Mortgage Strategy
18 November 2002

  • 'Multi-status' brokers call

    18 Nov 2002

    Abbey National says brokers should be allowed to choose different status for different parts of their business. Harry Taylor, Abbey National director of product development, told Mortgage Strategy: "We're strongly of the view that the FSA should allow brokers to be IFAs and appointed representatives for different types of business. "If you believe that consumers understand disclosure of status, there is no reason why a customer should have a problem with a broker saying they ...

  • A secure lender with big ambitions

    18 Nov 2002

    Q: How is loans.co.uk structured? A: Loans.co.uk lends through a panel, the members of which we have formed strong partnerships with over the past few years. Among these companies are igroup, First National and FirstPlus. All of our staff are located at our Watford HQ, where they are heavily involved in underwriting and the processing of applications. Our senior management team consists of David Cowham, who is our chief executive, our managing director Steve Heyes; our strategic ...

  • Abbey dispels account swap myths

    20 Nov 2002

    Many people think it is harder to change current account provider than is actually the case, says Abbey National. These perceived difficulties may be deterring consumers from making their current accounts part of an all-in-one mortgage. Abbey interviewed nearly 1,000 adults in the UK and found that seven out of ten think that they would have to change all their direct debits and standing orders themselves if they moved their current account. In reality the ...

  • Abbey thrown off Homebank lender panel

    22 Nov 2002

    Homebank, a Northampton-based national mortgage broker, has announced that it is removing Abbey National from its lenders panel with immediate effect. Explaining the sudden move, Homebank managing director George Dodds says: "We have had a good relationship with Abbey National but its continued cross-selling of buildings and contents and accident, sickness and redundancy policies to our clients means that we are unable to continue supporting them. "We ask all our lenders ...

  • ABI launches stronger code for sale of long-term care insurance

    21 Nov 2002

    The Association of British Insurers has published of a new Code of Practice for the sale of long-term care insurance. The Code, which is binding on all members of the ABI, comes into force on 1st January, 2003. The Code requires ABI member companies to treat the sale and marketing of long-term care insurance as if it were an investment product. It will be subject to changes in FSA rules for such contracts. Under the new code: ? Insurers selling long-term care ...

  • Advantage not being taken of all sales channels

    18 Nov 2002

    Intelligent Finance says intermediaries are missing out on sales opportunities by internet and telephone. Mark Curran, senior manager for e-commerce, says modern consumers are gaining confidence in technology and are more willing to try different sales channels than ever. Curran says: "Intermediaries need to look at technology to manage a growing number of client requirements. Clients are changing. They demand more information, and are better at getting information themselves before ...

  • Adviser.tech announces new events for 2003

    18 Nov 2002

    Adviser.tech (www.advisertech.co.uk), the technology events dedicated to financial advisers, has just confirmed three regional events for 2003. This follows a very successful launch year for the new adviser-focused events, sponsored by Microsoft and Origo. The events will be held in London, Mezzanine BDC, February 6; Manchester, Windsor Hall G-Mex, March 4, and Midlands, Pavilion NEC, December 9. Following the launch event of adviser.tech, held in Manchester in April ...

  • AIFA chairman says industry needs to get back onto the front foot

    22 Nov 2002

    In his final speech as chairman of the Association of Independent Financial Advisers at the Association's annual dinner yesterday, Lord Hunt said that the predominant themes during his three years as chairman were regulation and reviews. In a personal plea to guest speaker FSA chairman Sir Howard Davies, Lord Hunt says: "I urge the FSA to deploy rigorous self-denial on new initiatives. Sir Howard, you have been lumbered with a complex and lengthy process whenever you want ...

  • Areas of restricted access...

    18 Nov 2002

    Students preparing for the CeMAP exams should note that the syllabus requires a knowledge and understanding of those people who are unable to borrow, as well as those who have the capacity to do so. The MAQ syllabus, on the other hand, makes no reference to this. There are three groups of people who are not allowed - or have restricted ability to - borrow. They are minors, the mentally incapacitated and undischarged bankrupts. A person under the age of 18 cannot hold a legal interest ...

  • Bank report reveals house pricing fears

    21 Nov 2002

    The Bank of England's monetary policy committee voted 7-2 to hold interest rates steady earlier this month amid concern that a rate cut would feed the housing market frenzy and further boost consumption, it emerged yesterday. Minutes from the November 6-7 meeting showed that anxieties about the housing market boom and consumption growth eclipsed concerns about the world economic outlook, especially signs of a slowdown in the US economy. Bank minutes say: "A reduction ...

  • Banking code changes to benefit savers

    19 Nov 2002

    Changes to the banking code mean that banks and building societies will have to notify savings customers of falling interest rates, and will also enable consumers to switch current accounts more easily. With the Bank of England interest rate at a 40-year low, mortgage borrowers are enjoying low repayment rates. But there is concern among savers facing falling returns. Savings accounts providers have agreed to notify customers when, in any 12-month period, interest rates ...

