Mortgage Strategy
19 July 2004

  • £3.7bn rise in mortgage lending in June

    21 Jul 2004

    Gross lending totalled a record £27.8bn, 15% higher than the £24.1bn lent in May and 24% higher than the £22.4bn lent in June 2003. Lending for house purchase reached its highest ever monthly figure of £13.6bn, 13% higher than in May, and 40% higher than in June last year. It accounted for 49% of total lending, compared with 50% the previous month and 43% a year earlier. Remortgaging also showed a substantial though less dramatic rise, up 16% on ...

  • 100 days left to Mortgage Day, no time to wait, warns AMI

    22 Jul 2004

    Whether firms are deciding to become appointed representatives or have received a minded to authorise letter, they are entering the final stage in the run-up to regulation. With the clock ticking down to October 31, firms planning to apply to a network for appointed representative status should do so without delay, warns AMI. Networks have experienced an increase in the number of applications in recent weeks and those who do not apply promptly risk not receiving a decision in ...

  • 2.4 million homeowners potentially liable for Inheritance Tax

    19 Jul 2004

    The maths is straightforward: the 12% increase in house prices in the first half of 2004 significantly outstripped the 3.1% increase in the IHT threshold in April from £255,000 to £263,000. The biggest percentage rises in the number of properties valued above the IHT threshold in the first half of this year have been in Yorkshire and the Humber (49%) and the North-West (46%), reflecting the strength of the housing market in the North. Indeed, more than 60% of the ...

  • 30-somethings view mortgage as 'adventure equity'

    23 Jul 2004

    Changing life outlooks of 30-somethings and single women in their late 30s will present a host of new business opportunities for financial advisers, says a report published by Standard Life and The Future Laboratory. Individuals in these groups are increasingly viewing their mortgage as adventure equity, which allows them to embark on life changing adventures. These people have turned their back on institutions and corporates in favour of new career paths, organic lives, ...

  • Advantage launches improved website

    19 Jul 2004

    Peter Bass, head of sales and marketing, says: "All the information required to take advantage of our products and services is available online. The site provides solutions for all sub-prime mortgage needs, from registering, getting a decision in principle, tracking cases and downloading the latest rates."

  • All about council Right to Buys

    21 Jul 2004

    It is estimated that since its introduction the scheme has assisted 1.3 million tenants to purchase their homes in England. This in turn has generated an income exceeding £20bn from the sale of local authority dwellings. The Right to Buy scheme is available to all secure tenants except those occupying the property in connection with their employment, some dwellings provided for the elderly and some tenants in disabled access properties. The Past Under the ...

  • Alliance & Leicester launches range of mortgages

    23 Jul 2004

    Some of the features include an improved low start discounted rate, reduced by 0.4%. There is also a 2.8% discount off Alliance & Leicester's standard variable rate, currently 6.59% for two years, then one year tracking the Bank of England base rate plus 1.25%, current rate 3.79% (6.4% APR). There is an early repayment fee - in year one it is 1% of the amount repaid, and in years two and three it is 2%. Customers can borrow up to 95% of the property value and have ...

  • AMI announces deputy chairmen

    20 Jul 2004

    AMI has always maintained a balanced approach between firms seeking direct authorisation and those taking the network and appointed representative route through regulation. The board was keen to ensure that AMI took the opportunity to reinforce this positioning. These appointments bring high level market input to the board's chairmanship team. With the market in a state of flux, AMI took the opportunity to reinforce its position as the trade body for the whole mortgage intermediary ...

  • AMI has done a lot of good work in a short time

    19 Jul 2004

    From Danny Lovey After having recently attended the AMI London regional gathering, I have a fresh optimism about the future of our industry. It is difficult to believe that the industry body is only a year old. When you think of the good work done by Chris Cummings and others on the AMI board in their representations to the FSA and the Treasury, and the information they provide via the website or in articles in trade magazines and how effective this has been, it seems AMI ...

  • Apply soon or face the consequences

    19 Jul 2004

    This time next week there'll be fewer than 100 days to go before the FSA comes knocking at your door. Like it or not regulation is now just around the corner. Yet despite the endless column inches devoted to the subject it seems that thousands of mortgage advisers have yet to grasp the fact that if you are not ready to face regulation head-on, you will go out of business. From October 31 if you get caught selling residential mortgages outside the regulatory regime ...

  • AToM launches stepped discounted product

    21 Jul 2004

    This product is suitable for first-time buyers as there is no MIG charged and no minimum trading period for those customers who wish to take advantage of the self certification option available. The product features a headline rate of 5.32% and a discount of 2.5% in year one, 1.5% in year two and 1% in year three. The product is available exclusively to PMPA/ MDC members only.

  • BDS launches MPLC free legals exclusive

    23 Jul 2004

    With immediate effect all packaged applications received by BDS prior to September 30 2004 introducers will be able to save their clients in the region of £250 to £300. Introducers must select BDS as nominated solicitors to qualify. BDS will offer Mortgages PLC's Synergy products and will also have access to the elite range, providing a preferential lender service, enhanced procuration fees and semi-exclusive deals. Phil Jay, managing director at BDS, ...

  • Blue Sky

    19 Jul 2004

    Hierarchy builds on three key assumptions: your environment is stable, your processes are predictable and your output is given. You know where you are, what you do and what will happen - the same competitors, customers, suppliers and product offerings year in and year out. As long as this holds true, it is stupid to organise your business in any other way. However, we doubt you would use those words to describe your reality. Jack Welch of GE expresses it bluntly when he argues that hierarchy ...

  • BMS appoints marketing communications manager

    21 Jul 2004

    Formerly of marketing agency Cooney Bains, Forth has run successful campaigns for brands such as Audi UK, Everton FC and AA Driving School. She has over eight years of experience in marketing communications and has gained vast experience of database marketing, communication strategy and campaign management. Forth says: "BM Solutions has built a really impressive brand in an incredibly short amount of time. Technology has a pivotal role to play in the future of the mortgage ...

  • BoE warnings put brakes on house price rises

    21 Jul 2004

    Average house price inflation in June was at its slowest pace in 10 months, the RICS survey shows. However, a price crash is not on the horizon. London and the South-East recorded small prices falls for the first time since the Iraq war, and responses from the north of England seem to suggest the recent boom in these regions is coming to an end. For the three months to June, 17% more surveyors reported a rise in house prices than a fall, compared to 43% in May and ...

  • Britannia and Graduate Network launch Share to Buy mortgage for FTBs

    23 Jul 2004

    With the average property price in London coming in at over a quarter of a million pounds, the Share to Buy mortgage gives 20-something city dwellers an expert helping hand in purchasing their first property. It enables up to four young professionals to club together and purchase a property at a multiple of three times each of their salaries. For example, four young professionals, each on salaries of £24,000 a year could afford property worth up to £320,000. ...

