Mortgage Strategy
17 August 2009

  • 60 Seconds with.....Simon Tyler

    17 Aug 2009

    You ran the mortgage broking business at Chase De Vere for 27 years until the recession hit. Will brokers still be around in another 27 years?

  • Abbey is making brokers look like incompetent idiots

    17 Aug 2009

    I hate to go on about Abbey but after reading Greg Jackson's letter (Mortgage Strategy August 3) at least I realise I'm not alone in my suffering.

  • Adviser's winning sales strategy

    17 Aug 2009

    A broker has come up with a simple strategy to convince clients of the need to have protection policies in place which has won her a holiday worth £2,000.

  • AMI cautions against new mortgage regulation

    20 Aug 2009

    The Association of Mortgage Intermediaries is urging caution as the Financial Services Authority considers introducing new mortgage regulation.

  • AMI wants FSA to stay focussed on UK market

    17 Aug 2009

    The Association of Mortgage Intermediaries is lobbying hard to ensure the regulator's proposals for reform accurately reflect UK mortgage market conditions.

  • ASA bans sale-and-rent-back ad

    19 Aug 2009

    The Advertising Standards Authority has banned an advertisement from sale-and-rent-back firm Land and Property Bank Limited for being misleading.

  • Assurant MPPI claimants get help finding jobs

    17 Aug 2009

    Assurant Intermediary is teaming up with JobCare to try to find mortgage payment protection insurance policyholders work.

  • Attempt to fight brokers' corner wise but doomed

    17 Aug 2009

    Valuations, or rather downvaluations, have been in the news recently. At last the message seems to be getting out that valuers are acting cautiously.

  • Bank boss says lenders need long-term support

    17 Aug 2009

    Bank of England governor Mervyn King last week warned that it will take several years for the banking sector to be weaned off public support as banks continue to repair their balance sheets. King emphasises the importance of lenders building their balance sheets as a "necessary part of the healing process". He says this is having a knock-on effect on lending levels.

  • Bank nurtures green shoots by keeping rates low

    17 Aug 2009

    After recent rebounds in equities, bank lending, consumer demand and manufacturing data the question is - are the green shoots of recovery going to continue to grow in the medium term or will they be stunted by economic frailty?

  • Banks beware of European Commission, says Fitch

    20 Aug 2009

    Fitch Ratings has warned state-backed banks not to underestimate the power of the European Commission in saying how they should be run.

  • Borrowers sticking with their lender's SVR

    17 Aug 2009

    Some 27% of homeowners are now on their lender's standard variable rate now compared to only 23% earlier in 2009, shows research from Unbiased.com.

  • Bridging sector is strong and growing

    17 Aug 2009

    The financial landscape has changed dramatically in the past two years. Once, lenders and deals were abundant, with mortgages and loans being transacted by some providers with a total disregard for the fundamentals of lending.

  • Britannia and Co-op drop 3,600 solicitors

    21 Aug 2009

    The merged business of Britannia and the Co-operative Financial Services is dropping 3,600 solicitors from its conveyancing panel to qualify for fraud insurance cover.

  • Brits rely on property to fund their retirement

    17 Aug 2009

    Almost three million working Brits are relying on their property to fund their retirement, according to Baring Asset Management. But falling house prices have wiped £29bn off the value of their property pension pots in the past year alone.

  • Brokers risk losing access to Abbey Additions

    17 Aug 2009

    Abbey for Intermediaries estimates that over 1,000 brokers are at risk of losing access to the Abbey Additions sales portal when the offline platform is replaced by a new online platform on 21 August 2009.

  • BSA hits out at Northern Rock restructure

    18 Aug 2009

    The Building Societies Association has urged the European Commission to level the playing field between its members and Northern Rock over concerns the nationalised bank will distort competition.

  • BSA opposes Northern Rock restructure

    17 Aug 2009

    The Building Societies Association has urged the European Commission to level the playing field between its members and Northern Rock over concerns the nationalised bank will distort competition.

  • Buy-to-let brokerage and website join forces

    18 Aug 2009

    Buy-to-let brokerage The Money Centre has teamed up with Smartlandlord.co.uk to provide buy-to-let products and services to over 200,000 landlords.

  • Buy-to-let early stage arrears on the decline

    18 Aug 2009

    Buy-to-let loan arrears have fallen for the first time in two years but the level of three-month arrears has continued to worsen, according to a report from Standard & Poor’s.

  • CFS appoints head of business development

    17 Aug 2009

    Clear Finance Solutions has appointed former Mortgageforce employee Joe Tooma as head of business development.

