Mortgage Strategy
13 January 2003

  • 2003 to see more stability in housing market

    15 Jan 2003

    Surveyors and mortgage brokers are predicting a more stable year for the UK housing market than 2002, with prices due to rise by a modest 7%. Nationwide's house price survey revealed prices nationally rose by 25.3% during the year to the end of 2002. Although this magnitude of increase is unlikely to be repeated during 2003, experts are still predicting that house values this year will increase by several times the rate of inflation. Latest reports from The Halifax ...

  • 51,000 advisers qualify before deadline

    15 Jan 2003

    Almost 51,000 mortgage advisers have now passed their compulsory professional qualification exams, the Mortgage Code Compliance Board reveals. The exams were introduced in May 2001 as part of the Board's fitness and competence requirements to enhance consumer protection and raise industry standards, with a qualification deadline of December 31 2002. Although many advisers left qualification until late in 2002, 31 left it to the last possible moment by qualifying on New Year's ...

  • Adequacy and insurance sales

    13 Jan 2003

    Hot on the heels of CP159 which we touched on last week, the FSA has published Consultation Paper 160 - on the selling of insurance - which is of a similar size at 109 pages. It is an informative read, and while I knew beforehand about the European Union's Insurance Mediation Directive, I am now learning about its E-Commerce Directive and Distance Marketing Directive. I also learn that I have missed out on CP138 (Disclosure of status under the FSMA 2000) and CP150 ...

  • All work and no play for small business bosses

    16 Jan 2003

    Mortgage brokers and IFAs are among small business bosses working too hard to be able to spend time with their friends and family Research by Abbey National business suggests a third of business owners say they have lost touch with friends because of work pressures, with nearly one in ten (8%) admitting they are lonely because of the long hours they work. Now Abbey National business is urging bosses to 'get a life' and avoid burning out from the stress of work and ...

  • Alliance & Leicester joins Mortgage Promotions' lending panel

    17 Jan 2003

    Mortgage Promotions announced today that Alliance & Leicester has joined its direct access lending panel. Nick Baxter, director of Mortgage Promotions, says: "Our main aim has always been to deliver what our members want. A significant number of members have requested access to Alliance & Leicester through our club so that is what we have delivered." Mortgage Promotions members can now receive the following fees when submitting business via Mortgage Promotions to the ...

  • Amber launches adverse mortgage range

    15 Jan 2003

    Amber Homeloans Limited has launched a new range of light, medium and heavy adverse mortgages.The loans enhance both the existing full status and self-certification ranges and offer brokers new fixed rate and LIBOR-linked options.The new range includes four light adverse mortgages with rates from 4.53%, four medium adverse mortgages with rates from 5.03%, and four heavy adverse mortgages with rates from 5.53%.The full status products are suitable ...

  • Bank of England figures show record equity release

    13 Jan 2003

    Mortgage equity withdrawal increased from £10bn between April and June 2002 to £12bn from July to September, Bank of England figures reveal. The latest figures are a record high and show consumers drew down near double the amount of equity compared to the same July to September period in 2001.

  • Bank of Ireland launches new mortgage range

    13 Jan 2003

    Bank of Ireland has today launched a new fees-paid remortgage range with rates starting at 3.59% for a two-year stepped discount. Easyswitch allows remortgage up to 95% for almost any purpose. It covers standard legal remortgaging costs using the lender's solicitor panel, and refunds the lender's usual valuation fee up to £500. There is no arrangement fee. There is a discount in the first year of 2.36%, producing a starting rate of 3.59%. The discount in the ...

  • Barnetts banks £1bn in mortgage transactions

    17 Jan 2003

    Barnetts Solicitors has begun the new year with news that the firm has banked more than £1bn worth of mortgage transactions in the last 12 months. The specialist conveyancing and personal injury law firm enjoyed 110% growth in turnover during the last financial year and increased its staffing levels in 2002 by 84%. Barnetts also plans to launch a recruitment campaign in February, aiming to attract 150 new workers to the practice. Senior partner Richard Barnett ...

  • BMS to ditch proc fees on mainstream products

    13 Jan 2003

    BM Solutions is to stop paying procuration fees on mainstream and ex-patriot products from the beginning of February, writes Harriet Williams. BMS says it has decided to focus on specialist business and sees a time when it will eventually phase prime products out. Martin Reynolds, key account manager at BM Solutions, told Mortgage Strategy: "We specialise in sub-prime, self-cert and buy-to-let so we are effectively moving out of the prime market. The numbers of prime ...

