Mortgage Strategy
17 May 2004

  • A View from the Floor

    17 May 2004

    Our latest house price survey (to the end of March 2004) shows that the average house price in Wales increased by 32.2% over the past 12 months, from £87,238 to £115,287. This means an average house is now worth the equivalent of more than five times Welsh average annual earnings (£21,398). It is true to say that the low cost and widespread availability of mortgages, together with reasonable levels of job security, are playing their part in fuelling the market. ...

  • Advisers advised to get smarter

    17 May 2004

    The Association of Independent Financial Advisers has warned that smaller adviser firms must "get a lot smarter" in outsourcing compliance and technology if they are to survive the costs of regulation. Speaking at a conference last week in London, Paul Smee, director-general of AIFA, told delegates that smaller businesses have to recognise their strengths and weaknesses. He says: "Advisers are spending less time advising and more on administrative tasks. They must be more focussed ...

  • Alliance & Leicester relaunches mortgage portfolio

    21 May 2004

    Alliance & Leicester has relaunched its mortgage portfolio to offer a range of fixed, discounted and tracker deals. The products, which are available through both Alliance & Leicester branches and intermediaries, are available immediately and include a two-year fix at 4.99% up to 95% LTV; a two-year feesaver fix at 5.24% up to 95% LTV and a five-year fix at 5.29% up to 95% LTV. The discount deals include a low start discounted rate of three years at 2.40% discount off ...

  • Amber increases discounts on prime mortgage deals

    18 May 2004

    Amber Homeloans has increased the discounts on its prime mortgage products. Amber is now offering prime three-year discount mortgages, with rates starting from 4.09%.The range comprises of a 2% discount off variable rate until July 31 2007 up to 75% LTV; a 1.75% discount off variable rate until July 31 2007 up to 90% LTV; and a 1.5% discount off variable rate until July 31 2007 up to 95% LTV. Mike Perry, associate director of sales and marketing at Amber, says: "Following ...

  • B&B rumoured to be selling estate agency arm

    17 May 2004

    Bradford & Bingley's estate agency chain is rumoured to have been put up for sale for £28m - nearly half the price the group originally paid for it. Industry sources tell Mortgage Strategy that a deal was on the cards with an anonymous third party early last week but it fell through. The lender and financial services provider purchased the Black Horse estate agency chain in 1998. Since then, this arm of the business has failed to perform as well as the rest ...

  • B&W to offer Islamic scheme

    17 May 2004

    Arab Banking Corporation has joined forces with Bristol & West to launch an Islamic home finance scheme tailored to meet the needs of the Muslim community in the UK. Through its London subsidiary, ABC will market the product under an Islamic brand name, alburaq, that will also be used to market financial services in the Arab world. Financing for the product and full back office support services will be provided by Bristol & West. The agreement brings together ...

  • B&B to sell Charcol following strategic review

    19 May 2004

    Charcol is to be sold off by Bradford & Bingley following a strategic review of the business by new group chief executive Steven Crawshaw. The B&B board has decided that Charcol, its associated mid-to-high net worth IFA businesses Charcol Holden Meehan and Aitchison and Colegrave, its property services businesses, estate agency and SecureMove are not core to the future of B&B and should be sold. Goldman Sachs has been engaged as advisers and the sales process is expected ...

  • B&W announces full integration with Trigold's Prospector Plus

    19 May 2004

    Bristol & West Mortgages yesterday announced its first full integration with a sourcing system by linking with Trigold's Prospector Plus to accept AIPs and applications electronically. B&W says mortgage intermediaries will benefit from a direct process that is quick and easy with Trigold's pre-population technology taking information input during the search process, and transferring it into B&W's application-in-principle form. It says this will speed up the turnaround ...

  • BDS Mortgage Group launches sub-prime tracker from BMS

    19 May 2004

    Packager BDS Mortgage Group has launched a limited tranche sub-prime tracker up to 95% LTV from BM Solutions. The product tracks the Bank of England base rate for the first two years at base rate plus 2.69% followed by 1.99% for the remainder of the term. The target market is light adverse with no redemption overhang after the initial two years. Phil Jay, managing director at BDS Mortgage Group, says: "With an uncharacteristic 95% LTV, BM Solutions is certainly broadening ...

  • Berkeley Berry Birch to offer members customised version of Trigold software

    21 May 2004

    Berkeley Berry Birch, one of the UK's largest financial services distribution groups, is to offer its advisers an exclusively customised version of Trigold's mortgage sourcing software. This decision is a result of ongoing analysis of the software market and direct feedback from members.   BBB will be promoting a white label version of Trigold's Prospector Plus software which provides mortgage sourcing, electronic applications, cross-sale opportunities and a ...

  • Birmingham Midshires appoints PR account executive

    19 May 2004

    Birmingham Midshires has appointed Carla Lavender to the position of public relations account executive. Previously a freelance journalist and communications lecturer, Lavender joined the team on a freelance basis in February. She will now be directly involved in external communication, focussing on the specialist lending side of the business. Lavender has a BA (Hons) degree in Journalism and has also worked on ITV's 'This Morning' programme. Lavender ...

  • Boulger comments on Charcol sale decision

    20 May 2004

    Charcol senior technical manager Ray Boulger says he fully understands Bradford & Bingley's decision to sell Charcol and says the move should be seen as an opportunity for staff. Boulger says: "This will enable us to revert back to a more entrepreneurial type of business, but the message for staff and customers is 'business as usual'." He says The MarketPlace, which B&B is retaining and plans to operate as a multi-tie, will have a lower cost base than an independent ...

  • Bradford & Bingley increases SVR by 0.25%

    17 May 2004

    Bradford & Bingley is increasing its standard variable mortgage rate for both new and existing borrowers by 0.25% following the recent base rate rise. Its SVR will increase from 6.04% to 6.29% per annum. The rate will be effective from May 23 2004.

  • British reach £1trillion borrowing milestone

    21 May 2004

    The British have collectively borrowed £1trillion in mortgages, loans, credit cards and overdrafts, Liberal Democrat shadow chancellor Vince Cable revealed yesterday. The interest repayable on a loan of £1trillion at an average 7.5% APR amounts to well over £6bn every month. Some people could be paying considerably more than that - especially on credit card loans. British households and businesses now owe banks and other creditors as much as the total external ...