  • Brown must act on lending, says Cable

    21 Jul 2004

    He adds: "The rise in lending by banks and building societies is still fuelling the housing market. "The recent rises in interest rates do not appear to have deterred larger numbers of people from entering the market and building up their housing equity despite warnings from the governor of the Bank of England, among others, about a probable crash in house prices. "This continued trend underlines the importance of the government and the Bank of England having other mechanisms ...

  • Build in a currency fluctuation margin for mortgages arranged in euros

    19 Jul 2004

    Kevin Paterson, managing director, Park Row Independent Mortgages Many of us have traditionally shied away from lending overseas for a host of reasons - not least of which is a lack of understanding - preferring either to remortgage the client's UK property for the whole amount required if there is enough equity or to put the client off. However, with more and more Brits looking abroad either to live permanently, to buy for investment or simply to purchase a holiday home, the ...

  • Charcol offers penalty-free discount deal for three years.

    22 Jul 2004

    This flexible product offers a 1.89% discount until December 2007, giving a current pay rate of 4.65%, before reverting to a 1.3% discount for a further two years. Purchasers and remortgagers can borrow up to 75% and interest is calculated daily. There is also a free valuation on properties worth upto £1m and remortgagers have their legal fees paid for them or in Scotland receive £200 cashback. Ray Boulger, senior technical manager at Charcol, says: "This ...

  • Chelsea launches free legal service in Scotland

    19 Jul 2004

    A similar service has been established for some time in England but the society has now taken this offer north of the border by signing a deal with Paisley-based Walker Laird Solicitors. The fast-track service will be available in Scotland from this month and the aim is to complete remortgage deals in 28 days. Chelsea says Scotland now accounts for 3.7% of the society's total lending, up from 1.5%, and the average loan size it does in the country has almost doubled to £91,000. Ch

  • CHL aspires to become top self-cert lender

    19 Jul 2004

    The prediction comes as other lenders pull back in the sector. Recently, Mortgage Strategy exclusively revealed that BM Solutions was to hike its arrangement fee on self-cert products in an attempt to limit market share. Platform followed suit and The Mortgage Business has temporarily withdrawn from the market. CHL believes it will corner the market with a combination of low completion fees and high LTVs. Trevor Child, CHL senior marketing manager, says: "Other lenders ...

  • City Home Loans launches adverse product

    22 Jul 2004

    The exclusive self-certification tracker is at LIBOR plus 2.25%, with a discount of 1.50% until September 1, 2005, giving an initial interest rate of 5.40%. The product, launched in partnership with SPML, allows up to £3,000 in unsatisfied County Court judgments, two missed mortgage payments over the past 12 months (one missed in the past six months), IVAs if satisfactorily conducted and defaults. Existing borrower statements showing any amounts due are required, but no lender or ...

  • Connells wins 'business of the year' accolade

    21 Jul 2004

    Stephen Shipperely, group chief executive, says: "This is a tremendous accolade and we are proud that our company has been recognised, in the words of the judges, as a shining example of business excellence," Other companies which were shortlisted for various awards on the night included household names such as Vodaphone, Thames Water, HBOS, Everest and Barcardi-Martini. In presenting the Business of the Year award to Connells, the judges described the company as "an ...

  • Curriculum Vitae - Mike Lazenby

    19 Jul 2004

    Name: Mike Lazenby Age: 49 Company: Kent Reliance Job title: Chief executive Where do you live? I have a house near London Bridge and a small home in the Historic Dockyard at Chatham. I love the buzz of London but I spend most of my time in the office so I need a base close by. I would live on a plane if I could. I really enjoy travelling. Current Job: Indescribable - we are not a normal building ...

  • Dear Delia

    19 Jul 2004

    What are the factors they should consider when buying a property on the Costa Del Sol? Delia says: Moving abroad is becoming increasingly popular with British retirees but it is not without its pitfalls. To offer the Joneses some valuable help we have Patrick Murphy, a private wealth specialist, and Sally Butcher, Leeds & Holbeck's Spain expert. Have you got a problem for Delia? Email mortgage.strategy@centaur.co.uk Intermediary ...

  • ePages offer fast and easy mortgage searches

    19 Jul 2004

    ePages are the online version of Moneyfacts' mortgage pages, but updated in real time and featuring interactive sorting and filtering features. The result is a service that offers full access to Moneyfacts whole of market data but with new features that can only be delivered via the internet. The information accessed is updated constantly in real time. As soon as any lender changes any product details, launches something new or withdraws a product, that change will ...

  • Fixed rates still under downward pressure

    19 Jul 2004

    • One-year money is up 0.02% at 5.23% • Two-year money is up 0.03% to 5.35% • Three-year money is up 0.05% at 5.43% • Five-year money is up 0.06% to 5.48% We have now seen a few lenders repricing downwards, begging the question - when will others follow? Lenders that have repriced fixed rates downward include Halifax, The Woolwich and Northern Rock, which has an excellent two-year fixed down to 5.38%. NR has also launched an 18month fixed ...

  • Freedom Finance appoints TBMC as first buy-to-let packager

    23 Jul 2004

    Colin Snowdon, managing director of Freedom Finance's lending operation, says: "I have enjoyed working with TBMC in this specialist market sector for many years and have experienced first hand its ability to package intermediary applications to a high standard. "This, coupled with its strong distribution channels and ability to deliver quality business in required volumes, makes it an ideal partner choice for Freedom Finance." Will Wakely, a director with TBMC, says: ...

  • FSA announces authorisation update

    19 Jul 2004

    Of the registrations, 6,230 were from the primary insurance market and 6,480 from the secondary insurance market. With regard to applications for authorisation, the estimated breakdown was 4,843 from the primary insurance market and 3,781 from the secondary insurance market. Comparable figures for the mortgage sector at the end of July 13 were 6,536 registrations for an application pack and 3,912 applications for authorisation. Also, by the end of July 13, 5980 letters ...

  • FSA appoints independent complaints commissioner

    19 Jul 2004

    Holland, chairman of the Northern Ireland Parades Commission and a former principal Ombudsman for the Personal Investment Authority, takes over on September 3 2004. He succeeds Rosemary Radcliffe who has been the first complaints commissioner for the FSA since the inception of the complaints scheme in September 2001. The complaints commissioner is responsible for investigating complaints against the FSA operating independently of the FSA and fulfils an important role ...

  • FSA fields questions at annual public meeting

    19 Jul 2004

    Among the queries were concerns from a compliance consultant that small IFA firms were not being fairly represented on the Small Business Practitioner Panel. FSA chairman Callum McCarthy told delegates: "As a matter of course we have considerable correspondence from small IFAs with whom we have a good relationship. We look at the whole range of firms." John Tiner, FSA chief executive, told the audience the FSA was increasingly conscious of the burden of regulation on small businesses ...

