Mortgage Strategy
19 August 2002

  • A&L in proc fee bribery accusation

    19 Aug 2002

    Alliance & Leicester has been accused of bribing brokers by offering a 1% proc fee to sell a "wholly uncompetitive" 10-year base rate tracker deal. The move comes less than a week after the FSA set out proposals designed to stop high-pressure selling, excessive charges and lenders offering excessive inducements to intermediaries. The A&L product launched on Friday last week and starts at a flat Bank of England base rate for year one, BBR plus 0.5% for year two, then BBR ...

  • Advisers prevented from choosing high commission

    19 Aug 2002

    The FSA's proposed suitability requirement is designed to prevent advisers from recommending mortgages that pay them the highest commission rather than products offering the consumer better value, writes Helen McCormick. There are two options and the regulator says that "consumers should not be recommended a particular mortgage if the adviser ought to be reasonably aware of another mortgage from the range of mortgages he is basing his advice on that better meets the consumer's ...

  • Bank call centres poorly prepared ahead of autumn tax deadline

    20 Aug 2002

    Call centre staff at half of the UK's leading banks and building societies will struggle to help many callers gathering last-minute tax return information ahead of the Inland Revenue's September 30 deadline, claims a survey conducted on behalf of Macro 4 PLC. 'Secret shopper' researchers, posing as potential customers, found that call centre staff typically have inadequate on-screen access to customers' bank statements, making it difficult to provide timely answers ...

  • Brokers back PAI

    19 Aug 2002

    Brokers have welcomed the FSA's pledge to introduce a standardised pre-application illustration at N4, writes Harriet Williams. In CP146, the FSA says: "The key thing that consumers want to know is how much the mortgage will cost [and] this information needs to be personalised." The FSA says that standardised mortgage quotations will help consumers shop around and understand the features of any mortgage before applying. The FSA has shortened its proposed PAI from the ...

  • Buoyant mortgage market demand stabilises, says BBA

    21 Aug 2002

    Latest figures from the Major British Banking Groups, for July, show that total net sterling lending increased by £7.1bn (+0.8%) to £842bn, while mortgage lending was up £4.7bn. This compared with June's underlying total rise of +£8.7bn and the recent monthly average of +£8.0bn. Mortgage lending was up from June's underlying rise of £4.1bn and the recent underlying average of +£4.3bn, but not as high as the record £5.2bn increase ...

  • But what of the costs?

    19 Aug 2002

    From David Ginivan The proposals contained in CP146 will have some implications for all organisations in mortgage lending, mortgage administration, advising and arranging on regulated mortgage contracts. Because we operate in a number of markets through the building society and its subsidiary companies, Platform Home Loans and Verso, this consultation paper will have different implications for us across the group. The Britannia Building Society group welcomes the FSA's aims to maintain ...

  • Case against Capital Home Loans dismissed

    21 Aug 2002

    A judge has dismissed a court case brought against Capital Home Loans. The case, brought by Chris Herbert against Capital Home Loans and another named party, was heard at Bristol County Court on Monday (August 19). The judge has dismissed the case and found that there was no case to answer against Capital Home Loans. Bob Young, sales and marketing director of Capital Home Loans, says: "His case was naive and completely baseless. The whole thing has caused everyone ...

  • Charcol offers lifetime tracker with 6% cashback

    23 Aug 2002

    Charcol is offering an exclusive lifetime tracker mortgage with a 6% cashback up to a maximum of £120,000. The tracker rate is 0.99% above bank base rate for the duration of the mortgage (current payrate 4.99%). The product also charges no redemption penalties beyond the first three years, as well as offering 6% cashback, which - if used to make monthly repayments - would create an effective introductory rate of 2.99% over three years. Ray Boulger, senior ...

  • Charity takes volunteers to new heights

    21 Aug 2002

    The national charity Lady Hoare Trust has begun a fundraising appeal to recruit volunteers in the UK to take part in a parachute jump. Lady Hoare Trust's events coordinator Fiona Head says: "Imagine standing at the edge of an open doorway of an aircraft flying at 10,000 feet. Now imagine leaning forward and letting go and falling through the clouds. The peace and tranquillity you'll experience when your parachute opens, as you gently float down to your drop zone is truly ...

  • Commercial First appoints two national training managers

    22 Aug 2002

    Commercial First has appointed two national training managers in newly created roles.

  • Construction and property lead demand for bank lending

    19 Aug 2002

    Demand for bank finance from construction and property companies has outstripped other sectors according to latest statistics from the British Bankers' Association (BBA). The BBA's annual review, Banking Business, shows that the pattern of demand from companies for bank finance has shifted in recent years, with lending to construction and property companies more than doubling over the last five years, while lending to manufacturers, wholesalers and retailers saw little change. Dema

  • Consumers pay over £1bn extra on uncompetitive loans, says IF

    22 Aug 2002

    Intelligent Finance has that it will be reducing its personal loan rate from 8.9% to 7.9% with effect from August 27 for a limited period of one month. With 46% of people holding an unsecured personal loan in Great Britain to finance a car deal, the move is timed to coincide with the expected heavy car sales for the new September 1 car registrations. Intelligent Finance is launching an aggressive new marketing drive to alert car buyers to its flexible offset personal ...