  • Brokers warned of phoney HSE compliance letters

    17 May 2004

    Brokers are being warned to be wary of scam letters from organisations claiming to be enforcers of the Health & Safety Act. The letters demand payment to register your firm as compliant to avoid a hefty penalty or imprisonment. Val Goldsmith, director of financial public relations consultancy Metaphor Communications, received one of the letters saying she was not registered as compliant for the Health and Safety Register which becomes effective this month. Goldsmith ...

  • Buildstore says 4% increase in new homes falls too short

    19 May 2004

    Three months after the latest Barker report pronounced the new housing market to be in crisis, government statistics released by leading industry publication Mortgage Strategy show a year-on-year increase of 4% in the number of new homes started during the first quarter of 2004. However, self-build and renovation market firm Buildstore says that this figure falls far short of the number of new homes needed to solve the housing crisis and claims that self build can make a significant ...

  • Buy-to-let deals in major Spanish cities soon

    17 May 2004

    Eurobank-funded mortgages for buy-to-let properties overseas could be 50% cheaper than a UK-funded investment, property website Timeinthesun.com has revealed. The yields for buy-to-lets have steadily grown over the past couple of weeks, reducing investor returns. Noel Mangan, joint managing director at Timeinthesun.com, says that in the next three to six months the company will be offering buy-to-let in major cities in Spain. He says with euribor currently at ...

  • Campaign to change runaway clients pay off at last

    17 May 2004

    From Brian Lentz Some years ago I spent many hours placing a complicated case with Friends Provident. When I announced the good news to the client the following day he told me a long-lost friend who was now a mortgage broker had contacted him and recommended the same package. I was hopping mad and sent the client a bill for my time. He reported me to the Trading Standards Authority which introduced me to section 155 sub 2(B) of the Consumer Credit Act 1975 which says a mortgage ...

  • Choice will soon be as important as cost

    17 May 2004

    This week I pose the question - is unrestricted intermediary access to lenders important? One of the features of the intermediary mortgage market has always been open and easy access to products. So could moves to restrict your choice have damaging consequences? What started me thinking was the noise surrounding Alliance & Leicester's decision to deal with a restricted number of intermediaries. On reflection, I think there are serious issues to be discussed here - including ...

  • CML and NAEA dismiss rumours of house crash

    20 May 2004

    The Council of Mortgage Lenders and National Association of Estate Agents have dismissed rumours of a housing crash, predicting that interest rates will be 5.5% by the end of the year. Jennet Vass, economist at the CML, told brokers at the Manchester Mortgage Expo 2004 that MPC board member Paul Tucker has bandied around 5.5%. The CML believes this is the figure the MPC is aiming for by the end of the year. She says: "There will be a natural slowdown through interest ...

  • Compliant advertisements will boost sales, says FSA

    20 May 2004

    Compliant advertisements will boost sales as well as consumer confidence post-Mortgage Day, the FSA predicts. Speaking at the Manchester Mortgage Expo 2004 yesterday, Susan De Mont, manager of mortgage policy at the FSA, explained to brokers that transparent and clear advertisements would counteract fears that products contain "dodgy" extras. She says: "Our approach is that if it's that important, put it at the front of the advert." She also ...

  • Compulsory leasing plan is a step towards a more civilised society

    17 May 2004

    The government gave a strong indication last week that it will introduce legislation to compulsorily lease privately owned homes that are currently lying empty. During the third reading of the Housing Bill (which also introduces seller's packs) housing minister Keith Hill told MPs that he strongly favoured the introduction of legislation to tackle the problem of empty homes. The government is rightly concerned about the serious undersupply of housing which has contributed to ...

  • Coventry launches career initiative programme for school leavers

    17 May 2004

    Coventry has launched a career initiative programme for school leavers who want to enter the financial services industry. The School Leavers Training Programme has been designed to offer school leavers the skills and experience they need to pursue a career in financial services. There are 10 places available this year ? three as financial services trainees and seven as branch network trainees. Coventry says the recruits will gain experience and skills and an excellent ...

  • Curriculum Vitae - Mike Healy

    17 May 2004

    Name: Mike Healy Age: 47 Company: Irish Permanent and Capital Home Loans Job Title: Head of sales Where do you live? Winchmore Hill Describe your current job: I manage a team of people who sell our buy-to-let and self-certification products. I am responsible for meeting the IP and CHL sales targets and also have my own clients. I am based in Hammersmith, London, where Irish Permanent's UK office ...

  • Dear Dippy

    17 May 2004

    Dear Dippy Jim Bennett is a 64 year-old widower. Before retiring he earned £33,000 per year as a bus driver and he now lives on a pension of £12,000 a year. He has no investments but owns his home, valued at £260,000. He would like another £3,000 per year and wants £5,000 to pay for a trip to see his daughter in Australia . What are his options? Dippy says: With the Treasury's announcement last week that home reversion schemes will be regulated this ...

  • Enable cover deal will benefit ARs

    17 May 2004

    Mortgage and general insurance network Enable has signed a distribution deal allowing its appointed representatives and business partners to sell the household insurance of More Than, the direct arm of Royal & Sun Alliance. This is the first time consumer brand More Than has distributed its household insurance products through an intermediary channel and means Enable members will have the benefit of a direct pricing model, making products cheaper than those offered by most ...

  • Exclusive Connections adds Classic Mortgage Solutions to network

    18 May 2004

    Exclusive Connections has announced the addition of Classic Mortgage Solutions to its network of members. Manchester-based Classic Mortgage Solutions, which was established in January 2003, joined Exclusive Connections on May 1. With more than £400m turnover within the group last year Classic Mortgage Solutions says it will be one of the largest member companies within the Exclusive Connections network. Ray Ronan, managing director of Classic Mortgage Solutions, ...

  • Freedom Finance rapidly expands in Sweden

    21 May 2004

    Wilmslow-based Freedom Finance is rapidly expanding in Sweden after doubling its workforce in the country in less than six months. Commenting on the growth, Tony Machin, managing director, consumer finance and Europe, says: "We have worked hard to develop the operation in Sweden since the business was acquired in October last year. The growth has been achieved through significant investment in advertising, which has increased our profile and has resulted in an increase in ...