  • Bristol & West launches fixed rate mortgages

    13 Jan 2003

    Bristol & West Mortgages has launched three new products to compliment its core mortgage range. The new mortgages are a 4.49% five-year fixed rate which is available up to 95% LTV with no extended tie in. The second one is a two-year fixed rate mortgage at 3.95%, again with no extended tie-in and up to 95% LTV. Both these products have a £299 arrangement fee, which can be avoided with a two-year fixed rate mortgage at 4.29%. This mortgage offers free ...

  • Broker causes controversy on TV game show

    13 Jan 2003

    A broker with strong opinions made a controversial TV debut last week on Channel 4's latest and nastiest quiz game, Without Prejudice? The new eight-part Tuesday night show, hosted by Liza Tarbuck, features members of the public who must decide which of five contestants walks off with a £50,000 prize. Panellists can quiz contestants about their lifestyles. The show is based on the premise that we make up our minds about people within 15 seconds of seeing them. Dennis ...

  • Buildstore registers 1,000 introducers

    17 Jan 2003

    Self-build and renovations specialist Buildstore has clocked up over 1,000 registered introducers nationwide since launching BuildLoan in January 2002. BuildLoan says the intermediaries who have used its service have been able to offer a proper self-build product and service to their clients for the first time. Buildstore's BuildLoan package includes features such as loans of up to 95% of the cost of the land, and up to 95% of build costs, self-certification for self-employed ...

  • CBI rejects TUC proposals on temporary workers

    17 Jan 2003

    The Confederation of British Industry has rejected proposals submitted by the TUC to extend full employment rights to all types of temporary workers. The TUC raised the proposal in a submission to a government consultation on the legal status of workers and employees, but the CBI says the suggestion to extend full employment rights to temporary workers such as agency staff and casuals is "totally impractical" and would undermine flexible working. Neil Bentley, CBI head ...

  • CEBR predicts slower housing market for 2003

    13 Jan 2003

    A fall in mortgage equity withdrawal will mean the consumer boom runs out of steam in 2003, predicts the Centre for Economic and Business Research. The CEBR forecasts consumer spending growth down to 1.1%, in contrast to 4.1% in 2001 and 3.4% in 2002. Mortgage equity withdrawal rose from 3.8% of consumer spending in 2001 to 5.9% in 2002. For 2003, mortgage equity withdrawal is forecast to fall back to 5.4% of consumer spending. The centre says the UK housing ...

  • CETA launches policy to boost ASU take-up

    14 Jan 2003

    Insurance network CETA has launched a new ASU policy, CETA Safeguard, to increase take-up of ASU cover. Although the government has set a target of having 55% of borrowers purchase an income protection policy by 2004, only a third of borrowers currently have one. Many consumers appear to have been put off by the cost of ASU policies and the 30-90 day exclusion periods which are imposed if a claim is made. Overall, ASU products are not perceived as offering good value for money. CETA ...

  • CFM signs deal with black & white

    13 Jan 2003

    Commercial First Mortgages has signed a distribution agreement with the black & white mortgage company. CFM, launched in October 2002 by former igroup MD David Johnson and Trigold chief executive Martin Finegold, completed its first business in December. CFM has a restricted database of brokers and says it is looking to establish further deals with brokers and packagers deemed capable of offering a high volume of business to the lender. CFM sales director ...

  • Cold calling and freedom

    13 Jan 2003

    From Ken Newton It appears that some industry professionals can't understand why many brokers are upset about the prospect of a ban on cold calling. The issue here is the industry's freedom to source business directly. Anyone familiar with the DMA and TPS rules will realise that the consumer is already protected by legislation. Squealing for yet more red tape with a view to adding restrictions to our own industry is suicidal. Ken Newton By email

  • Commercial property demand to drop

    13 Jan 2003

    The commercial property market is expected to weaken over the next six months in the face of declining business optimism and heightened economic uncertainty. A report by the CBI and property advisers GVA Grimley shows that demand for commercial property will slow to a positive balance of just 5% over the next six months (28% increasing and 23% decreasing), compared to 13% in the last six months. Over the next six months the retail sector is less optimistic than it has ...

