Mortgage Strategy
12 September 2005

79% Frown on idea of using limited lender panels

12 Sep 2005

A whopping 79% of Mortgage Strategy Online readers last week voted that it is not in the spirit of Financial Services Authority guidelines for brokers to use a panel of just three lenders.Despite both brokers and experts arguing in this weeks' magazine that there is nothing wrong with offering a reduced panel, just 21% of those who responded to our online poll thought it was above board.This week MS asks: "With first-time buyers struggling, is it time for lenders ...

Abbey launches offline mortgage application software

12 Sep 2005

Abbey for Intermediaries is launching an offline version of its mortgage application software.

Affordability issue just won't quit

12 Sep 2005

Affordability refuses to be knocked off the top of the mortgage agenda. At the Mortgage Summit in Jerez, Spain last week, economist John Wriglesworth called on lenders to increase the income multiples they offer borrowers, saying traditional 3x multiples could be raised to 6x with minimal risk to lenders.He says the time has come for lenders to stop being so prudent and relax their criteria on fixed rates. While some lenders are happy to offer higher income multiples on variable ...

At a stroke, you're a financial doctor

12 Sep 2005

Someone in this country has a stroke every four minutes according to a survey by the Stroke Association. Statistics such as this are not meant to scare, but they are a wake-up call about a health issue expanding at an alarming rate. One of the reasons for this increase is the lifestyles we lead, with smoking and excessive drinking affecting our chances of suffering a stroke. It is thought that 40% of strokes could be avoided if people changed their lifestyles.Only one in three stroke ...

Barclays appoint head of mortgages

12 Sep 2005

Mark Parsons has joined Barclays as managing director of home finance.

Base rate freeze is no surprise

12 Sep 2005

The Bank of England's Monetary Policy Committee has voted to keep interest rates on hold at 4.5%. The decision comes after last month's cut of a quarter point , the first in two years.Duncan Pownall, mortgage development manager for Bradford & Bingley, says: "This is no surprise. Given the jump in the inflation rate, rising oil prices and signs of improvement in the retail picture, the MPC is unlikely to have considered any other course of action."

BM Solutions lifetime B2L deals live longer

12 Sep 2005

BM Solutions has today launched a range of buy to let products, including lifetime tracker rates.

Bolton quashes HBOS move speculation

15 Sep 2005

Michael Bolton, managing director of HBOS specialist lending, has branded rumours that he is leaving HBOS as "pure market speculation."

Brokers base their decisions on rates

12 Sep 2005

Pink Home Loans' 1000 Index Survey shows rates drive brokers' decisions when choosing which lenders or packagers to deal with.The online survey was aimed at mortgage intermediaries and questioned 1,000 brokers on industry issues .In stating which areas influence their decisions most when deciding which lender or packager to send a mortgage to, 25.9% of brokers say rate driven products while 21.55% say service.Among other factors cited were criteria driven products, at 14.36%, ...

Brokers guide consumers through the jungle of hype

12 Sep 2005

In recent weeks there's been media criticism of certain banks and societies for reducing their savings rates by more than the Bank of England reduction.If this is a surprise to anybody, it's tempting to ask what planet they've been on for the past 20 years, which is certainly the minimum amount of time these bastions of our society have been behaving in this way. So this news is hardly a revelation, more an affirmation of the norm.Savings and loan providers have traditionally ...

Building regulations to tackle climate change

14 Sep 2005

The Office of the Deputy Prime Minister and the Department Environment Food and Rural Affairs revealed that measures to make buildings more energy efficient will save one million tonnes of carbon per year by 2010.

Buildloan supports self employed with self-cert

12 Sep 2005

BuildLoan, the intermediary arm of self build and renovation specialist BuildStore has launched of a raft of products from The Mortgage Business aimed at people who are self employed.

Call for brokers to learn about equity release

12 Sep 2005

Bridgewater Equity Release is warning that brokers must embrace the home reversion market or customers could lose out.Peter Couch, managing director of Bridgewater, says at the moment only one in 20 people are advised by brokers to take a home reversion plan whereas this figure should be one in five.He puts this down to brokers not being educated about home reversions. Bridgewater is a subsidiary of residential property investor Grainger Trust and manages more than 2,500 home ...

Call to increase income multiples

12 Sep 2005

Economist John Wriglesworth has called on lenders to increase the income multiples they offer customers.Many lenders offer 3x income but Wriglesworth says in a period of strong employment and economic growth, the risk of offering 6x is minimal.Wriglesworth says the time has come for lenders to relax their criteria on fixed rates.He says: "While some lenders are happy to offer higher income multiples on variable rates, many seem reluctant to transfer this to fixed rates.""It ...

