Mortgage Strategy
15 March 2004

  • A view from the floor

    15 Mar 2004

    Which is best for borrowers - a quick fix short-term rate or a long-term relationship with a lender who maintains a competitive rate? Slowly but surely the general public is realising that the latter provides most benefit in the long run and as a result is becoming more aware of what building societies can offer. Long-term competitiveness pays dividends and this is being noted. Control of costs, administrative efficiency and good service cannot be beaten. As a sector, ...

  • BSA welcomes IHT freeze

    17 Mar 2004

    The Building Societies Association has welcomed the freeze on inheritance tax but says the chancellor should have cut Stamp Duty to recognise the pressure on first-time buyers. Adrian Coles, director-general of the BSA, says: "As people's homes are worth more and more, their estates are caught by inheritance tax. We welcome the chancellor's decision to raise the limit to £263,000 which will ensure that 95% of estates are not caught by this tax. "The amount ...

  • A little humility, Mr Bolton

    15 Mar 2004

    An open letter to Michael Bolton from Peter Willingham You claim to be the biggest buy-to-let lender but this does not necessarily mean that you will remain so, or that you are the best, or that your opinion about FSA regulation is correct. You are definitely wrong about specialist buy-to-let brokers. The decision that you will not do business with brokers who do not have to be regulated by the FSA is breathtakingly arrogant, a restrictive practice and a restraint of trade. ...

  • A&L considers online switch

    19 Mar 2004

    Alliance & Leicester is considering the option of only accepting online applications by the end of the year to streamline its processes. But the idea has met with some opposition with one broker saying it would discriminate against clients who would rather avoid using credit or debit cards in their mortgage applications as other methods of payment, such as cheques, require some paper to be used during the transaction. And the lenders' current online application system ...

  • Ad hoc policies slammed

    15 Mar 2004

    The Council of Mortgage Lenders last week published its Mortgage market manifesto: Taking the past into the future, putting the case against what it sees as political intervention of the wrong kind. The manifesto, produced alongside an overview of the housing market, argues that many homeownership policies are ad hoc and contradictory. CML director-general Michael Coogan says: "For too long UK housing market policy has seemed disjointed and lacking in long-term vision. ...

  • Advantage becomes latest branded lender for SPML

    17 Mar 2004

    Advantage Mortgage Services, a Cheshire-based mortgage packager, has become the latest branded lender for SPML products. Advantage has existing branded lending agreements with Platform, Mortgages PLC, GMAC-RFC and First National and all branded lending is conducted under the packager's Advance Home Loans brand. The SPML product range will be marketed and sold under the product title Advance Home Loans S500 range. Keith Dearling, sales and marketing director ...

  • AIFA publishes IFA census results

    16 Mar 2004

    The Association of Independent Financial Advisers has published results from the first IFA monthly survey of AIFA members. A key topic this month was IFAs' opinions of product providers' call centres. Paul Smee, director-general at AIFA, says: "This survey shows the value of the IFA census in finding out what IFAs need to do their job effectively. "Top of the IFA wish list, is a desire that operators are more knowledgeable about their company's products ...

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

    15 Mar 2004

    Do I have to join the same network for both mortgages and insurance? Richard Griffiths is managing director of Network Data Limited This is really two questions - what will your principal firm allow you to do and what do you want to do? FSA rules state there must be a written contract between a principal firm and its ARs stating whether you will be allowed to become an AR of another network for specified products. Early indications are that principals will offer ...

  • Assertahome polls consumers on Stamp Duty

    18 Mar 2004

    Assertahome.com has conducted a poll of consumer attitudes to Stamp Duty. The key findings are that 79% of respondents want it reformed with only 8% wanting to see it abolished, as they realise this would mean higher taxes elsewhere. Some 67% would like to see the threshold raised to £100,000 to assist keyworkers and first-time buyers at the bottom of the property ladder, even though it would mean Stamp Duty might have to rise for everyone else. And 60% ...

  • BMS takes tough line with its distributors

    15 Mar 2004

    BM Solutions will withdraw support from any of the distribution companies it uses if they are acquired by lenders that operate in the buy-to-let, self-cert or sub-prime sectors. Michael Bolton, director of mortgages at BM Solutions, says: "If the sale involves one of our distributors then they will not see any further business from us." This aggressive positioning by BMS could have consequences for the likes of The Mortgage Operation realising its true value when it comes ...

  • Brown puts freeze on Stamp Duty and IHT

    17 Mar 2004

    Gordon Brown said today that rates on Stamp Duty would be frozen and kept at their current rates. Announcing details of his eighth Budget in the House of Commons, Brown also said that he would put a freeze on Inheritance Tax and raise the minimum threshold to £263,000. The move, he said, would result in 95% of estates now being exempt from the tax.

  • Bruce to battle Ceta and S&P

    15 Mar 2004

    Edinburgh-based insurance provider Bruce Stevenson Insurance Services is launched this week, targeting mortgage brokers and saying it will be a serious competitor to CETA and Select & Protect. The firm, a subsidiary of Edinburgh insurance broker Bruce Stevenson, will trade under the brand name callbruce and intends to fill the gap left by Tribune, the Scottish insurance provider that collapsed last year leaving many intermediaries without a provider to place business through. Callbru

  • BSA welcomes Miles idea

    15 Mar 2004

    The Building Societies Association has welcomed the legislative change to lower the funding limit by lenders outlined in the Miles Review to help societies fund long-term fixed rate mortgages. The final report, The UK mortgage market: Taking a longer term view, published last Friday has allayed the BSA's fears raised by Professor David Miles' interim report in December. The trade body was concerned that a major movement toward backing long-term fixed rate lending ...

  • Budget expected to include buy-to-let in pension assets

    15 Mar 2004

    The chancellor is expected to announce procedures that will allow individuals holding self-invest personal pension plans to include residential property investment in their pension assets. A SIPP offers all the usual tax benefits of a regular pension plan but also allows the individual, through a pension trustee, to control much more closely the choice and management of their investments. A broad range of asset types can be invested in, including equities, bonds and ...

  • Budget failed to address housing crisis, says Shelter

    19 Mar 2004

    Shelter has criticised the Budget for failing to address the scale and urgency of the housing crisis, ignoring Kate Barker's call for serious investment in social house building. Barker recommends that the vast majority of all the extra homes needed in England each year should be affordable. However, Shelter's recent building for the future report concluded that 89,000 homes are required each year to meet future housing need and to help the record number of homeless ...

  • Building a fairer society

    17 Mar 2004

    The Government's aim is to build a fairer society in which everyone can contribute to and share in rising national prosperity. A flexible and dynamic economy must go hand in hand with a fairer society so that everyone has the chance to fulfil their potential. The Government is committed to tackling child and pensioner poverty, providing support for families with children, and ensuring security for all in old age. It is also creating a modern and fair tax system which raises ...