  • Co-op expands with two new members

    13 Jan 2003

    Advantage Mortgage Services and Pavillion Securities have joined The Mortgage Distributors Co-operative taking the total membership to nine companies. Between them, MDC members including The Mortgage Operation, Pink Home Loans, ICMG and Genesis Home Loans expect to distribute £7bn worth of completions in 2003. The MDC is not actively recruiting new members but it is open to offers from packagers with large distribution who share an interest in the self-cert, sub-prime ...

  • Estate agents offered seller's pack training courses

    15 Jan 2003

    Estate agents preparing for the proposed introduction of seller's packs are being offered training by SAVA Ltd, the Surveyors and Valuers Accreditation. SAVA has launched a new certificate for estate agents likely to use seller's packs in anticipation of the introduction of new requirements for vendors of residential property. Officially titled Home Information Packs, the packs are likely to become mandatory under legislation expected in the spring and could be ...

  • Ex-NAEA boss joins SAVA board

    13 Jan 2003

    Surveyors and Valuers Accreditation has appointed Hugh Dunsmore-Hardy, former chief executive of the National Association of Estate Agents, as a non-executive director. SAVA has a government contract to disseminate information on the home condition report - a key part of the seller's pack scheduled for launch before 2005. Dunsmore-Hardy has extensive experience of developing and delivering training programmes gained during his time with the NAEA and while working ...

  • First Mortgage Options offers CeMAP training

    16 Jan 2003

    Mortgage brokers who have not yet passed CeMAP are being offered a professional lifeline by specialist packager First Mortgage Options . FMO is rolling out a CeMAP training programme to the broker community on a weekly basis from January 28. The programme of CeMAP 1, 2, 3 and Bridge modules has already catered for the needs of almost 200 intermediaries, with 97% of delegates describing the courses as "excellent". The programme will conclude at the end of April. David ...

  • Genesis make splash with 'Great Lakes' mortgage deals

    17 Jan 2003

    Genesis Home Loans has launched five new products inspired by the 'Great Lakes' of the world. Covering the prime, buy-to-let and self certification markets, the products are funded by lenders including Bristol & West and The Mortgage Business, and are the first to come from Genesis Home Loans' membership of the Mortgage Packagers Co-Operative. Genesis Superior is a prime product with a 2.06% discount until January 31 2005, giving an initial pay rate of 3.89%. ...

  • Get out of the kitchen with your dignity, Mr Lawrence

    13 Jan 2003

    From Mike Cook Regarding Michael W. Lawrence's letter in your last issue, come on Mr Lawrence! Do you honestly believe age and experience has any bearing on why an IFA is not able to pass a mortgage Bridge paper? With the FPC qualification you are already half way there. Many financial advisers are sole traders who advise on mortgages. No doubt all would have been happy with a grandfathering arrangement. A large element of sole trader new business originates from recommendations ...

  • GMAC ties up Platinum deal for packagers

    17 Jan 2003

    GMAC-RFC has launched the 'Platinum Partners' programme, as part of its long-standing commitment to its packager distribution, Companies within the 'Platinum Partners' initiative will benefit from a range of special facilities, including PR, marketing, compliance and regulatory seminars, early notification of product launches, access to onsite underwriters, over-printed personalised marketing material, access to exclusive products, assistance with staff training programmes, ...

  • Grant Thornton joins Lottery winners' advisory panel

    16 Jan 2003

    Business and financial advisers Grant Thornton has been appointed to the Camelot winners' advisory panel. This appointment will involve Grant Thornton's investment and financial planning experts advising Lottery winners on how best to deal with their new-found wealth. Dot Renshaw, head of player services at Camelot, says: "We are delighted that Grant Thornton has joined the panel. We were very keen to ensure that our winners do not have to travel far from home ...

  • Growing building society Leeds from the front

    13 Jan 2003

    Q: How is Leeds & Holbeck structured? A: Leeds & Holbeck Building Society's board consists of two executive directors - chief executive Ian Ward and David Pickersgill, deputy chief executive and finance director - and six non-executive directors. The society's non-executive chairman is Robert Wade. The business operates mainly from its Leeds head office and a nearby telephone-based customer service centre along with its network of 57 high street branches across the ...

  • Halifax appointed to Best Advice Mortgage Network lender panel

    17 Jan 2003

    Members of Best Advice Mortgage Network will now have access to a range of Haliax products following the lender's appointment to Best Advice's panel of lenders. The appointment follows last week's announcement that The Woolwich has joined the Network's panel. Jack Saxton, head of intermediary sales at Halifax, says: "Halifax is pleased to be joining Best Advice Mortgage Network's panel of lenders and looks forward to working closely with the company and ...

