulation

    13 Apr 2004

    The Royal Institute of Chartered Surveryors says it is vehemently opposed to plans to regulate the general insurance market and wants the FSA's tanks off its lawn. It says that further regulation of general insurance activity within property and construction would be, unnecessary, bad for business, expensive, anti-competitive and counter productive In a letter to chancellor Gordon Brown, leading quantity surveryor Frank Gainsbury explains how such a move would adversely ...

  • Scottish students first to study Financial Planning Certificate

    14 Apr 2004

    Students at Edinburgh University School of Law are the first students in the UK to have studied the Financial Planning Certificate 1 as part of the financial services module of their Legal Diploma. A total of 116 students sat the exam at the end of last year and 113 passed with an average pass rate of 97.4%, considerably higher than the UK average of 62.2% Using ed. LEARN, students were able to log on and work through the course at their own pace. Elaine Tyre, ...

  • Serving more savvy and price-sensitive clients

    12 Apr 2004

    Gary Lacey, group product manager, Norwich and Peterborough For well over a year the remortgage market has been extremely strong. Despite the recent drop in remortgaging the outlook for the market remains good as the likelihood of higher interest rates prompts borrowers to look for better deals. It is envisaged that Bank base rate could increase to between 4.50% and 5.0% by the end of the year and, if mortgagors on variable rate products experience increased monthly payments it ...

  • Skills Council proposals need a rethink

    12 Apr 2004

    An open letter to the Skills Council from John Ellis The LIA welcomes the opportunity to comment on the proposals on modular exams set out in your March 17 letter. Qualifications and appropriate exams The concept appears to be emerging in section eight of the consultation paper that the exams (FPC etc.) currently listed as approved by the FSA will be broken down into modular steps which have their own independent status. So effectively we have moved not ...

  • The Exchange revamps Exweb portal

    15 Apr 2004

    The Exchange has revamped its Exweb portal to align it more closely with the business requirements of IFAs. The new look and feel is based on feedback from IFAs. The Exchange says it is now more closely aligned with IFA requirements to research, quote and buy financial products electronically. The redesign of Exweb also includes a section called the Research Centre, which provides intermediaries with a single access point to a suite of research services. Additional ...

  • The Exchange to launch Special Risk Centre

    13 Apr 2004

    The Exchange is to launch a Special Risks Centre on Exweb which will enable fast and efficient processing of non-standard life and protection cases. The key benefits of the service are expected to include making non-standard terms more competitive and accessible as well as reducing costs for both intermediaries and product providers. Research by The Exchange shows that 62% of intermediaries can identify clients as being non-standard risk at pre-quotation stage. The ...

  • The Mortgage Mole

    12 Apr 2004

    Fight night The Council of Mortgage Lenders' annual lunch (AKA biggest industry knees-up of the year) once again saw Mole plumb the depths of depravity. And as for Thickett? Well, let's just say that Strategy's finest got into a spot of bother at the after-hours unofficial party down at The Archery. Our man was trying to extract info from a broker when he was viciously attacked by the interviewee. "I told him I was from the press and the next moment he was ...

  • Threesixty panel access via Trigold

    12 Apr 2004

    Threesixty is offering clients access to its mortgage panel through Trigold's Prospector sourcing tool. The company is also offering full compliance monitoring to over 500 IFAs and mortgage brokers via the Trigold Compliance Shield system. Phil Young, partner at threesixty, says: "With regulation looming we felt compelled to evaluate the mortgage sourcing systems to assess which would offer the resources and tools required to satisfy the FSA regulations. "Trigold ...

  • UK singles feel they are financially penalised

    12 Apr 2004

    Over a third of singletons believe they're penalised financially, research from cahoot has revealed. Monthly outgoings for a single person can be as high as those for a couple who have the advantage of sharing household bills. A single person only benefits from slightly lower food bills and a 25% discount on Council Tax. Singletons in the 35-54 year old age group are more convinced than the younger generation that they're getting a financial raw deal. Over ...

  • UK trade figures confirm imbalanced economy, says Lib Dems

    13 Apr 2004

    The Liberal Democrats say recently published trade figures show the UK economy is heading for another record deficit. Malcolm Bruce MP, Liberal Democrat trade and industry spokesperson, says: "While house prices and consumer spending are booming, manufacturers and exporters are still facing a tough time. The government cannot simply rely on the Bank of England to resolve this fundamental imbalance."

  • Unspoken fears about Fannie's well-being

    12 Apr 2004

    Here's a pop quiz for European financial institutions that own stock in US mortgage giant Fannie Mae: How much has the company's share price appreciated over the past three years? If you answered zero go to the head of the class. Yes, investors in Fannie Mae stock are not a happy bunch. Fannie's share price has gone nowhere the past three years and chances are it will go nowhere in the future. Why? Two reasons. The first is politics, or what some analysts in the mortgage ...

  • Welsh counties shoot to top of house price rise list, says Halifax

    13 Apr 2004

    In the Halifax's 2003/2004 county house price league, two Welsh counties have come out on top in terms of the biggest house price rises over the past 12 month. Gwynedd saw a 57% rise and West Glamorgan saw a 56% rise. All of the 10 counties with the biggest price gains during the last 12 months are all outside southern England. Four are in Wales - Gwynedd, West Glamorgan, Mid-Glamorgan and Dyfed - three in the North - County Durham, Cumbria and Cleveland - two in Scotland ...

  • Will other mutuals follow Standard Life?

    12 Apr 2004

    Europe's largest mutual insurer Standard Life announced its proposal to demutualise earlier this month. The proposal will be put to its two million members at the annual general meeting in 2006. The insurer, currently in the middle of a business review, has also announced it is to cut 1,000 jobs by the end of 2004 to keep a lid on costs. Group chief executive Sandy Crombie says Standard Life is currently assessing the requirements for demutualisation. So, ...

  • Will the cost of PII increase dramatically For mortgage brokers After regulation?

    12 Apr 2004

    Paul Smee is director-general of AIFA As you can imagine, PII is a subject that has taken up a disturbing amount of my time in the IFA market over the past couple of years. Negotiations in Brussels; negotiations with the FSA over the financial trade-offs, what if PII cover was not available; negotiations with the PII market about its attitude toward IFA business. To paraphrase Mary Tudor: "When I die [and it is not my intention for this to happen just yet but others ...

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