  • Britannic Money enhances flexible sub-prime mortgage

    18 Nov 2002

    Britannic has enhanced its sub-prime mortgage, the Flexible REStart Homeloan (FRESH). With immediate effect the 'self-cert' option on the product will be available to employed applicants. This means that they will be able to use additional income such as rent or share dividends when applying for a mortgage. FRESH is now available through even more specialist mortgage packagers. Brokers who want to apply for this product or get additional information should call ...

  • Britannic Money freshens up its flexible sub-prime mortgage

    21 Nov 2002

    Britannic Money has announced an enhancement to its sub-prime mortgage - the Flexible REStart Homeloan (FRESH). With immediate effect the self-cert option on its sub-prime mortgage product will be available to employed applicants. FRESH Product details: ? Daily interest calculations ? All products track three-month LIBOR for the life of the loan ? 1.55% discount for 12 months ? The flexible allowance allows overpayments, underpayments & payment ...

  • Brussels sprouts a last-minute spoiler

    18 Nov 2002

    No sooner has the deadline for responses to CP146 closed when it begins to emerge that Mortgage Day - the day in 2004 when the UK mortgage market becomes regulated - may never actually happen anyway. If those ever-meddling Brussels beaurocrats get their way you can kiss goodbye to the current FSA proposals forever. As we report on page 4, UK mortgage regulation could be scrapped if draft proposals under the European Consumer Credit directive are adopted. These are anxious and fragile ...

  • BSA warns of rising consumer debt dangers

    18 Nov 2002

    BSA chairman Graham Stowe and FSA managing director John Tiner last week warned members of the Building Societies Association of the dangers of consumer debt exposure. Speaking at the BSA annual lunch, Tiner told members: "Borrowers should find it easier to service high levels of debt while consumers continue to benefit from discount borrowing, but if house prices stopped increasing servicing debt will be more difficult for borrowers. Lenders are likely to be exposed to more arrears ...

  • Buy-to-let market goes from strength to strength

    20 Nov 2002

    The buy-to-let market is going from strength to strength, reveals year end figures reported from Paragon Mortgages. Paragon reports a 47.7% uplift in gross new buy-to-let lending for the year ended 30th September 2002. Total gross new lending was £563.6 million this year against £381.6 million for the previous year. Net mortgage assets outstanding rose by 36.2% to £1,406.2 million against £1032.2 million for the previous year. John Heron, ...

  • CA raps FSA over statutory failure to help endowment holders

    21 Nov 2002

    The Consumers' Association has lodged a complaint with the Treasury, accusing the FSA of failing in its statutory objectives of promoting public understanding and securing consumer protection during its handling of the endowment crisis. The CA is also calling on the Treasury to intervene and establish an independent review. The complaint follows the launch of the CA's 'endowment action' campaign eight weeks ago, designed to help the five million consumers ...

  • Charcol offers exclusive flexible discount tracker

    21 Nov 2002

    Charcol is highlighting the appeal of tracker mortgages by offering borrowers an exclusive market-leading flexible tracker mortgage. The rate is Bank Base Rate minus 0.8% until February 29, 2004, giving a current payrate of 3.20% (5.1% APR), followed by Bank Base Rate + 0.4% to February 28, 2006. The average rate over the period, assuming completion on March 1 2003, matches Bank Base Rate. The deal, which is available to purchasers and remortgagers, has reducing redemption ...

  • CHIPS Group welcomes sellers' packs

    18 Nov 2002

    CHIPS (Consumer Home Information Pack Support) Group, the property industry forum that supports the introduction of mandatory Home Information Packs (otherwise known as sellers' packs) welcomes the announcement in the Queen's Speech of a new Housing Bill containing wide ranging reforms of the private housing sector, including the home buying and selling process in England and Wales. The group, which represents a wide cross section of the industry including conveyancers, ...

  • Consumer confidence remains high, says BBA

    21 Nov 2002

    Latest figures from the major British banking groups for October show that net sterling lending (after allowing for securitisations) increased by £13.4bn (+1.5%) to £883bn. This compared with September's underlying rise of £15.1bn and the recent monthly average of +£9.7bn. October saw lending to individuals rise by an underlying £6.8bn. Mortgage lending was very buoyant, rising by £5.6bn, the strongest monthly rise on record, ...

  • Consumers overcome current account inertia

    19 Nov 2002

    Automated processes for switching standing orders and direct debits are making it easier for people to switch current accounts, says Intelligent Finance. Consumers are now more likely to switch accounts between banks, making the option of an offset or current account mortgage more accessible. Research conducted by ICM for Intelligent Finance shows that one and a half million people have moved their current accounts in the last year, as more competitive deals on offer ...

  • Co-operative tells spenders to take Christmas easy

    20 Nov 2002

    The Co-operative Insurance Society is urging the public to take it easy this Christmas as consumer debt and equity drawdown continues to soar. The CIS tells consumers to set themselves a budget and stick to it ? making sure they allocate money to activities such as socializing, present buying and food shopping. Consumers should not use all their store cards at the same time - you may get confused and not be aware of exactly how much you've spent, which may lead ...