  • Buildstore says self builders offer solution to UK housing process

    18 Mar 2004

    Buildstore has called on the government to take a leaf out of the self builders' book to help solve Britain's housing crisis. Two of the issues highlighted in the report as slowing up the supply of new houses were slow speed of build-out of developments as a result of too large developments being undertaken and the need for developers to adopt more modern methods of construction to speed up the construction process. The reports states that to keep house price inflation ...

  • CA welcomes findings but ABI is disappointed

    15 Mar 2004

    The Treasury Select Committee report on endowment mortgages has met with a mixed response from consumer and trade bodies. The Consumers' Association welcomes it as "public recognition that nothing short of radical solutions will clean up the financial services industry and restore consumer trust". CA adds: "Today's report will be welcome news to the five million mis-sold policyholders who have suffered at the hands of an apathetic industry." But there is ...

  • Calls for fairer tax have fallen on deaf ears, says Charcol

    17 Mar 2004

    Charcol says it welcomes the news that Stamp Duty will not be increased but adds that it still remains an unfair tax. Ray Boulger, senior technical manager, says: "Whilst it is disappointing that Stamp Duty remains an unfair tax it is good news that it has not been increased. "The last time the starting point for Stamp Duty was increased was back in 1993, when it was increased from £30,000 to £60,000. Since then house prices have risen by 167%, and increased ...

  • Cash crossover

    15 Mar 2004

    Residential borrowers have traditionally turned to bridging loans as a last resort to prevent a home move from floundering, but now they are finding a multitude of uses for short-term finance. The bubbling housing market, TV property show frenzy, the boom in buy-to-let and the growing trend for residential buyers to purchase property at auction is creating a whole new stream of customers. Novice landlords and developers buying a rundown property may struggle to get finance from ...

  • Chancellor should have made tough decisions say Lib Dems

    17 Mar 2004

    The Liberal Democrats have criticised Gordon Brown for leaving tough decisions that need to be taken until after the next general election. Vince Cable MP, Liberal Democrat shadow chancellor, says: "This Budget has a hole right at its heart as the chancellor has postponed the tough decisions until after the next election. "The chancellor has failed to tackle a dangerously unbalanced economy. He has failed to address the trillion pound household debt bubble, which will ...

  • Charcol welcomes Miles recommendations

    17 Mar 2004

    Charcol says it welcomes Professor David Miles' recommendations in his final report, but warns that price alone is not the only thing stopping borrowers from committing to long-term fix. Ray Boulger, senior technical manager at Charcol, says: "In essence David Miles has demonstrated a good understanding of the current mortgage market and some of his proposals will be of benefit to borrowers. "This review extends beyond the original brief to look at long-term fixed ...

  • Cheap leads to woo brokers

    15 Mar 2004

    Lead generation service Professional Advisor Alliance is revamping its charging structure, cutting its starting price on some leads from £30 to £19 to attract 1,000 more mortgage intermediaries. It is introducing what it calls a floating price mechanism, allowing brokers to bid up or down on the lead price, initially in 12 of its 400 territories but is rolling it out further during March and April. To date PAA has applied a one size fits all price to mortgage ...

  • CML figures show price still the key driver, says The MarketPlace

    19 Mar 2004

    The MarketPlace at Bradford & Bingley says the latest figures from the Council of Mortgage Lenders clearly demonstrates that price is still the key driver in borrower behaviour. David Bitner, head of product operations for The MarketPlace, says: "The high proportion of lending on variable rates, over three-quarters of all mortgages arranged in February, clearly demonstrates that price is still the key driver in borrower behaviour. "When the gap between fixed and ...

  • CML initiative aims to get True picture on self-cert

    15 Mar 2004

    The Council of Mortgage Lenders has emailed members about the launch of its statistical survey to gather information on the number of self-certification mortgages being taken out. The move to gather this data for the first time comes in the wake of last month's BBC The Money Programme on self-certification mortgages. Michael Coogan, director-general of the CML, was questioned on the programme about the varying percentages quoted on the size of the self-cert market. The ...

  • CML scoops Trade Association of the Year award

    18 Mar 2004

    The Council of Mortgage Lenders has scooped a top award for Trade Association of the Year 2004. Sponsored by Associa, the Trade Association Forum Best Practice Awards 2004 are the trade association industry's equivalent of the Oscars. Judges agreed that the CML provided excellent leadership, innovation and success to its members. Other winners included Intellect, the trade body for the UK based information technology, The Carpet Foundation, The Scotch Whisky ...

  • CML welcomes IHT and Stamp Duty freeze

    17 Mar 2004

    The Council of Mortgage Lenders has welcomed the increase in the inheritance tax threshold and the freeze in Stamp Duty in today's Budget - although the CML continues to believe that the failure to index Stamp Duty thresholds is a form of stealth tax. Like the chancellor, the CML looks forward to further discussion of the recently published housing market reports, with a view to trying to find a broader consensus. This echoes a call for greater consensus that the CML set out ...

  • Commercial First completes first securitisation

    17 Mar 2004

    Commercial First Mortgages has successfully completed its first securitisation. The £132.5m transaction, which closed on Monday March 15,, has been well received, with the bond offering significantly oversubscribed. Over 75% of the issue was awarded a AAA rating by agencies Moodys and Fitch. Leading law firm Clifford Chance was retained as CFM's legal advisers with Barclays Capital lead manager and KPMG provided audit services. Philip George, managing ...

  • Connells to create 100 more jobs

    19 Mar 2004

    Connells, the UK's second largest estate agency group, is to create around 100 more jobs in Leighton Buzzard where it has its headquarters. Based at Cumbria House in Hockliffe Street, the company has purchased additional premises in the town to accommodate some of its extra personnel and is currently considering which functions to establish there. Stephen Shipperley, chief executive at Connells Group, says: "The additional staff will mainly provide administrative ...

  • Co-op launches two-year fix

    16 Mar 2004

    The Co-operative Bank has launched a two-year fixed rate mortgage, with an interest rate of 4.99% until April 30 2006. The fixed rate mortgage is available for house purchase and for remortgaging, with a maximum advance of 95% of the property value. For remortgages, the bank will pay legal and valuation fees. Interest on the mortgage is calculated on a daily basis, rather than by the traditional annual method. Paul Rumbold, head of mortgage services at the ...

  • Correct searches bring peace of mind for solicitors and home movers

    18 Mar 2004

    Investing in property is the biggest decision most people ever make. And most purchasers are keen to discover all they can when committing to such a huge purchase. And most would be keen to trust their solicitors and moneylenders. But what happens when your advisers don't ensure that all the important facts are to hand for you? Brian Robinson, of Shepherds Well in Kent, found himself with an unwanted problem when his new purchase turned out to have more responsibilities than ...

  • Could have been worse, say tax experts

    17 Mar 2004

    Tax expert BDO Stoy Hayward says its worst fears have not been realised as the chancellor has limited the scope of the new anti-avoidance measure, but stressed that it was disappointed that he had gone ahead with this at all. Maggie Gonzalez, tax spokeswoman at BDO Stoy Hayward, says: "We believe it is fundamentally wrong to impose an income tax change to remedy what is perceived by the Inland Revenue as inadequate inheritance tax legislation."