  • HFS Loans customers to benefit from OFT ruling

    16 Jan 2003

    HFS Loans Ltd has agreed to fairer terms and conditions in its interest-back loan agreements following action by the OFT. Under the HFS interest-back scheme customers could borrow up to £25,000, with the interest paid refunded after the five year loan period - subject to a maximum refund of £4,000 - provided that the borrower fulfils certain conditions. This month is the fifth anniversary of the launch of the scheme and borrowers are therefore only now becoming eligible ...

  • Home and away

    13 Jan 2003

    There was a collective sharp intake of breath late last year when UK owners of homes overseas were threatened by the Inland Revenue that they may be liable to a new and substantial tax. The change would affect anyone who owns a property through a company, rather than those who hold properties in their own name. The IR indicated that it was minded to treat such properties as a 'benefit in kind' and tax them under UK legislation. The concern about the new property tax arose ...

  • Huntswood Outsourcing appoints senior consultant

    17 Jan 2003

    Compliance outsourcing provider Huntswood Outsourcing Solutions has appointed Richard Pike as senior consultant. In his new role in Huntswood's business development team, Pike will focusing on growing business within the life and pensions market, whilst further developing Huntswood's mortgage proposition. Pike joins Huntswood from Marlborough Stirling, where he held the position of business development manager and previously as consultant working on the firm's mortgage ...

  • Keeping it discreet

    13 Jan 2003

    From Steve Scholes Scottish Life Mortgages has 26 lenders on its panel who provide a vast range of products to meet customers needs both online and offline through its Mortgage Club and packaging facilities. SLM also offers virtual banking facilities such as general insurance and personal loans. We have developed direct download functionality with key lender partners. Online applications can be prepopulated from fact-finds and direct download to our packaging system is on ...

  • L&G launches new exclusives

    13 Jan 2003

    Legal & General's Mortgage Club is launching tow new exclusives - a two-year discount of 2.25% giving an initial pay rate of 3.7% and a two-year fixed rate of 3.79%. At the end of the fixed rate deal the interest rate tracks bank base rate in steps. It is calculated at 0.01% below bank base rate until April 2005, then at 0.2% above base rate until April 2006, and then at 1.5% above bank base rate for the remaining term of the mortgage. Both exclusive mortgages ...

  • Lambeth BS unveils mortgage deals

    16 Jan 2003

    Lambeth Building Society has reduced the rate on its two-year discount mortgage and introduced a new fees-free remortgage product. Lambeth has reduced the interest rate on its two-year discount mortgage from 3.75% to 3.69%. Product features, which remain unchanged, include no extended tie-ins or redemption penalties after the first two years, maximum 95% LTV and an overpayment option. The deal includes a £95 application fee and £200 reservation fee may be ...

  • Landlords' deposits top £250m

    14 Jan 2003

    Landlords' deposits have increased hugely on the back of the boom in buy-to-let properties, though the increase was matched by a higher number of disputes over deductions. These findings are part of a survey of members conducted by the Association of Residential Letting Agents. In the final three months of last year, ARLA member letting agents held over a quarter of a billion pounds (£264.5m) of tenants' money in deposits. These were held against damage and ...

  • Late self-assessment returns could incur fines

    15 Jan 2003

    Mortgage intermediaries and IFAs could be hit by Inland Revenue fines for delayed self-assessment forms. The warning comes from the Institute of Chartered Accountants in England and Wales, which warns taxpayers that delays could result in fines of up to £60 a day. These fines are in addition to the automatic £100 late-filing penalty for missing the January 31 deadline and can apply even in cases where no money is owed. Ian Hayes, chairman of the Institute's ...

  • Leading North-East banker joins Newcastle BS board

    17 Jan 2003

    Newcastle Building Society has further strengthened its board with the appointment of David Holborn as a non-executive director. Holborn, 55, is the area director for Lloyds TSB in the North, which covers the Scottish Borders, Northumberland, Tyneside, Wearside, Teesside, Cumbria, and as far south as Leeds and Bradford. He will bring considerable experience and expertise to the position. Holborn says: "Newcastle Building Society is a strong and growing organisation ...