  • FSA rules could be exploited

    19 Jul 2004

    Lime says that unlike under current regulation for IFAs, the FSA will only keep a register of firms, not individuals, whether they are directly authorised or appointed representatives. Simon Hudson, chief executive of Tenet, Lime's parent company, says: "The FSA will not even know of the existence of individual advisers and their credentials can't be checked. Someone could be wandering around with a business card with the name of an authorised firm on it but that firm might ...

  • FSA should name the failures now

    19 Jul 2004

    Given that it takes about 30-40 days for networks to process AR applications, if you are considering taking this route and have not yet chosen your network, you'd better do so now. Hardly a day goes by without another network announcing the arrival of their prized MTA letter from the FSA. And rightly so. Those receiving the first nod of approval from the regulator have every right to shout and celebrate. They have, after all, cleared the first hurdle on the regulatory course. While ...

  • Future Mortgages offers 100% mortgage through MDC

    22 Jul 2004

    The product is a three-year stepped discount interest rate mortgage that has no MIG charge and an LTV of up 100% of the cost of the property. Employed and self-employed applications are welcome and it is suitable for first-time buyers and existing home owners on the move. The product also has no extended tie-ins. This new deal follows MDC's success in marketing Future Mortgages' prime and near prime mortgages in the self-certification sector. The self-certification products ...

  • Genesis announces first licensee

    21 Jul 2004

    The Packaging Centre, based in Norwich, will operate alongside Genesis' franchise network, which was launched earlier this year. Genesis franchisees operate within a pre-agreed geographical area and trade under the Genesis brand name, whereas licensees retain their existing brand name and do not have fixed territories. Licensees will be able to provide their introducers with a continuity of service, combined with a competitive multi-channel product offering. In addition, ...

  • Give women a fair deal, says Cartel

    19 Jul 2004

    The financial services industry has always been considered to be male-dominated but Cartel says women make up half of its board. Andrea Brammer, Cartel director and head of recruitment, says: "There is no reason why a woman cannot succeed in this industry. I have always made sure I stood out for my performance and not my gender. I don't understand why other financial companies do not take women seriously at the highest level." And Sharon Sherratt, another board director at ...

  • GMAC says it can cope with volume

    19 Jul 2004

    Despite record lending - up 25% on last year - it is launching new products and says it has no service issues. This month both BM Solutions and Platform hiked their self-cert arrangement fees and the latter increased its rate so brokers are finding it harder to source competitive deals. GMAC-RFC spokes-man Jeff Knight says: "We are in this position for two reasons - firstly our investment in IT and secondly, remote processing for key packagers." The lender says ...

  • GMAC-RFC joins RAMP panel

    19 Jul 2004

    The addition of GMAC-RFC takes the total of lenders on the RAMP panel to 14. It joins TMB, Kensington Mortgage Company, First National, Preferred Mortgages, Capital Home Loans, igroup, Platform, MPLC, SPML, Future, The Blemain Group and London Scottish and Commercial 1st.   John Rice, managing director of RAMP, says: "With the appointment of GMAC-RFC to the panel, we now have an extremely strong set of lending partners covering all areas of the marketplace including prime, non-standard, ...

  • GMAC-RFC sees boom in online applications

    23 Jul 2004

    Jeff Knight, head of marketing at GMAC-RFC, says: "Broker reaction to the new system has been fantastic. Nearly 70% of all unpackaged applications received now have an online accept decision prior to being submitted and those applications that have an accept decision in advance receive an offer 22% faster on average. Even if the decision is not an accept, a key element to the GMAC-RFC system is that brokers can resubmit up to three more times, applying for an alternative product, ...

  • Government backs OFT proposal on rogue estate agents

    23 Jul 2004

    The OFT's report in March highlighted the need for more widespread access to independent redress for consumers who lose out because of bad practices by estate agents. It recommended that powers should be put in place to set up a statutory redress system if the industry's own actions to increase access to independent redress were not adequate. The government's proposal is to introduce powers to require all agents to belong to an industry redress system, subject ...

  • Help on the long road to competence

    19 Jul 2004

    This week I look at the FSA requirement for a training and competence scheme to be operated by all authorised firms. T&C can be seen either as a necessary evil or as something that benefits brokers and filters down to their clients. I subscribe to the latter theory. The FSA quite clearly feels that the required competence levels for brokers to advise on and/or arrange mortgages can only be achieved through a continuous programme of training, refresher courses and ...

  • Heritable Bank appointed to St James's Place panel

    20 Jul 2004

    Colin Stevens, head of mortgage lending at Heritable Bank, says: "We are delighted to join the panel of St James's Place Partnership, and look forward to a long and successful relationship with them. "It is particularly pleasing for us that the appointment was made on the recommendation of St James's Place Partners, who have already enjoyed the benefits we can offer, including a high level of service and the ability to consider unusual types of good-quality mortgage application."

  • Homeowners keep track of property values

    20 Jul 2004

    Two thirds (68%) have made improvements specifically to increase the value of their property, but have yet to sell up. The survey of over 1,000 homeowners also shows that one in eight (13%) have remortgaged to finance home improvements, and 2.5 million (8%) people have avoided making desired changes to their homes in case of damage to the property's resale value. Only 9% say they have remortgaged to cut their monthly payments. David Elms, chief executive of IFA Promotion, ...

  • Homes plan gets cool reception

    19 Jul 2004

    In the government's spending review last week, Gordon Brown pledged to increase the supply of homes, boosting the housing budget from £5.9bn to £7.2bn. He plans a 50% hike in social housebuilding, with an extra 10,000 homes a year to be funded by a £430m rise in spending by 2007/08. As recommended in the Barker review, an extra 200,000 homes are planned by 2016, to be funded by a community infrastructure fund of £150m. There was also more money to regenerate ...

  • I live in the real world when it comes to lender service

    19 Jul 2004

    From Andrew Forsey I read with interest Andy Wilgoss and Jonathan Cornell's comments regarding Northern Rock , Mortgage Express and Nationwide giving them excellent service because they do volume business (Mortgage Strategy July 12). All I can say is that we have received a large number of emails over the past few weeks from brokers who totally disagree. I have also had conversations with various lenders at the highest level which indicate that they are aware of service ...

  • ICMG launches super-light adverse product

    19 Jul 2004

    The deal, funded by Rooftop, is available up to 90% LTV on purchase and remortgage and comes with no MIG or credit scoring. The deal is also available up to 90% LTV for non-council high rise properties and to those in the UK with no right to reside. Chris Gardner, managing director of ICMG, says: "This is one of the best deals we have developed, with flexible one-to-one underwriting requiring little detail and just a small paper trail. "We also have on-site offer ...