  • Curriculum Vitae - Matt Gilmour

    15 Mar 2004

    Name: Matt Gilmour Age: 30 Company: Infinity Mortgages Job Title: Chief executive Where do you live? Dorking in Surrey Describe your current job: Officially, the visionary behind the company and the captain of the ship. Unofficially, head of IT, head of HR and head of potwashing. My business card says chief executive but at Infinity we all muck in - there is no corporate hierarchy. I spend a lot ...

  • Dear Dippy

    15 Mar 2004

    Mr Matthews wishes to remortgage an existing buy-to-let property and raise capital to buy a new investment property and consolidate some unsecured debt. The outstanding mortgage is £85,000 and the property is worth £150,000. Can you help him? Dippy says: This case raises interesting points about the options available for clients to grow their buy-to-let portfolios. To address this case we have Rod Murdison, a broker who specialises in the buy-to-let market, and Roger Hillier ...

  • Despite their bluffs, lenders do not consider affordability

    15 Mar 2004

    Name and address supplied I write in response to your cover story in the March 8 edition regarding first-time buyers. It was interesting to read so much comment on the need to change lending practices and the availability of mortgages assessed on an affordability basis rather than on a crude multiple of incomes. Although house prices have been rising at an alarming rate, in my experience this has not been the biggest barrier to first-time buyers. The greatest problem is finding ...

  • Detox relay rally

    15 Mar 2004

    Wagers of sin First out of the blocks for the Mortgage Strategy Detox Relay Rally were deputy ed Gallagher and features ed McCormick. Mole, of course, chose not to partake in this somewhat frivolous event regardless of the worthy cause. So with Mole, publisher Ponsford, boss Hall and reporters Thickett and Singh watching from the sidelines the wagers flew in thick and fast as to which of the pair would fall first. Gallagher was a clear favourite at 2-1 with McCormick 5-1 for ...

  • Don't panic about direct authorisation, says trade body

    18 Mar 2004

    ADMA, the not-for-profit association promoting direct authorisation, says it is concerned that brokers will be more likely to opt not to pursue this course because of the increase in the FSA application fee from £500 to £1,100 for online applications after the discount deadline comes to an end on March 31. A spokesman for ADMA says: "We realise that the FSA is trying to encourage brokers to apply early for direct authorisation by significantly reducing the application ...

  • Employment opportunity for all

    17 Mar 2004

    The Government's long-term goal is employment opportunity for all. The Government is committed to promoting a dynamic and flexible labour market, where everyone has the opportunity to fulfil their full potential. Since 1997, the New Deal has helped nearly 480,000 young people into jobs, and help has been extended to wider groups, such as lone parents, older people and disabled people. Unemployment in the UK is now lower than in any other G7 major economy and the ...

  • Estate agents not happy

    17 Mar 2004

    The National Association of Estate Agents says Chancellor Gordon Brown has effectively increased the number of homebuyers liable for Stamp Duty. In response to the chancellor's Budget speech 2004, Peter Bolton King, chief executive of the National Association of Estate Agents, says: "The chancellor announced today in his Budget speech that he is freezing Stamp Duty at its current levels. However, with inflation at 2.4% and house prices continuing to rise annually, he is effectively ...

  • Exclusive: Mortgage Brain demonstrates KFIs

    15 Mar 2004

    The Mortgage Brain sourcing system has demonstrated for the first time how it will produce Key Facts Illustrations. At its compliance forum, attended by major networks, introducers and clubs, on 4 March it showed KFIs being produced using information from any of the 9,000 mortgage schemes currently on the system. This was witnessed by the likes of Charcol, Countrywide, Friends Provident, The MarketPlace, Mortgage Intelligence, Mortgage Next, Norwich Union, Pink Home Loans, ...

  • Firm takes IT to the limit one more time

    15 Mar 2004

    1st software 1st Software was launched in 1996 to develop and market software systems for the IFA and mortgage intermediary communities. With over 1,200 companies and in excess of 10,000 users, the company has become the main supplier to the retail financial advice sector. The company prides itself on having won national recognition in the Sunday Times Virgin Atlantic Fast Track 100, Sunday Times ARM Tech Track 100, Deloitte & Touche IT Fast 50 and Ernst & Young Entrepreneur ...

  • Five-year funding cost now well below 5%

    15 Mar 2004

    Swap rates, which show the rough costs for a lender of buying a tranche of money to lend as a fixed rate, were significantly down this week. • One-year money is down 0.08% to 4.55% • Two-year money is down 0.15% to 4.66% • Three-year money is down 0.17% to 4.77% • Fiveyear money is down 0.18% to 4.87% The cost of five-year funding is now well below 5% now which raises the question - are there any lenders brave enough to reprice? Rate ...

  • Freedom Finance named one of top 100 companies to work for

    15 Mar 2004

    Wilmslow-based financial services group Freedom Finance has been named as one of the best 100 companies to work for in the annual list compiled by The Sunday Times. Rupert Webb, chief executive at Freedom Finance, says: "Our staff are our greatest asset and are key to the continued growth, development and success of the group. We are delighted to have been acknowledged by The Sunday Times, particularly as the list was compiled following interviews with our employees."

  • FSA 'what if' factsheet to be highlighted in KFIs

    15 Mar 2004

    The Financial Services Authority has produced a factsheet for consumers entitled You can afford your mortgage now but what if? as part of its preparations for regulation. The factsheet is designed to help consumers consider whether they could still afford their mortgages if their circumstances change and includes an illustration of the impact that interest rate rises would have on repayments. From Mortgage Day clients will be directed to the factsheet by the Key Facts ...

  • FSA appoints three managing directors

    16 Mar 2004

    The Financial Services Authority has appointed three new managing directors who will also be members of the FSA board. Hector Sants joins from Credit Suisse First Boston to become managing director of wholesale and institutional markets. Clive Briault is promoted to managing director of retail markets and David Kenmir is promoted to managing director of regulatory services. Michael Foot stands down as a managing director at the end of May when his current ...

  • FSA responds to Miles review

    18 Mar 2004

    The Financial Services Authority says that it will consider suggested reforms to the mortgage market by Professor David Miles "carefully". Sarah Wilson, FSA Director of High Street Firms said yesterday: "David Miles has provided a comprehensive analysis of the UK mortgage market. We welcome the objectives he identifies for the market. "We note that David Miles makes a number of recommendations for the FSA and we will consider these carefully. "With ...

  • Government failing to protect consumers from lenders, says CA

    15 Mar 2004

    The Consumers' Association has warned that consumers will remain open to credit traps and unscrupulous lending practices unless the government acts on its recommendations to protect consumers from the mis-leading and confusing information provided by mainstream lenders. The warning comes on the back of the CA's response to the government's Consumer Credit White paper. The CA says consumers should be able to settle their loans early but that most lenders in the ...