  • Chelsea hit by £41m mortgage fraud

    21 Aug 2009

    Chelsea Building Society has been hit by a £41m mortgage fraud as it posts a pre-tax loss of £26m for the first half of the year.

  • Conditions as fragile as autumn leaves

    17 Aug 2009

    There's been much talk of late that the worst of the recession is behind us. Estate agents think house prices are going to rise more in the next few months than at any time since April 2007. The Royal Institution of Chartered Surveyors says sales are running 24% above last year. Even the banks are returning to profit.

  • Conti offers overseas mortgage sales aid

    17 Aug 2009

    Conti has developed a free online sales toolkit for brokers to help them generate overseas mortgage business from their existing client bank.

  • Coventry takes 12.7% net lending share

    21 Aug 2009

    Coventry Building Society has reported gross mortgage advances of £1.3bn and mortgage lending of £338m in the first six months of 2009, representing 12.7% of overall net lending in the mortgage market.

  • Direct deals increase 10% since May

    18 Aug 2009

    The number of direct only products available in July listed on TrigoldCrystal’s sourcing system has increased 10% since May and almost 4% since June.

  • Distressed sales increase worldwide, says RICS

    18 Aug 2009

    Over 75% of countries surveyed by the Royal Institution of Chartered Surveyors have seen a rise in distressed sales in the commercial property market.

  • Distressed sales increase worldwide, says RICS

    17 Aug 2009

    Over 75% of countries surveyed by the Royal Institution of Chartered Surveyors have seen a rise in distressed sales in the commercial property market.

  • Don't get mixed up with cowboy firms

    17 Aug 2009

    Brokers desperate to improve the battered look of their bottom lines are being tempted to do business in unfamiliar sectors.

  • Dual pricing must be clear to clients

    17 Aug 2009

    Dual pricing seems to have become entrenched as common market practice.

  • Duncan's world

    17 Aug 2009

    Hapless Tory backbencher Alan Duncan got into in hot water last week when he was caught on camera making a fool of himself over the MPs' expenses fiasco.

  • Ensure indebted clients get the help they need

    17 Aug 2009

    In the past six months we have seen the number of referrals from brokers rise by a factor of almost 10.

  • Equity release customers rely on adverts

    17 Aug 2009

    One third of equity release customers decide on what product to go for based on adverts, shows research from Equity Release Solicitors Alliance.

  • Estate agents' body slams lenders for encouraging downvaluations

    17 Aug 2009

    The National Association of Estate Agents has hit out at lenders for undervaluing properties by as much as 10%, blaming this for causing sales and remortgage deals to fall through.

  • Eurozone heads out of recession

    17 Aug 2009

    Economists last week said the recession in the eurozone could be coming to an end.

  • Fee fears

    17 Aug 2009

    The issue of whether or not to charge fees for advice is in the spotlight. With the upcoming Mortgage Market Review document from the Financial Services Authority expected to rule on whether charging fees should be mandatory the debate about the best way to offer advice is in full swing.

  • Fees of a grand are not fair to clients

    17 Aug 2009

    It is good to see the lending industry increasing LTVs. At the time of writing Woolwich is the latest to nudge upwards, increasing its LTV on offset and tracker products from 60% LTV to 70% LTV and introducing a three-year fixed rate at 85% LTV.

  • Filling the empty homes policy gap

    17 Aug 2009

    The need for shelter is shared by all living creatures - a fact driven home to me recently as I fight a seemingly endless battle to take possession of the rabbit warren in my garden.

  • Firms see opportunity to fill the lending gap

    17 Aug 2009

    Three big lenders are said to be mulling over a return to the UK mortgage market as lending appetite among new entrants also seems to be gathering pace.

  • Fixed deals account for 70% of Q2 broker cases

    17 Aug 2009

    Paragon's Financial Advisor Confidence Tracker, a regular survey of brokers, shows that 70% of mortgage cases submitted by advisers in Q2 2009 were for fixed rate deals. This is the highest level since the survey was launched in 1996, up from 55% in Q1 2009 and 41% in Q4 2008.

  • Fraud can be a problem with direct products too

    17 Aug 2009

    You recently ran a cover story that focussed on mortgage fraud and highlighted the part brokers have played in this, particularly when it comes to overstating clients' income (Mortgage Strategy August 3). The overstatement of income can be a client's responsibility or encouraged by their broker.

  • Fraud fuels bad debt charges of £328m at B&B

    17 Aug 2009

    Nationalised lender Bradford & Bingley has suffered charges of £328.4m related to bad debts for the first half of this year, including £270.8m of potential losses from fraud and professional negligence.