  • Countrywide Assured acquires Friends Provident Estate Agencies

    23 Aug 2002

    Countrywide Assured has acquired the 104 estate agents from Friends Provident for £12 million under a deal that will see the UK's largest estate agency chain distribute the life insurers mortgage-related protection products through its 700 branches. The exclusive right, under a 15-year agreement, to distribute mortgage-related protection products through Countrywide's 700 estate agency branches and its 650 licensed consultants. As a result of entering into this exclusive ...

  • Coventry announces half year results

    21 Aug 2002

    Coventry Building Society, the UK's fifth largest building society, has announced its results forthe six months ending 30 June 2002. Key highlights for the half year include over 8% growth in commercial assets in first six months; record gross lending of £981 million, almost 14% up on first half of 2001; net lending of £471 million; record net savings receipts of £377 million; pre-tax profits increased to £20.4 million, up 6.8%; costs to average assets ...

  • CP146 may lead to further 'top-up' exams

    19 Aug 2002

    Mortgage advisers who meet MCCB fitness and competence requirements may face top-up exams to gain FSA accreditation when mortgage regulation starts in 2004. The MCCB has welcomed the FSA's commitment to 'grandfathering' advisers into its new regime by recognising their CeMAP or MAQ qualifications. The FSA has yet to choose between straightforward grandfathering, requiring no extra qualification, or a top-up system in the form of an exam or "other relevant assessment". B

  • Demand still weak as global recovery remains elusive, says CBI

    23 Aug 2002

    The weak global economy continues to hold back demand for manufactured goods with domestic and export orders both poor, claims a new CBI survey. In the latest monthly Industrial Trends Survey 40% of respondents said ...

  • DIY spending falls, says A&L

    23 Aug 2002

    The amount of money people intend to spend on DIY over the next three months has fallen for the second quarter in a row, Alliance & Leicester's movingimproving index has found. On average, Britons expect to spend £1,119 this autumn on DIY, 3% less than in the second quarter of this year (£1,151). This is only the second time average intended DIY spend has fallen in two years. Painting and decorating continues to be the most popular form of DIY people are ...

  • Equity release gets 'life' sentence

    19 Aug 2002

    Equity release, a growth market for the past five years, has been targeted by the FSA in its most recent consultation paper. The regulator says it intends to change the term used to describe mortgage-based equity release products to the "lifetime mortgage" as well as proposing that individuals advising on the product will require an additional, as-yet unspecified, qualification separate from the compulsory MAQ and CeMAP qualifications. The FSA classified lifetime mortgages ...

  • Excessive fee rule

    19 Aug 2002

    The FSA intends to introduce a rule on excessive fees for mortgage advice or arranging, similar to the excessive charges rule that exists for investment business. The regulator says this will help set standards for the prevention of high-pressure selling, excessive charges and inducements. The FSA has proposed that a responsible lending rule remains valid for non-advised sales, but suggests that it should not apply to advised sales as the proposed suitability requirements ...

  • FSA considers scheme

    19 Aug 2002

    The FSA is considering several ways of implementing the appointed representative regime to mortgage advice, despite fears it could restrict consumer choice in the market place. Under the new regime, brokers will have to choose between direct FSA authorisation and appointed representative status, where an authorised firm will take responsibility for compliance. CP146 indicates there may be several options. Appointed reps may be limited to a single principal for all regulated ...

  • FSA ponders the status of 'independent' firms

    19 Aug 2002

    The FSA is consulting on whether it should place requirements on firms in the mortgage market who choose to call themselves 'independent' and whether this should apply to both advised and non-advised sales. It also considers whether firms should adopt a different status in relation to different regulated products, for example, being independent for mortgages but only selling investments from one product provider and whether firms should be able to change their status when ...

  • FSA publishes latest consultation paper

    19 Aug 2002

    The FSA published its long-awaited consultation paper on regulated mortgage sales last Monday. Sarah Wilson, director of the FSA's high street firms division, says: "We want to make sure that consumers get clear comparable information on mortgages and that, where they get advice, they are recommending a suitable mortgage. We aim to introduce a regime that achieves this goal in a proportionate, cost-effective fashion." CP146: The FSA's approach to regulating mortgage ...

  • FSA reveals the scope of mortgage regulation

    19 Aug 2002

    The FSA proposals put forward in CP146 outline the scope of the new mortgage regime. A mortgage will be regulated if the borrower is an individual or trustee; the lender takes a first legal charge over property in the UK and the property is at least 40% occupied by the borrower or by a member of his immediate family. The regime covers lending for home improvements or for debt consolidation, business lending to sole traders or partnerships in England and Wales, secured overdrafts ...