  • Internet Insite

    19 Jul 2004

    I enjoyed my visit last week to Southampton in my round Britain tour of mortgage broker websites, so much so that I've stayed for a second week - must be the sea air. It's good to see plenty of customer testimonials in two of the sites but only TML Financial Solutions majors on the calls to action that websites need to make it easy for visitors to contact the company. It's not enough to have a phone number that scrolls out of site and while TML's style is rather brash, its ...

  • Ipswich links up with more networks

    21 Jul 2004

    Ipswich's products will appear on both networks lending panels from this week and be available to their intermediaries across the UK.   Rachel Sparks, head of intermediary sales at Ipswich, says: "This is a great opportunity for both Personal Touch and  Inter-Alliance to further grow their businesses.  Ipswich has special features to its mortgage service that can make a big difference to their members."   Paul Winter, Ipswich's sales and marketing director, says: ...

  • Irish Permanant launches reduced rate buy-to-let tracker

    21 Jul 2004

    The product, which is at Bank of England base rate plus 0.65% with a completion fee of only 0.5%, is ideal for landlords who may have been involved in buy-to-let for some years and who require LTVs up to 65%. The tracker is tied to base rate until June 2007.   Mike Healy, head of sales at Irish Permanent, says: "There is a large and growing body of landlords who have had a successful portfolio of properties for a number of years and are looking at lower LTVs to secure reduced interest ...

  • Is volume just an excuse for bad service?

    19 Jul 2004

    Many stand accused of not having the necessary resources in place to cope with the volume of demand for their most competitive products. Recently The Mortgage Business temporarily closed to new business citing backlogs and the likes of Northern Rock and The Woolwich have also come in for some stick over their service. They say this is partly a result of the housing market not slowing to the extent many experts had predicted for this year, meaning they did not invest enough ...

  • John Gummer is new AMI chairman

    19 Jul 2004

    Gummer is the current chairman of AMI's sister trade body, the Association of IFAs, but his main role is as Conservative MP for Suffolk Coastal. He has 16 years' ministerial experience, serving under both Margaret Thatcher and John Major. The board says it was looking for an impartial chairman with experience of the financial services market. The trade body also wants advice from industry figures with experience on the ground so a member of a network and a directly authorised ...

  • Johnson back to head Money Partners

    19 Jul 2004

    MPL is a joint venture between Kensington Mortgages and its senior management team. As well as Johnson, other partners include former Kensington finance director Simon Kingdon, who takes on the same role at MPL, and Philip George, former managing director of First National, who becomes a non-executive director of the new company. Both Johnson and George will continue with their current roles at specialist lender Commercial 1st. Rumours suggest other members of MPL's ...

  • Know the different types of borrowers

    19 Jul 2004

    Last week's column looked at lending to business partnerships and companies. This week, consideration is given to other types of applicants who may apply to a lender for a mortgage. Each of these is included in the syllabus for CeMAP papers two and three and the Bridge paper. One point to note at the outset is that the syllabus makes a clear distinction between a corporate loan and a commercial loan. A corporate loan is defined as a loan to a company as covered in last week's ...

  • L&G: Changes were forced

    19 Jul 2004

    The firm has come under repeated criticism from brokers who have been angered at what they see as L&G changing the original terms and conditions for members of its network, forcing them to look for alternative homes. Network Data has already started a campaign called L&g-it to help brokers break away. And Mortgage Strategy has seen documents from another broker who says he is being forced into another business to continue trading. The broker, who wishes to remain anonymous, ...

  • LIME launches product via Norwich Union

    21 Jul 2004

    The new buildings and contents product pays high commission on a monthly basis and has the guarantee of NU service standards including a dedicated claims function. It offers a number of home insurance contracts to complement the mortgage sale and gives clients access to a flexible, value for money product, from a name people trust. A major benefit for advisers is that business can be done on line through the LIME private extranet so no administration is needed. Other ...

  • Llewellyn-Slade PR to launch radio programme

    22 Jul 2004

    The programme, expected to be called Your Money, will provide networks and individual intermediaries with the opportunity to raise awareness of their organisation and generate new business leads as interviewees will have their telephone number or website mentioned on air. Each week the programme will focus on a particular personal finance issue such as the benefits of remortgaging, how to build a buy-to-let portfolio, retirement planning or investment opportunities and appropriate ...

  • Lloyds TSB accused of ripping off loan customers

    20 Jul 2004

    The high street bank was singled out in last night's BBC1 TV programme, Real Story. With Britain's debt levels ever increasing investigative journalist Paul Kenyon delved into allegations that some high street banks take advantage of their customers, adding hidden charges to their loans, and encouraging others to borrow more than they could ever pay back. Lloyds TSB was Kenyon's number one target. Iain MacQueens-Sims, consumer loan analyst and director of Omnichek, ...

  • Long-term fixed rate deals launched

    19 Jul 2004

    The society says it is the UK's only provider of guaranteed fixed rates over 25 years and has recently seen demand increase. The recent rises in interest rates saw the long-term product sell out of its allocation of funds, leading Leeds & Holbeck to launch a new range of products. The range includes terms of 15, 20 and 25 years, all fixed at 6.39%, gross p.a (6.8% APR). All the loans come with features such as optional repayment windows after five years and allow ...

  • Looking to offer more in the regulated world

    19 Jul 2004

    legal & general Legal & General is one of the largest and most respected insurance companies in the UK. The Legal & General name is well known by consumers and has a good reputation in the industry for the competitive housing proposition it offers to business partners. The Legal & General Partnership has now been set up to act as principal for appointed representatives under FSA regulation for mortgage, protection and general insurance sales. Q: ...

  • Marketing Brief

    19 Jul 2004

    It's always interesting when a new mortgage lender launches, especially one focussed on intermediaries. So it's particularly pleasing to review material from two recent additions to the intermediary arena - First Active and Infinity Mortgages. OK, I know First Active is an old name but in its incarnation as a Royal Bank of Scotland brand, and sitting alongside another Norwich-based RBS brand in the One account, it has an all-new guise. But its material says "currently exclusive to ...

  • Marriott Harrison advises on Purely Mortgages launch

    19 Jul 2004

    The company, which plans to launch to the general public later this year, is aiming to take a significant share of the UK mortgage market within five years. The Purely Mortgages business will be managed by Mark Chilton who has been responsible for two successful start-ups in the mortgage market, First Mortgage Securities, established in 1987, and Savills Private Finance, launched in 1997. It is being launched by Simon Tyler, majority shareholder of holding company Mortgage Ventures ...

