Mortgage Strategy
15 April 2002
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Abbey National Insurance offers three months' free MPPI
15 Apr 2002
Abbey National-registered intermediaries can now offer their customers three months' free mortgage payment protection cover from Abbey National Insurance. The offer is available on applications made between 1 April and 30 June 2002, providing the policy starts before 31 December 2002. Paymentcare, Abbey National's MPPI policy, is available for accident, sickness or involuntary unemployment. Paymentcare is available to everyone working at least 16 hours per week, ...
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Abbey offers savings review
16 Apr 2002
Abbey National is writing to more than eight million customers to offer them a free review of their savings accounts. With their annual investment statement (AIS), Abbey National customers will receive a leaflet outlining the range of savings accounts available. The leaflet allows customers to review the features and benefits of all the accounts in the savings range, so that they can check whether they are in the right account to meet their needs. The leaflet covers different ...
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Abbey/IFonline launch integrated system
15 Apr 2002
Abbey National and IFonline are putting the finishing touches to an integrated scoring system that takes Trigold users direct to Abbey's intranet. The new system will be launched later this month and eliminates the need for brokers to input the same data twice at sourcing and application stages. Application details completed on Trigold are used to generate agreements-in-principle on the Abbey intranet, which already returns a majority of decisions in less than 60 seconds. Neville ...
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Action to tackle housing abandonment
15 Apr 2002
Steps to rejuvenate rundown housing areas have been announced by Stephen Byers, secretary of state for transport, local government and the regions. The DTLR has selected nine areas, full of boarded up and abandoned homes, which will work with the department to establish pathfinder projects. Stephen Byers says: "Derelict homes don't just scar the landscape. They make life intolerable for those still living there. Those who can, leave, those left are often trapped in ...
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Alliance & Leicester offers a free guide to moving your current account
15 Apr 2002
Alliance & Leicester has produced a guide to switching your current account. The factsheet detailing all the procedures involved in the transfer process and is available free by calling 0800 412 214 . Ewan Edwards, head of current accounts at Alliance & Leicester, says: "People are waking up to the fact that they no longer have to put up withthe poor service and bad deals offered by many current accounts. There isnow much more choice for customers - so shopping around ...
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Are you experienced? It's not enough
15 Apr 2002
It is clear from figures issued by the Mortgage Board and the examining bodies that, while some mortgage advisers have obtained their mortgage advice qualification and many have registered for the exams, a number have not yet registered at all and others have yet to pass one or more of the exams. Research by Network Data carried out for Mortgage Strategy shows that exam results in some syllabus areas, including property law, are 'disastrously low'. To quote MCCB spokesman Brad ...
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BMS points out first time pitfalls
17 Apr 2002
With the rise in house prices set to continue, Birmingham Midshires has offered first-time buyers some advice on getting their first mortgage. The first step for first-timers is to work out how much they can afford in monthly mortgage repayments. They also need to budget for other costs such as solicitor's fees, stamp duty, removal costs, mortgage fees and insurance cover for the new home. Borrowers aiming to get on the property ladder are advised to research the ...
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Brokers question stamp duty avoidance
19 Apr 2002
Mortgage broker Charcol has warned that the Budget's full implications for stamp duty and inheritance tax are unclear. Ray Boulger, senior technical manager of Charcol, says: "[With regard to] issues that will affect the personal financial arrangements of UK property owners, particularly with regards to stamp duty, capital gains tax, insurance premium tax and inheritance tax, it's perhaps more interesting to note what the Chancellor failed to announce in his speech this ...
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Brown's Budget for 2002
18 Apr 2002
Chancellor Gordon Brown has made concessions to stamp duty, inheritance tax and capital gains tax in a Budget that saw New Labour return to its public spending roots. Addressing the House of Commons at 3:31pm. Brown increased national insurance contributions by 1% on all earnings above £4,615 and froze personal tax allowances to pay for a hike in public spending, from £390 billion in the current year to £444 billion for the year 2005-06. This will help to fund ...