  • Future Mortgages urges Mortgage Industry to review use of MIG

    21 Aug 2002

    Future Mortgages is calling for the mortgage industry to review the use and application of Mortgage Indemnity Guarantees. MIG, High Lending Fees or Mortgage Indemnity Payments (MIP), provide lenders with an insurance if the customer defaults on the loan, but unlike other insurance policies the customer paying does not receive any additional benefit. Brian Pitt, Future sales and marketing director, says:"With house prices nearly 20% higher than this time last year, there ...

  • Government to tackle London's housing problems

    21 Aug 2002

    Increasing the supply of affordable housing is highlighted in the latest edition of the London Housing Statement launched yesterday on the websites of the Government Office for London and the Housing Corporation. The 2002 statement sets out the key housing issues in the capital and announces a programme of action to address them. Besides affordable housing the statement also focuses on promoting regeneration to achieve sustainable communities; reducing homelessness and ...

  • Homeowners warned over equity release

    19 Aug 2002

    Homeowners have been warned of the risks of being sold equity release products that are inappropriate to their needs. The news comes a week after the FSA proposed new rules for the sales of mortgage equity release products following doubts about the standard of advice given on the growth sector. Andy Frankish, director at Mortgage Talk Direct, says the growth in the popularity of equity release schemes has resulted in some borrowers being sold packages that are inappropriate ...

  • House price confidence on downward trend says the Woolwich

    20 Aug 2002

    UK consumer confidence in the housing market has dipped for the second month running, claims the latest Woolwich Mortgage Index, in contrast to a significant rise in gross mortgage lending. The consumer research conducted by the Woolwich has shown that average consumer confidence has fallen from 61% to 59% throughout the UK over the last three months. Alongside the research that monitors how optimistic homeowners are about house prices, gross mortgage lending has increased ...

  • House price rises 'easing' says RICS

    22 Aug 2002

    The latest study by the Royal Institution of Chartered Surveyors (RICS) found that the rate of increase in house prices eased in the three months to July. RICS says the difference between those surveyors reporting price rises to those seeing price falls fell to 53% last month, from 63% in June. But it is sticking by its forecast of a 19% rise in house prices for 2002 as a whole. Recent surveys by the UK's biggest mortgage lenders have shown house prices rising at ...

  • Housing market enters cooling-off period, claims Rightmove

    21 Aug 2002

    Rightmove's first ever Real-time Property Report shows that the housing market has entered a natural cooling-off period after the strong growth of the past 12 months. The report found that the rate of growth of asking prices nationally has fallen in four consecutive months, with monthly price inflation declining from 4.5% in April to 0.8% in August, but asking prices are still rising at eight times the speed of retail prices. However, London saw two consecutive months ...

  • I'll have it filtered, please

    19 Aug 2002

    From Monty Burn Endeavouring to clarify the role of an introducer, the FSA helpline referred me to a HMT mortgage document. HMT states clearly that introducers will be excluded in the activity of 'arranging'. HMT are saying that introducers are not to be regulated yet the FSA appear to be casting doubt on who can conduct a 'fact-find' by introducing new terminology in 'filtering' questions. Although this appertains to non-advised sales people, it will affect ...

  • Improved fixed rate mortgage deals from the Derbyshire

    22 Aug 2002

    Derbyshire Building Society is cutting rates on its range of three-year and five-year deals with a three-year fix from 4.89% (5.8% APR). A five-year fix is available with rates from 5.09% (5.8% APR). Both deals are available from Wednesday August 21. Other key features include: - No Mortgage Indemnity Guarantee charge. - Daily interest method of calculation for capital repayments. - No early repayment charges after the fixed rate period. - Choose ...

  • Insurers and police in new partnership to beat insurance cheats

    22 Aug 2002

    A national agreement between the ABI (Association of British Insurers) and police forces around the country will now enable insurers quickly and easily to obtain information from the police whenever they suspect a fraudulent claim is being made. Insurers will ask the police for further information where there is evidence that fraud has been committed, or where there are reasonable grounds for suspecting that a claim is fraudulent - for example to check the value of items stolen ...

  • Intelligent Finance tie up Dunfermline AFC deal

    19 Aug 2002

    Intelligent Finance has announced a deal with Dunfermline Athletic Football Club in a new marketing affinity agreement. Under the three-year relationship, Intelligent Finance will provide savings, current accounts, mortgages and personal loans through joint marketing initiatives to Dunfermline Athletic FC's supporters. For every product successfully taken out by a supporter, the club will be rewarded by the telenet bank too - helping it generate income to build on ...

  • Intermediary response

    19 Aug 2002

    Rod Murdison, proprietor of Murdison & Browning, says that a remortgage to a flexible product may be the best of the three options that seem to be available in this case Presumably the Johnsons want to borrow to fund their home improvements and not use any savings they may have. This would appear to leave three choices - a further advance from their existing lender, a secured loan or a remortgage for the increased amount.Depending on ...

  • Investors rush to buy off-plan

    22 Aug 2002

    Buying properties before they are built is the first choice for investors looking for property to rent, claims the latest survey commissioned by The Property Investor Show. More than one thousand people have already registered to attend the show, which is at ExCeL in London on September 20- 22. With four weeks still to go, this puts the show on target to attract at least eight thousand visitors. They were asked what most interested them and 45.66% said they were ...