  • FSA authorisation applications up for first time since early 2008

    17 Aug 2009

    The number of firms applying for Financial Services Authority authorisation has risen for the first time since the start of 2008.

  • FSA bans and fines broker £70,000

    19 Aug 2009

    The Financial Services Authority has banned a London mortgage broker, Grace Nmadibechi Ada Ukala, and fined her £70,000 for knowingly submitting false and misleading mortgage applications.

  • FSA can't claim to be acting in the industry's interests

    17 Aug 2009

    How can the Financial Services Authority claim it takes robust action against suspect firms as soon as it has the necessary evidence? (Mortgage Strategy Online August 10.)

  • Go-getters will revive the market

    17 Aug 2009

    Many commentators believe the lending landscape of the future will be shaped by the so-called Treasury Seven, enhanced by stringent capital adequacy rules in light of the numerous bank failures of the past two years.

  • Gross lending up 26% in July

    20 Aug 2009

    Gross mortgage lending rose 26% in July to £16bn, according to the latest data from the Council of Mortgage Lenders.

  • Guilty government wants everyone to pay for its mistakes

    17 Aug 2009

    The housing market can't survive without first-time buyers and they will not return until the price of an average house returns to around three and a half times the average salary. And I don't mean the salary of a couple but of an individual, as was the case at the end of the 20th century.

  • Head directly for business survival

    17 Aug 2009

    Much has been written recently about the fall in the number of mortgage products available to brokers.

  • High price of CMC deals is called into question

    17 Aug 2009

    A broker has raised questions about the growth of shared ownership business at Cheshire Mortgage Corporation, claiming the company's products come with "unbelievably high" rates.

  • High street banks heading for losses

    19 Aug 2009

    High street banks have remained profitable so far this year but are likely to fall into losses in the second half of this year, a survey from KPMG forecasts.

  • How to tackle the problem of lender downvaluations

    17 Aug 2009

    I was interested to read on Mortgage Strategy Online recently the claim that lenders are starting to undervalue properties.

  • I can't wait to see properties selling at realistic prices

    17 Aug 2009

    So banks are undervaluing residential properties (Mortgage Strategy Online August 11).

  • I got a 90% LTV mortgage with a deposit of £16,000

    17 Aug 2009

    The claim I read last week that buyers now need at least a £50,000 deposit to get a mortgage is nonsense (Mortgage Strategy Online August 11).

  • Industry should promote EPCs and stop moaning

    17 Aug 2009

    The National Landlords Association recently stated that tenants are ignoring Energy Performance Certificates and as a result landlords are questioning the need for the reports.

  • Jobless total now highest since 1995 but pace of rise is slowing

    17 Aug 2009

    The number of individuals unemployed is now the highest since 1995 but experts say the rate of increase is beginning to slow.

  • JUST JM: If Carla had only fallen for Gordon

    18 Aug 2009

    In last week’s column I may have explored the gender agenda as raised by Harriet Hormone, sorry Harman (there I go again), in a rather dismissive way.

  • King outvoted on £75bn asset purchase

    19 Aug 2009

    The Bank of England governor wanted to boost quantitative easing by £75bn but was outvoted by other members of the Monetary Policy Committee, minutes from this month’s meeting reveal.

  • Labour ladies pop Harman's balloon

    17 Aug 2009

    The leader of the House of Commons Harriet Harman recently called for more women in the boardrooms of big financial institutions, the implication being that they would do a better job than testosterone-driven men.

  • Landlords hoard cash rather than switch to fixes

    17 Aug 2009

    Landlords on low SVRs are shunning the window of opportunity to lock into competitive fixed rate deals in favour of hoarding their cash.

  • Landlords should opt for fixed rates

    17 Aug 2009

    Landlords sitting on lenders' SVRs of around 3.5% may feel that rates are pretty good at the moment but savvy ones will be busy after their summer break looking for longer term fixes.

  • Leeds launches new three and five-year fixes

    21 Aug 2009

    Leeds Building Society has launched three and five-year fixed rate mortgages starting at 5.30% and available up to 80% LTV.

  • Lender strikes back at claim that search footprints restrict choice

    17 Aug 2009

    In The Loop Mortgages has mounted a staunch defence of the practice of leaving footprints on borrowers' credit profiles in the early stages of applications.

  • Lenders lick their lips

    17 Aug 2009

    Hot on the heels of Mortgage Strategy's exclusive story last week that Kensington is set to make its return in 2010 we hear a host of investors are queuing up to break into the UK for the first time.