Capped sub-prime deal

12 Sep 2005

Kensington has launched a three-year capped rate sub-prime product . It is available across Kensington's standard product range with rates starting as low as 5.60%. Keith Street, director of sales, says: "This is ideal for a market seeing fluctuating interest rates. Customers' payments cannot go higher than the agreed capped rates."

Citizens Advice calls for OFT investigation into PPI

13 Sep 2005

Payment protection insurance is failing many of those who need it most, adding to their debts instead of protecting them against hard times, a report from national charity Citizens Advice has revealed.

Curriculum Vitae - John Nixon

12 Sep 2005

"A lunchtime 40 winks went sour after a good night out"

Dear Delia

12 Sep 2005

Dear Delia I am increasingly being asked by my clients about equity release. I'm aware this subject that needs careful advice but I am confused - since Financial Services Authority regulation last year, what does equity release industry body Safe Home Income Plans offer consumers that is not covered by the FSA? Also, I am aware that not all equity release product providers are members of SHIP - why not?

Do limited lender panels mean limited advice?

12 Sep 2005

Research showing intermediaries do 58% of their business through just three lenders sparked concern in the industry last week.The findings from Charterhouse Research also showed that brokers are placing business through an average of just 11 lenders, which has caused some to question whether intermediaries are offering the best possible advice to their clients.Ray Boulger, senior technical manager at John Charcol, says: "These findings suggest a lot of brokers are not giving as ...

eg's maiden figures show strong start to the year

12 Sep 2005

eg solutions plc, the IT software and services company which joined AIM in June this year, announces interim results for the six months ended July 31 2005.

Exchange and Life Policies Direct integrate services

14 Sep 2005

The Exchange, the leading supplier of portal services to IFAs, has announced the full two-way integration of its market leading quotation and business services into Life Policies Direct's bespoke back office administration system.

FPAG conference promotes best practice

15 Sep 2005

Firms involved in marketing across all forms of media will be coming together at a conference and workshop in early October to launch the Financial Promotions Action Group.

Freedom Lending launches two year discounted self-cert

16 Sep 2005

Freedom Lending is launching a two year discounted self-certification mortgage, which is available up to 90% LTV exclusively via Mortgage Choice.

Friends Provident teams up with Portman

14 Sep 2005

Friends Provident, the financial services group, and Portman has entered into a major distribution agreement.

GMAC-RFC says brokers rate its service highly

12 Sep 2005

GMAC-RFCsays that at a time when other lenders' service seems tobe falling flat, broker feedback reveals that 80% rate its processes above average. When asked to ratethe service levels of GMAC-RFC, 79% of brokers said it provided above average service. Some 28% rated its staff as highly efficient and helpful and when asked to rate its turnaround, 85% said it was good.Jeff Knight, head of marketing services at GMAC-RFC, says: "At a time when others are struggling, we provide first ...

Hamptons forges equity link with KRS

12 Sep 2005

Hamptons International Mortgages has outsourced its equity release business to Key Retirement Solutions.The London brokerage's parent group, estate agency Hamptons International, has some 60,000 people register with it each year. However, of these 20% currently withdraw from the sale or purchase of a property, sometimes because a lifetime mortgage provides a better solution. KRS will now receive all such enquiries.In return, HIM will receive from KRS up to 150 pre-qualified ...

HIP mini-bonanza predicted

12 Sep 2005

Surveyors are predicting a mini-bonanza in the run up to the launch of Home Information Packs for professional landlords and developers.Lexicon Surveyors says that with HIPs set to become mandatory next year, the impact will be to force many sellers to put poorer condition properties onto the market early for a fire sale. Otherwise they could face potentially damning inspection reports and the cost of putting things right.While poorer properties may not attract potential home ...

Housing getting back on track with 1.6% price rise

12 Sep 2005

Latest research from Halifax reveals the housing market to be showing signs of getting back on track with a 1.6% price rise in August.The gain, revealed in Halifax's All Houses, All Buyers Index, follows a 0.4% rise in July. This was the biggest monthly gain since September 2004.However, prices have increased by only 2.1% in the first eight months of this year compared with a 12.5% rise during the same period in 2004.On an annual basis, house prices were 2.5% higher in August, ...

IMLA calls for FSA review of MCOB

16 Sep 2005

Speaking at the Intermediary Mortgage Lenders Associations annual dinner last night, chairman Tim Dawson called on the Financial Services Authority to review the Mortgage Conduct of Business.

Is offering clients just three lenders within the spirit of treating customers fairly?