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BSA communicator joins Skipton
16 Apr 2002
Skipton Building Society has appointed a new head of corporate communications, Jennifer Holloway, who moves from the Building Societies Association (BSA). Jennifer comes to Skipton with experience of both the building societies sector and public relations. She has worked in communications for 13 years, starting in the utility sector as PR manager for Mid Kent Water. She then progressed to the healthcare field to promote a market research company within the pharmaceutical industry. Remain
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Budget does little to close "savings gap"
19 Apr 2002
Despite concerns about the "savings gap", the Budget has brought no incentives for investing, according to IFA RJ Temple. Liz Walkington, communications manager at RJ Temple, says: "The government has identified a £27bn gap in people's savings for the future, but the Chancellor has not come up with any specific measures to encourage investment. Instead, we will have higher taxation from next year - from both the freezing of personal allowances and the extra 1% on National ...
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Business offset available through insurance network
18 Apr 2002
The Bank of Scotland's offset mortgage for small businesses is now available at preferential rates to members of CETA, the UK's largest general insurance network. The offset mortgage product, Business MortgageSaver, is the first of its kind, and is ideal for businesses looking to reduce the costs of owning a commercial or investment property. The offset consists of a competitive commercial mortgage and a dedicated current account. While each is operated ...
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Capitialisation changes could create problems
15 Apr 2002
The mortgage industry has urged the government to allow common sense to limit proposals to reissue disclosure on every capitalisation of arrears. In its consultation on mortgage regulation, the Treasury includes capitalisation as one "variation to the terms of a regulated mortgage contract which would lead to a change in the obligations of the borrower". But Tim Fletcher, sales and marketing director of Home Loan Management Limited, argues that such disclosure is unnecessary and ...
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CEBR publishes Housing Futures report
15 Apr 2002
The Centre for Economics and Business Research has announced the publication of the Housing Futures 2012 report. Housing Futures 2012 is an assessment of how the housing market will change over the coming decade, conducted by independent forecasters. Helena Carless. marketing executive at the CEBR, says: "Based on sophisticated computer models and a sound understanding of the industry, the report includes fully quantified forecasts up to 2012 of house prices, rental ...
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CEBR sees extra stamp duty ahead
16 Apr 2002
The Centre for Economics and Business Research expects chancellor Gordon Brown to use tomorrow's Budget to raise stamp duty on properties over £250,000, although it predicts he will leave capital gains tax relief alone. Stamp duty has already been raised several times by Brown, ostensibly to cool down the housing market. It now stands at four percent for properties worth more than £500,000 and three percent for those valued over £250,000. Raising ...
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CeMAP goes fully electronic
19 Apr 2002
All Institute of Financial Services CeMAP papers are now available for electronic testing ahead of the the MCCB's December qualification deadline. Electronic testing for CeMAP papers 1 and 2 was introduced 18 months ago via the Prometric Thomson Learning network. At the same time work began to convert Paper 3 and CeMAP Bridge into an objective testing format that maintained the "rigor, quality and validity" of the examining process. Both papers are now available to all advisers ...
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Charcol launch 1.95% discount
17 Apr 2002
Charcol has launched a 1.95% discount until 31 Jully 2004, at a current payable rate of 3.8%. The deal includes free valuation, free legals on remortgages, penalties only during discount period and is available to 95%. Ray Boulger, senior technical manager at Charcol, says: "With the cheapest two-year fixed rate without trailer penalties being priced at 4.79%, this two-year discount offers an initial saving of 1% compared with the lowest fixed rate. "Some borrowers ...
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Citizens Advice Bureaux back 'Stop Shark Practices' campaign
15 Apr 2002
The National Association of Citizens Advice Bureaux has given its backing to the 'Stop Shark Practices' campaign for fairer trading launched by the National Consumer Council. NACAB Chief Executive David Harker declared his support when he spoke at the campaign launch at the House of Commons - on the same day MPs debated the second reading of the new Enterprise Bill. He says: "The Enterprise Bill could do much to boost consumer confidence and improve fair trading, ...
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CML wants packagers excluded
15 Apr 2002
The Council of Mortgage Lenders plans to ask the Treasury to exclude packagers from mortgage regulation. In a draft response to the Treasury's consultation document on mortgage regulation, seen by Mortgage Strategy, the CML says it would be inappropriate to include packagers "who never deal direct with the prospective consumer to influence the product choice that is made". Although the CML says it is supportive of "new provision being made to bring the activities of 'arranging' ...