  • Lenders should be pulling their weight

    17 Aug 2009

    It's that time of year again - banks are reporting their half-year results. Unfortunately, they are quoting figures that are meaningless to most people, even those who regularly deal with big banks. Some are reporting that profits are up. Others are reporting that profits are down. And for some, there are no profits at all. So what are we to make of these figures? Nothing.

  • LIBOR’s low leaves lenders looking lame (but is it that simple?)

    19 Aug 2009

    I was up at the crack of dawn today for a quick comment on Wake Up To Money on BBC 5 Live, where the topic was the fact that LIBOR rates have now fallen substantially. 3 month LIBOR, which was so far out of kilter a few months ago and used as the main excuse behind lack of funds is now down at 0.75%, basically back to a “normal” level.

  • LIBOR’s Low Leaves Lenders Looking Lame (But Is It That Simple?)

    19 Aug 2009

    I was up at the crack of dawn today for a quick comment on Wake Up To Money on BBC 5 Live, where the topic was the fact that LIBOR rates have now fallen substantially.

  • Lloyds Banking Group holds top spot

    18 Aug 2009

    Lloyds Banking Group has come out on top of the Council of Mortgage Lenders' table of the largest mortgage lenders for 2008.

  • Lloyds Banking Group may not close C&G

    19 Aug 2009

    Lloyds Banking Group has revealed today that it will not be closing all of its Cheltenham & Gloucester branches in November as planned.

  • Marketwatch 17/08/2009

    17 Aug 2009

    Swaps dropped relatively sharply after the quantitative easing programme extension announcement and plummeted even further when the quarterly inflation report came out.

  • Media Spotlight: Location, Location, Location

    17 Aug 2009

    Kirstie and Phil are back to scour the nation in their bid to transform would-be home buyers into proud owners and, in the midst of a serious recession, unite punters with their dream homes.

  • Military zones can be a legal minefield

    17 Aug 2009

    When your clients consider buying property abroad do they consider the rules that govern what they are allowed to do and where?

  • Mortgage approvals rate hits 80%

    20 Aug 2009

    A report from the Bank of England reveals that 80% of mortgage applications are being approved, representing a 10% increase on the start of the year.

  • Nationwide is to be congratulated for keeping SVR low

    17 Aug 2009

    I was interested to read that Nationwide Building Society's low SVR will cause its profits to take a hit (Mortgage Strategy Online August 3).

  • Northern Rock debt hit by Fitch downgrade

    19 Aug 2009

    Fitch has downgraded Northern Rock’s subordinated debt following the news that the nationalised bank is to delay interest payments to some of its bond holders.

  • Northern Rock delays investor payments

    18 Aug 2009

    Nationalised bank Northern Rock has decided to delay the interest payment to some of its investors, reportedly in order to save the company money.

  • On the road

    17 Aug 2009

    With so much doom and gloom around it's always nice to hear a tale of selflessness. So Mole was chuffed to hear that overseas mortgage specialist Simon Conn is taking part in a sponsored walk in aid of the Martlets Hospice in Hove. The men-only event will take place on Sunday October 4.

  • Owners in trouble shun downsizing

    17 Aug 2009

    A third of borrowers would rather save face than downsize to smaller properties if they run into financial difficulties.

  • Paaleads.com generates £32m in proc fees

    17 Aug 2009

    Paaleads.com has delivered leads to brokers worth £32.8m in proc fees over the last year, says the lead generation company.

  • Packagers have their say as group reforms

    17 Aug 2009

    The Association of Mortgage Intermediaries is reforming its Packager Taskforce to debate the future regulation of packagers ahead of the Financial Services Authority's upcoming mortgage market review.

  • Paradigm offers Australian B2L properties

    18 Aug 2009

    Paradigm Mortgage Services members can now market Australian buy-to-let properties as part of a partnership with specialist property investment company Forrester Cohen.

  • Paymentshield teams up with Promise

    18 Aug 2009

    Promise Solutions has been appointed to Paymentshield’s panel as the preferred provider of secured loans to its mortgage club members.

  • Potential movers face equity and funding restrictions

    17 Aug 2009

    Research by John Charcol last week revealed that 3.5 million households, - a third of all those with residential mortgages - are unable to move house either due to a lack of equity in their property or restrictions on access to mortgage finance.

  • Proposals to limit student HMOs run into opposition

    17 Aug 2009

    Property trade bodies are working with the National Union of Students to fight government plans to limit the number of Houses in Multiple Occupation allowed in an area.