  • Lambeth's new account range benefits savers

    23 Aug 2002

    Lambeth is launching a simplified range of four mainstream savings accounts on August 27. As a result, most savers will benefit from slightly higher interest rates than on the share accounts they supersede. The new range, introduced following customer feedback, rationalises all interest rate bands between the minimum and maximum balances of £500 and £200,000 respectively. Lambeth will now notify investors individually each time rates change so they ...

  • Latest CBI forecast underlines protracted economic recovery

    23 Aug 2002

    The CBI forecast for the UK economy highlights the protracted and faltering nature of the UK economic recovery as global demand remains weak. The CBI forecasts that the UK economy will grow by 1.5% in 2002, ...

  • Leading UK Mortgage Packager Selects SDS

    19 Aug 2002

    Mortgage and lending systems supplier SDS Applications Ltd has announced that Solent Mortgage Services will use its 'SDS Maps' mortgage application processing system. Solent Mortgage Services were established in 1989 and service the whole of the UK from their head office in Lee-on-the-Solent and regional offices in Scotland, Northern Ireland and The South West. SDS Maps features integrated 'mortgage application specific' workflow that systemises the underwriting ...

  • Lender response

    19 Aug 2002

    Ian Jeffery, sales and marketing director at Intelligent Finance, says the client should consider an offset mortgage as a means of getting the most out of his money I wish more people were like Dr Johnson and considered reviewing their finances at regular intervals. Too often people take out policies, set up the direct debit and then forget about it without accounting for changing circumstances.With an estimated cost of £20,000, Dr Johnson's ...

  • Let's get the cowboys first

    19 Aug 2002

    From Rod Murdison I've always felt that legislation should work backward from trying to stop whatever abuse is going on than just be blanket coverage (we've already seen the disastrous effect legislation has had on the financial services industry and will have on mortgage broking). What nobody seems to want to say aloud is that mortgages that are 'non-conforming' pay the most and, therefore, are the most likely to attract the cowboys, be they brokers or so-called packagers. ...

  • Marlborough Stirling appoints Brian Hall as managing consultant

    22 Aug 2002

    Marlborough Stirling, a leading supplier of software, services and consultancy to the financial services industry, has appointed Brian Hall as managing consultant to head up its Mortgage Consulting Group. Hall previously owned a management consultancy company, The Hall Partnership. Amongst his many projects, he has provided business strategy development for Ifonline (now Trigold), IT infrastructure design for an industry regulator and was an interim IT director for Future Mortgages. ...

  • Mortgage advice to be split into three categories

    19 Aug 2002

    Advisers will have to fit into one of three distinct categories when advising clients on mortgage contracts from June 2004. The FSA has distinguished between three types of selling process in its plans for regulation of the mortgage sales process: advised sales, non-advised sales involving a filter-question system, and non-advised execution only sales. Advised sales will follow the definition of advice set out in the Financial Services and Markets Act, such as advice ...

  • Mortgage lending breaks record in July, says CML

    21 Aug 2002

    Mortgage lending set new records in July as gross lending totalled £21.8 billion, an increase of 41% year-on-year, new CML figures have shown. But although loans for house purchase and remortgaging both reached record levels, the latest monthly figures followed a quieter period in June during which lending was affected by both the jubilee celebrations and interest in the World Cup. This may also have contributed to the setting of another record in July as the number ...

  • Mortgage Strategy training page error

    19 Aug 2002

    An error appeared on this week's Mortgage Strategy training page (page 27). The answer to question two of our MAQ test questions: "Hugh and Liz have a 5% cashback on a £60,000 mortgage. How much cashback is that?" is B.) £3,000, not C.) £33,000 as stated in the magazine. Apologies for any confusion caused.

  • Mortgage Talk/Barnsley Building Society arrange northern new homes deal

    19 Aug 2002

    Mortgage broker Mortgage Talk has joined forces with the Barnsley Building Society to launch an exclusive discounted rate mortgage deal. 'The New Homes Discount Rate' product is only available to Mortgage Talk clients looking to purchase new homes in the Yorkshire, Lincolnshire, Nottinghamshire and Derbyshire areas. On a LTV ratio up to 75%, the New Homes Discount Rate product offers a reduction of 2% on the Barnsley Building Society SVR for three years. On loans ...

  • Mortgages PLC restructures and expands sales and marketing team

    20 Aug 2002

    Mortgages PLC has completed the restructure and expansion of its sales and marketing team. Two senior sales appointments have been announced, with Mark Harrison and Bryn Hancock being appointed to the newly created positions of regional managers for the North and South of the UK respectively. Harrison was previously with Bank of Ireland, where he was corporate lending manager. Prior to this he spent a number of years at Bank of Scotland. Hancock joins from Mortgage Choice, ...