12 Sep 2005

There is no problem with restricted panels provided the range of products available to brokers is broad and competitive, say our experts

Jeffrey joins The Complete Network

12 Sep 2005

The Complete Network the mortgage network within Complete Mortgage and Loan Services Limited has appointed Jackie Jeffrey to the newly created post of compliance officer training and competence.

Leadgeneration

12 Sep 2005

Mortgage Strategy's monthly guide to the lead generation companies brokers could be doing business with. Justine Tomlinson looks at the options available to intermediaries

Lenders should see the RMAR from a broker's point of view

12 Sep 2005

From Chris French We have just completed our RMAR. While the industry has gone in for navel-gazing and self flagellation over KFIs, little has been written about the completion by brokers and networks of the RMAR and how this process could be assisted by the product providers. A good start would be for lenders to highlight in bold and coloured type all cases that are unregulated (buy-to-let etc.) so they can be ignored when aggregating business for the return. Next, the ...

LMC dismisses rumours of financial difficulties

12 Sep 2005

London Mortgage Company has hit back at rumours it is in financial difficulty, saying it is on target to make profits of 7m this year.Robert Owen, chief executive officer at LMC says he won't comment on speculation the company is for sale but wants to stress it is going from strength to strength.He says: "We are on target to make 7m in profits this year. That is an improvement on last year's figures, and we are hoping this trend will continue into next year."Owen puts these ...

Mansfield lauches two year discounted mortgage

15 Sep 2005

The Mansfield Building Society has launched a mortgage that has no early repayment charge.

Market Watch

12 Sep 2005

Swaps continued to edge lower but all in all it was a pretty slow week for rates changes.One-year money is down 0.03% at 4.46%Two-year money is down 0.01% at 4.39%Three-year money is down 0.01% at 4.39%Five-year money is down 0.03% at 4.40%The Woolwich wins hero of the week for launching its client retention strategy. If we help our clients remain with The Woolwich we will be paid 0.2% or 200, whichever is the higher, ...

Money Partners cuts variable rate

12 Sep 2005

After the recent three-month LIBOR reset, specialist lender Money Partners dropped its variable rate to 4.65% as of September 1.

Mortgage Expo rallies the industry

14 Sep 2005

Mortgage Business Expo, the largest mortgage industry gathering in the UK, will take place on November 16 and 17 this year at Earls Court 2 in London.

Nationwide's Quarterly House Review update

12 Sep 2005

OFT approves estate agents' code of practice

12 Sep 2005

The Ombudsman for Estate Agents has secured Office of Fair Trading approval for its code of practice. The code is designed to ensure consumers get a fair deal when using OEA estate agents. The OEA represents around 40% of estate agency offices. Members can now use the code logo.The OFT only approves codes that are effective in safeguarding consumer interests beyond the requirements of the law. The main benefitsfor consumers dealing with OEA members include access tofree dispute ...

Orchard & Shipman source 1,500 B2L for Edinburgh Council

15 Sep 2005

1,500 buy to let properties will be made available to City of Edinburgh Council through an ambitious private sector leasing scheme that goes live this week.

Paymentcare call to outlaw hardsell

14 Sep 2005

Paymentcare, the specialist payment protection provider, has called for a switch to a US-style payment protection insurance sales system that helps protect vulnerable borrowers from astronomical policy changes.

Post Office Home Insurance warns consumer apathy costs

13 Sep 2005

Research by the Post Office Home Insurance has found that consumer confusion and apathy could be costing the nations homeowners millions of pounds each year, with mortgage lenders cashing in on uncertainty over home insurance.

Prices rose 100% in past five years

12 Sep 2005

Average house prices have risen 100% in the past five years. Hometrack says, had you invested 100,000 in property five years ago, the average return would be 98.9%. Towns showing the largest increases in the past five years are Llandudno, Plymouth and Doncaster, while those with the smallest rise were Guildford, Reading and St Albans.Over a 10-year period, the best-performing areas were Truro, Brighton and Dorchester and the worst were Middlesbrough, Hull and Oldham.Hometrack ...

Pru deal asks questions of clients and advisers

12 Sep 2005

Prudential has finally set the long awaited interest rate for its life-time mortage. The montly rate of 6.45% - annual equivalent 6.64% - sets the standard as the lowest draw- down interest rate available.It is encouraging to see Pru has heeded calls for more competitiveness in the drawdown sector to narrow the cost gap between these schemes and standard fixed rate lifetime mortgages. And it is this that many IFAs and brokers are struggling to analyse effectively.With drawdown, ...