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Confidence high as public turn to brokers
16 Apr 2002
The latest Paragon Mortgages Financial Adviser Confidence Tracking (FACT) Index shows confidence among financial advisers running exceptionally high as the public increasingly turns to mortgage professionals for advice. The Index for the first quarter of 2002 stands at 121.7 against the 1997 record of 123.9. The Index reached its all-time low of just 99.0 in the first quarter of 2000, but had recovered to 120.3 in the final quarter of last year. The FACT Index ...
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Construction minister praises prefab homes
16 Apr 2002
Energy and construction minister Brian Wilson has backed a campaign to see increase the use of prefabrication in the construction industry. Visiting Torwood Timber Frames, in Ipswich, Wilson said: "Prefabricated components can help to improve the quality of the finished building and open the door to further innovations in product manufacture to improve energy efficiency. Torwood provides an effective demonstration of the government's desire to increase the use of off-site ...
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Death of a salesman
15 Apr 2002
We are a small firm of brokers who have specialised in current account mortgages since their introduction eight years ago. Two of us do the selling, one lady the office admin and two ladies work from home canvassing. We will be out of work after next Christmas. I am 64 and my fellow consultant 60. We know as much as anybody in the UK on how current account mortgages work. It's all we do. We both took CeMAP paper 1 last week and failed dismally. Why do I need to have ...
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Ecology mortgages for eco-friendly schemes
18 Apr 2002
The Ecology Building Society is offering mortgage finance for environmentally-friendly renovations, conversions and self-build with natural or recycled materials. The Ecology only lends on properties or projects that minimise the environmental impact of housing, or which help promote sustainable communities and lifestyles. The building society claims that it can help in many cases that would be rejected by more conventional lenders. Among the housing projects the Ecology ...
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Eddie George warns of possible interest rate hike
15 Apr 2002
The governor of the Bank of England last week announced that the future of the economy looks bright, but that a rise in interest rates could not be ruled out. Sir Eddie George was speaking at The Royal Society for the Encouragement of Arts, Manufactures and Commerce in Birmingham last Thursday. He says: "Since 1992, in this country, the explicit objective of monetary policy has been to achieve stability defined in terms of a target for retail price inflation. 'Stability ...
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Estate agency signs up to mortgage broker franchise
17 Apr 2002
Mortgage Talk, the largest independent mortgage broker in the north within the Legal & General network, has recruited a prominent estate agent to its growing band of mortgage services franchisees. Originally established in 1854, Sandersons Estate Agents now boasts five separate offices serving North Yorkshire and County Durham. Led by directors Gordon Catterick, Stephen McOwan and Tony Lewis, Sandersons has joined Mortgage Talk's recently launched franchised mortgage services ...
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Fitzgerald sets up MPPI salesforce
15 Apr 2002
Mike Fitzgerald, former mortgage manager at mutual insurer Royal London - which owns Scottish Life and United Friendly & Refuge - is setting up a salesforce to promote unregulated mortgage protection products. Fitzgerald, now sales director at Brentwood-based IFA Brentchase Financial Services, has so far recruited 10 staff around London to sell mortgage payment protection insurance (MPPI), term assurance, critical illness and disability cover and other unregulated products. Fitzgerald ...
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FSA bans rogue IFA
19 Apr 2002
The FSA has banned the director of a small financial services firm from working in the financial services industry, after uncovering deficits of up to £1m in funds he held on behalf of his clients. This is the first Prohibition Order issued by the FSA since the Financial Services and Markets Act came into effect in December 2001. Richard Vincent Matkin was the owner and director of Albion Management Services in Sunderland, an IFA that had been regulated by the ...
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House-price rises may cause stamp duty pain
15 Apr 2002
The government's decision to index taxes and benefits fully in line with house prices has unfairly penalised homeowners, research from the Council of Mortgage Lenders has revealed. More than six out of 10 first-time buyers paid stamp duty in the final quarter of 2001, compared to a little more than two out of 10 in the second quarter of 1997. But latest CML figures show that, in order to rise in line with house-price inflation since May 1997, the stamp duty threshold, which ...