  • Mortgages PLC revamps website

    22 Aug 2002

    Mortgages PLC has rebranded its website and reported rapidly increasing numbers of intermediaries visiting the site. Since launch in April 2002, the site, at www.mortgagesplc.com, has attracted over 3500 visitors and the number of visitors is typically rising by 15-20% each month. Over 1500 intermediaries have registered on the site and are able to access a number of features such as downloadable marketing material and an online stationery ordering system. The website ...

  • My mortgage week - Paul Duckworth

    19 Aug 2002

    Monday: Got to work early (around 7.00am) to prepare for today's group board meeting. Managed to read up on the Sandler report and took on board the comments and views from the trade press (inc. Mortgage Strategy, of course). Spent most of the meeting discussing a pilot with a top lender for our new product, the Conveyancing Exchange. This will allow lenders, conveyancers, brokers and applicants to instruct, amend and track conveyancing online while interfacing with each other's ...

  • MyHomeMove launches white label service

    19 Aug 2002

    MyHomeMove Conveyancing has made it even easier for estate agents and IFAs to add value to their customer proposition. Property businesses can now brand and sell the MyHomeMove service under their own name enabling them to provide a fully automated, customer-centric conveyancing service but without the burden of running the operation themselves. Fees are guaranteed in writing up front and home movers benefit from the promise of 'no move, no legal fee', if the transaction ...

  • Nationwide launches lowest ever fixed rate mortgages

    21 Aug 2002

    Nationwide Building Society yesterday announced details of its new fixed rate mortgages. Following the reduction of 0.2% across all products, these are now the lowest fixed rates ever available from the Society. These new rates are available from August 21 and reflect recent movements in the money markets. The products include a two year fixed rate available from 4.49%, a three-year fixed rate available from 4.89%, and a five-year fixed rate available from 5.09%. Stuart ...

  • Natwest Home Insurance launches £100,000 competition

    23 Aug 2002

    With the average mortgage now £100,000, NatWest Home Insurance has launched a competition which will enable the winner to pay up to £100,000 off their mortgage. All people have to do to enter is to ask for a home insurance quote or give NatWest their insurance renewal date before the end of September. If the winner prefers, they can opt to take a cash prize of £25,000. The second name drawn will win a Ford Focus 1.8 Ghia. Bob Trinder, product and marketing ...

  • Never too old to learn

    19 Aug 2002

    From Neale R Scott I write as a 'long-in-the-tooth' mortgage adviser having been in the business for some 26 years. I'm yet to sit the CeMAP exams (first is booked for August 30), am dreading every minute until December 31, and am desperately trying to find time to study, 'do' the business and keep family happy. I read, with great sympathy and understanding, the long letters of protest and woe from other 'elder statesmen' in our business who inform us ...

  • New director appointed to Surrenda-link board

    21 Aug 2002

    Chester based Surrenda-link, the Traded Endowment Policy (TEP) company, has recentlyappointed Gareth Groome to its board of directors. Groome had formerly been Group Financial Controller at Surrenda-link with an overall responsibility for over 50 staff, covering IT, marketing and administration functions as well as finance. Paul Sands, chief executive of Surrenda-link, says: "We are delighted to welcome Gareth to the board. As group financial controller he has introduced ...

  • New IMA extranet for mortgage intermediaries

    22 Aug 2002

    The Independent Mortgage Adviser Network has launched its new extranet to IMA members. Housed in one easy-to-use environment, advisers can access the latest marketing support, regulatory requirements, lender developments and even track cases on line. The marketing area provides members with current industry news and promotional support such as adverts, mailshots and editorials. To keep members up-to-date with the latest product changes, they can access the lenders ...

  • New nominal rate and buy-to-let deals from Bristol & West Mortgages

    22 Aug 2002

    Bristol & West Mortgages has lowered its nominal rate to 6.5% from 7.75%. This means that all minimum rental yields will be calculated on this rate, except for the five-year fixed products, which still use the actual rate. For example, when a buy-to-let loan application is considered, theamount of money offered to the customer is calculated on the loan amount multiplied by 6.5%, the assumed interest rate. This is then multiplied by 125% or 130%, and this is the percentage ...

  • New online platform set to boost business for IFAs

    21 Aug 2002

    A new online financial services venture hopes to demystify the process of buying a mortgage for the consumer, and promote face-to-face advice with IFAs. www.best-mortgages.co.uk, set to launch on September 2, is the first in a series of consumer-oriented platforms from Best Financial Group. The user-friendly, online advisory platform is designed to assist active mortgage seekers to identify and secure the best mortgage for their lifestyle and budget. All active ...

  • New sub-prime rates from Pink

    20 Aug 2002

    Pink Home Loans has introduced two new adverse rates, funded by Amber Homeloans, to its wide range of sub-prime products. A full status rate of 5.95% and a self-cert rate of 6.45% are both fixeduntil 31/10/04. Tony Jones, managing director at Pink Home Loans, says: "Pink is keen to be a leading figure in the sub-prime arena offering an extensive selection of sub-prime products funded by the top lenders in the field." Gordon Jolly, managing director of Amber Homeloans ...