  • Guidance urgently needed on money laundering regulations

    15 Mar 2004

    An Open Letter to Ruth Kelly from Peter Gladdy Regarding the money laundering regulations 2003, as the largest independent estate agency in Europe and the UK itself (operating the Haart, Spicer McColl, Felicity J Lord and Darlows agencies) we write to seek urgent clarification on issues relating to the implementation of these regulations. The issue is - do the regulations apply to both sellers and buyers? The relevant trade bodies appear to have differing views on this with ...

  • Halifax takes flak over affordability

    15 Mar 2004

    Halifax has denied making significant changes to its affordability criteria since its annual results announcement last month when it said it intended to limit its volume of lending. In February the HBOS group announced record pre-tax profits of £3.8bn, claiming a 26% share of UK mortgage lending, and indicated it would be tightening its lending criteria to bring its market share back to 23%. But some brokers believe Halifax has already started making changes. Daniel ...

  • Help first time buyers, pleads broker on day of budget

    17 Mar 2004

    Andrew Frankish, operations director at Mortgage Talk, has called on the chancellor to use today's Budget to make life easier for the first time property buyer. With so many young people now priced out of the market, stamp duty thresholds need to be adjusted to a more sensible level. He says: 'The number of first time buyers entering the housing market is at an all time low. In many areas, more properties are being sold as buy-to-lets than to first time buyers. "House ...

  • High quality public services

    17 Mar 2004

    The Government says it is committed to providing new investment in Britain's public services. Spending on public services will be £61 billion higher by 2005-06 compared with 2002-03. Over 75% of this increase will go on the Government's priorities of health, education, transport, housing and the fight against crime. To reflect the high priority the Government attaches to education, the Budget announces that education spending will grow by 4.4% a year, on ...

  • HML transitions core system to JADE software platform

    15 Mar 2004

    Homeloan Management Limited has transitioned its core system to a JADE software technology platform. Handling assets of over £21.5bn across more than 200 separate loan portfolios, HML expects the move to significantly reduce data processing cost, while improving efficiency and service to its clients. The entire move, from its LINC legacy systems to JADE, took 12 months and is expected to pay for itself within two years. HML says it can now respond to customer ...

  • House prices up 2.9% in February, says Rightmove

    16 Mar 2004

    Rightmove's February housing index shows the average cost of homes up by 2.9%, from £174,506 to £179,570, the second largest monthly increase since May 2002. Since the beginning of 2004, asking prices have risen by 5%, while Halifax and Nationwide have both reported rises in prices achieved of 3.8% over two months. Annual house price inflation is also following the same upward trend, rising for the third consecutive month, from February's 10% to this ...

  • Household income

    17 Mar 2004

    Compared with last year, a single earner family with two children with earnings up to the median for full-time workers - £22,000 per year - will be at least £220 a year better off in real terms. As a result of all personal tax and benefit reforms since 1997, from October 2004, families with children are, on average, £1,350 a year better off in real terms, while those in the poorest fifth of the population are, on average, £3,000 a year better off in real ...

  • Housing supply increase essential for FTBs

    19 Mar 2004

    Bristol & West says an increase in housing supply is essential to slow down escalating house prices and help first-time buyers get on to the housing ladder. The company invited the Chamber of Commerce and other local business people to view the televised budget from their auditorium. This was followed by a discussion with a panel of experts including Bristol & West's economist Laurence Sanders and senior marketing manager David Harris. The discussion on the Barker ...

  • I'm a self-cert superstar

    15 Mar 2004

    From Peter Bradshaw Regarding the recent furore over self-cert I thought I would add my own twist. I recently contacted a recruitment agency, being relatively inexperienced in the mortgage world, and was pleasantly surprised when it showed more interest in me than others had done. After a phone conversation during which some points were clarified I was sent a copy of the introductory CV that the agency would be forwarding to prospective employers on my behalf. Bear ...

  • If you know where to look...

    15 Mar 2004

    From Robert Clayton The following may be useful to anyone who is as puzzled as I was when trying to answer the questions relating to holding clients' money in the FSA application form HSF1. In our case, valuation fees from clients are received in the form of cheques made out to this company and subsequently either passed on to the lender or refunded if the remortgage cannot proceed. At an FSA workshop in Birmingham last week it was made clear that we are holding ...

  • Igroup appoints BDM

    19 Mar 2004

    Igroup has added Mark Rookyard to its sales team to take on the role of business development manager. He has worked at First National Home Lending for the last 10 years. In line with igroup's continued commitment to its intermediaries, Rookyard will be taking on a key role within the dedicated northern regional sales team. He will be responsible for growing new business originations across the board whilst simultaneously ensuring igroup's continued dedication to ...

  • IMB Liberator campaign will keep clients informed

    15 Mar 2004

    Leicester-based packager IMB has rebranded its non-conforming and sub-prime mortgage portfolio to Liberator Mortgages as part of expansion plans. IMB director Wendy Peace says: "Our commitment is to ensure our intermediaries offer consumers mortgages that suit their long-term financial needs." Peace stresses that IMB's advisers will offer as much advice about redemption charges and tie-ins as they do about headline rates of interest. She says: "It's in ...

  • IMB rebrands specialist portfolio

    16 Mar 2004

    Leicester-based IMB is rebranding its specialist mortgage portfolio, commiting to offer branded lending to intermediary partners within six months and opening new offices in Scotland and Northern Ireland. The packaging firm is rebranding its entire non-conforming and sub-prime mortgage portfolio. Its specialist products will now be known as Liberator Mortgages. The products of Preferred, Platform, TMB, igroup, Mortgages PLC, Kensington and GMAC-RFC all now come under ...

  • Internet Insite

    15 Mar 2004

    My round-Britain tour of mortgage broker websites has arrived in south Wales and by the end of my visit to this week's sites I was feeling quite depressed. Looking at so many websites I often wonder not just what brokers' web strategies are but what their prospective customers must think of the brokers behind the sites. Admittedly, this week's three sites are easy to navigate around but customers deserve a lot more - at the minimum they should be given mortgage information that ...

  • Is house price inflation a bubble about to burst and will it take buy-to-let down with it?

    15 Mar 2004

    Mark Alexander is managing director of The Money Centre I have yet to hear a compelling argument on why property values will fall. For values to fall by any significant degree demand will first have to fall. First-time buyers might sit on the fence if interest rates rise - they usually do in unstable markets - but if they don't property values will not fall anyway. And there is a big difference between now and the 1980s. There are now two types of people ...

  • Key measures

    17 Mar 2004

    The Government's economic objective is to build a strong economy and a fair society, with opportunity and security for all. Budget 2004 sets out how the Government is working to achieve this goal, building on a platform of economic stability and sustained growth to ensure that Britain can continue to succeed in a competitive global economy. Key announcements in Budget 2004 include: * an updated economic forecast, which shows the economy continues to grow ...

  • Lenders deny lack of KFI preparation

    15 Mar 2004

    Lenders have strenuously denied accusations from some in the industry that there is a danger they will not have systems in place to produce the required Key Facts Illustrations by October 31. There are concerns that some lenders will not have their KFI systems fully operational for Mortgage Day and will not supply adequate audit trails or amended KFIs. But lenders refute such claims saying their systems will be in place by the deadline and that dedicated teams are working ...