  • FSA encourages MCCB staff to join its ranks

    20 May 2004

    The FSA has confirmed that staff at the MCCB will be its primary target to join its ranks come October 31. Recognising that more staff will be a major prerequisite to properly regulate the industry, the FSA says the MCCB would its first port of call. Speaking at the Mortgage Expo Susan De Mont yesterday, manager of mortgage policy at the FSA, said: "We recognise there are an awful lot of well qualified people at the MCCB. We would certainly encourage MCCB staff to ...

  • Genesis adds six members to compliance team

    18 May 2004

    Genesis Home Loans has added six staff to its compliance team. The Peterborough-based team is responsible for providing field support to the company's appointed representatives in the run-up to FSA mortgage regulation and thereafter. The new appointees are Caroline McCormick, Garrett O'Reilly and Mark Branton, who all join from AMP Pearl; John Sprigg, formerly of Home Loan Partnership and Brittanic Assurance; and Philip Neville and Alan Reynolds, who moves as a ...

  • GMAC-RFC announces details of mainstream products

    20 May 2004

    GMAC-RFC has announced details of its mainstream products, with rates starting from 4.95%. The products include mainstram two-year fixed rates to July 1 2006 at 4.95% to 75% LTV and 5.15% to 95% LTV. Key features include rate security for the first two years; allows 25% penalty free partial repayment per 12 month period; no early repayment charge tail with ERCs standing at 3% in the fixed period only; mortgages available on a let and buy basis, up to 95% LTV and £495 arrangement ...

  • Goldsmith Williams offers LIA members discounted remortgage rate

    20 May 2004

    Direct conveyancing firm Goldsmith Williams has teamed up with the LIA to offer its members a discounted remortgage rate of £325 including VAT and disbursements for completed remortgages. LIA members will be entitled to the discounted rate as part of LIA Plus, the LIA's latest offering of additional benefits for its members. In addition to the discounted rate, Goldsmith Williams is also offering the added benefits of 10-day completions on remortgages from receipt of ...

  • Growing number of 20 and 30 year olds turning to buy-to-let

    18 May 2004

    A growing number of 20 and 30 year olds are turning to the buy-to-let sector to get onto the property ladder or as a means to provide for their retirement, research by Bradford & Bingley Letting Agents reveals. The research shows that nearly a third of B&B's landlords are aged between 26 and 35 compared to four in 10 who are aged between 36 and 50, with nearly a quarter who are over 50 years old. The research also reveals that nearly seven in 10 of all landlords ...

  • Halifax grabs top spot from IF in financial products survey

    18 May 2004

    Halifax has grabbed the top spot from Intelligent Finance in the latest Financial Products Reputation survey by media analyst PressWatch Media. In April 2004 Halifax was ranked number one of 487 financial services companies reported in the UK national media. Halifax's triumph brings to an end the winning streak of its internet banking subsidiary Intelligent Finance , which topped the Financial Products charts in each of the first three months of 2004. Halifax scored ...

  • House prices up 2.7% in April, latest NAEA index reveals

    17 May 2004

    House prices were up 2.7% in April and over 12.35% from 12 months ago - the highest rate of annual inflation for over a year, the lastest monthly index from the National Association of Estate Agents reveals. The NAEA's survey of almost 10,000 agents across the country reveals that prices soared almost 3% last month. Property prices are currently over 12% higher than this time last year - the highest price increase since March 2003 - as the typical property price hit ...

  • Huntswood Outsourcing expands mortgage consultancy team

    20 May 2004

    Huntswood Outsourcing has appointed Cliff Harrison and Andrew Wheeler to its mortgage consultancy team.  Harrison joins Huntswood as head of consulting and has over 20 years' experience as a management consultant and of building consulting practices, having previously worked at KPMG Consulting and BT Consulting.  Prior to this, he worked for The Merchants Group and PricewaterhouseCoopers. Wheeler returns to Huntswood in the position of senior consultant after three ...

  • I'm tired of this legitimate niche product being denigrated

    17 May 2004

    Letter of the week - From Tim Dawson It is disappointing that a responsible lender like Nationwide is making inflammatory comments about equity release (Mortgage Strategy May 10) but not surprising to brokers and equity release lenders weary of those denigrating this legitimate niche product. Accusations that lenders are making obscene profits by preying on the vulnerable might grab headlines but they are not based on fact. The comments are predicated on a misunderstanding ...

  • Industry backlash at Nationwide equity claims

    17 May 2004

    Equity release providers have hit back at Nationwide's claims in last week's Mortgage Strategy that the products had the potential to be the next big mis-selling scandal. And despite the announcement on Monday that the FSA is to regulate the whole equity release market including home reversions, Nationwide is standing by its concerns, saying it is awaiting details of the regulations. Tim Sturley, head of development at equity release lender Mortgage Express, says: ...

  • Industry reacts to B&B's decision to sell Charcol

    20 May 2004

    The industry is speculating that Charcol may benefit from being sold by Bradford & Bingley if it becomes fully independent rather than being tied to another lender or product provider. Mortgageforce chief executive Rob Clifford says: "We have benefited greatly from being independently owned and I know a number of people at Charcol would prefer not to be owned by a product provider. In the eyes of the majority of consumers, independence is important." Hamptons International ...

  • Industry split on regulation of B2L

    17 May 2004

    Further debate has broken out in the buy-to-let industry over whether it should be brought under FSA control following the Treasury's announcement last week that equity release home reversions are to be regulated. Many believe that buy-to let should not be regulated as it is a commercial transaction but Matt Grayson, spokesman for BM Solutions, says the market is changing with many more small investors now needing protection. He says: "The regulation of home reversion ...

  • Intermediaries responding positively to GEM range, says igroup

    18 May 2004

    igroup has announced a positive reaction from intermediaries following the relaunch of its GEM mortgage range in March. The lender says over 40% of new applications received in April were chosen from the product range, as were a quarter of all mortgages that completed in that month. It reports that its tracker products are the most sought after followed by the discounted range, with customers opting to keep their repayments as low as possible in the first 12 to 24 months ...