  • Non-conforming ad rules

    19 Aug 2002

    Lenders and intermediaries advertising non-conforming mortgages will face new rules on advertisements and financial promotions if FSA proposals for regulations are implemented, writes Ben Stafford. As well as laying down its approach to "qualifying credit promotions" including brochures, advertisements, websites and telesales calls, the regulator says that though most lenders opposed further requirements "considerable numbers also supported specific requirements in relation to ...

  • OFT bans estate agents

    23 Aug 2002

    Estate agents Robert Michael Cheslett and Paul Pacelli Quigley have been banned from estate agency work. Mr Cheslett, and Mr Quigley, who have both worked as estate agents, received Prohibition Orders in separate actions by the OFT. They are the fourth and fifth estate agents to be banned by the OFT this year. Stockport Trading Standards Department drew Mr Cheslett to the attention of the OFT. Mr Cheslett had been convicted at Manchester Crown Court, Tameside Magistrates' ...

  • Paper tiger

    19 Aug 2002

    Last Monday, the Financial Services Authority published Consultation Paper 146: The FSA's approach to regulating mortgage sales. From around mid-2004, intermediaries that sell mortgages will need to be authorised by the FSA. Mortgage supremo Sarah Wilson, director of the FSA's high street firms division, says the regulator wants to make sure that "consumers get clear comparable information on mortgages and that where they get advice they are recommended a suitable mortgage". "For ...

  • PMI Europe insures £1.8 billion mortgage credit default swap

    22 Aug 2002

    PMI Mortgage Insurance Company Limited (PMI Europe) has announced the insurance of a mortgage credit default swap agreement between the KfW group, Germany's leading promotional bank, and Aareal Bank AG, a leading international property bank. PMI Europe is providing a £63.6 million layer of credit protection in connection with the £1.8 billion Aareal Bank mortgage-backed synthetic security, Provide Home 2002-1. £8.2 million of this protection from ...

  • Portman guarantees MPPI premium rates

    21 Aug 2002

    Portman Building Society is guaranteeing existing premium rates for borrowers who take out mortgage payment protection insurance (MPPI) following a deal with Pinnacle Insurance. With the number of job losses hitting Britain's labour market, premiums for this type of insurance cover will tend to rise as insurance companies have to deal with higher numbers of claims. Consequently, some other lenders are raising premiums and some insurance providers - unwilling to stomach ...

  • Professionals needed to cross personal loan bridge

    19 Aug 2002

    Bridging and personal loan firms may have to employ fully qualified mortgage advisers to continue making first charge loans after N4. Under FSA definitions, bridging loans, lending for home improvements, debt consolidation, secured overdrafts and credit cards will all be subject to regulation where the security is a first charge over the borrower's residential property. A spokesman for the FSA says: "Regulation basically applies wherever the loan is the only charge ...

  • Research shows rapid growth in self-certification lending

    21 Aug 2002

    The 2002 Mortgage Achilles research study, which was undertaken among a sample of 250 intermediaries by research company BDRC, shows that the self-certification market is now the biggest niche mortgage area for intermediaries. The research, which was provided to subscribing companies last month, shows that 93% of intermediaries who handle specialist and niche mortgage products, now deal with self-certification mortgages. This is a rise of 13% on last year. Buy-to-let lending ...

  • Rights and wrongs of right-to-buy

    19 Aug 2002

    Since 1980, when council tenants were first given the right-to-buy, 1,500,000 council houses and flats have passed into private ownership. Many mortgage advisers believe the right-to-buy market has now reached saturation point and I can understand this view, as the sale of council homes has declined from a peak of 167,000 in 1982/1983 to between 30,000-50,000 a year for the last eight or nine years. However, as a packager with specialist capabilities in this field, my view is that there ...

  • Scarborough Building Society alters proc fees

    22 Aug 2002

    Detailed below is the scale of procuration fees paid to mortgage intermediaries by Scarborough Building Society: Residential mortgage products: £25,000 to £74,999 = £150 £75,000 to £149,999 = £175 £150,000+ = £200 Buy-to-let mortgage products: £25,000 to £74,999 = £250 £75,000 to £149,999 = £400 £150,000+ = £500

  • Self-cert lenders pass buck to brokers

    19 Aug 2002

    Self-cert lenders are insisting their affordability checks are robust after CP146 revealed brokers may carry the can for borrower arrears under regulation. In proposals for regulating the advice process, the FSA says brokers will be responsible for assessing whether a mortgage is suitable for a customer on the grounds of "whether or not the consumer can afford the mortgage" now and in future. Although brokers will not have to verify any information, they should take a "common ...

  • Single homebuyers cause a major shift in housing demand, says Halifax

    21 Aug 2002

    New research compiled by the Halifax, the UK's largest mortgage lender, shows that there has been a fundamental shift in housing demand due to the growth in the number of single people buying houses. These changes will impact planners and builders who will need to take account of these changes when designing the UK's future housing stock. The research shows that there has been a substantial increase in the proportion of single homebuyers over the past 20 years. ...