Reporter joins Mortgage Strategy

12 Sep 2005

Rebecca Atkinson has joined Mortgage Strategy as a reporter. Rebecca joins the team from EMR, a promotions and publishing company where she was a journalist on several publications. Rebecca says: "I've already dipped my toe into the mortgage and financial services water during my time at EMR but look forward to taking the plunge with the industry's premier trade magazine." Rebecca can be reached at rebecca.atkinson@ centaur.co.uk.

RICS slam government planing for housing proposal

12 Sep 2005

The Royal Institution of Chartered Surveyors has slammed the Governments proposal on planning for housing provision, as making hot markets even hotter rather than more affordable.

Robert Lo steps down as chairman of Sovereign Reversions

13 Sep 2005

Robert Lo stepped down as chairman of Sovereign Reversions, the finance company specialising in equity release assets, during the companys annual general meeting today.

Saffron Walden Herts & Essex and LMS turn to xit2

15 Sep 2005

Saffron Walden Herts & Essex Building Society has turned to xit2, the experts in outsourced process management, to provide the online system for their panel manger Legal Marketing Services to manage their external valuations.

SASSY is more savvy

14 Sep 2005

The One account has identified a new breed of woman who has as sharp an eye for her finances as she does for her power suits.

Self-cert rates could go even lower

12 Sep 2005

The mortgage industry's long run of success is down in good part to consumer confidence plus highly competitive product offerings. To paraphrase Harold Macmillan, the mortgage customer has never had it so good.The range and depth of product lines on offer are truly staggering. Today, more mortgages are being approved via innovative and competitive product ranges. For example, in less than 10 years, the sub-prime market has become a mature force. It is not seen with suspicion as ...

SFHA urge first minister to scrap R2B Policy

15 Sep 2005

The Scottish Federation of Housing Association has urged the first minister to scrap the current Right to Buy policy.

Smartgard to shakeup MPPI market

15 Sep 2005

Smartgard has launched a mortgage payment protection insurance product which pays intermediaries a substantial 35% in headline commission with annual indemnity rates of 32.5%.

Step change

12 Sep 2005

House prices in Northern Ireland have risen by seven times the UK average in the past year, fuelling concerns about affordability, says Harvey Jones

Sturges takes communications role

12 Sep 2005

SPECIALIST lender Money Partners has appointed Bob Sturges as director of communications. He will report directly to chief executive Colin Sanders.Sturges has oversight of all communications activity at Money Partners. He will also work closely with sales and marketing director Adam Henry to promote the company at high profile industry events.Sturges has been in the consumer finance industry for more than 25 years. During this time he has held a range of management positions ...

Taylor's Tour.....

12 Sep 2005

Henry Taylor's day job is running a mortgage broking business in Eastbourne on the south coast of England, when not taking part in the Seat Cupra Championship

The Mortgage Mole

12 Sep 2005

NEW IMAGE Celebrity stalker and MS hackette Natalie was at it again last week at the London premiere of Pride and Prejudice. Having rushed to Leicester Square after work, Natalie stood for two and a half hours waiting to see her Mr Darcy only to find that, when the great man arrived plumb in the centre of her viewfinder - the batteries in her camera had run out. Distraught, Natalie batted her eyelids at a kindly BBC cameraman standing close by, who offered to cut down ...

TMB cuts rates across many of its products

12 Sep 2005

THE MORTGAGE Business has cut the rates on its fixed, dedicated remortgage and self build products.These include fixed rates at 4.95% until the end of 2008, a remortgage only self-cert rate with no completion fee and 750 cashback, and self build products including a fixed rate and two tracker rate mortgages.The self build rates include a 5.85% fix until the end of 2007 reverting to base rate plus 1.79%, a tracker set at base plus 1.79% for the term with no early repayment charge, ...

Trading places

12 Sep 2005

With the residential sector under pressure, many brokers' thoughts are turning to the complex but rewarding world of commercial mortgages

Unlimited Adverse solutions from Amber

12 Sep 2005

Amber Homeloans Limited has launched a range of Heavy Adverse products with unlimited CCJs and missed mortgage payments accepted.

We should pressure the IFS to provide a better service with its exam materials

12 Sep 2005

From John Rattigan Having just gone through the recent updates to CeMAP issued by the Institute of Financial Services, I am writing to express my frustration. I don't know if it's just me and the updates I have received or whether others in the industry who use CeMAP are having a similar experience. I would genuinely like to know, as this is not a subject that is regularly raised or discussed. The updates are supposed to be a way of ensuring the material contained in the distance ...

Woolwich launch retention procuration fee for brokers

14 Sep 2005

Woolwich has launched its retention range of products to the intermediary market. They are the first major high street lender to do this. From this point on intermediaries will be paid a procuration fee if they feel best advice is for a customer is to stay with their current lender.