  • Correspondent lenders reject Basel warnings

    18 Nov 2002

    Correspondent lenders have rejected the idea that their operations could be put under pressure by plans to change capital adequacy in the Basel Capital Accords. Though the model is widespread in the US, the UK is the only EU country to use it. With proposals to change capital weighting for mortgage loans under consideration by the International Banking Committee, questions have been raised over lenders' ability to assess the risk of their loan book when accepting business through ...

  • Council tax discounts on second homes to be slashed

    20 Nov 2002

    Council tax discounts on second homes will be slashed in some areas under changes announced by the Office of the Deputy Prime Minister. The changes could raise an estimated extra £65 million nationally for councils to invest directly in local services, including the provision of affordable housing. The government proposes to give councils in England the choice to apply council tax discounts of between 10% and 50% for second homes. Currently second homeowners have ...

  • Dry start to an ocean adventure

    18 Nov 2002

    The Clipper 2002 race route takes a course around the globe that makes it the longest circumnavigation race at some 34,000 miles. It passes through a wide variety of weather systems which require the full range of sailing skills, from the patience to steer through calms to flying downwind under spinnaker before a gusty tradewind to beating through the Southern Ocean around the Cape of Good Hope. The tactics are fascinating; this is real "chess with press-ups" sailing. Nature, as always, ...

  • Elephant floats for first time

    23 Nov 2002

    Elephant Loans & Mortgages has listed on the Alternative Investment Market of the London Stock Exchange for the first time.

  • EU move could block UK regulation

    18 Nov 2002

    UK mortgage regulation could be scrapped if draft proposals under the European Consumer Credit directive are adopted. The UK mortgage industry faces an anxious wait to see whether all mortgage loans will be brought under the EC directive, currently beginning its passage into European law. At the moment, secured lending falls outside the current proposals. But pundits say EU commissioners want it reined in. If that happens, it would effectively put a stop to UK mortgage regulation. Leaked ...

  • Face up to the seller's pack challenge

    18 Nov 2002

    The great "will they or won't they" debate finally came to a conclusion last week as the government confirmed that legislation to bring in seller's packs will be brought forward in the new session of Parliament. The sections of the Homes Bill that related to seller's packs, which were put on hold when last year's General Election was called, will be brought back - probably in February, next year. Thereafter, there will be a further period of consultation on the Bill and then ...

  • FNMC aligns self-cert and full status rates

    19 Nov 2002

    First National Mortgage Company has bought starting rates for self-certified applicants into line with those for full status applications on ranges of both standard variable mortgage and remortgage products. The self-certified version of FNMC's standard variable mortgage is now available on a fixed rate of 5.49% until February 2005, or at a rate of 5.74% fixed until February 2008. Self-certified applicants for FNMC's remortgage cashback can take the option of a ...

  • FOS judgement on N&P Tessa Select Account

    18 Nov 2002

    Judgement was delivered last week in the judicial review of the decision of the Financial Ombudsman Service regarding the interest paid on Norwich and Peterborough Building Society's TESSA Select Account. The Court found in favour of the Ombudsman. N&P announced before commencing legal action, that if it was unsuccessful, it would pay extra interest to members with qualifying TESSA accounts. This payment will amount to an estimated £1.3 million. This issue ...

  • Free CD & guide from 1st Software on technology for businesses

    18 Nov 2002

    1st Software, one of the country's leading suppliers of integrated technology solutions for financial advisers and intermediaries, has released its new corporate CD, explaining how technology solutions can help adviser businesses cope with the growing need to cut costs and increase efficiency. Copies of the CD, which explains all the options available to adviser firms and includes interviews with many IFAs already benefiting from technology, are available by contacting the ...

  • Fresh approach for Britannic deal

    18 Nov 2002

    Britannic Money last week enhanced its sub-prime mortgage - the Flexible REStart Homeloan. Under the new terms, the 'self-cert' option on its sub-prime mortgage product will be available to employed applicants. They will now be able to use additional income such as rent or share dividends when applying for a mortgage. And FRESH is now available through more specialist mortgage packagers. Bob Perks, Britannic Money business development director, says: "This approach encourages ...

  • FSA online mortgage tables go live

    21 Nov 2002

    The Financial Services Authority yesterday launched its independent online mortgage tables which will help consumers shop around and compare nearly 1,300 mortgages to find the best value deals. Available at www.fsa.gov.uk/tables, they cover the core range of mortgage products that are most commonly bought by the majority of consumers. Consumers will be able to log onto the watchdog's mortgage tables and find information from more than 100 mortgage providers. They ...