  • Skipton offers self-build finance via BuildLoan

    20 Aug 2002

    Skipton Building Society has become the latest lender to join the BuildLoan self-build mortgage lending panel with an exclusive flexible two-year stepped discount mortgage. The key features of the BuildLoan self-build mortgage are: * Up to 95% of land purchase, so clients only require a minimal deposit to buy their land. * Up to 95% of build costs, which means that most self-builders will be able to build their new home without first having to release equity ...

  • SPML enhances right-to-buy mortgage product

    22 Aug 2002

    Southern Pacific Mortgage Limited has announced a set of enhancements to its right-to-buy mortgage range. Enhancements include the ability to partially self certify income up to 80% LTV (i.e. production of an accountant's letter of affordability for the self employed, or a payslip/ bank statement showing regular credit entries for the employed). For applicants with a past history of credit problems, the choice has been widened to include (at 75% LTV) arrears of four ...

  • SPML introduces proactive fax notices for packagers

    22 Aug 2002

    Southern Pacific Mortgage Limited (SPML) has enhanced its service to packagers by introducing an automatic fax notification every time a condition stipulated on a mortgage offer has been satisfied. This 'real-time' fax notification is triggered by the data being entered on SPML's own computerised case tracking system, and it is already being viewed as a major benefit by packagers, the lender claims. Packagers no longer have to remember to telephone SPML to ...

  • SPML responds to CP146

    20 Aug 2002

    SPML has welcomed the publication of CP146, which it says will help the industry to set out the context within which regulation for mortgage sales will take place post-2004. SPML in-hosue lawyer Gemma Reece says: "As an extensive and detailed document it will require careful consideration and I'm sure the industry will take the opportunity to make plenty of comment ahead of November 11th. "After an early glance, two areas were of particular interest. Firstly, the admission ...

  • Strong growth in building society lending

    23 Aug 2002

    Building society gross advances amounted to £3,551 million in July, increasing from £2,812 million in June, the Building Societies Association says. Net advances were £1,224 million in July, up from £1,061 million in June. Approvals (loans agreed, but not yet made) increased to £3,681 million in July, from £3,212 million in June. In the savings market, building societies' had net inflows of £879 million in July, increasing from £865 ...

  • Surrenda-link Appoints New Investment Sales Manager

    22 Aug 2002

    Chester-based TEP company Surrenda-link has recently appointed Keith Hughes as investment sales manager. Hughes will be chiefly responsible for Surrenda-link Investment Fund and will act as the contact within Surrenda-link for TEP related investments. Ernie Hayes, senior manager, investment funds at Surrenda-link says: "We are delighted to welcome Keith to the investment team. Having worked in the investment industry for many years, liaising with professional advisers ...

  • Technology holds the key to Sandler, says Marlborough Stirling

    21 Aug 2002

    Marlborough Stirling says it understands the mixed reaction by product providers to the Sandler review and in particular the proposed 1% stakeholder suite of products. However, it claims that two of the challenges for the industry hold the key to making them work. If the industry can work towards making 'end-to-end electronic processing of transactions the norm in the industry' and 'tackling the problems of legacy systems', it says, then very much lower processing ...

  • The end of the beginning

    19 Aug 2002

    From John Mawdsley Does CP146 mean we have seen the end of the beginning for mortgage regulation? Borne out of The Mortgage Code, CP70, CP98 and a further consultation period by the Treasury, with the publication of CP146, it looks as though the FSA has now comprehensively grasped the nettle. We welcome the clarification that CP146 has provided for the packaging industry. It is now recognised that packagers and other hybrids, such as mortgage clubs, do exist and play a significant ...

  • The end of the beginning is nigh

    19 Aug 2002

    Last week the Financial Services Authority published Consultation Paper 146: The FSA's approach to regulating mortgage sales. From around mid-2004, intermediaries that sell mortgages will need to be authorised by the FSA. As we reveal across 15 pages in this special issue of Mortgage Strategy, there are no real surprises in CP146. Introductions to any authorised firm, whether independent or otherwise, will be exempt from regulation; mortgage clubs and packagers ...

  • The FSA is almost there with CP146 The new regulatory timetable

    19 Aug 2002

    We have always been supportive of statutory mortgage regulation as we believe it will be good for borrowers. We also believe that the majority of customers actively benefit from full mortgage advice and that statutory regulation provides greater clarity in a complex regulatory environment. But mortgage regulation needs to be aligned with the FSA's work on polarisation rules as there are many areas where mortgage business is interlinked with investment business. In light of ...

  • The importance of responding

    19 Aug 2002

    From Mike Davies CP146 is living proof that there is value in responding to these consultation papers. CP98, in practice, placed the onus for the supervision of mortgage advice and intermediaries who gave such advice, on lenders. Such an approach was unworkable, as lenders did not have any legal relationship with the intermediary that would enable them to apply sanctions. We fed back our concerns to the Financial Services Authority last September. In December 2001, ...