  • Internet Insite

    17 May 2004

    Last week I reviewed three of the sites from 1st For Everything in Cardiff. As I found a fourth website from this stable - Best Net Mortgages - I thought I would stay in Cardiff and put that site alongside two other Cardiff offerings. And Best Net comes out reasonably well, despite the old testimonials. Mortgage Solutions Direct makes a bold claim about being innovative but the site, despite using product information from Network Data, is inconsistent. First Independent Direct doesn't ...

  • Is this a case of discrimination against low-income families?

    17 May 2004

    From Andrew Bartlett Has political correctness really gone too far this time? I am currently having a remortgage application processed with Bristol & West for a couple with two children. Because the family lives in a two-bedroomed property, Bristol & West has asked me if the children are of opposite sexes. If this is the case the application will be declined. Has any other intermediary had this extraordinary stipulation with any other provider? It ...

  • It is the DA applicants who have been duped, Mr Baxter

    17 May 2004

    From Richard Griffiths I refer to Nick Baxter's letter (Mortgage Strategy May 3) which talks about duping advisers into becoming ARs rather than being directly regulated. Do brokers applying for DA really understand the enormous weight of compliance, the time that must be spent on administrative issues rather than dealing with clients and the escalating cost of PI cover - if they can find it - under the FSA regime? And if they hit any problems with the FSA who ...

  • It's time to separate the wheat from the chaff

    17 May 2004

    So-and-so does this and so-and-so does that. XYZ is better at this but ABC can do that. EFG knows his ABC and is really good but CBA could be as well. Choosing the right network can be like walking through a minefield and with so much misinformation floating around the marketplace just who should you believe? As we have reported before in this column the mix of information pouring out of the various network propositions is astonishing. And if half of the organisations ...

  • July launch for FSA system

    17 May 2004

    Trigold last week became the first sourcing system to announce the launch date for FSA-compliant software - July 30. The firm says the software, called Prospector AAA, has been given a "triple A rating for being accurate, advanced and assured". Trigold believes that announcing a launch date will reassure advisers that a solution will be available in time for Mortgage Day. Bill Safran, joint managing director for Trigold, says: "Having the right software and systems ...

  • L&H to pay proc fees on Spanish range

    18 May 2004

    Leeds & Holbeck has announced that it will now pay procuration fees for introduced business on its Spanish lending mortgage range. The loans include a five-year fixed rate deal at 5.75% and a three-year Bank of England base rate tracker plus 0.95%, with up to £1,000 cashback. There is also the España variable rate loan, which tracks the Bank of England base rate plus 2.00% and has unlimited capital repayments. Highlights of the five-year fixed rate deal include ...

  • Leeds & Holbeck to launch 25-year fixed deal at 5.99%

    21 May 2004

    Leeds & Holbeck is to launch a mortgage range on May 22 which will include long-term fixed rates up to 25 years with flexible features at 5.99%, plus a five-year fixed rate mortgage with no lock-ins at any time at 5.69%. With interest rates on the increase, L&H says the products will provide borrowers with a comprehensive and innovative range of portable fixed rate options. Highlights of the long-term fixed rates include a rate of 5.99% fixed for 15, 20 or 25 years; daily ...

  • LMS Home Loans to announce branded lending deal with SPML at Expo

    19 May 2004

    LMS Home Loans will be announcing the launch of its branded lending arrangement with Southern Pacific Mortgage Limited at the Mortgage Expo in Manchester today. LMS Home Loans already offers branded lending with Platform Home Loans and Mortgages PLC, and the tie up with SPML completes LMS's planned branded lending portfolio for 2003/04. LMS Homeloans director Andy Linnett says: "The branded lending agreement with SPML underpins the growing strength of the LMS Homeloans ...

  • Loans.co.uk ranked at the top of employers

    18 May 2004

    Loans.co.uk was ranked fifth in the Sunday Times 2004 Profit Track 100 poll. Loans.co.uk currently arranges loans for over 1,000 customers a month on behalf of lenders such as First National, First Plus, Paragon and Lloyds Bowmaker. Andy Pelley, marketing director at Loans.co.uk says: "Being awarded the fifth best employer to work for is a great compliment from our staff, as this is an award where the placing is determined by the employees of the company."

  • M2 Financial launches dedicated mortgage arm

    21 May 2004

    National IFA firm M2 Financial is launching a dedicated mortgage arm, M2 Financial Mortgages, on June 1 to complement its expanding financial advisory service. The division will be headed by founder and managing director Mark Howard and operations director Chris Regan. The day-to-day running of the mortgage business will be the remit of Stuart Johnstone, who will develop the business in line with M2's holistic approach to financial planning. The mortgage business ...

  • Major service problems cause backlog at TMB

    17 May 2004

    The Mortgage Business has admitted it is experiencing major service problems and now has application backlogs of 22 days. But the HBOS subsidiary says it is doing all it can to get back to the standards expected by packagers and brokers. It has already made its rates less competitive and staff are working overtime to process cases. The firm has contacted intermediaries to explain the situation asking them not to contact TMB until further notice and giving them the option ...

  • Making a living from lifetime deals

    17 May 2004

    Lifetime mortgages hit the headlines again last week. First, and much to the annoyance of Norwich Union, Nationwide's commercial and treasury director Stuart Bernau launched an attack on equity release products. Bernau cites daytime TV-watching, cash-poor customers as being the most at risk from such products, though I hear the planned episode of Trisha focussing on the effects of compound interest on the old and vulnerable is some way off yet. The welcome news, however, is that home ...

  • Marketing Brief

    17 May 2004

    I'm well into the Ps in my A to Z of lenders' intermediary material so I thought it might be interestingto review Portman alongside one of the lenders I'd missed from earlier in the alphabet. And a relatively unknown lender it is too - Heritable Bank. Having looked through the material from both lenders and had a gander at their websites as well I was clearly being optimistic when I thought it would be 'interesting'. Oh well, you can't win 'em all. One thing ...

  • Marlborough Stirling launches 'regulation-ready' e-KFI solution

    21 May 2004

    Financial services solutions provider Marlborough Stirling has launched a 'regulation-ready' electronic Key Facts Illustration component to enhance its Omiga solution for mortgage point-of-sale and application processing. Developed to ensure that building societies and mortgage lenders will be well prepared for the introduction of mortgage regulation, Marlborough Stirling says e-KFI enables lenders to complete complex KFI and base offer documents quickly, efficiently and ...