  • MCCB publishes results of mystery shopping on affordability issues

    21 Jul 2004

    The research looks into how issues of mortgage affordability are being dealt with in the initial mortgage sales discussion and is the last mystery shopping survey to be commissioned by the MCCB before the Financial Services Authority taking over regulation of the mortgage market on October 31 2004. The mystery shopping study was conducted by independent market research specialists NOP World and involved 100 assessments throughout the UK. The mystery shopping research showed ...

  • Members Mortgage Network apologises to brokers

    21 Jul 2004

    Managing director Clive Watkins says: "I have read the bickering between the various network leaders in the press as to who was the first toreceive their minded to approve. I wish I had made the announcement sooner because Members Mortgages must have been one of the first approved principals. "We have also simplified our appointed representative pricing. ARs joining us before August 31 2004 will not be charged a joining fee. All ARs will only be charged 5% of commission earnings ...

  • Merger would form largest advice body

    19 Jul 2004

    The two boards have signed an agreement to form a company which, if members agree, would see the existing 25,000 members of LIA and SoFA being transferred by January 2005. If the merger goes ahead, the new body will be owned by its members and the Chartered Insurance Institute, but will have its own constitution. Its aim as a professional body will be to play a role in restoring trust and confidence in financial advisers among consumers. The organisations are ...

  • Merrill Lynch is favourite to snap up MPLC

    19 Jul 2004

    MPLC said earlier this month it was in exclusive talks with a "global financial institution" after venture capitalist parent Nikko decided to sell the company it bought in December 2001 for under £25m (£20,758959m for Series A loan notes and £3.192m in the form of a working capital loan). Back in the 1990s Culhane oversaw the creation and launch of Future Mortgages, which was later sold to Citigroup. After the sale he founded The Oakwood Group, an investment firm ...

  • MI awaits applications surge

    19 Jul 2004

    Managing director Sally Laker describes this as the final piece of the jigsaw and says it is the result of the level of resources committed to putting the proposition together. Laker says: "Now we have our letter it is one less worry to concern ourselves with. This should be a call to action to brokers. Unfortunately, judging from our roadshows over the past few weeks there seems still to be no desperate sense of urgency among intermediaries about getting ready for regulation." And ...

  • M-Next, Pink and MI to share product exclusives

    21 Jul 2004

    This means that ARs of other networks will not have access to direct to lender products negotiated exclusively by the three networks. Each of these distributors will still make its exclusive products available to directly authorised intermediaries. Pink Home Loans managing director Toby Jones says: "Our view is that all three of us are quite similar in that we are mortgage specialists and put a lot of work into negotiating exclusive products. Joining up like this gives us an ...

  • Moneysupermarket chief in the TV spotlight

    19 Jul 2004

    The North-West is believed to contain more entrepreneurs than any other region in the UK and Chester-based CEO Nixon will be the focus of one of the half hour slots to be screened on Granada at the end of July. Nixon was named UK Entrepreneur of the Year in 2003 and collected another award for business achievement from Ernst & Young during the filming of the programme. The programme also looks at the volume of business generated by Moneysupermarket.com which Nixons ...

  • Mortgage Express appoints regional sales managers

    23 Jul 2004

    Mark Collar has worked for Bradford & Bingley for 15 years, most recently as sales manager for Cardiff and Bristol. He has been promoted to regional sales manager for the South-West. He will work with the sales team in south London, the south coast, Devon, Cornwall, Bristol and south Wales areas. Claire Ridgewell has been appointed as regional sales manager for the South-East and will be responsible for the sales team covering East Anglia, Reading, Luton, central London and Chelmsford, ...

  • Mortgage Next gets MTA and simplifies pricing

    19 Jul 2004

    The new proposition has been developed in response to feedback from brokers who found the previous structure too complicated. MN has organised its fees into four bands and is also offering free service enhancements including mortgage sourcing and point-of-sale compliance software and PI cover. If a broker completes one to four cases a month the completed case fee is £50, if they complete five to nine cases the case fee is £25, if 10 to 19 are completed the case ...

  • Mortgage next recieves MTA letter

    20 Jul 2004

    Justine Tomlinson, marketing director at Mortgage Next, says: "We are delighted to receive our MTA letter, at long last. This will give many brokers who have been holding back, the confidence to go ahead and submit an application for network membership. "It is also a significant landmark for everyone at Mortgage Next who has worked so hard to prepare the company for Mortgage Day. We can now look forward to the future with confidence." Mortgage Next recently announced ...

  • Mortgages for Business launches website

    21 Jul 2004

    The site contains new features designed around the specific needs of property investors of all classes. The site offers: ? A buy-to-let product quotation system ? Mortgage calculators ? A specific residential and commercial property insurance micro site ? A monthly property investment newsletter ? Detailed exclusive product information on all buy-to-let,commercial investment, and owner occupier mortgages ? A specific development finance micro site ? A ...

  • Mortgages PLC appoints product administration assistant

    21 Jul 2004

    His remit is to work closely with mortgage sourcing systems to ensure the accuracy of MPLC's product data and KFIs. McGuire, aged 23, has recently returned from Milan in Italy where he worked as a consultant in Abbey's marketing department for 20 months. Prior to this, McGuire studied marketing and languages at Strathclyde University. McGuire is based in MPLC's Glasgow Operations Centre. Julian Wells, head of marketing at MPLC, says: " I'm delighted that Derek ...

  • Mutual One continues growth with Skipton's support

    20 Jul 2004

    The move will allow Mutual One to expand the existing range of services it offers the UK's building society sector, which currently includes compliance, internal audit, insurance and legal services. Mutual One chairman and Market Harborough chief executive Philip Dearing says: "Mutual One was set up six years ago as a joint venture between eight building societies. Since then it has grown quickly, by delivering value to small and medium building societies. However, to achieve ...

  • NAEA welcomes plan to tighten up estate agency

    23 Jul 2004

    Commenting on the government's response to the Office of Fair Trading report into estate agency, Richard Hair, president of the NAEA, says: "The NAEA welcomes the government's response to the OFT report into estate agency and its proposals to tighten up our industry. "The plans for compulsory membership of an independent redress system vital to protect the public throughout the home buying and selling process are particularly welcomed. "The NAEA's disciplinary ...

  • Nationwide launches one-year fixed rate bond

    20 Jul 2004

    The bond adds to Nationwide's existing fixed rate bond range, which includes a two-year fixed rate bond paying 5.40% gross p.a./AER or monthly interest of 5.25% gross p.a./5.38% AER. Also a three-year fixed rate bond paying 5.50% gross p.a./AER or monthly interest of 5.35% gross p.a./5.48% AER. All three bonds are available to new and existing customers and can be opened at any branch with a minimum investment of just £1. Stuart Bernau, Nationwide's executive ...