  • Let's not be the next grey generation

    15 Mar 2004

    Training and competence recently passed its 10th anniversary. Yes, over a decade ago younger, more naïve versions of ourselves were sitting in conference halls listening to regulators guiding us through the mire of T&C. February 2004, another conference hall and 400 brokers and lenders listen to speakers from the FSA and the MCCB. Attending as T&C consultants, it is as if we've gone back to 1993 to see our younger selves on the brink of major change. So, if we ...

  • Lib Dems welcome referral of store card services to Competition Commission

    19 Mar 2004

    Vince Cable MP, Liberal Democrat shadow chancellor, has welcomed the OFT's decision to refer the supply of store card services to the Competition Commission. Store cards, he says, are amongst the worst offenders in the whole credit industry andhigh levels of consumer confusion ensures high profits for providers. He says: "The OFT's findings that the APR rate was unavailable or unsatisfactorily explained for 40% of consumers is at best incompetent, but is more ...

  • Low interest rates fuelling growth

    17 Mar 2004

    The lowest interest rates for 40 years have contributed to strong growth and the largest period of sustained growth for 200 years, Chancellor Gordon Brown said today as he unveiled his eighth Budget. Interest rates peaked at 16% in the 1990s but are now just 4%. And he told a packed House of Commons that mortgage rates were now averaging just 5%, compared to 15% in the 1980s and 1990s. He went on to say that the British economy would strengthen throughout 2004.

  • Maintaining a stable economy

    17 Mar 2004

    Prospects for the world economy continue to improve following a period of global uncertainty. The Government's reforms have helped to ensure that the UK economy has sustained steady and stable growth, and is well placed to benefit from the strengthening world recovery. The Budget projections show that: * the economy is expected to grow by 3 to 3½ per cent in both 2004 and 2005, as forecast in last year's Budget and Pre-Budget Report; * inflation is set ...

  • Marketing Brief

    15 Mar 2004

    This week in my A to Z of lenders' intermediary marketing material, I've reached GMACRFC and the mighty Halifax. Both lenders have a strong intermediary presence but both complicate their intermediary propositions with complex product portfolios. This is understandable for non-conforming products like those from GMAC-RFC, if only because the adverse credit market sector expects interest rates that reflect creditworthiness. GMAC-RFC tries to outweigh the complexities by presenting ...

  • MEX cuts lifetime mortgage rate to 6.74%

    16 Mar 2004

    Mortgage Express has cut the rate of interest on its lifetime mortgage to 6.74%. The lifetime mortgage has the highest LTV available in the market and one of the lowest rates currently on offer. The rate is fixed for the entire term of the mortgage, with interest accruing on a monthly basis. Other features of the mortgage include a lump sum drawdown and further loan facility, a no negative equity guarantee and portability options, subject to criteria. The ...

  • Missed opportunities, says The Marketplace

    17 Mar 2004

    The Marketplace at Bradford & Bingley has criticised today's Budget as being one of missed opportunities. David Bitner, head of product operations, says: "The chancellor is obviously concerned enough about supply and demand in the housing market to have commissioned the Barker Review. He should therefore be extremely concerned about the falling level of first-time buyers, yet nothing in this budget addresses this. "We believe the chancellor has ...

  • Missed opportunity to help first-time buyers, says Nationwide

    18 Mar 2004

    Nationwide says it's disappointed that the chancellor has failed to take action to encourage savers or to help first-time buyers in yesterday's Budget. Stuart Bernau, Nationwide's chief executive, says: "The xhancellor has missed an opportunity to make a real difference to a wide range of people, from first-time buyers to savers of all ages. "This is surprising bearing in mind the government's stated aim of enabling all who aspire to own their home to do ...

  • Mixed support for Miles ahead of Brown's Budget

    15 Mar 2004

    Professor David Miles' final report on the long-term fixed rate market has met with mixed support ahead of this week's Budget. But some pundits warn his recommendation to lenders to make all mortgages available to all borrowers could lead to less competitive rates. Unveiling his report, The UK Mortgage market: Taking a longer term view, last Friday he denied his brief was to focus on the feasibility of 25-year deals - a statement that was welcomed. Miles ...

  • MMC forms strategic alliance with Manchester BS

    19 Mar 2004

    The Mortgage Marketing Centre, one of UK's oldest mortgage packaging and placement companies, has formed a strategic alliance with the Manchester acquiring a minority shareholding in the company. The investment and the benefits that such an alliance will bring to MMC, supports its strategy of applying for network status from FSA. Chris French, managing director of MMC, says: "MMC had identified that in order to satisfy its risk aware culture, additional compliance ...

  • Mortgage Brain in KFI demonstration

    15 Mar 2004

    The Mortgage Brain sourcing system has for the first time demonstrated how it will produce Key Facts Illustrations. A compliance forum on March 4 attended by major brokers, networks and clubs, saw KFIs being produced using information from any of the 9,000 mortgage schemes on the system. This was witnessed by the likes of Charcol, Countrywide, Friends Provident, MarketPlace, Mortgage Intelligence, Mortgage Next, Norwich Union, Pink Home Loans, Sesame and St James Place. Mortgage

  • Mortgage Times to launch club

    15 Mar 2004

    Network Mortgage Times is launching a mortgage club designed to help directly authorised brokers get better deals for their clients and enhanced procuration fees for themselves. Direct Times launches next week after three months in the planning. The one-stop shop will provide access to the Mortgage Times network panel of over 40 lenders as well as support services, compliance software, packaging and enhanced rates for pure protection business. The club, which is looking ...

  • Mortgage Times to launch support service

    19 Mar 2004

    Network Mortgage Times is launching a support service called Direct Times which has been designed to assist mortgage brokers that wish to be directly authorised with the FSA. The service has been three months in the planning, and provides compliance support, instant contact to the Mortgage Times and its network panel of over 40 lenders and online quotes and transaction for pure protection products. Direct Times membership is £150 per firm each month, which includes ...

  • Mortgage Times unveils network pricing structure

    16 Mar 2004

    Mortgage Times has revealed its network pricing structure for intermediaries who wish to become either appointed representatives or directly authorised with the Financial Services Authority. The proposition allows members to continue to focus on their business activities, whilst Mortgage Times provides compliance and regulatory support. For those seeking to become appointed representatives, the package consists of £250 + VAT per month, with additional members £125 ...

  • Mortgages PLC appoints area manager

    15 Mar 2004

    Mortgages PLC has appointed James Brown as area manager. He will be responsible for developing business relationships within the northern home counties and will report to Angie Glanville, regional manager for the South.

  • Moving towards a better market

    15 Mar 2004

    Professor David Miles finally delivered his verdict on the mortgage market last week after a nearly year-long review to find out why the UK take-up of fixed rate mortgages is so low compared with the United States and many other EU countries. There are good reasons to think that if the UK market did work better many more mortgages would be at rates that were fixed for periods longer than at present. Indeed, more borrowers on long-term fixed rates would mean more people insulated ...