  • FSA predicts network expansion

    18 Nov 2002

    The FSA's mortgage policy chief says there will be an expansion of financial services networks to take care of mortgage broker compliance post-N4. Susan De Mont, manager of mortgage policy at the FSA, says: "I foresee networks expanding services to mortgage intermediaries. "I'd be surprised if networks didn't develop for mortgages and general insurance. There are some excellent independent mortgage advisers and I'm sure the market will support them." De Mont warned ...

  • FSA values GISC membership

    22 Nov 2002

    John Tiner, managing director of the FSA Consumer, Investment and Insurance Directorate, has written an open letter to Chris Woodburn, chief executive of GISC, "to set out the FSA's view of the value of on-going membership of GISC." Tiner confirmed that the FSA will help firms which are members of GISC "to prepare for statutory regulation". He wrote: "We have published criteria against which we will in due course establish the extent of credit to be given, but we certainly ...

  • Future outsources to innovate

    18 Nov 2002

    Future Mortgages has signed a £10m outsourcing agreement with Homeloan Management covering the next three years. Under the deal, HML will take care of the post-completion administration for Future loans. This includes the handling of telephone queries, payment collection and issuing statements. The new contract replaces separate agreements between HML and Citigroup subsidiaries Future Mortgages and Associates Capital Corporation. Following acquisition in 2001, Future absorbed ...

  • GMAC-RFC completes £60m portfolio sale to Derbyshire Home Loans

    19 Nov 2002

    GMAC-RFC has announced the completion of a portfolio sale worth £60m, made up of fixed and discounted mainstream mortgages and self-certification loans. The "whole loan" sale was acquired by Derbyshire Home Loans, a subsidiary of The Derbyshire, one of the UK's top 10 building societies. The deal is the second this year between the two organisations. In June 2002, Derbyshire Home Loans acquired a £54m portfolio from GMAC-RFC, bringing the total transaction ...

  • Healthy addition to the Skipton Group

    21 Nov 2002

    Skipton Building Society has acquired an 85% shareholding in The Private Health Partnership Ltd - an independent healthcare intermediary - bringing the total number of subsidiaries within the Skipton Group to 16. PHP was founded as a partnership in 1988 and operates from its headquarters in Otley, West Yorkshire. Its team of 12 staff, including founders Jan Lawson and Peter Bye, provide advice on a full range of private medical and dental insurance to companies and individuals. ...

  • HML wins two awards for training programme

    23 Nov 2002

    Natasha Kaplinsky from the BBCs breakfast programme has presented Homeloan Management with two awards recognising the training programmes in the companys Londonderry operation.

  • Home insurance fails to protect against Xmas losses

    19 Nov 2002

    The majority of people with home contents insurance do not take out extra cover at Christmas to protect gifts, says Legal & General. 82% of those questioned have home insurance, but only 62% of these policies includes Christmas cover. Despite this, a family of four appears to be expecting to spend around £670 on the family this Christmas and a couple could be spending between £160 and £210 on their partner. Andy Sampson, head of planning and ...

  • House price growth doubles long term average

    20 Nov 2002

    House price rises are running at more than double the long term annual average of 10%, and will rise until the end of the year, reveals the latest housing market survey published by the Royal Institution of Chartered Surveyors. The boom in price rises continues to move north, with the North of England seeing the fastest rises in prices, following the East Midlands and Yorkshire last month. In the northern region 81% more chartered surveyors reported a rise in prices ...

  • Housing market hits the brakes, says Rightmove

    21 Nov 2002

    Rightmove's November edition of the Real-time Property Report reveals a fall in house prices of 0.2%. This is in sharp contrast to the strong monthly rise of 2.7% recorded for October, and follows the exceptional 22.2% rise in prices over the last year. The price fall is largely attributed to price falls in London, especially at the most expensive £750,000-plus end. Large numbers of job losses in the City are beginning to take their toll, and the softening ...

  • How to avoid getting trapped in a net

    18 Nov 2002

    It may seem a little bizarre for the chairman of a network to say that mortgage brokers, facing the approach of the new compliance regime, should not join a network, but that is exactly what I now believe. I should make it clear that I am not abandoning my IFA colleagues. I do feel that networks play a useful, if not vital role in the IFA sector. But it really is a different kettle of fish for mortgage brokers. CP146 makes it clear that the authorities do not regard the mortgage sector ...

  • HSBC buys into US sub-prime

    18 Nov 2002

    In a deal that took the US mortgage market by surprise, banking giant HSBC Holdings last week paid $13bn for Household International, Illinois, the largest player in the sub-prime residential niche. HSBC will gain access to more than 1,400 retail outlets, $49bn in housing receivables, and all the headaches that go along with B&C (sub-prime) lending. Even though Household's sale is the largest sub-prime deal in terms of receivables, it pales in comparison to the US$31bn that ...

  • HSBC commits to small business support

    20 Nov 2002

    HSBC has reiterated its commitment to small mortgage brokerages and other small and medium sized firms in the form of an £80 million a year spend on a range of initiatives for small businesses. The bank will comply with regulations to pay credit interest of 2.5% below base rate on business current accounts. In a move to make banking more straightforward and transparent for the nation's small businesses, HSBC is also committing over £30 million a year to a series ...