  • Rent-back must go beyond regulation

    17 Aug 2009

    Regulations just introduced by the Financial Services Authority to help raise standards in the sale-and-rent-back market are a step in the right direction.

  • Repossessions extend grip beyond landlords to affect family homes

    17 Aug 2009

    Repossessions have moved beyond the buy-to-let sector and are starting to hit families, according to early indicators.

  • Rightmove posts £19.9m operating profit

    21 Aug 2009

    Rightmove has posted a half-year underlying operating profit of £19.9m as the property website points to signs that the number of estate agents in the market has stabilised.

  • Sesame sees £1m loss in first half

    17 Aug 2009

    Sesame last week reported an underlying loss of £1m for the first half of this year compared with a £2m profit in the same period in 2008.

  • Signs of recovery as house prices and lending figures both increase

    17 Aug 2009

    Fresh signs that the housing market is picking up emerged last week, with house prices rising by 2.6% in Q2 2009 and lending up 23% in May.

  • Social networking website offers mortgage facility

    17 Aug 2009

    A social networking website has been launched which allows professionals to source and apply for mortgages online.

  • Some consumers have benefited in the crunch

    17 Aug 2009

    Clydesdale Bank says one in every 16 individuals has benefited from the downturn. Clydesdale interviewed 1,000 consumers and says low interest rates and reductions in mortgage payments have seen many reduce their outgoings. But while 21% in the North-East claim to have been positively affected, just 2% of Scots say this has been the case.

  • Staying up-to-date with clients' needs

    17 Aug 2009

    Just like the weather forecast I try to take financial predictions with a pinch of salt. But reading the news in recent weeks it's promising to see that house prices are rising and buyer interest is up.

  • Stroud & Swindon chief executive steps down

    17 Aug 2009

    Chief executive of Stroud & Swindon Building Society David Hill has decided to step down at the end of August to pursue other interests.

  • Stroud & Swindon chief executive steps down

    18 Aug 2009

    Chief executive of Stroud & Swindon Building Society David Hill has decided to step down at the end of August to pursue other interests.

  • Summer sellers drop prices 2.2%

    17 Aug 2009

    Aggressive summer pricing pushed asking prices down by 2.2% in August, according to the latest Rightmove House Price Index.

  • Tesco pushes to expand bank services

    20 Aug 2009

    Tesco Personal Finance has announced plans to open a customer service centre in Glasgow as part of the supermarket giant's bid to offer full banking services.

  • Time for lenders to set their sights on higher LTVs

    17 Aug 2009

    It was no surprise that the Bank of England base rate did not change this month. The minutes of the meeting next week will give us a better idea of how much the Monetary Policy Committee's mission to control inflation will influence mortgage rates in the next few months.

  • TrigoldCrystal adds debt consolidation facility

    17 Aug 2009

    TrigoldCrystal has added a debt consolidation calculation tool to its Prospector mortgage sourcing system. The facility allows brokers to demonstrate to clients the benefits of consolidating debt by remortgaging.

  • Uinsure unveils a standalone MPPI product

    17 Aug 2009

    Uinsure has launched a standalone mortgage payment protection insurance deal for existing borrowers.

  • UK inflation holds at 1.8%

    18 Aug 2009

    UK annual inflation remained below the government’s 2% target during July, holding at June’s level of 1.8%.

  • Valunation appoints chief executive as MD exits

    18 Aug 2009

    National surveying firm Valunation has appointed former director at Countrywide Surveyors John Bagshaw as chief executive as it emerges that managing director Jon Steward has stepped down.

  • Watchdog shakes up City pay practices

    17 Aug 2009

    The Financial Services Authority last week overhauled City remuneration practices, banning banks, building societies and broker dealers from entering into contracts with individuals which provide guaranteed bonuses for more than a year. The regulator also wants senior employees to have two-thirds of their bonuses spread over three years. Firms are expected to provide the FSA with remuneration policy statements by the end of October.

  • Wedding belle

    17 Aug 2009

    Finally, Mole would like to congratulate online editor Natalie Martin who go engaged last week on her 27th birthday. The lucky lass was whisked away to Barcelona by her husband-to-be for a birthday treat where he popped the question.

  • We're too gloomy to be silly

    17 Aug 2009

    Whatever happened to the silly season? Normally at this time of year newspapers are filled with gloriously daft stories that keep journos busy over the summer break.

  • Your customers need you

    17 Aug 2009

    Life just gets tougher for first-time buyers. We're two years into the credit crunch and the average LTV has fallen from 91% in August 2007 to 74% today.

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