  • MCCB numbers confusion

    17 May 2004

    Brokers who use their network's MCCB number could be slowing down the mortgage application process, an industry source warns. The source has told Mortgage Strategy that over 2,500 of the brokers that place business with it have not renewed their MCCB registrations, opting instead to use their network's MCCB number. It challenges claims by the MCCB that lenders and intermediaries have almost universally renewed their registrations for its final period of operation. The ...

  • Mercantile launches range of products

    19 May 2004

    The Mercantile has launched a range of products including introducer-only, direct and North-East only deals. The introducer only deals include a five-year discount product with a discount of 1.65% at 75% LTV with a current pay rate of 4.34% and a five-year discount of 1.45% at 95% LTV with a current pay rate of 4.54%. The range also includes two-year discounts, a lifetime discount and a current buy-to-let deal with a discount of 1% at 75% LTV and a current rate of 4.99%. The ...

  • Moneyfacts to install Mortgage Comparison software in A&L call centres

    19 May 2004

    Moneyfacts has secured a deal to install its Mortgage Comparison software throughout Alliance & Leicester's call centres. The system is primarily aimed at helping to retain existing customers, but can also assist new business acquisition. Using the software, Alliance & Leicester operators can instantly compare two mortgage products - their own and their competitors' - side-by-side on a single screen. A red and green colour coding system highlights immediately ...

  • Moneyfacts tracks movements in market following base rate rise

    17 May 2004

    Moneyfacts has published its analysis of the recent base rate hike, which has been tracking the movements in the mortgage market following this expected rise. It lists the first lenders who increased their rates. These include Abbey; Allied Irish Bank; Cheltenham & Gloucester; Dunfermline; First Trust Bank; Halifax; Lloyds TSB Scotland; Mortgage Express; Portman; The One account; The Staffordshire; West Bromwich and The Woolwich. Lenders have so far passed on the full ...

  • Mortgage 2000 responds fiercely to Trigold statement

    17 May 2004

    Mortgage 2000 has responded fiercely to Trigold's announcement that it is the first sourcing system to give a launch date for FSA compliant software. At the beginning of the year Mortgage 2000 announced a host of new enhancements to its mortgage sourcing system, Encore. One of these was an update to Compliance Manager, a tool designed to deal with all of the procedural and administrative responsibilities which are to be bestowed upon mortgage intermediaries by the FSA come ...

  • Mortgage Advice Bureau to launch overseas mortgage service with Conti

    20 May 2004

    The Mortgage Advice Bureau is this month launching a specialist overseas mortgage service in conjunction with Conti Financial Services. The move is in response to the growing interest in overseas property purchase, which MAB believes will continue.   The service will be offered via all 250 MAB branches, where advisers have been fully trained to handle enquiries about overseas purchase, to complete factfinds, and assess the suitability of an overseas mortgage for the proposed ...

  • Mortgage Brain disputes Trigold's claims

    17 May 2004

    Mortgage Brain is disputing a press release issued by Trigold last week claiming it is 'the first sourcing system to announce a launch date for FSA compliant software'. Mortgage Brain claims this is factually incorrect. Mortgage Brain chief executive Mark Lofthouse has responded with the following comments: "Mortgage Brain announced the release dates of our FSA compliant software on November 13 2003 at one of our introducer compliance forums with the release dates ...

  • Mortgage Times enhances proc fees on Standard Life Bank deals

    18 May 2004

    The Mortgage Times has announced enhanced procuration fees on all Standard Life Bank products. The SLB procuration fee has been increased from 0.42% to 0.45% via The Mortgage Times lender direct route. By calling 0845 845 8451 and quoting 20/CK42, members will be registered under Mortgage Times - enabling them to take advantage of the exclusive offer. Payam Azadi, head of marketing and corporation relations at Mortgage Times, says: "We have a fantastic relationship ...

  • Mortgage Trust teams up with MI on buy-to-let deal

    19 May 2004

    Mortgage Trust has teamed up with Mortgage Intelligence to offer its members an exclusive one-year buy-to-let fixed rate of 4.99%. With a low arrangement fee, rental calculation based on the fixed rate, up to 85% LTV and no early redemption penalty outside of the fixed rate period, Business Moneyfacts has endorsed the product as one of the best available. The product is fixed until September 30 2005. Mortgage Trust also charges no MIG and offers full flexibility ...

  • Mortgageforce to launch equity release brand

    17 May 2004

    Mortgageforce is launching a venture under a new direct-to-consumer brand that will focus entirely on delivering equity release advice, competing with existing specialists like Key Retirement Solutions. Sources say the initiative might involve a joint venture partner following the model it used when it teamed up with Mortgages PLC to launch its B2C sub-prime operation. Mortgageforce managing director Rob Clifford says: "This leak is regrettable but I confirm that we ...

  • Mortgages PLC announces major enhancements to product range

    17 May 2004

    Mortgages PLC has announced a number of major enhancements to its product offering and has issued a promise to intermediaries that its service proposition will not falter in the increasingly busy market. The enhancements include increased and extended discounts. A 2% discount on all products up to 85% LTV is now available, except Right to Buy and buy-to-let, while the discount end date has been extended to August 30 2005. And as a summer special, all remortgage loadings have been ...

  • MPLC enhancements won't hit service level

    17 May 2004

    Mortgages PLC has announced a number of product enhancements and has issued a promise that its service will not falter in the increasingly busy market. Pricing changes include a 2% discount on all products up to 85% LTV except Right to Buy and buy-to-let, with the discount end date extended to August 30 2005. And as a summer special all remortgage loadings have been dropped except on buy-to-let products. Changes to the Star Status initiative mean that applicants can now ...

  • Nationwide announces mortgage and savings rates increases

    17 May 2004

    Nationwide has announced it will increase its mortgage and savings rates from June 1 2004. The base mortgage rate will be increased by 0.35% which Nationwide says is around 0.75% lower than the standard variable rates of most other major high street lenders. Savings rates will be increased by up to 0.25%. This follows the decision by the Bank of England's Monetary Policy Committee to increase the base rate by 0.25% in May. A range of flexible features are available ...