  • Legal & General launches exclusive discount and fixed rate deals

    14 Jan 2003

    Legal & General's mortgage club is offering two market-leading exclusive loans for cash-conscious borrowers wanting either a discount or a fixed rate for their mortgage. The discounted loan offers a reduction of 2.25% off the standard variable rate for two years, giving an initial pay rate of 3.70% (APR 5.7% variable). At the end of the discounted period the rate reverts to the lender's variable rate. The second exclusive mortgage offers a fixed rate of 3.79% (APR ...

  • Legal & General reduces rate on equity release product

    15 Jan 2003

    The interest rate charged on Legal & General's equity release mortgage has been reduced from 7.30% to 7.19% (APR 7.6%). The rate is fixed for the life of the loan and interest is added to the loan each month with the total being repayable only when the customer dies or moves out of the property permanently. The equity release mortgage carries the SHIP guarantees including no repossession and no negative equity with customers able to remain in their property.

  • LifeStyle Finance appoints call centre boss

    14 Jan 2003

    Sub-prime mortgage broker and packager Lifestyle Finance has appointed Neil Fearneyhough as manager of its new call centre in Liverpool. Fearneyhoughl joins Lifestyle Finance from Vertex, the UK's largest call centre outsourcer, with previous call centre management experience at Littlewoods, Bet Direct and Barclaycard. He reports direct to Lifestyle Finance's directors Mike Worthington, Darren Millington and Ian James. The call centre opens with 18 key workers ...

  • Mortgage Express makes case for financially excluded

    13 Jan 2003

    Mortgage Express says lenders must be flexible enough to adapt to individual need, following this week's news that 21% of the adult UK population is excluded from mainstream credit. Tim Sturley, head of business development at Mortgage Express, says: "We've always been aware that people have individual needs when it comes to finance - they're not all run of the mill. "That's why we've built our reputation on developing products to take care of customers ...

  • Mortgage.Com joins Inter-Alliance network

    13 Jan 2003

    Mortgage.Com has become a subsidiary of Inter-Alliance, providing network IFAs with specialist mortgage processing services. Over 1,400 IFAs in the Inter-Alliance network will have access to a specialist mortgage processing arm, with the addition of Gloucester-based brokerage Mortgage.Com to the Inter-Alliance network. Former Mortgage.Com managing director Stuart Wilson will become Inter-Alliance's director of mortgage distribution. The nationwide proposition ...

  • Mortgages PLC appoints head of compliance

    16 Jan 2003

    Mortgages PLC has appointed Phil Tinsley as head of compliance in a drive to ensure its systems and staff are fully prepared prior to the introduction of regulation in 2004. Tinsley previously worked as a manager in the Financial Services and Regulatory Consulting Group of PricewaterhouseCoopers, where he dealt with the FSA and other bodies including the MCCB, BCSB and GISC. Prior to that he worked in a number of mortgage related positions within Commercial Union and Nationwide ...

  • MPLC tells packagers to 'shape up or ship out'

    13 Jan 2003

    Mortgages PLC has informed one third of its packaging partners that their agency agreement will be terminated by March 18 unless their performance picks up. Pete Thomson, Mortgages PLC's head of sales, says in a letter to packagers: "During the past 12 months, the business we have received from you has not been of a level that warrants the maintenance of a packaging agreement." Julian Wells, head of marketing at MPLC, insists the company is just "rationalising" its ...

  • My mortgage week - Alan Hill

    13 Jan 2003

    Monday: My week starts at 5.45am. Between now and 9am I've got to get my three sons ready for school and fit in a few hours revision before my CeMAP Bridge exam at 10am. (The exam was tough but I'm pleased to say I passed.) At 1.00 pm I am meeting our architects to discuss the new office and at 3.30pm I pick the boys up from school. My wife Debbie (a fellow director at First Mortgage Options) has gone to New York to beat the daylight out of her Visa card and just as I think she will ...

  • National Mortgage Helpline launched

    15 Jan 2003

    Independent mortgage advisers are being sought by a new consumer service launched this week - the National Mortgage Helpline. The new service provides mortgage advisers with leads from individuals in their local area who are looking for professional mortgage advice. The leads are generated through a 24-hour telephone helpline and from National Mortgage Helpline's web site, www.national-mortgage-helpline.co.uk, and are immediately forwarded to the appropriate adviser via email. Mortgag

  • NatWest launches self-cert mortgages

    15 Jan 2003

    NatWest has launched self-certified mortgages in a bid to capture ground in a market area containing 3.2 million self-employed individuals in the UK whose income cannot be as easily verified. NatWest has become one of the first major high street banks to cater for this market and is launching five self-cert products with rates starting from 4.65% and available up to 85% LTV. There are both fixed and discounted options on the products, which will also be available to employed customers. C

  • New equity players

    13 Jan 2003

    Centrica, which trades as British Gas, and Abbey National are among a number of companies planning to enter the booming equity market this year. Centrica will target customers on its massive database, and will launch a roll-up mortgage, where the interest on the loan rolls up until the homeowner dies and the property is sold. Abbey National is to pilot a similar roll-up scheme in Eastbourne and Tunbridge Wells, with a national launch later this year if the pilot is successful. ...