  • IFS scores low marks from candidates - again

    18 Nov 2002

    Up to 200 successful CeMAP candidates were wrongly told they had failed their exam following marking errors at the Institute of Financial Services. The mistakes were unearthed by an audit of a new question bank installed on September 2002. Checks found that the computerised marking system was making errors on two questions in CeMAP paper three and the CeMAP bridge paper. Although the IFS says the mistake was identified "very promptly", the error was still active until at least ...

  • ifs to host Charles Handy Business Breakfast

    18 Nov 2002

    The Institute of Financial Services (ifs) Financial World Bookshop will be hosting the Charles Handy Business Breakfast. Social philosopher, management scholar, best-selling author, and radio commentator, Charles Handy is an influential voice worldwide. One of the first to predict the massive downsizing of organisations and the emergence of self-employed professionals, Handy has a gift for looking 20 years ahead at ways society and its institutions are changing and is considered ...

  • igroup scoops Specialist Lender of the Year award

    22 Nov 2002

    At the inaugural Business Finance Gala Awards Dinner held at the Commonwealth Institute in London last week, non-standard mortgage lender igroup was voted Specialist Lender of the Year. The award was in recognition of "the lender who provided the most innovative products, and goes the extra mile in supporting and working with its introducers." Jonathan Sadler, igroup's director of sales and marketing, was at the event hosted by Ian Hislop to collect the award in front ...

  • Independent mortgage and loan checking service launches

    18 Nov 2002

    UK Mortgageadvice.net, the specialist mortgage advice web site, has launched a new service in association with Bespoke Independent Financial Advisers that can quickly tell borrowers whether they are being overcharged on their mortgage and, if they are, help them to seek recompense from their lender. Early indications suggest that the majority of mortgages have been overcharged and a significant proportion are in excess of £3000. David Reaney MLIA (dip), a partner ...

  • Intermediary response

    18 Nov 2002

    Martin Selby, general manager at Solent Mortgage Services, doesn't normally give out advice, but makes an exception here, recommending a discounted product As a packager we do not give consumer advice or recommend any particular product and as such we would advise any borrower to get good independent advice from a mortgage intermediary. For this particular case scenario, we have sourced a product from our own product range but any broker and customer should ...

  • Just how will the revised Basel Capital Accord impact on the UK mortgage industry?

    18 Nov 2002

    RACHEL BLACKMORE is external affairs manager at the Building Societies Association The proposals for changes to the Basel Capital Accord have created quite a stir in the financial services world. Of course, if you mentioned Capital Adequacy or Basel II to ordinary folk they would look at you with a mystified expression. So why is Basel causing such a stir? The Basel proposals have the potential to allow institutions such as banks and building societies to hold lower levels of capital ...

  • Kensington reports strong profits

    22 Nov 2002

    Kensington Mortgage Company's profit growth is on track to meet directors' expectations for the year ending November 30, 2002. New business performance continues to be strong and originations for the last five months were substantially above the same period last year following the trend reported for the first half. The offer pipeline has continued to grow whilst credit quality has been maintained. Margins for new business have remained healthy and in line with expectations. ...

  • Labour wants seller's packs by 2005

    18 Nov 2002

    The inclusion of the Homes Bill in the Queen's Speech means seller's packs are set to become a legal part of the home moving process from 2005. Seller's packs were first touted in 1997 but critics of the concept fear extra costs of £500 plus could slow down the mortgage market by making home owners more reluctant to move. But supporters claim seller's packs will shorten the time from offer to exchange of contracts. Mortgage pundits say the industry should put misgivings ...

  • Lender response

    18 Nov 2002

    Peter Beaumont, sales and marketing director at Mortgages PLC, says that Mrs Roberts needs expert advice but there should be a sub-prime product out there for her Unfortunately, Mrs Roberts is not in an uncommon situation. At Mortgages PLC, we are seeing more and more people that are finding themselves in financial difficulties as the result of a divorce or a marriage breakdown. Divorce itself can be an extremely stressful time for all of those concerned. And often, ...

  • Mortgages PLC strengthens sales force

    22 Nov 2002

    Mortgages PLC has appointed two new area managers. Simon Cossons and Keith Johnston will manage key broker and packager relationships in the South. After working as a self-employed mortgage broker for a year, Johnston has joined Mortgages PLC as area manager to cover the south west corridor including Gloucester, Dorset and parts of South Wales. In total he has over 12 years experience in the finance industry working as a broker but also working for general insurance ...

  • My mortgage week

    18 Nov 2002

    Monday: I start with a visit to our local gym which is on the way to the office. After a good workout I feel ready to face the rigours of a fresh week in the mortgage industry. I know that this week is going to be more than the usually busy as Brentchase Financial are planning a series of equity release seminars. This is going to be a boom market and we intend to be at the forefront. I attack the post and emails as usual and have a clear desk by lunchtime. However, more applications come ...