  • Network Data launches non-conforming exclusive with Platform

    19 Jul 2004

    The discount for years one and two is 1.6%, with a 0.45% discount in year three. Network Data will pay intermediaries an enhanced procuration fee of 1% for all applications received that subsequently complete. George Fleming, Network Data's lender relationship manager, says: "It is essential that product development keeps pace with the demands of the residential mortgage market. We are pleased to be able to announce the launch of this product with Platform and we will ...

  • Network Data offers household insurance product on mortgageLink

    21 Jul 2004

    Network Data has worked with Leaseguard for two years, offering quotations over the phone via its specialist insurance department. The product has now been built as an integral part of the software. The product is specifically designed for use by landlords and offers: ? Buildings cover, with accidental damage included. ? Landlords contents cover, with accidental damage included. ? A rent guarantee plus legal expenses option. ? Cover is available at standard terms ...

  • Networks set out to tempt ARs

    19 Jul 2004

    July marks the start of the mortgage industry's 2004 beauty pageant. I'm not referring to events in Blackpool, Bournemouth or Brighton (or Mortgage Business Expo for that matter) but the growing line-up of networks proudly displaying their FSA minded to authorise letters. If you are in the large audience of prospective ARs, spotting this particular rosette is likely to be a big factor in influencing your eventual choice of network. Those networks in receipt of their ...

  • Northern Rock launches protected equity release mortgage

    20 Jul 2004

    Northern Rock says many customers at retirement age are reluctant to consider a lifetime mortgage as a viable solution to their financial problems because of their desire to provide a legacy for their family. The Rock's new deal offers homeowners aged 60 and over the option to release a lump sum with the added protection of ring-fencing between 10% and 50% of the sale value of their property so providing a potential legacy for their family. Fixed interest rates are ...

  • Northern Rock warns housing market set to slow

    22 Jul 2004

    Adam Applegarth, chief executive at Northern Rock, says: "The house purchase market should continue to slow but remortgage activity will remain buoyant. We expect, with that background, to continue to achieve the volumes of lending we require to reach our strategic growth targets." Northern Rock's shares fell to a year's low on Tuesday of 676p, then ending the day flat at 693p. The shares were given to former members of the Northern Rock at 452p six years ago. Mr ...

  • Northern Rock wins best overall lender accolade at L&G awards

    19 Jul 2004

    The awards were hosted by Dead Ringers impressionist Jon Culshaw at the Dorchester Hotel in London. They were voted for by mortgage brokers who are members of the Legal & General Mortgage Club. Club lenders were rated against a series of criteria including products, service, sales and marketing as well as their ebusiness capability. Northern Rock topped the table with Halifax in second place and Accord Mortgages third. The Legal & General Mortgage Club Awards recognise ...

  • Of moving goalposts and penalties...

    19 Jul 2004

    As if life isn't difficult enough with Mortgage Day around the corner and the scramble to be compliant while deciding whether to be directly authorised or an appointed representative, I hear more and more stories of lenders playing hardball with brokers. We are all aware of the checklists used by lenders to acquire sufficient information to make a decision on how to process a mortgage application but I'm sure most readers will have spotted goalposts on the move. You ...

  • Offsets still remain fools gold

    20 Jul 2004

    The vast majority of borrowers are better off with a traditional market-leading mortgage and separate savings account. With only 7% of UK savers having over £25,000 in savings, effective offsetting is still the privilege of the wealthy. The MarketPlace at Bradford & Bingley, the UK's largest mortgage broker, is again warning about the dangers of taking an offset mortgage. Although offset pricing has improved over the last 12 months, offsets, ...

  • Ombudsman scheme won't protect homebuyers, say Lib Dems

    23 Jul 2004

    Bruce says: "This is a classic case of the government wanting to be seen to be doing something, but missing the real issue by a mile. To suggest competition will suffer by the introduction of professional qualifications and standards for estate agents defies belief and the consumer interest. "Ask anyone buying a new home whether they would like their agent to have some basic training and the answer is obvious. "The DTI is allowing the rogues to undermine the reputable ...

  • One in seven retirees suffer mortgage crisis

    20 Jul 2004

    While some sections of the UK's over 65s are enjoying life as never before, one in seven (14%) are weighed down by mortgages that have run into their retirement and are enduring the growing pressure of meeting mortgage repayments from limited retirement income. This is exacerbated each time mortgage interest rates rise. Key Retirement Solutions, the leading specialist IFA for the equity release and retirement planning market, reports that 250,000 over 65s households have ...

  • One-stop service for Spanish deals

    19 Jul 2004

    The latest entrant to this complex market, em Spain Limited has been created in response to an increasing number of enquiries from brokers about overseas mortgages. There is a lending panel of seven Spanish banks, with a single application in principle/decision in principle facility and an inbuilt affordability check which is also available online. If the client goes ahead at this point EMSL will take over the packaging of the case through to offer via its processing ...

  • Pay more to get best leads

    19 Jul 2004

    The lead generation firm already has three plans whereby brokers can buy leads from its consumer website moneysupermarket.com. The first one is its main plan where brokers buy leads on a first come first served basis in one of 440 areas in the UK. The second covers leads qualified by telephone and the third is for leads generated for specific companies such as the Zurich Advice Network and St James Place, leads qualified by telephone plus the main plan. The priority plan aims ...

  • PMN appoints head of compliance

    19 Jul 2004

    Sangha's remit includes overseeing the company's sales processes to ensure that PMN, and sister companies IMB and Status Solutions, sell mortgages and related products according to new criteria set by the FSA. Dale Knight, PMN managing director, says: "We are delighted to have recruited somebody of Preetpal's calibre. He is an accomplished compliance professional who has built an excellent reputation for himself in one of the most difficult environments in the financial ...

  • PMN to create 45 jobs

    20 Jul 2004

    Leicester-based PMN is kick-starting its recruitment campaign immediately as it formally starts to deliver its strategy for growth which will enable it to originate £1.5bn of mortgage sales by the end of 2005. Opportunities available within PMN include: ?Compliance auditors: PMN is creating an inhouse team of regulatory experts whose job it is to ensure the company, and its business partners, comply with stringent rules issued by the Financial Services Authoritythat ...

  • Promise Finance receives minded to approve letter

    19 Jul 2004

    The compliance team has been working for six months implementing changes in the company's infrastructure, completing application forms detailing compliance, processes and systems of control to evidence ability to comply with FSA regulation. Trevor Davies, compliance manager of Promise Finance, says: "Receiving our minded to approve letter from the FSA is a great achievement and not only demonstrates that we are a serious player in this market but proves we are."