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If I were a rich man
15 Apr 2002
Martin Finegold, chief executive of IFonline, ranks joint 951st in The Sunday Times' Rich List of the nation's wealthiest 1,000 people, writes Helen McCormick. Finegold, 44, earns his placing through a £37.3m stake in London-based sub-prime lender Kensington Mortgage Company. He also has other assets. But according to The Sunday Times, Finegold's fortune has not changed much during the last year - the Rich List for 2001 also puts his fortune at £37m. However, ...
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Intermediaries must speak out
15 Apr 2002
I have read the Treasury consultation paper on mortgage regulation and I have also read the guide to intermediaries published by the FSA. I have passed CeMAP papers 1, 2 and 3 and my partner recently took and passed the CeMAP Bridge paper. We worked hard to ensure that we wouldn't come a cropper. But I must say that we both agree wholeheartedly with the comments made in last week's Mortgage Strategy. These exams do not seem to have been designed for mortgage intermediaries ...
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Intermediary Response
15 Apr 2002
Edgar and Isabella probably have an early repayment charge until the end of their current fixed rate and, as this only has a few months to run, it obviously makes sense to wait for it to expire before switching. However, it would be sensible for them to apply for a new mortgage now to enable the switch to take place as soon as their current fix expires. Most mortgage offers are valid for three or six months and, although it is normally easy to renew an offer, this does not always apply ...
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Internet applications snubbed for intermediaries
17 Apr 2002
Fewer people than expected are using the internet to take out a mortgage, according to newly published research by the CML into the changing structure of the UK mortgage market. While the internet is highly popular with customers for gathering information and comparing products, the number of online mortgage applications is low. But the advent of the secure electronic signature could trigger a significant increase. The CML research says the emergence of the internet ...
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Internet site helps mortgage broking go international
17 Apr 2002
A new website has thrown open its doors to IFAs who want to search for good deals on international mortgages and offshore accounts including instant access, notice and term. Tools available through Portfolio International's site at www.portfolioint.co.uk enable financial advisers to find the most suitable product for their client for free, using simple, personalised searches. Products cover the following currencies: sterling, US dollars, euro, Indian rupees, Japanese yen, ...
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It's 75-up for mortgageforce's first year
15 Apr 2002
Franchise broker firm mortgageforce has announced its first year results and last week appointed its 75th franchisee, writes Helen McCormick. The company, launched 12 months ago, has processed 1,460 franchise applications. Robert Clifford, managing director, says: "We are delighted that our unique business model has been proven. We offer successful applicants a complete support package to enable them to become their own boss, but without the isolation and conflicting demands often ...
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It's not all white
15 Apr 2002
An open letter to Mortgage 2000 I have been a user of Mortgage 2000 for six years now and I am happy with the software. However, I am not happy with your 'white label' sites - I do not like the advertising that you do on the white label sites and I do not believe that it is compliant. This is because you are sending the site owners' visitors to other financial institutions' websites without any warnings that they will be leaving the white label site and that the owner ...
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Leader: CML must not help cloud transparency
15 Apr 2002
Regulation is expected to create a level playing field in terms of transparency for the borrower. To be fully inclusive this should include all aspects of the mortgage advice and arrangement chain - whether or not there is a direct link to the consumer. What a surprise then, that last week the Council of Mortgage Lenders recommended to members that the Treasury should exclude packagers from mortgage regulation. Although the CML says that it is supportive of "new provision being ...
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Leeds & Holbeck fix at less than 5%
17 Apr 2002
Leeds & Holbeck Building Society has launched a new three-year fixed rate loan at 4.99% up to 90% LTV. The rate is 5.49% for LTVs up to 95%. The loan comes with no extended lock-ins and borrowers can make capital repayments of 10% during each year of the fixed rate period. The completion fee is £399 and early repayment charges are three months' interest at standard variable rate (currently 5.75%) in the first year; two months in the second year and one month ...