  • MPC minutes show 4% hold was unanimous

    19 Mar 2004

    The minutes for March's Monetary Policy Committee meeting show all nine members to have unanimously decided on keeping interest rates at 4%. Although there were concerns over rising house price inflation and the continued build up of household debt, and that a delay in raising rate could result in a bigger increase at a later date, the decision was made to hold. The notes state that raising the interest rate at this month's meeting would be a surprise, "which might ...

  • N&P reduces rates on long-term fixed rates.

    15 Mar 2004

    As Professor David Miles publishes his report of long-term fixed rates, Norwich and Peterborough has announced it will reduce the rates on its longer fixed rate deals, with effect from March 17 2004. The 10-year rate has been reduced from 5.38% to 5.24%. A redemption charge of 5% of the outstanding balance is applicable in the first seven years, 4% in year eight, 3% in year nine and 2% in year 10. The five-year rate has been reduced from 5.34% to 5.24%. Gary ...

  • NAEA to hold National Congress at The Savoy

    17 Mar 2004

    The National Association of Estate Agents is holding its first National Congress at The Savoy Hotel on March 30 2004. Leading the speakers this year is former Tory MP Michael Portillo, who will talk on "What lies ahead - The Economy, the Euro, the Property Market and the Future. The rest of the line-up includes Walt MacDonald, president of the National Association of Realtors, on raising commission rates, Paul Beckett from the Wall Street Journal on European markets, ...

  • Network Data launches capped deal funded by B&W

    15 Mar 2004

    Network Data has launched a capped deal funded by Bristol & West at 5.99% until December 31 2007. The product is available for both purchases and remortgages, and include a tracker rate of 1.59% below current SVR of 4.45%. Network Data will pay an enhanced procuration fee of 0.30% for all applications received that subsequently complete.

  • New house build growth not realistic

    17 Mar 2004

    "Continuing at the current rate of housebuilding is not a realistic option, unless we are prepared to accept increasing problems of homelessness, declining affordability and social division, decline in standards of public service delivery and increasing costs of doing business in the UK - holding back our economic success." That was the final verdict in Kate Barker's review of housing supply for the Treasury that was published this morning. Launching her Final Report ...

  • No guarantee for late applications, warns FSA

    19 Mar 2004

    The Financial Services Authority has reiterated it cannot guarantee that any applications for mortgages completed after April 30 will be turned round by October 31. It spells out a similar message for general insurance applications received after July 13 for general insurance day. Speaking at the Financial Leasing Association's annual dinner last night, Callum McCarthy, chairman of the FSA, warned against delaying sending applications in. He says: The FSA's ...

  • Northern Rock reduces rate on two-year flexible products

    17 Mar 2004

    Northern Rock has reduced rates on its two-year flexible fixed rate products. The products now start from 4.55% on loans up to 85% LTV. They products are fully flexible, allowing underpayments, overpayments, redraws and payment holidays. The same product is also available with the option of paying no arrangement fee with a rate starting at 5.24%. Northern Rock is also offering up to £1,000 help with costs across its entire range, excluding home equity ...

  • Optoma not up for sale

    18 Mar 2004

    Optoma is not for sale. That was the statement made yesterday by Andrew Seymour, chairman and chief executive of the distribution company and would-be network. He tells Mortgage Strategy Online: "I can confirm that Optoma is not for sale and is proud of its private ownership. "The board is free to act independent of any corporate parent handcuffs and thus, operational benefits penetrate the broker community quickly." Seymour adds that he felt the ...

  • Packager Members Mortgage reveals network strategy

    18 Mar 2004

    Packager Members Mortgage has revealed its principal status strategy. The Members Mortgages Network, based in Derby, will offer supporting brokers full compliance and regulatory support for mortgages, general insurance and pure protection. The firm aims to recruit more than 100 appointed representatives. The mortgage and insurance network is set to launch on May 1 2004 and immediately operate under likely FSA standards. Brokers wishing to join its pre-network ...

  • Park Row C&PC has the most qualified financial planners in the UK

    17 Mar 2004

    Park Row Corporate & Private Clients has revealed that just three months after launching, the firm now has the most qualified certified financial planners in the UK. It says that 11 of its advisers have now become CFPs - more than any other firm in the UK. Only 310 advisers within the industry have reached this level. This is the first team from PRC&PC to go through the programme and the company intends to have further groups following on a regular basis. Peter ...

  • Pink extends commercial range to club members

    19 Mar 2004

    Pink Home Loans is extending its range of commercial mortgages, funded by Commercial First, to its mortgage club members. Pink Commercial was launched earlier this year exclusively to its premier members. Pink has opened up commercial mortgages to club members as part of its drive to improve the level of service it offers to this group of customers. Club members will be given access to a specialist sales team who deal with Pink Commercial and branded lending product enquiries. ...

  • Pink publishes follow-up guide on regulation

    15 Mar 2004

    Pink Home Loans has published a follow-up guide to its first regulation booklet to offer further support for intermediaries. The Road Ahead outlines the key issues that intermediaries should consider when making the decision about their regulatory future. Mark Howell, marketing manager at Pink Home Loans, says; "The first guide was well received within the industry so we decided to put our compliance expertise and knowledge to good use again and have published a second ...

  • Pink reports three-fold increase in mortgage club lending

    16 Mar 2004

    Pink Home Loans has reported a three-fold increase in its mortgage club lending in 2003 contributing to the mortgage distributor's large increase in lending figures. Pink's total lending figures doubled from £1.3bn in 2002 to £2.6bn in 2003 with direct to lender business now representing the majority of the total. Additions to the direct lending panel in 2003 such as Accord Mortgages and the launch of a range of exclusive mortgage products, strengthened ...

  • PMI opens office in Milan

    17 Mar 2004

    PMI Europe, a mortgage insurance and credit enhancement company subsidiary of PMI Group, has opened an office in Milan. Giuliano Giovannetti has been named Italian country manager for PMI Europe. He will be in charge of managing the new Italian branch office of PMI Europe and will lead the company's drive to expand its client base within the Italian market. The office will open for business as soon as final regulatory approval is granted. Tony Porter, PMI Europe's ...

  • Preferred appoints replacement for Biddle

    19 Mar 2004

    Preferred Mortgages has appointed Sam Hallett to the position of marketing development manager. With more than 12 years of marketing experience in the financial services industry, Hallett will replace Simon Biddle. Hallett has joined Preferred Mortgages from MGM Assurance, where she spent almost five years as a project manager. Her main achievement was the development, co-ordination and implementation of a marketing strategy to launch MGM's mortgage Home Finance initiative. P

  • Preferred enhances product range

    18 Mar 2004

    Preferred Mortgages has made further enhancements to its 2004 product range. From March 22 2004, the discount periods will be extended, with the 1.50% discount now available until 1 July 2005 and the two-year stepped discount up to 1.75% until 1 July 2006. In addition, a Right to Buy remortgage facility will be available for customers wishing to remortgage their ex-council properties within the pre-emption period. John Webster, business development director, ...