  • No more women in bras please

    13 Jan 2003

    From Carole Colyer-Worsell As a female reader of your publication, I am writing to protest at the inclusion of titillating photos of women, which seem to be a regular feature. I am not interested in seeing other women in their bras. Your publication is supposed to be a serious journal for mortgage practitioners - are you implying that most of your readers are slimy old men who would rather read The Sun? Mortgage brokers have a poor enough reputation as it is. Please ...

  • Norwich Union lowers bonus rates and payouts

    15 Jan 2003

    Norwich Union has announced new regular bonus rates and payouts for with-profits policies for 2003 which are lower than those in 2002. The insurance giant says the decrease is a direct result of the continuing poor stock market environment. The policy provider points out that even with reduced payouts, maturing policies are still providing competitive real returns, with a 25-year endowment returning 10.8% a year after tax (a real return of 6.8% a year) based on the ...

  • One in five UK adults is refused credit

    13 Jan 2003

    One in five of the adult population is systematically refused credit from mainstream lenders, research from Datamonitor reveals. Some 7.8 million people fell within the non-standard bracket at the end of 2002, down from 8.2 million in 1998. Datamonitor attributes the decline to low rates of interest and unemployment, which have seen levels of arrears and repossessions drop by more than half between 1997 and 2002. But Stuart Aitken, director of credit at SPML, ...

  • Planning is the key to good marketing Top tips for a successful campaign

    13 Jan 2003

    Planning a marketing campaign carefully, particularly one involving direct mail, can make the difference between success and failure. Too often intermediaries dive straight into organising the 'creative' for a campaign without thinking about who should be targeted and, most importantly, if the activity is financially viable. There is no single correct way to plan a campaign but there are a number of steps that can prove useful for financial advisers. The first step is to ...

  • Platform Home Loans appoints finance and planning director

    16 Jan 2003

    Non-conforming mortgage lender Platform Home Loans has appointed Andrew Davidson to the new role of finance and planning director. Davidson joins Platform after being at Merrill Lynch Investment Managers for ten years. In his final role there, as director and head of institutional operations, he managed 140 staff and was responsible for the international equity business, ensuring best practice for client service and increasing productivity. Davidson is ACA qualified, ...

  • Policy traders offer endowment winner

    13 Jan 2003

    Investors can now buy traded endowment policies with existing guarantees at least on a par with the gross purchase cost. The Insurance Policy Trading Company says this will help investors make the most of reduced TEP prices. Julian Knopf, spokesman for IPTC, says: "In some cases the total outlay of purchase price plus future premium costs is even less than the guarantees in the sum assured and bonuses already attached to the policy. "With future bonuses to ...

  • Private banks struggling with high street competition

    17 Jan 2003

    Private banks in the UK are facing a bigger threat than ever from high street banks that have adapted best to customer demands in the 21st century financial services market. Research from independent market analysts Datamonitor suggests that high street banks have both the national branch networks to reach rural and ex-London wealth as well as the critical mass to ensure that they can afford to offer online banking to all customers. High street banks also appear to be ...

  • Rock solid service

    13 Jan 2003

    From Gary Booth While it is easy to write about the lack of service by many lenders it is worth a mention a case submitted recently to Northern Rock who provided the following excellent turnaround. Submitted via post on December 18, 2002; property surveyed December 23; faxed copy of survey received at my office December 24 and a faxed copy of the mortgage offer received at my office December 30! Gary Booth Broomheads By email

  • Saving rates fall despite base rate freeze

    15 Jan 2003

    Savings rates have continued to fall despite the Bank of England base rate remaining unchanged since November 2001. Selections of saving accounts on Moneyfacts' website show a cross-section of the best deals available in the savings market. Recent tables show a considerable decrease in the interest received by savers. Cheque and internet-only accounts saw the biggest decrease between rates for January 2002 and current rates, with the top rate down 0.72% and 0.65% ...