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Lender Response
15 Apr 2002
Depending on Edgar and Isabella's attitude to risk, I would recommend they consider a variety of mortgage options rather than heading straight for a fixed rate. While fixed rate deals offer greater security than standard variable rates, they entail a greater commitment than the couple may want to make given the current relatively stable low-interest-rate environment, and will give them less freedom to overpay on their mortgage or make use of the equity in their house. If Edgar and ...
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Mandelson pledge to petition Davies
15 Apr 2002
Peter Mandelson, one-time minister without portfolio, is to write to FSA chairman Howard Davies asking him to reconsider depolarisation reforms after meeting with four North East IFAs on Friday last week. Hartlepool-based IFAs Jim Gillespie, Colin Kent and Jocelyn Harwood met Mandelson, their constituency MP, along with Consett-based IFA Owen Temple. Temple told Mortgage Strategy: "Mandleson has promised to write to Howard Davies raising our concerns. He thought there were some ...
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MCCB accused of sinking teeth into 'easy game'
15 Apr 2002
The MCCB has been attacked for treating intermediaries as "easy game" while failing to tackle the "real problem areas" of lenders and regulation. In a letter to Mortgage Strategy, David Oldham, an independent mortgage broker from Bodmin-based Mortgage Connect, says: "The MCCB has focussed on regulating the intermediary because he is easy game and it lacks the teeth to address the real problem areas." Oldham identifies a threefold problem in the industry. He says: "The vast majority ...
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Measures to tackle Stamp Duty
18 Apr 2002
Gordon Browm yesterday announced a package of measures to tackle current avoidance of stamp duty on commercial property transactions and launched major reform to modernise stamp duty on land and buildings in the UK. Legislation will be included in Finance Bill 2002 to discourage a range of techniques currently used to avoid stamp duty on high-value property deals. Left unchecked, this activity represents a major threat to the Exchequer. The Government is therefore determined ...
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Melton Mowbray Building Society achieves software compliance
15 Apr 2002
The Melton Mowbray Building Society (MMBS) has been awarded an Audit Certification Award for software compliance by the Federation Against Software Theft (FAST). Sue Horsman, MMBS's IT manager, says: "FAST certification proves to our suppliers, customers and peers, that the society adopts good practices in software management and is keen to protect its investments and maintain software licensing compliance. "FAST certification means we are able to monitor our computer ...
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Moneyfacts points to maximum ISA returns
17 Apr 2002
Investors with the National Counties Building Society can expect the best returns on their mini cash-ISAs, according to a Moneyfacts survey of ISAs which shows the projected value of £3,000 invested. The National Counties Building Society ISA returns £3,183.86. However, this was only available to National Counties Building Society maturing TESSA monies. The top performing high-street bank is HSBC which returned £3,157.73. The best performing ISA with a CAT standard ...
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My mortgage week
15 Apr 2002
Monday: Bank holiday and, for once, the weather appeared not to have been told that everyone was off work and decided to smile on Yorkshire. I spent a pleasant day doing all the things in my garden that seemed infinitely more important than anything I could be doing indoors. As the sun disappeared, I retired indoors to collate the sales and service figures from the previous week in preparation for our weekly sales review meeting. Tuesday: I got into the office for 7am so I could ...
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NAMBA suffers from industry "cynicism"
16 Apr 2002
The National Association of Mortgage Brokers and Advisers has blamed "doubt and cynicism" from some sectors of the mortgage industry for the delay in getting an intermediary trade body up and running. NAMBA is now is recruiting members to the development group set up three weeks ago to act as an interface with the grass roots of the mortgage advice market. To date seven intermediaries have offered their services. The NAMBA steering committee has also expanded ...
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Nation ponders tax or spend
17 Apr 2002
Research for The MarketPlace at Bradford & Bingley has revealed a population divided about what they would prefer the Chancellor to announce in this week's Budget. Some 46% of the population would rather see income taxes raised to pay for essential services such as the NHS and education, whilst 49% would prefer tax cuts. In the survey conducted on behalf of The MarketPlace, members of the public were asked if in the upcoming Budget they would rather the Chancellor:
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New Eve for National Guarantee
18 Apr 2002
Packager and correspondent lender National Guarantee has appointed Frank Eve Consulting to review its business and marketing strategy. Keith Robinson, managing director of National Guarantee, says "We are very pleased to be working with Frank. His consultancy has the wealth of mortgage industry experience we were looking for. We needed a company that could demonstrate an understanding of the whole mortgage market to help us to prepare, for what we believe, will be a period of ...