  • Productivity and enterprise in a flexible economy

    17 Mar 2004

    Britain has high employment levels but the amount of output produced per worker - productivity - has historically been lower in the UK than in other major economies. Faster productivity growth, alongside higher levels of employment, will help to deliver greater economic prosperity and rising living standards. Recent figures suggest the UK's performance is improving, with UK productivity now higher than Germany and moving closer to France. Budget 2004 announces new measures ...

  • Protecting the environment

    17 Mar 2004

    The Government believes that economic growth and social progress must be achieved while protecting the environment to ensure a better quality of life for current and future generations. To protect and improve the environment, Budget 2004 announces: * from 1 September 2004, duty rates on sulphur-free fuels will rise in line with inflation. The duty rate for ultra-low sulphur fuels will be set at 0.5 pence per litre above this level from the same date, to promote the use of the ...

  • Prudence for a purpose: a Britain of stability and strength

    17 Mar 2004

    The Government's economic objective is to build a strong economy and a fair society, where there is opportunity and security for all. The long-term decisions the Government has taken - giving independence to the Bank of England, new fiscal rules, and a reduction in debt - have created a strong platform of economic stability. The UK economy grew continuously throughout the global turndown that began in 2001, while many of the world's major economies experienced recession. ...

  • Report slams endowments

    15 Mar 2004

    Around 80% of endowment policies are unlikely to meet their target of repaying their original mortgage, an all-party Treasury Select Committee reported last week. And the damning report also accused the insurance industry of widespread failure in the way it sold endowment mortgages to borrowers. It revealed the average shortfall across policies is £5,500 and evidence presented to the committee by the Financial Services Consumer Panel and Consumers' Association ...

  • Rock clarification on fast-track deals

    15 Mar 2004

    Northern Rock has issued a clarification on income multiples and the information it requires on applications to all the mortgage intermediaries it deals with. A key difference is that it has placed fast-track within its general lending policy and affordability matrix and is reminding brokers that it is a criminal offence not to declare correct information on mortgage documentation. This move comes after the BBC's The Money Programme exposé featuring brokers stating ...

  • Savers hit hard

    17 Mar 2004

    APCIMS, which represents the overwhelming majority of private client stock brokers and investment managers in the UK, says Budget 2004 has been bad for savers. Angela Knight, APCIMS chief executive, says: "Our pips are squeaking. This Budget is worse than a missed opportunity - it has hurt UK savers. "Savers have responsible, sensible and indeed prudent aspirations. They want to secure their financial futures; they want to plan for things like school fees and first homes. ...

  • Similar name, different firm

    15 Mar 2004

    From Dennis Smith and Glen Thomas I write with regard to your article in the March 1 issue entitled 'Two rip-off companies are wound up'. I would like to point out to readers that the companies mentioned in that article, namely London Mortgage Exchange and London Property Exchange are in no way connected to The Mortgage Exchange (London) Ltd. Dennis Smith and Glen Thomas Directors The Mortgage Exchange (London) London By email

  • Site to forward borrowers' requirements launched

    15 Mar 2004

    A financial website, FinanCity, has been launched which will forward potential mortgage borrowers' requirements on to brokers and lenders. The site, www.financity.co.uk, will not charge users who can input their requirements to be bundled up in an online fact-find and sent off to the broker or lender of their choice. It has been set up by Arthur Kendall who founded the FinanCity company in 2000 with his father, a chartered accountant. Kendall says he is offering a ...

  • Smokers and wine lovers pay price

    17 Mar 2004

    Smokers will have to pay an extra 8 pence on a packet of 20 cigarettes, Gordon Brown announced in his Budget speech today. There was also bad news for wine lovers, the price of a bottle going up by 4 pence. Beer is also to see a price rise, but only by 1 pence. Duty on cider, sparkling wine and spirits was frozen.

  • SMS hosts fourth awards night

    19 Mar 2004

    Solent Mortgage Services has host its fourth annual premier awards. Held at Portsmouth's Marriott Hotel the dinner and dance evening, attended by over 200 people, was a great success and saw SMS' national network of brokers and introducers being recognised for their efforts throughout 2003. This year's big winners were Home and Commercial Mortgages, which won head office and group introducer of the year. Other introducers who walked away with awards ...

  • Spicerhaart reappoints FS staff

    18 Mar 2004

    Two of Spicerhaart financial services staff, David Rich and Kerry Woodward, have been reappointed as financial services directors after spending time working for other companies. Rich, 53, was with Legal & General for four years dealing with group pensions. He has been re-appointed as FS director for Spicer McColl. Woodward, 40, worked for the Mortgage Advice Bureau for a short time. She retains her old title as FS director for Darlows and West, which covers part of ...

  • SPML extends discounts to March 2006

    15 Mar 2004

    Southern Pacific Mortgage Limited has extended the discounts on its non-conforming range of products by nine months to March 1 2006. The discounts are from 1.75%, and apply to the SPML's standard, Right to Buy, buy-to-let and large loan schemes. SPML sales and marketing director John Prust says: "In a climate of rising interest rates, it's important for brokers to have competitive and attractive discounts to offer their clients. "Extending our discounts ...

  • SPML securitises £600m of mortgage assets

    17 Mar 2004

    Southern Pacific Mortgage Limited has securitised £600m of its mortgage assets. The transaction consisted of 82% first charge and 18% second charge mortgages of both prime and non-conforming loans. The securitisation was led by Lehman Brothers and co-managed by HVB and NIB Capital Bank. It was sold in US dollars, sterling and euros. This is SPML's largest securitisation to date. Approximately £562.5m of the total was given the highest rating of AAA, ...

  • Spowart joins top IT firm

    15 Mar 2004

    Intelligent Finance founder Jim Spowart has quit the mortgage lending sector to join Scottish IT support firm Adventi as business development director. Spowart left HBOS last year, only months into the international development role he took up in the group's head office following his decision to step down as chief executive of its IF subsidiary he set up in 2000. A key part of Spowart's role at Adventi, a firm created by managing director Graham Bucknall in 2002, ...

  • SQ2 urges brokers to question free network services

    17 Mar 2004

    SQ2 is urging brokers and IFAs to question just how free some of the services offered by certain networks really are. It says that while a lot of mortgage networks are offering free membership, they can only do that because they are not passing on in full the commissions that they get from life companies to the brokers. The Birmingham-based SQ2 offers brokers appointed representative status, introducer status, and registered individual status. Further services include ...

  • Support service for DR brokers

    15 Mar 2004

    National support service provider threesixty - set up by former Bankhall directors - has launched a compliance and support service for directly regulated mortgage and general insurance brokers. The company says it will be in direct competition with Bankhall but unlike the latter will offer its services under one support package and charge a standard fee. It adds it is in talks with networks to discuss the possibility of outsourcing compliance services for their ARs. Brokers ...