  • N&P's £5,000 reward for eco-sensitive self-builders

    22 Nov 2002

    Self-builders who have incorporated energy-saving features in to their homes could win £5,000 in a competition by Norwich and Peterborough Building Society. The competition is open until 31st December 2002. It is estimated that around 20,000 people self-build their own homes every year and that number is growing. Environmental group Future Forests will plant eight trees in a Future Forests woodland of the winners' choice to make the winning home "carbon neutral" ...

  • NACFB growth encourages home-grown Code

    18 Nov 2002

    Members of the National Association of Commercial Finance Brokers heard last week of the organisation's growth in the last year and of attempts to pass a code of practice for buy-to-let lending. Membership of the commercial finance body increased by 14% in the last year to 297, providing a significant contribution to the buy-to-let market among other areas. Demand for buy-to-let funding has seen balances for buy-to-let swell to £16bn, with 20% of this total representing new ...

  • New appointment at Connells

    18 Nov 2002

    Howard Bramall has joined Connells as mortgage service development partner covering a triangle stretching from Bath to Bicester to Slough. With over twenty one years in financial services Bramall brings a wealth of experience to his role of supporting and supervising Connells mortgage consultants throughout the area. He says: "I see myself as captain of my squad of consultants and my aim is to build a stable, committed, high performing team. My job is to put them ...

  • New homes more energy efficient, says SmartNewHomes.com

    22 Nov 2002

    As the UK battens down the hatches for another week of freezing weather with temperatures dipping below freezing, meteorologists are forecasting one of the coldest winters for over a decade.

  • New products from Portman

    20 Nov 2002

    Portman Building Society has launched new three-year fixed rate at 4.14% until February 2003. The deal is available up to 95% LTV. There is an early redemption penalty equivalent to 4% of capital repaid. Borrowers are allowed to repay up to 5% of the loan amount borrowed without penalty for each full 12-month period from completion of the loan, however. Portman has also launched a 4.79%, five-year capped rate deal. Maximum LTV is 95% with no extended tie-ins. ...

  • New tracker from Pink and TMB

    19 Nov 2002

    Pink Home Loans has launched an exclusive, flexible tracker offering an initial pay rate of 4.94%. The product is funded by The Mortgage Business and offers a discount of 0.55% until January 2004 David Copland, sales and marketing director at Pink Home Loans, says: "This deal combines two of my favourite mortgage features - transparency and flexibility. Last week, the Bank of England Monetary Policy Committee agreed for the 12th month running to keep interest rates at ...

  • NU in MBL trading deal

    18 Nov 2002

    Norwich Union has agreed to promote and distribute the Mortgage Brain sourcing system and Mortgage Trading Exchange to its customers, following a deal with the software provider. MBL chief executive Mark Lofthouse, told Mortgage Strategy: "I'm delighted to welcome the Norwich Union mortgage club as a corporate partner. Its is one of the biggest mortgage clubs in the UK and this is a huge development for MBL. With planned enhancements to the mortgage broker package and online trading ...

  • ONESEARCH Direct welcomes sellers' packs

    18 Nov 2002

    ONESEARCH Direct, the UK's fastest growing online local search service, has welcomes the proposals outlined in the Queen's Speech to launch sellers' packs. Managing director Ronnie Park says: "Sellers' packs are an important development and it will be interesting to see how they span out across England. "The process of buying and selling homes in England and Wales takes longer than anywhere in Europe but through advances in e-technology, e-conveyancing is ...

  • Overcharging scandal could hit millions

    18 Nov 2002

    Overcharging on mortgage accounts is potentially a "bigger problem than mis-selling endowments", members of the Financial Services Consumer Panel told Mortgage Strategy last week. The panel - which reports to the FSA - is currently investigating the scale of the problem. A spokeswoman says: "The panel is looking at whether incorrect mortgage calculations are a systematic issue or more a case of one-off mistakes being made." Mortgage auditor MortgageCheK has estimated that up to ...

  • Pack up your troubles...

    18 Nov 2002

    The mortgage packaging industry stands at a major regulatory crossroads. The impact of mortgage regulation on this niche sector is likely to have devastating effects for some. In the FSA's CP98, packagers were conspicuous by their absence. But when packagers were finally recognised by the Treasury earlier this year, they were divided into four categories. Those classified as broker-packagers and correspondent lenders would be regulated, while mortgage clubs and packagers providing ...

  • Packager set to launch £3m incentive Scheme to introducers

    18 Nov 2002

    Sub-prime mortgage packager The Finance Centre has launched a £3m intermediary incentive scheme. The Finance Centre is in the process of distributing some 8,000 vouchers - worth a minimum of £250 and a maximum of £449. And intermediaries cashing in on the voucher could be £699 better off - providing they complete at least two sub-prime remortgage deals before March 31 2003. The deals that are submitted will qualify to have either legal fees or valuation costs ...