  • Promoting debate on data standards

    21 Jul 2004

    Mortgage Industry Date Exchange Standards is an XML-based standard for describing and exchanging mortgage-related data between lenders, distributors and software companies. MIDES was founded by Brian Hall, partner at The Hall Partnership and Dominic Messenger, technical consultant at Technology Matters. Other firms interested in promoting open standards, including lenders and sourcing systems, are invited to become members. Currently the standards published on the website, ...

  • Property prospects in the 10 new EU member states

    19 Jul 2004

    1. Cyprus - Beaches, mountains and cosmopolitan towns on the permanently sunny island with typical Mediterranean villas rising in price all the time 2. Malta - Another traditional sunshine island where the Brits have been buying property for more than a decade 3. Hungary - The most western of the Eastern countries, a mix of old and new developments span the Danube competing with culture and nightlife 4. Czech Republic - Prague is ...

  • Providing an end-to-end service for brokers

    19 Jul 2004

    Roger Morris, managing director, em-financial As a specialist packager we have often been asked about mortgages overseas, and like many we have always either referred these on or ignored them. But in the past year we have had an increasing number of brokers ask us about arranging mortgages overseas, especially in Spain. In response to this we have looked at the market and have developed what we believe to be a unique facility that we shall be launching in the next few weeks. Whilst ...

  • Purely to launch by the autumn

    19 Jul 2004

    But national broker franchise mortgageforce has dismissed Purely's claim that it is the first broker to be authorised. mortgageforce managing director Rob Clifford says: "This is absolute nonsense as ours was through some time ago. Furthermore, our 120 outlets across the UK are being seperately authorised and even local brokerages have largely received their MTA letters - over two-thirds of them in fact." Chilton says Purely is on course to launch in the autumn and ...

  • Questions Mortgage Brain says brokers should ask sourcing systems

    19 Jul 2004

    The sourcing software supplier developed these questions, listed below, from feedback received from its compliance workshops and training programme and says it has been working hard to ensure it can now answer all these questions with a tick. But competitors say the questions have been tailored to suit Mortgage Brain and there are other issues that brokers should be raising with sourcing systems. Mortgage Brain says the importance of the questions, which refer to the ...

  • RAMP says packagers will not be left out in the cold

    19 Jul 2004

    RAMP managing director John Rice has moved to quash the rumours and says packagers and lenders must separate regulatory fact from fiction. Rice's argument hinges on three points, the first being that it is the FSA that is responsible for regulation, not lenders, who have a different role. Rice says: "Lenders are responsible for ensuring that the mortgage industry is well-managed and perceived as a compliant and transparent marketplace." His second point is ...

  • RICS joins ARLA in tenancy deposit scheme

    22 Jul 2004

    The tenancy deposit scheme went live on May 1. Aside from drawing immediate support from ARLA members, it propelled the government into including deposit protection in the Housing Bill currently before parliament. Lawrence Greenberg, director of the scheme, says that with such strong support, it is likely that scheme will serve as an alternative to a compulsory custodial scheme particularly now that discussions about joining the scheme are underway with the National Association ...

  • Rooftop Mortgages selects SDS MAPS

    20 Jul 2004

    Jonathon Naylor, head of Rooftop, says: "We were excited when we learned a powerful solution was on the market that could meet our needs. "SDS MAPS offers all the high-end features we were seeking at price we could justify. As we grow, SDS MAPS can also be expanded to what ever level we need." Ihab El-Saie, managing director at SDS, says: "We are delighted to be working with an innovator like Rooftop Mortgages and look forward to partnering with them on the next phase ...

  • Savills Private Finance advises caution on offset mortgages

    21 Jul 2004

    Associate at SPF Tom Bland, says: "Although it is correct that offset mortgages can help in paying off your mortgage early, I would hate for the general public to be of the opinion that these are the only mortgages where this is possible. Homeowners need to ensure that the mortgage they take is most suitable to their circumstances. 'Many taking out an offset mortgage mistakenly do so believing it is the best means for paying off their mortgage early." However, ...

  • SHIP reports half-year results

    23 Jul 2004

    The results reflect a continued strong performance by the sector in a year of regulatory change that is requiring enormous preparatory effort by product providers. As expected, the value of new business written to June 30, 2004 was slightly lower than for the same period in 2003. Business written was slightly higher in quarter two from quarter one, Q1 2004: £243m, Q2 2004: £260m. Jon King, chairman of SHIP, says: "The value of business written by SHIP ...

  • SmartNewHomes grows market share

    20 Jul 2004

    The website (www.smartnewhomes.com), now displays details of approximately 90,000 new properties from over 1,700 developments each year, making it the clear market leader for UK new homes. As well as providing a search facility for new properties, SmartNewHomes offers a dedicated team to answer queries,provide guidance throughout the sales process and even arrange viewings. SmartNewHomes.com receives around 400,000 visits per month which, together with the huge number ...

  • SPML appoints BDM for home counties

    22 Jul 2004

    Before joining SPML Neil was director of a mortgage master brokerage for the last seven years. Prior to that, he worked for Sun Alliance's intermediary mortgage and insurance operation and he has a total of 20 years experience in the financial services sector. John Prust, SPML's sales and marketing director, says: "We are very pleased to welcome Neil to our fast-expanding sales team. His experience and expertise in intermediary mortgage business will help to ensure added-value ...

  • STL Group appoints former estate agent chief

    20 Jul 2004

    Dunsmore-Hardy will direct STL Group's development of the Home Information Pack (HIP) initiative, which is set to dramatically change the home-buying process in 2007. Following a successful estate agency career spanning 30 years, Hugh was the chief executive of the National Association of Estate Agents for almost nine years. As a frequent media spokesperson covering property and estate agency issues, Hugh has established a high profile and extremely well respected reputation ...

  • Sunny prospects

    19 Jul 2004

    A rising number of British people live or own property abroad, spurred by European bargains and funded by the healthy equity in their domestic properties. Most brokers get approached from time to time by clients wanting to buy their dream home overseas. But how involved should you get? Some of you will have tried to help and been shocked by the relative lack of sophistication of European mortgage markets, the problems presented by language and legal differences, and the sheer ...

  • The Derbyshire relaunches corporate brand

    20 Jul 2004

    Record breaking sporting heroine Ellen MacArthur is the face of the brand, which revolves around the values of treating customers and staff fairly. The Derbyshire's brand is all about the society being a fair place for customers and a fair place to work. The key issues surrounding the idea of fairness are that while it is about doing the right thing to ensure that customers are treated fairly and get the best deal. The Derbyshire is introducing two initiatives. ...

  • The Exchange to transform Exweb portal

    22 Jul 2004

    For the first time intermediaries will have access to a client database within a portal service that enables them to store all relevant details for each client so that they have a clear view of advice given and future requirements. This database enables intermediaries to enter data once that can then be automatically transferred into all quotation and new business submissions undertaken for the relevant client. This will particularly enhance the speed and ease of online new ...