  • Scot Provident ad campaign tackles concern over industry's future

    16 Jan 2003

    Scottish Provident has addressed concerns over the future of the protection insurance market in its latest advertising campaign. Recent changes in the insurance market have resulted in much speculation about the future and general condition of the protection insurance market. The 'Turbulent market' advertising campaign aims to reassure intermediaries about the future of the protection insurance market, and to allay any fears they may have about the cost and continued benefit ...

  • SimplyBiz and The Exchange form strategic alliance

    16 Jan 2003

    SimplyBiz and The Exchange have formed a strategic alliance that forms a key part of SimplyBiz's growth plans. SimplyBiz was launched in November 2002 by Ken Davy, founder of the DBS network, to provided support services to small and medium-sized directly regulated IFAs. Since launching SimplyBiz has signed up 50 IFA firms and aims to have 1,000 IFA firms - representing 5% of market share - joining within three years. Under the agreement, The Exchange's Exweb ...

  • Skipton Building Society offers new fixed deals

    14 Jan 2003

    Skipton Building Society has launched two new fixed rate deals for homeowners reviewing their mortgages in 2003. Launched yesterday, the two-year fixed rate mortgage is fixed at 3.99% with a five-year fixed rate available at 4.99%. For a £100,000 mortgage this would mean fixed monthly interest repayments of £333 and £416 respectively. Both deals are to a maximum LTV of 95%, with free MIG up to 90% LTV and free legal fees for remortgages or £250 ...

  • Some comfort for with-profits policy holders

    13 Jan 2003

    Analysis by the Association of British Insurers finds that customers of with-profit policies are getting more returns than many other types of investor. Using information from Standard & Poor's and Money Management, the ABI finds that in August 2002, the worst performing maturing 10-year with-profits policy provided a return of 4.9% while the worst performing unit trusts investment during the same period provided a loss of 13.7%. In August 2002, maturing 10-year ...

  • Sub-prime gets an image makeover

    13 Jan 2003

    The non-standard market continued to decrease in size last year. But as we report on page 4, around 7.8 million adults or one in five of the population remain credit-impaired. Drivers of the non-standard population in 2002 included interest rates and falling arrears and repossessions. Indeed, repossessions after the first six months of 2002 stood at 6,860 compared with 16,980 after the first six months of 1997. Social factors such as absence of a bank account, self-employment, ...

  • Tax questions needn't be so taxing

    13 Jan 2003

    One part of the CeMAP paper one syllabus that gives many students particular difficulty is that relating to taxation. The IFS study manual begins by working through income tax, capital gains tax and inheritance tax before moving on to consider VAT, stamp duty and business taxation. While the coverage of each is broad rather than deep, there is a lot to learn and marks can be lost through simple errors or omissions. The purpose of this article is to highlight some of the more common of ...

  • The Finance Centre appoints new BDMs

    14 Jan 2003

    Sub-prime packager The Finance Centre has appointed two new managers to its business development team TFC is looking to attract specialist mortgage intermediaries throughout London and the South-East to its proposition during the next 12 months and has recruited experienced mortgage professionals Ibi Samuel and Joe Burton to lead the effort. Samuel joins TFC from Network Data, where she held the positions of business development manager and area sales manager, while Burton ...

  • The Mortgage Mole

    13 Jan 2003

    Tri harder The standard cover letter produced by a white-labelled version of Trigold's Prospector software lets down the system's hi-tech image. The cause? That most human of errors, a spelling mistake. One broker tells Mole: "I don't send the automatically-produced cover letter to my clients because it has the exotic word 'consititute' in the first paragraph instead of the more everyday 'constitute'. There are also a few random capital letters and missing full ...

  • This week's problem case

    13 Jan 2003

    Mr and Mrs Fairfax, both retired teachers aged 65 and 66, own a home in the UK valued at £400,000 with no mortgage. Mrs Fairfax has relatives in France so they have bought a property there for £35,000. They plan to refurbish it for £30,000 and use it as a holiday home. The property has out-buildings which they want to renovate for £15,000 and rent out, but they won't have enough income to cover mortgage payments and sustain their current lifestyle. Intermediary ...

  • Thompson denies fraud

    13 Jan 2003

    A former director of Staffordshire Building Society has denied multiple charges of fraud. Andrew Thompson, who earned £102,000 a year as customer services director at the Staffordshire, pleaded not guilty to six charges when he appeared at Wolverhampton Crown Court on Monday, last week. Thompson is charged with two counts of dishonestly obtaining wrongful credit relating to a share account at the building society, and not taking the appropriate steps to ensure that ...