  • Pink launches self-cert exclusive

    19 Nov 2002

    Pink Home Loans has joined forces with The Mortgage Business to offer a new exclusive, self-certification deal designed for remortgage clients. The product offers a rate of 0.75% over the Bank of England base rate until January 2004, giving an initial pay rate of 4.75%. David Copland, sales and marketing director, comments: "This product is an attractive proposition for borrowers requiring true self-certification, looking to remortgage an existing residential property. ...

  • Prepare for B2L remortgage boom

    18 Nov 2002

    Remortgaging in buy-to-let is set to be a big growth area next year. Platform Home Loans say the niche sector is ready for the taking. Jeremy Duncombe, head of sales at Platform, says: "The big opportunity in buy-to-let for 2003 is remortgaging. Around 4% of mortgages were buy-to-let in 2001 and for 2002 we think this will be even more. "As with other products, buy-to-let borrowers are looking for the best rate." And Duncombe underlines other opportunities in specialist markets. ...

  • Property investment fund celebrates third year

    20 Nov 2002

    The Surrenda Link Investment Fund (SLIF) is celebrating its third anniversary by revealing overall growth of 24% since launch. In comparison, the FTSE 100 has fallen 34% in this period. SLIF was the first of its kind to combine Traded Endowment Policies (TEPs) with commercial property. So far this year the fund has seen large uplifts in the value of many of its properties. Retail properties in Romford and Wembley have increased in value by 12% and 9.8% respectively. ...

  • Remortgaging hits new record level

    21 Nov 2002

    Total mortgage lending rose in October to its highest level since July, driven by a large increase in remortgaging, the CML says. Remortgaging once again hit record levels, accounting for 43% of total lending in October. It totalled £8.9bn, the highest monthly figure since the survey began and 22% higher than the £7.3bn recorded in September. Lending for house purchase remained stable. Gross lending reached £20.9bn in October, up from £19.1bn in ...

  • Savills Private Finance offers two-year split deal

    21 Nov 2002

    Savills Private Finance is offering borrowers the option of splitting their mortgage in any proportion between a two-year 3.85% fixed-rate loan and a two-year tracker at 0.15% below the base rate (current pay rate 3.85%). Minutes from the Monetary Policy Committee meeting last week, published yesterday, show that while seven members voted that the base rate should remain at 4%, two voted to cut it by 25 basis points. Mark Harris, director at SPF, says: "If the MPC members ...

  • Simply Mortgages to start franchise operation

    22 Nov 2002

    A mortgage broker who launched her business just three years ago is set to franchise the company. Elaine Kellington set up Simply Mortgages in the bedroom of her home in Kelso on the Scottish Borders. She was formerly at Northern Rock in Edinburgh, which involved daily travel of 100 miles. Within a year Simply Mortgages had moved into the centre of Kelso. Kellington has decided to franchise the company after being approached by people who wanted to share her success. ...

  • Smaller manufacturers see orders and output fall at fastest rate for a year

    18 Nov 2002

    Small and medium-size manufacturers have seen orders and output fall at the fastest rate fora year, according to a CBI survey published today. The figures for the last four months show that smaller manufacturers are finding it particularly tough to break free from the manufacturing recession. 22% of firms said total new orders were up over the last four months, 40% said they were down. The balance of minus 18% compares with minus 16% in July and falls well short of the ...

  • Solicitor warns of equity release mis-selling

    18 Nov 2002

    Elderly homeowners who are sold equity release schemes on the promise that it will cut their inheritance tax liability could be £1,000s worse off, according to Manchester-based Glaisyers Solicitors. Mortgage-based equity release schemes allow elderly homeowners to release cash from their property without having to make payments during their lifetime. The interest is 'rolled up' and becomes payable on death, or when the property is sold. Simon Creeber, head ...

  • SPML achieves Standard and Poor's 'above average' servicer rating

    21 Nov 2002

    Southern Pacific Mortgage Limited is the first lender in Europe to be awarded an above average servicer evaluation rating by Standard & Poor's. The above average rating is the second highest servicer evaluation rating awarded by Standard and Poor's. Angela Davies, SPML's operations director, says: "We felt it was important for SPML to obtain a servicer evaluation rating for a number of reasons. Our service to packagers and brokers is already acknowledged ...

  • Standard Life Bank signs up Experian

    22 Nov 2002

    Standard Life Bank has awarded a major contract to Experian, the global information solutions company, to supply risk management services for its UK mortgage business. Incorporating third-party data compliant credit bureau information, predictive scoring and strategy management solutions, the business banking and application processing system from Experian will also include Detect, Experian's leading anti-fraud system, to identify in real-time potentially fraudulent applications. ...

  • Survey reveals north-south e-business divide

    21 Nov 2002

    Northern-based IFAs claim to carry out more e-business online than their southern counterparts, according to the results of a new survey out today by Origo, the technology standards body for the financial services industry. Figures show that 61% of northern-based IFAs currently carry out more than 25% of their business online compared to only 20% of IFAs based in the south of the country. The survey also revealed that nearly four times more northern than southern IFAs conduct ...