  • The FSA will expect responsible lending

    19 Jul 2004

    Part of the speech dealt with the FSA's view on responsible lending and some of his points deserve further consideration. Tiner touched on areas including income multiples, affordability, plausibility checks and repayment of capital. The speech set out the FSA's expectations of lenders and intermediaries. Encouragingly he talked about the balance of responsibilities between lender and borrower. This is refreshing, as this balance is often one-sided in favour of ...

  • The introduction of a cooling-off period in Spain is long overdue

    19 Jul 2004

    Simon Conn, senior partner, Conti Financial Services The introduction of a cooling-off period for buyers of Spanish property is long overdue. Regulation of the overseas property market lags some years behind that in the UK and it looks as if that state of affairs will continue with few plans being announced by the European Commission to take the process forward with any degree of urgency. The onus therefore falls on those active in the market to police themselves effectively and ...

  • The Mortgage Mole

    19 Jul 2004

    Burger king Maccy D fans may have recognised John Gummer's name last week when he was revealed as AMI's new chairman. Gummer hit the headlines back in 1990 when as Tory agriculture minister he was snapped forcing his daughter to tuck into a burger at the height of the CJD scare. Indeed, the BBC describes Gummer as "probably the most derided politician to emerge out of the BSE scandal". Let's hope for his daughter's sake he doesn't try anything similar with self-cert!

  • The options for unqualified brokers

    19 Jul 2004

    I am getting an increasing number of enquiries from brokers without CeMAP or MAQ looking to continue to trade after October 31 2004. These are mainly grumbles about the lack of information and training available, particularly from the FSA as its communications seem to focus on the advised sales process - which you will need to be suitably qualified to provide. Therefore this week I will look at the options open to unqualified brokers. As with the provision of Mortgage Code Levels ...

  • The true cost of school summer holiday fun

    20 Jul 2004

    These parents will collectively spend around £1.78bn every school summer holiday looking after and entertaining their children (excluding the added cost of a family holiday). Parents who haven't yet experienced the cost of looking after and entertaining their children during the school summer holiday could be in for a shock, whilst seasoned mums and dads may wince at the following painful reminder. Research from Abbey reveals that working parents across Britain ...

  • Time to address the staffing question

    19 Jul 2004

    The mortgage market is gearing up with more qualified staff in the approach to regulation and since the creation of the CeMAP and MAQ qualifications, firms have been setting minimum requirements for new staff. But the variance in interpretation of which staff need what qualifications, training and monitoring is surprisingly wide, usually being based on whether or not they offer advisory assistance. Back-office administration staff, including mortgage processors and packagers, ...

  • Time to flatten the pyramids

    19 Jul 2004

    Firstly, I must declare that I read Funky Business before being invited to share my views on this extract. It's a great read and some of the insights I gained helped shape my vision for Ethical Mortgage Solutions. Given that I am familiar with the authors' work, I know they would agree that having no overall leader in an organisation would lead to anarchy. But the key point they make is valid - that we must create organisations that encourage creativity and that can demonstrate ...

  • Time to focus on GI authorisation

    19 Jul 2004

    Some mortgage intermediaries are feeling miffed that the deadline of October 31 for regulation under the FSA for mortgage business comes up rather sooner than the January 2005 deadline for protection advisers selling general insurance. Given that many mortgage advisers also advise on and sell general insurance products, it might seem that they have got the rough end of the stick in that they have two lots of registering to do. Surely it would have been fairer for them to share ...

  • Tories hit out at AR regime

    19 Jul 2004

    The criticism was one of a range of comments from Conservative shadow chancellor Oliver Letwin who has proposed a way of cutting the FSA's costs and regulatory powers. The party has commissioned the Centre for Policy Studies to investigate whether the FSA offers value for money and if it has over-extended itself. The appointed persons regime is one area Letwin highlights as an example of the FSA pushing things too far. He says: "With statutory legislation it is not ...

  • UK lenders may not be so competitive abroad

    19 Jul 2004

    Jonathan Cornell, technical director, Hamptons International Mortgages Factors that have boosted the number of UK residents buying overseas include the huge growth in low-cost airline destinations, increasing levels of equity in UK properties and increasing optimism in the overseas property market. While a good number of the overseas buyers are cash purchasers, there is a huge market for mortgages overseas. But it is not as simple as mortgage broking in the UK and while overseas lenders ...

  • View from the floor

    19 Jul 2004

    Planning for the future needs of your customers is as necessary as providing for them in the present. That is why Skipton recently commissioned its Financing Your Future report, looking at how the financial pressures put on us today will shape the way families get by in the coming decades. The days of the traditional financial life cycle whereby you left home, married, bought a house and had kids in your 20s, had an empty nest by your 40s and saved for retirement in your 60s, ...

  • Wall Street is hot for mortgages - for now

    19 Jul 2004

    Merrill entered the US production arena because it finally dawned on the firm that it had a huge stable of high wealth customers that also could be sold mortgages. Merrill rarely talks about its mortgage operation, the Jacksonville, Florida-based Merrill Lynch Credit Corp. And like many investment bank-owned residential lenders in the US, it prefers to keep a low profile. Merrill does not answer loan origination and servicing surveys sent to it by industry trade publications and ...

  • We must show our members that we are aware of their concerns

    19 Jul 2004

    During the second half of this year and throughout most of 2005, customers who are paying a low interest rate on mortgages they took out two years ago will find their mortgage payments increasing significantly. During late 2002 and throughout 2003 a significant number of two-year fixed rate mortgage deals were available at an interest rate well below 4%, with some as low as 3.29%. At the time these products were available, we were in a period when mortgage regulation was in the ...

  • Whitechurch fends off critics

    19 Jul 2004

    WIS sold precipice bonds - a high risk stock market-linked plan that could potentially deliver high returns. But poor performance across the board meant investors lost out. But rather than write to policy holders asking if they want their sales reviewed, WIS went into voluntary liquidation. This means that if any bond holders feel they have been mis-sold, their only recourse will be through the Financial Services Compensation Scheme. WIS says it has only had 16 complaints from ...

  • Will FSA regulation result in more expensive mortgages as many In the industry think?

    19 Jul 2004

    Tony Jones is managing director of Pink Home Loans The first Pink 1000 survey asked intermediaries the question 'Do you think mortgages will become more expensive because the cost of regulation will be passed on to borrowers?' I agree with the 60% majority that think there will be a small increase in the cost of mortgages due to regulation. A cost benefit analysis as part of Consultation Paper 186 issued in May 2003 indicated there would be a £26 increase on the cost ...

Poll

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

Current Issue

Lending Zone
petitions
debate
Define Advice
Advanced search