  • Three-quarters of borrowers have never remortgaged

    17 Jan 2003

    A staggering three-quarters of mortgage holders have never remortgaged despite record levels of remortgaging last year. And only 4% who have remortgaged have done so more than once. In a survey commissioned by independent mortgage advisers Charcol, 1,960 borrowers were asked about mortgage debt. The research, conducted by Market Minder in December 2002, found that as many as 8 million homeowners could miss out on potential savings of £8.4bn. The findings come in ...

  • TMB launches new year remortgage deals

    17 Jan 2003

    Self-cert specialist The Mortgage Business has relaunched its remortgage products with a New Year Special. TMB, who also specialises in flexible and buy-to-let mortgages, has designed its New Year Specials to reduce clients' financial outgoings with a £400 cashback. Alternatively, for those wishing to remortgage quickly TMB is also offering its Rapid Remortgage with free legals. Both products are available up to 85% LTV for self-certification and 95% LTV for ...

  • TMG launches PR comeback campaign

    13 Jan 2003

    Truro-based The Mortgage Group has agreed a public relations deal with Axis Media Group in a bid to restore its tarnished reputation. The Mortgage Group is run by Tony Murtagh and was the subject of an undercover investigation by the BBC's Panorama programme in 2001. Murtagh is also a director of Capital Credit, based at the same office address. The programme alleged TMG targets the vulnerable and said 99% of the business went to one lender - igroup. After the broadcast, ...

  • TMO's Resolve mailing sparks terrorist alert

    13 Jan 2003

    Three mortgage brokers from Wales sparked a terrorist scare last week after receiving a mailshot from The Mortgage Operation. TMO's mailing, which contained a sachet of stomach-settler Resolve, was designed to promote secured loans as a cure for Christmas cash hangovers. But Nanette Mantle, a mortgage adviser at Neath-based Celtic Independent Financial Consultants, called the police after ripping the envelope open and spilling the powder over her hands. Mantle ...

  • Two more packagers join Co-operative

    13 Jan 2003

    Advantage Mortgage Services and Pavillion Securities Limited have joined the Mortgage Distributors Co-Operative. Keith Dearling, director of Advantage, says: "We are very pleased to be part of this exciting initiative and the product range on offer compliments our strengths in the market." Tony Hughes, managing director of Pavillion, says: "The Co-Op is a natural fit for our business. It gives us access to exclusive products we may not otherwise have had. This will ...

  • UCB launches cashback mortgage deal

    15 Jan 2003

    UCB Home Loans today launches a new mortgage that provides borrowers with 5% cashback. The product is a five-year tracker based on the Bank of England base rate plus 1.99%, giving it a current interest rate of 5.99%. It is only available for a limited period. UCB, Nationwide's specialist self-certification lender, has made the mortgage available to both first-time buyers and those who have owned a home before, including those who are remortgaging though the deal is ...

  • Virgin One rebrands with £15m ad campaign

    14 Jan 2003

    The Virgin One account is to rebrand as The One account as part of the deal that saw The Royal Bank of Scotland buy the company outright from Virgin and AMP in July 2001. A £15m ad campaign using the classic children's TV show Hector's House is launching The One account on national TV and in national press and targets consumer apathy towards UK banking which some firms estimate costs Britons £80bn every year. The One account has moved its product forward ...

  • Virgin rebrands and launches flexible deal

    13 Jan 2003

    VirginOne has rebranded as The One account and launched a flexible mortgage for sale exclusively through intermediaries, writes Harriet Williams. The Flexible Mortgage option offers a three month discount of 1.75%. This gives a 3.2% introductory rate on loans up to 85% LTV, reverting to a 4.95% variable rate, and a 3.7% rate on loans up to 99% LTV, reverting to a 5.45% rate. Customers can consolidate all their debt into the flexible option, and the product is available ...

  • Which? finds 'lamentable' standards in debt management

    13 Jan 2003

    Debt management companies are guilty of a catalogue of questionable selling practices and routinely flout government standards, a Which? investigation reveals. The Office of Fair Trading produced minimum standards for DMCs in December 2001, but each of the seven DMCs questioned by Which? breached at least one of these standards. Which? says that DMCs are failing to be up-front about their fees. It says: "Overall the standard was lamentable, with information either being ...

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