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New SPML discount
19 Apr 2002
Southern Pacific Mortgage Limited (SPML) is offering a new discounted mortgage product for sub-prime borrowers through Mortgage 2000. The discount is 1.75% until 1 June 2003, reducing to 0.75% until 1 June 2004. The loan is available to both full status and self-certification applicants, to a maximum LTV of 80%. Sub-prime factors allowed under the scheme include CCJs of up to £10,000 and a bankruptcy discharged one year ago. Interest rates are tied to LIBOR and range from ...
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New tax rules make succession planning an essential issue
15 Apr 2002
Bank of Scotland Business Banking has warned that families who don't plan ahead for the handover of their business could risk losing money on their investments. By timing the disposal of their business assets more effectively, says the bank, owner-managers will soon be able to take advantage of more attractive capital gains tax rates following the introduction of the Government's 'Enterprise and Innovation' paper on April 6, 2002. Announced in the November ...
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No winning against the big boys
15 Apr 2002
Having been in this business for little more than three years, I still tend to view most of what I read in the columns as an outside observer and do not feel particularly well qualified to give you the feedback you seek on the detail contained in the FSA proposals. However, I may have a general contribution to make. I have read the February consultation document and this leaves me about as cold as I have felt reading anything the MCCB has constructed in the past. I do not see anything ...
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PMI guarantees default risk on £1bn of UK mortgages
16 Apr 2002
Irish-based PMI Europe - the double-A rated European mortgage insurance subsidiary - yesterday announced that it had participated in a £1 billion mortgage credit enhancement transaction. The mortgage credit default swap agreement was arranged by JP Morgan in London and enables an as yet un-named UK-based lender to continue to grow its mortgage loan portfolio. By entering into a mortgage credit default swap agreement with PMI Europe, the lender is better able ...
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Stamp duty freeze hits first-time buyers
19 Apr 2002
Chancellor Gordon Brown has left many first-time buyers disappointed by not raising the £60,000 starting point for stamp duty, according to Leeds & Holbeck Building Society. Ian Ward, chief executive, says: "Brown has missed a golden opportunity as the continued buoyancy of the housing marketing depends on people being able to get onto the housing ladder. As house prices continue to rise an increasing number of first-time buyers now pay stamp duty at a rate of 1% on the ...
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Strong house prices hold no fear for Bank of England
18 Apr 2002
Minutes from the Bank of England's latest rate-setting meeting show that members are not unduly concerned by the strength of house prices. The monetary policy committee discussed the housing market before voting unanimously to freeze interest rates at 4% on 4th April. The minutes record how the acceleration of house prices contrasts with predictions for a slowdown last year. The MPC finds that lower interest rates have helped the housing market to outstrip ...
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Strong investment sales at Legal & General
17 Apr 2002
Legal & General's ISA and unit trust products have helped the company buck the industry trend in the first quarter of 2002 with sales up 77% on the first quarter of 2001. Selling direct, through its business partners, including Barclays, Alliance & Leicester and Northern Rock and through IFAs, Legal & General's single premium business rose 73% to £424m while regular premium savings plans saw business rise 120% to £11m. The company attributes its success ...
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Surveyor shortgage slows application process
15 Apr 2002
A shortage of chartered surveyors is delaying mortgage applications for intermediaries, leaving thousands of clients anxious about missing out on their house purchase. Andrew Wilgoss, managing director of Square Mile Mortgage Finance, says: "Firms such as Countrywide have been unable to take valuations for up to 10 days due to demand, with some valuers and surveyors refusing to make assessments without as much as a fortnight's notice." Paul Cammidge, head of national business ...
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Taking credit for its service
15 Apr 2002
In your last edition you mentioned the excellent Fitch rating obtained by Homeloan Management Limited - the highest rating the agency has given to any European residential loan servicer. However, your piece referred to it being a credit rating. In fact, it is for our servicing capabilities. Fitch looked at all aspects of our systems, processes and controls, including the quality of our people. The rating we were assigned was based on our (to quote Fitch) "long tenure in third-party ...