  • Nationwide announces record net mortgage advances of £13.2bn for year

    21 May 2004

    Nationwide has announced record net mortgage advances of £13.2bn for the year. In its results for the year ended April 4 2004, Nationwide says it now has a market share of 12.8%. The society says its mortgage retention levels are excellent and mortgage arrears are down 28% from April 2003. Its results also show pre-tax profit up 21% to £426.8m, compared to £353.3m in April 2003. Total assets are up 19% to £101.4bn Philip Williamson, ...

  • New homes proving popular with first-time buyers

    18 May 2004

    New homes are proving increasingly popular with first-time buyers who are taking advantage of price discounts and other incentives to help them get onto the property ladder, research by SmartNewHomes.com reveals. As house prices continued to increase to an average of £165,838 at the end of 2003, SmartNewHomes says the average person is now not buying their first home until the age of 33 and the number of under-25s buying a home has fallen to a low of 10.5%. The ...

  • Nine in 10 brokers confident about offering advice post-regulation

    20 May 2004

    Nine in 10 mortgage introducers are confident about their ability to continue to offer mortgage advice after the proposed regulation is introduced in October 2004, a survey by the Intermediary Mortgage Lenders Association reveals. The study shows that the vast majority of intermediaries are familiar with the proposed rules and regulation, with 62% having already read the FSA's Mortgage: Conduct of Business Sourcebook. Nearly all of the intermediaries questioned are up to speed ...

  • Nine in 10 IFAs support regulation of home reversions, says NU

    18 May 2004

    Norwich Union believes that IFAs will support the Treasury's decision to regulate home reversion equity release plans It has conducted research which shows that nearly nine in 10 IFAs believe home reversion plans should be regulated. IFAs are also concerned about the lack of awareness among consumers with over eight in 10 stating that they did not believe consumers are aware of the different types of equity release schemes. This is supported by Norwich Union's ...

  • Number of children's critical illness claims rises 19%

    21 May 2004

    The number of claims for children's illnesses has risen 19% in the six months from June to December 2003, Scottish Provident's critical illness claims figures reveal. Children's claims totalling just over £400,000 have been paid out relating to that period. This accounts for around one fifth of all Scottish Provident's children's critical illness benefit payouts since they were introduced in 1991 and brings to £2m the total amount paid out on children's ...

  • Paragon buy-to-let index shows continued pick-up in rental incomes

    20 May 2004

    Paragon Mortgages' May buy-to-let index reveals a continued pick-up in rental incomes, which have risen for three consecutive months. Rents rose from £9,651 in March to £9,953 in April, giving an 11% increase over the past three months. This increase in rents translated into an increase in landlord yields from 7.22% in March to 7.27% in April - the highest level since December 2003. Average property values are now £136,973, as compared with ...

  • Paul Thomas joins board of EG Solutions

    18 May 2004

    Paul Thomas, the former ops director at Mortgages PLC who quit last year to join Opus as boss of its commercial lending division has joined technology firm EG solutions a non-executive board director. An enthusiastic supporter of EG solutions whilst at Mplc, Thomas is already familiar with the company's services from a client perspective. In his new position, Paul will use his substantial experience of the mortgage lending market to support eg solutions? business ...

  • Pink makes voting easier

    17 May 2004

    This year's Pink Service Awards 2004 in association with Mortgage Strategy provide the ideal opportunity for intermediaries to air their views on the service they have received from lenders over the past 12 months. Voting is quick, easy and independent. Pink has focussed on service because it is a key differentiator in the mortgage market where turnaround times from application to completion are of vital importance. To encourage voting the process has been streamlined ...

  • Platform and ATOM join forces to host round-the-clock golf challenge

    17 May 2004

    Platform and All Types of Mortgages have joined forces to host a round-the-clock golf challenge on June 21, the longest day of the year, to raise money for Cancer Research UK. The challenge, taking place at Mannings Heath Golf Course in Horsham, is set to play four rounds of golf back-to-back, kicking off at daybreak at 5am and finishing at 10pm. With the average 18 hole round taking roughly 4 to 4.5 hours it will be a race against time if the golfers are to complete the challenge ...

  • Praise for equity decision

    17 May 2004

    The government's decision that the FSA will regulate equity release home reversion plans has met with widespread praise and relief from the industry and consumer groups. When the government de-cided two years ago that the FSA would regulate lifetime mortgages but not home reversions it was seen by many as a loophole with unfortunate consequences. The Treasury says it received 53 responses to its consultation on whether home reversion schemes should be regulated and ...

  • Preferred to launch near prime product

    18 May 2004

    Preferred Mortgages is to launch its near prime product on May 19 which will see the HaywardsHeath-based lender widening its core product range to position itself closer to the high street. Near prime is the latest addition to Preferred Mortgages' product range and is designed to attract customers with minor credit problems. Preferred says the product will bridge the gap between the lender's existing non-conforming products and those currently available from the high street. Key ...

  • Providing freedom in the regulated world

    17 May 2004

    M2I M2I is an independent mortgage and general insurance network that allows intermediaries to obtain compliance support whilst retaining control of their business. It is part of the Mortgage 2000 Financial Group, which was founded in 1993, employs over 250 staff and has an annual turnover in excess of £40m. The group, which is based near Chester, (pictured above) consists of several subsidiary companies offering intermediaries a comprehensive support service. Q: ...

  • Rate rise hits B2L clients

    17 May 2004

    Buy-to-let borrowers with LTVs as high as 85% have been warned that this month's base rate rise may leave them struggling to meet rental yields required by lenders. Mortgage Express says that in London and the SouthEast, low rents as a result of the wide choice of rental properties coupled with high interest rates means borrowers could find it hard to meet even an 80% LTV. Using the example of a £200,000 property, an 85% LTV would equate to £170,000. Prior ...

  • Red Circle brand launched

    17 May 2004

    Packager Optoma is entering the branded lending arena with the launch of Red Circle Home Finance which will offer the full range of Southern Pacific Mortgage Limited's non-conforming products. Red Circle launches in June and will offer free valuations and legals. Products on offer are those from the revamped range SPML unveiled earlier this month. These include a three-year stepped discount, with an initial discount of 2.25%, followed by 1.5% and 0.25%, with no extended ...