  • Technology is key to regulatory survival

    19 Nov 2002

    Mortgage Talk director Peter Birch is warning mortgage advisers to embrace new technology if they want to survive regulatory change. Birch says: "The next two years or so will see wholesale changes being introduced in the mortgage advice arena, including new regulations, pressure on margins and, of course, the seller's pack proposed by the Government in the Queen's Speech. Coupled with the predicted slowdown in the housing market, advisers will find that their margins being ...

  • TFC slams PMPA over 'seal of approval' support

    19 Nov 2002

    Sub-prime packager The Finance Centre is calling for a boycott of the Professional Mortgager Packager's Association. TFC objects to the PMPA's involvement with advertising for the 'seal of approval' packager campaign run by Birmingham Midshires Solutions. The campaign has seen BMS slim down its packager panel, but critics claim it is an ill-concealed attack on the packaging community. Wayne Smethurst, senior partner at TFC, says: "For PMPA to back ...

  • The Mortgage Mole

    18 Nov 2002

    Cheap suits Mole knows that you mortgage brokers are facing "tighter margins" "expensive overheads" and any other ways of getting out of buying your round, but the unseemly free-for-all at last week's Expo mortgage conference was unsurpassed. Now Mole is not averse to a good freebie himself - champagne and days out, ahoy - but really, brokers snaffling up every mug or cheap umbrella a lender can stick its logo on. At the Bristol & West stand, staff struggled to keep up with ...

  • The Research Department changes name to Defaqto

    21 Nov 2002

    The Research Department, the financial products research company, has announced a name change to Defaqto, derived from the Latin phrase de facto which means 'about the facts'. The name reflects the company's commitment, since its founding in 1994, to solving the 'frequently asked questions' which are critical to the financial services industry in the UK. Mark Hayes-Newington, group commercial director of Defaqto, says: "Over the past few years, our company ...

  • This week's problem case

    18 Nov 2002

    Mrs Roberts is a recently-divorced administrator with one child. From the sale of her marital home, she made £10,000. Because of missed mortgage payments when the marriage was breaking down, she has a credit-impaired history. This includes a £4,800 CCJ received six months ago. She receives maintenance of £250 per month from her ex-husband and her annual salary is £14,000. She is looking to purchase a property valued at £65,000. What are her options?

  • Trigold and CETA link-up to help insurance sales

    19 Nov 2002

    Trigold has struck a new agreement with CETA, the UK's largest general insurance network. Over 5,000 mortgage brokers who use Trigold's award-winning system will take part in a trial that will provide them with access to CETA's household insurance policies. Brokers will be able to source building and contents quotes from CETA via Trigold's system. The process will be quick and easy, using information input during the mortgage sourcing process to generate insurance ...

  • Two new deals from Newcastle BS

    18 Nov 2002

    Newcastle Building Society has launched two new mortgage deals. A fixed rate of 3.85% until February 2005 is available, with no tie-in period or compulsory insurance, with a LTV of up to 90%. There is also a fixed rate of 4.2% until 28 February 2005, with £350 cashback, no tie-ins or compulsory insurance, up to 90% LTV.

  • UK banking charges among cheapest in world

    19 Nov 2002

    UK banking customers are almost 70% better off than those banking abroad, reveals research from the British Bankers Association. The research dispels the common myth that banking is part of the 'rip-off Britain' culture that pervades many basic goods and services in the UK. For example, price comparisons for a mid-sized car, for the typical shopping basket and for public transport in seven developed economies show that the UK is the most expensive country for each ...

  • UK's 'all-in-one' market still lags Australia

    18 Nov 2002

    The UK market in all-in-one mortgages is still a long way off the pace being set in Australia, says current account mortgage provider VirginOne. Moreover, the UK stands little chance of catching up unless mortgage intermediaries change attitude. Anthony Richardson, national partnership manager at VirginOne, told Mortgage Strategy: "The first products of this type appeared in Australia in the late 1980s, with larger lenders entering in the mid-1990s. "In Australia, the last ...

  • Webline passes 5 million quotes since launch

    18 Nov 2002

    Webline, the UK's first provider of online comparative quotes to ORIGO standard, today announced that it has just passed the 5 million mark for comparative quotations to IFAs, following a record year for growth. Webline (www.webline.co.uk) was established in 1995 by Paul Holland, a fully qualified IFA and the managing director and founder of the company. Holland says: "In the past year, we have seen a record demand for online comparative quotes from both our network ...

  • Woe! For some, the end is nigh

    18 Nov 2002

    Over the past few weeks, we have concentrated on responding to CP146, last week we had a look at HM Treasury's view on the regulation of general insurance and, in the next few weeks, we intend to focus on the CeMAP deadline of December 31 2002. To recap on the purpose of this column, it is targeted at those intermediaries who are actively involved in the mortgage market and, in addition to the mortgage itself, these articles cover the sale of related protection-only insurance products ...

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