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Thanks for the help
15 Apr 2002
Just to say that I took my CeMAP Bridge paper at the Photometric Centre in Cardiff yesterday and am pleased to say that I passed with good results. My thanks to Mortgage Strategy for publishing an assessment paper (April 2 2002) and Network Data Limited, which marked the assessment paper with feedback. It was helpful in preparing for the exam. So once again a big thank you to all at Mortgage Strategy and Network Data - we'd all be lost without you. Chander Chadha UPN Investments Cardiff
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The law's the law
15 Apr 2002
Everywhere I go at the moment I seem to keep bumping into mortgage brokers and advisers who are either moaning or worrying about the deadline for mortgage exams. It's the usual cry of "I've been in the business for 30 years and I don't need a certificate to prove that I know what I am talking about" or "I am too old to pass these examinations". With everything that advisers have had to put up with over the past few years I can well understand their reluctance at having to ...
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The pitfalls of buy-to-let
15 Apr 2002
Let’ begin with some numbers: £80bn, £6.6bn, £14.7bn, and £20bn. No matter whose figures you choose to believe, the buy-to-let market has seen enormous growth since its inception in 1996.Using the Council of Mortgage Lenders’ most recent estimate of £14.7bn, the extent to which investors have shunned stock markets and trust funds in favour of the private rental sector can be appreciated.But while a market expansion of £3.4bn between October 2001 and March 2002 is further ...
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This week's problem case
15 Apr 2002
Edgar & Isabella are currently looking to remortgage their £85,000 loan on their home, which is now worth around £110,000. Edgar earns £24,000 a year. Isabella is a housewife, but occasionally brings in irregular sums as a freelance writer. Their curent deal (fixed at 6.25%) runs out in a few months' time and their lender will only offer a slight discount should they stay with it. They want a fixed deal as they can only rely on Edgar's income.
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US mortgage network plans to lead in UK market
15 Apr 2002
A US mortgage network intends to storm the UK market by offering franchisees high commission, help with business practice and compliance, and the opportunity to place mortgages across the US. 1st Metropolitan Mortgage already operates licensed affiliate branches in 44 US states, where it employs over 1,200 staff in 268 locations. It now wants to become the biggest broker in the British market by the end of 2004, eventually becoming a lender. The UK company headquarters are outside ...
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Virgin One advice for Steady Eddies
16 Apr 2002
A savings study by all-in-one provider Virgin One has found that small investors will achieve more by saving in a mortgage via overpayments than by putting their cash into an equity backed ISA. Virgin One has identified three types of savers and worked out a savings strategy that gives each one peace of mind. The first type is the 'Safe Sam' - borrowers who think gilts are risky and are not interested in equities. Virgin One suggests this category should save exclusively ...
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Wealthy Brits spurn shares for property
18 Apr 2002
The UK's richest are spurning shares, bonds and unit trust investments in favour of property, and are planning to plough another £10 billion into new residential property within the next 12 months. A survey by Tulip Financial Research shows that Britain's wealthiest have already switched billions of liquid assets into residential and commercial properties, excluding their home or homes. Tulip's survey of 517 so-called 'wealth owners' - the half ...
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Whose industry is it anyway? Have your say
15 Apr 2002
The Mortgage Strategy Forum and Gala Awards takes place on May 16 2002. The Forum is the event for top mortgage intermediaries. It is the ideal arena in which to discuss the change in regulation and other market developments first-hand with key industry experts and specialists. The Forum will commence with an interactive plenary session from key speakers within the industry and representatives from both regulators and government. This will be followed by breakout sessions hosted ...
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Why the lowest rate isn't always best
15 Apr 2002
Many of our clients come to us with a simple request: find me the mortgage that offers the lowest possible interest rate for the longest period of time. While we in the industry do our best to oblige these clients, perhaps we should be asking ourselves if we are really offering them the best deal by signing them up for a basic, low-cost mortgage that does little to improve their overall financial situation beyond knocking a few quid off their monthly homeloan payments. Innovations ...