  • Repossessions could spark a downturn

    17 May 2004

    Following the third hike in interest rates since Christmas this month, now is a good time to consider the implications of these increases. Due to the downturn in the FTSE, spiralling oil prices and ever increasing house prices there is only one direction interest rates are headed and that is north. The housing market boom of the past 12 months has had a marked effect on income multiples which have been adjusted upward. We have all seen income multiples increase ...

  • Rooftop Mortgages announces revised rates

    17 May 2004

    Rooftop Mortgages has announced revised rates across the product range andsimplified some of its packaging requirements on low LTV's. Reductions have been made on LTV and self-certification loadings, resulting in as much as 0.55% being shaved off some products. In addition, a streamlined service will be available for loans of 70% LTV or lower to alleviate delays caused by obtaining proof of mortgage payments. In announcing the changes, Jonathan Naylor, head of Rooftop, ...

  • Rooftop Mortgages expands underwriting and credit team

    19 May 2004

    Rooftop Mortgages has announced the expansion of its underwriting and credit team with the appointment of Richard Clare. Clare has worked in the mortgage industry for over 16 years and joins Rooftop from SPML, where he was a senior underwriter. Previously he has held roles with Halifax, GE Capital and Coutts. Jonathan Naylor, head of Rooftop, says: "Richard has wide underwriting experience and is highly regarded by the packaging industry. His appointment is due to the ...

  • Scheme to help FTB employees launched

    17 May 2004

    An employee benefits scheme to help struggling first-time buyers get a start in the housing market - believed to be the first of its kind - has been launched by healthcare company HSA. HSA says with soaring house prices and increasing interest rates it wants to help tackle the crisis that faces many potential homeowners and believes other employers may now follow its lead. HSA will help employees save a deposit for their first home by matching their savings for up to ...

  • Share our success, says Direct Times

    17 May 2004

    Support services provider Direct Times has announced an incentive for its broker members, giving them the chance to take 30% of the sale value of the company if it is sold or floated on the stock market. The firm, which provides support to the mortgage and general insurance sector, says 30% of the sale or flotation value will be divided between its loyal customers at the time of any deal. Direct Times emphasises that this is not a share option scheme but a pledge from ...

  • Simon Tyler to launch mass market mortgage intermediary business

    20 May 2004

    Simon Tyler, the owner and managing director of leading London fee-based mortgage advisory business Chase De Vere Mortgage Management, is to launch a mass market mortgage intermediary business. This new venture will be run by Mark Chilton, who established Savills Private Finance, and a team of industry experienced executives The new fee-free service will operate on a national basis targeting mid-market borrowers across the UK who, while valuing the services of an intermediary, ...

  • Solent Mortgage Services appoints training manager

    20 May 2004

    Solent Mortgage Services has appointed Paul Gibbs as training manager. Gibbs joined SMS at the end of 2003 as operations trainer. Based at the company's headquarters in Fareham, Hampshire, Gibb is responsible for providing training to all employees on CAPS, SMS' new processing system, and designing and implementing courses to build on the skill levels of the SMS workforce. Gibbs says: "I hope to introduce a nationwide standard of skills, conduct and product knowledge ...

  • Surveyors confident house prices will rise in months ahead, says RICS

    18 May 2004

    Despite the ongoing debate about a potential housing market crash, surveyors are confident that house prices will continue to rise in the months ahead and do not foresee a crash, the latest housing market survey by the Royal Institution of Chartered Surveyors reveals. Surveyors also predict that sales activity will improve in the South over the next few months, and see house prices rising particularly in the North of England and Wales. RICS says interest rate rises and ...

  • Swaps surge triggers rate change frenzy

    17 May 2004

    Swap rates surged last week, triggering a wave of rate pulls and rises, including all the fixes I highlighted last week. • One-year money is up 0.09% to 4.95% • Two-year money is up 0.11% to 5.17% • Three-year money is up 0.11% to 5.28% • Five-year money is up 0.10% to 5.38% Halifax has changed its core rates LTV bandings so its most attractive rates are now available to 75% rather than 80%. It has also increased its arrangement fee to £399. ...

  • System to help jog clients' memories

    17 May 2004

    Software firm Digit8 claims borrowers' selective amnesia could become a thing of the past with the launch of its back office system MortgageStream, which records brokers' phone conversations with clients. The system provides an audit trail of decisions and acts as a safety net. Paul Holden, national sales manager at Digit8, says: "If you're a broker, you're guilty until proven innocent. Clients have become adept at remembering only what they want to." Provided ...

  • The brokers on the road to nowhere

    17 May 2004

    This week I plan to follow up on the issue I touched on in my last column - the importance of brokers not leaving it until the last minute to apply to join a network. This matter was first raised by Kean Seager, chairman of the Whitechurch Network, in his article in the March 29 issue of Mortgage Strategy. Kean says time is already running out and it would be a brave broker who leaves their network application much beyond the end of May. I endorse this sentiment although ...

  • The MarketPlace launches flexible deal up to 99% LTV

    19 May 2004

    The MarketPlace at Bradford & Bingley has launched a fully flexible deal available up to 99% LTV. The deal, funded by The One account, has an initial pay rate of 4.3% which includes a discount of 1.4% for six months from completion then reverts to SVR, currently standing at 5.7%. The deal also comes with free valuation, free legals on remortgage, daily interest with all flexible features and rates reduced by 0.5% with a deposit of at least 15%. The product also has no ...

  • The Mortgage Mole

    17 May 2004

    Stars studded Soccer-mad Dale Knight of Professional Mortgage Network fame will be rubbing shoulders with a host of past and present football stars and refs on Sunday May 23. Knighty, as he's known to changing room chums, is turning out for a Leicester All-Stars team at the Walkers Stadium in a celebrity clash to raise £15,000 for the Wishes for Kids charity. Up to 12,000 fans are expected to cheer on the efforts of goalie Knight and ex-Liverpool superstars Alan Kennedy, ...