  • The Finance Centre adds Abbey to commercial lending panel

    15 Mar 2004

    The Finance Centre has added Abbey to its panel of commercial lending partners. The addition of Abbey takes TFC Commercial's panel to a total of five which includes Commercial First, igroup, Lancashire Mortgage Corporation, Mortgage Guarantee and Abbey. TFC senior partner Wayne Smethurst says: "It is our intention to make TFC Commercial the largest and most successful sub-prime commercial mortgage packager in the UK. The addition of Abbey to our panel means that we ...

  • The Marketplace launches FTB deal for Scotland

    17 Mar 2004

    Scottish first-time buyers have received a much-needed boost with the launch of First Move, an innovative first-time buyer loan. First Move is exclusive to The MarketPlace at Bradford & Bingley and only available in Scotland, features a range of five products and is designed so that parents can help their children own a home. The product allows parents, or a relative, to use their income to help secure a larger loan. The product is also different from traditional guarantor ...

  • The Mortgage Mole

    15 Mar 2004

    Stars Out A busy start to the week with a relaunch of Pink's Crystal range of branded lending products in association with Mortgages PLC at London's Royal Exchange. Needless to say the Pink champers was flowing freely - as were the celeb lookalikes with Trevor 'Timothy Dalton' Pothecary, Pete 'Shrek' Thomson, Dave 'Stringfellow' Copland and Mole's very own Peter 'Bongocchio' Beaumont all in attendance. With Tony 'Mr Bean' Jones leading ...

  • The shifting sands of investment tax

    15 Mar 2004

    My first ISA article began a look at the subject of the individual savings accounts that feature in the syllabus for each of the CeMAP papers. This week I will consider, among other things, CAT marking and an imminent change in the taxation of some ISA investments. The three types of investment that can be held within an ISA are cash, life assurance and equities. The limit for cash investments in an ISA is £3,000 per tax year. This applies to money paid into the account during ...

  • This Treasury review will help the mutual sector to sharpen its act

    15 Mar 2004

    The long-awaited report by Lord Penrose into the failings at Equitable Life was published last Monday. It was a damning indictment of the way in which one society was run and its accountability to its members. The board, Penrose concluded, "at no stage got fully to grips with the financial situation faced by the society; information was too fragmented, their collective skills were inadequate for the task and there were no effective arrangements for ensuring that there was detailed ...

  • Tightening up the rules on SAMs

    15 Mar 2004

    Interesting to learn in the last issue of Mortgage Strategy that of the 10,600 firms who registered for the direct authorisation pack nearly 1,000 completed applications have now been sent in. While this is some way short of the FSA's expectations of 20,000, you can expect that initial 1,000 soon to be joined by those looking to take advantage of the financial incentives of applying pre-March 31. And anybody choosing the direct authorisation route should be buoyed by the creation ...

  • Time for Gooding to choose

    15 Mar 2004

    From Monty Burn Credibility means a lot in any organisation and while I back the concept of AMI I am not convinced of its impartiality. First we had the farce of the single premium ASU issue whereby AMI said it would look into outlawing the product but had board members selling it and now its chairman is launching a network. And we know what happens when there is a conflict of interest. The positive thing about the Charles Gooding case is that there has been no character assassination ...

  • Time for you to say what you want

    15 Mar 2004

    A key issue to consider before joining a network is whether it offers a whole of market approach or operates a panel of lenders. If it does the latter, the questions you should ask include: how many lenders are on the panel; how is the panel put together and is it reviewed regularly to ensure you are getting access to the most competitive products? But it is fair to say opinion varies in the market on whether it is possible for a network to run a panel and still be able ...

  • Tipton & Coseley reveals record applications in February

    16 Mar 2004

    Tipton & Coseley has revealed record mortgage applications in February totalling more than £10m. This is 25% increase on the society's previous best of £8m in July 2003. The number of mortgage applications in the month also increased to an all time high of 126, which is 22% more than its previous best in Febuary 2002. Chris Martin, chief executive for Tipton & Coseley, says: "The society works hard to offer new and existing customers with competitive rates ...

  • Tories slam 'credit card' chancellor

    17 Mar 2004

    Tory leader Michael Howard hit back at Chancellor Gordon Brown's Budget today. Attacking the government's fiscal policy Howard told the House of Commons that Brown's Budget amounted to nothing more than a "credit card Budget from a credit card chancellor."

  • Tread carefully with euro mortgages

    15 Mar 2004

    It now seems inevitable that the political decision behind the UK's entry into the single currency will be deferred for a few years, at least until after the next election. The UK is different from its European neighbours, probably because of the isolation and independence of our island state, and there is little doubt that we think differently. Whether we consider ourselves European is open to speculation. I doubt the UK populous will ever vote in favour of joining the European currency, ...

  • Treasury to consult on Miles and Barker

    17 Mar 2004

    Chancellor Gordon Brown today said that he would consult on the findings of Professor David Miles review into the mortgage market. The Miles report - The UK Mortgage Market: Taking a Longer Term View - has two key recommendations. The first is to improve advice and information borrowers receive, thereby creating a fairer and more transparent pricing structure. The second is to help lenders fund mortgages and handle risk in the most cost-effective way. Brown ...

  • We'll deal with pure packagers

    15 Mar 2004

    From John Webster As one of the main sub-prime lenders working with mortgage packagers, I'm delighted to confirm that we will continue to deal with pure packagers post-Mortgage Day. As a result we believe it to be sensible to amend our agreements with pure packagers to include their confirmation that they will not be taking part in any regulated activities. Thereafter we'll need to work together to ensure that there are no unintentional breaches of the rules. We also ...

  • What brokers really, really want

    15 Mar 2004

    Having spent the past two weeks looking at the implications of changing your mind about your chosen regulatory route, you may have come to the conclusion that you should spend some time making the right decision in the first place. However, with the current frenzy of advice being given to brokers to go directly regulated or become appointed representatives it is not surprising that many are confused about the likely shape of the industry at the end of 2004 and where they might ...

  • Where taxpayers' money is spent

    17 Mar 2004

    Total public spending is expected to be around £488 billion in 2004-05, around £8,000 for every man, woman and child in the UK. It is set to rise to £520 billion in 2005-06 and to £549 billion in 2006-07.

  • Will unlimited proc fees influence advice?

    15 Mar 2004

    Last week Mortgage Strategy revealed that the Royal Bank of Scotland has removed its cap of £1,875 on procuration fees to brokers. The removal of this limit spurred some commentators to argue that such moves could lead some brokers to be lured by higher proc fees away from offering clients the best advice and products. So, Mortgage Strategy asks: Does the removal of maximum limits on proc fees influence the advice brokers give? Mark Osland, Fidelius In ...

  • xit2 appoints operations director

    19 Mar 2004

    Xit2 has promoted Andrew Bradbury to the board of The Valuation Exchange to become operations director. The Valuation Exchange developed by xit2 is able to streamline the valuation instruction process and can halve the time taken to instruct a valuation. This time saving is sustained throughout the process and offers a tangible benefit to intermediaries who regularly receive pressure from clients on items affecting the speed of the mortgage offer, which are out of their ...

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