  • The mortgage mole

    19 Aug 2002

    Bristol balloon August gets a bit sweaty underground, so Mole was all too eager to live the high life aboard a hot air balloon, courtesy of Bristol & West. Decked out with air-sickness bag and waterproofs 'just in case', Mole duly trekked over the fairground and beer-tent-filled hills of the Bristol balloon festival - only to find rain had stopped play. Sensing a PR disaster in the making, Bristol & West marketing boss Dominic Toller lifted deflated spirits with some ...

  • The number of super-rich doubles, says Datamonitor

    20 Aug 2002

    Independent analyst Datamonitor's new report, Ultra High Net Worths, finds that there has been a surge in the number of ultra high net worth individuals (those with more than £5 million in onshore liquid assets) in the last five to ten years. In the last five years alone the number of ultra high net worth individuals in the UK has more than doubled, from 1,500 in 1997 to 3,300 by the end of 2001. Earners have become much more important in the ultra high net ...

  • The Virgin One launches first 'Mortgage Outlook Index'

    20 Aug 2002

    The Virgin One account has today launched the first 'Mortgage Outlook Index' (MOI), a quarterly index that will monitor the mood of mortgage intermediaries up and down thecountry. The research was carried out by NOP in August and covers the period April to July 2002. The first index has shown mortgage intermediaries to be robust in nature and overall have a positive outlook on their future prospects. And despite the cloud of regulation hanging over them, it would ...

  • This weeks problem case

    19 Aug 2002

    Dr Johnson is a sole practitioner in Birmingham, with gross earnings of £80,300. His wife has a net income of £9,000 per annum. Dr Johnson's yearly tax bill is around £15,000 and he has a mortgage of £120,000 on a house valued at £250,000. Planned home improvements will cost £20,000 and, with two children in private education, he is using this opportunity to review his finances.

  • Time to register some interest in land

    19 Aug 2002

    Research and anecdotal evidence suggest that one area of the syllabus that causes some students particular difficulties is that of mortgage and property law. Much of this subject has been covered previously in this column, including matters such as freehold and leasehold estate, easements and covenants. However, land registration has not been covered before and it is this topic, at least as far as it applies in England and Wales, that will now be considered. The purpose of land ...

  • Trying to offer a little bit of extra service

    19 Aug 2002

    Q: How is MX Financial Solutions structured? A: MX Financial Solutions is a provider of financial advisory services that was originally created by Bristol & West, part of the Bank of Ireland group. It was launched in November 2001, following the merger of IFA Willis National with financial website Moneyextra. However, Bristol & West does not influence the way MX Financial Solutions operates in any way. Q: What services does MX Financial Solutions offer? A: ...

  • UK banking retains leading position

    19 Aug 2002

    Britain's banking sector is bigger than the commercial banking sector in any other EU country according to latest research issued by the British Bankers' Association (BBA). The BBA's annual review, Banking Business, shows that the British banking sector has assets of over ?5,000bn (£3,145bn), representing a fifth of all European banking assets. Britain is also the largest centre in the world for cross-border bank lending, accounting for 21% of the world ...

  • Weed out the unfit

    19 Aug 2002

    From Richard Hall CP146 is what the mortgage industry has needed for a long, long time. It's just a shame it's going to be another 18 months before statutory regulation is implemented. My background is largely in the heavily-regulated life and insurance sectors. The companies I worked for prior to setting up Best Advice flourished. Why? Because they embraced regulation lock, stock and barrel. They worked with regulatory bodies to ensure that regulation was effective - and targeted ...

  • With-profits endowments still a safer bet, says IPTC

    22 Aug 2002

    IPTC (The Insurance Policy Trading Company) claims there is a vast difference between the performance of unit-linked and with-profits endowments. There has been much recent hype about the poor performance of endowments, falling surrender values and maturity shortfalls. IPTC says this is relative to the type of endowment, and relative to the performance of investments in general, in the current financial climate. The company acknowledges that it has been a shock to see ...

  • Woolwich launches new lower mortgage deals

    19 Aug 2002

    Woolwich has launched a new five year Openplan flexible fixed rate mortgage of 4.99% and an improved Openplan mortgage deal discounted for two years (2.01%) at a rate of 3.94%. The five year fixed rate has been reduced by 0.40% from 5.39% to 4.99%, with the term ending on November 30 2007. Andy Gray, head of mortgages at The Woolwich, says: "Fixed rate mortgages are highly competitive and this offers excellent value to homeowners who wish to budget in the early years." Woolwich ...

  • You never said why

    19 Aug 2002

    From Shaun Godfrey The publication of CP146 and RAO is extremely welcome because it will give all those firms involved in providing mortgage advice a fantastic opportunity to influence the future of the marketplace. We will be reviewing the 350-page document and asking our membership for their views prior to a formal submission. However, at first glance, we welcome the FSA proposals as we already support our members in their compliance with the MCCB code and GISC rules. It ...

Poll

Should the Financial Conduct Authority be more intrusive than the Financial Services Authority?

Current Issue

Lending Zone
petitions
debate
Define Advice
Advanced search