  • The Mortgage Works to launch two buy-to-let deals

    17 May 2004

    The Mortgage Works is to launch two buy-to-let deals with effect from May 19, both offering a current pay rate of 4.99%. TMW says the tracker base rate plus 0.74% to July 1 2007 is the only product to offer borrowers any available new business product at the end of the initial term and is available for both buy-to-let and remortgage-to-let, whilst the 1.21% discount to July 12006 offers borrowers the same pay rate but with a shorter term. Richard Farr, marketing manager ...

  • The relentless march of self-cert

    17 May 2004

    In the mid-1990s the mortgage market started to show signs of revival. The emergence of the buy-to-let market was an indication of the return of consumer confidence. As the market expanded lenders relaxed restrictive credit policies that had been dictated by the previous recession. However, there was a problem with self-employed clients who survived the downturn in the economy. Their latest accounts were showing potential but an average of the previous three years typically meant that ...

  • The right approach to reporting

    17 May 2004

    A confident Bill Gates once predicted that the advent of the internet would lead to 'friction-free capitalism'. With details of the FSA's proposed reporting system now available, we can only hope that friction-free regulation will be another by-product of the e-revolution. In PS04/09, Reporting requirements for mortgage, insurance and investment firms, the FSA lays down the framework for its monitoring system. Having covered the workings of the system in this column on ...

  • The Woolwich and Barclays launch first-time buyer deal

    20 May 2004

    The Woolwich and Barclays have launched a mortgage deal responding to the needs of the first-time buyers market. The package gives first-time buyers a discounted rate of 1.70% off the variable rate for three years with an initial rate of 4.34%, £250 cash back, no mortgage indemnity fee and a reduced application fee of £100. Andy Gray, head of mortgages for The Woolwich and Barclays, says: "Our first-time buyer package is the best deal available in the market, ...

  • Tied brokers may face huge get-out penalty

    17 May 2004

    Tied brokers who want to leave life assurers like Legal & General and join a mortgage network could find themselves liable for huge indemnity commission debts. This will apply to tied agents who have been paid four years of indemnity commissions for a policy upfront, meaning they are then liable for that debt until the four years are up. If they choose to leave before that time they will have to return the commission they have not yet earned, although this will gradually ...

  • Time to cash in

    17 May 2004

    The government last week finally bowed to industry pressure and announced that home reversion will be regulated by the Financial Services Authority, a move widely welcomed as a victory for common sense. The Treasury had been reluctant to put include reversion plans with mortgage-based equity release products under mortgage regulation. Reversion products involve a homeowner selling all or part of their property to a specialist firm in return for a cash lump sum or income. They ...

  • Top of the table clash to raise £30,000 for charity

    17 May 2004

    The Professional Mortgage Network is launching a football-based charity fund-raising campaign at this week's Mortgage Business Expo in Manchester. The table football tournament - kicking off in June to coincide with Euro 2004 - aims to raise over £30,000 to help needy children across the UK. There are eight regional events each featuring 16 players drawn from all quarters of the mortgage industry. Each event will be held at a leading soccer stadium and will be ...

  • UCB Home Loans hikes fixed rates on self-cert and buy-to-let deals

    19 May 2004

    UCB Home Loans is increasing its fixed rates on both its self-certification and buy-to-let mortgages to reflect recent movements in the money markets. The rates include a self-certification two-year fix at 5.79%, an increase of 0.20%; self-certification three-year fix at 5.89%, an increase of 0.20%; self-certification five-year fix at 5.99%, an increase of 0.10%; a buy-to-let two-year fix at 5.99%, up from 5.79% and a buy-to-let five-year fix at 6.19%, up from 5.99%. UCB ...

  • UCB Home Loans increases variable rates by 0.25%

    21 May 2004

    UCB Home Loans, the specialist lender of Nationwide, will increase its variable rates by 0.25% with effect from June 1 Following the recent increase in the Bank of England base rate. The revised variable rates include FlexiPlus variable rate at 6.54%, investment flexible variable rate at 6.54% and self-certification variable rate at 7.14%.

  • West Brom announces £250m commercial mortgage securitisation

    20 May 2004

    West Bromwich's commercial lending operation has been given a major boost this week following a £250m commercial mortgage securitisation. During the past five years the West Brom has increased its commercial lending assets from £135m to £720m. On the back of this success, the West Brom is to create additional balance sheet capacity through a £250m commercial mortgage securitisation. Few lenders have had the ability to securitise assets in this way and ...

  • What will house price growth be by 2008?

    17 May 2004

    Recent research from MORI has forecast a compound increase in UK property prices of just 7% by 2008. This is clearly not a housing market crash but with growth in house prices hitting 20% last year, the 7% figure for the period between now and 2008 is a big slowdown. So, Mortgage Strategy asks: Is MORI's prediction accurate and, if not, what do you think growth will be by 2008? John Wriglesworth, Hometrack Provided interest rates remain low and ...

  • When good mortgages go bad

    17 May 2004

    Last week's article introduced the topic of the legal remedies that are available to a lender in the event of a borrower defaulting on their mortgage. Of the five legal remedies that are available, three were covered last week: to sue for possession, to exercise a power of sale and to sue the borrower on their personal covenant for a lending debt. This week's article considers the remaining two legal remedies which are to appoint a receiver and foreclosure. The right to ...

  • Which is the best option for brokers - direct authorisation by the FSA or becoming an AR?

    17 May 2004

    Mike Fitzgerald is sales director at Brentchase Financial Services My company is joining Personal Touch Insurance as an appointed representative. Whilst we did not want to relinquish our independence we were unsure about how much ongoing work would be involved in being directly regulated. The reporting procedures are quite detailed and the amount of paperwork being received by firms is daunting. Going direct would have meant employing a compliance officer and extra ...

  • Win a Eurostar break with First National at Mortgage Expo

    18 May 2004

    First National are offering brokers the chance to win a fantastic Eurostar trip at Mortgage Expo taking place in Manchester on Wednesday and Thursday this week. Whoever scoops the free prize draw will win a first class trip to Paris on Eurostar and an overnight stay in a four star hotel in the heart of the city. Gerry Bell, head of customer marketing at First National says: "We are really looking forward to exhibiting at what has become one of the most high profile gatherings ...

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