Mortgage Strategy
2 August 2004

  • 'Free valuation' does exactly what it doesn't say on the tin

    2 Aug 2004

    I am concerned to see lenders continuing to promote 'free valuation' incentives that end up with the client paying a fee to get a proper job done. Halifax promotes a free valuation with its maximum 75% LTV remortgage product. It instructs a valuer who does a drive-by and down values the property by 5% of its estimated value. The lender recommends two options - get some comparable evidence or pay for an internal inspection at a cost of £355 (Sorry? The client is expecting ...

  • 20-somethings in the city get mortgage share option

    2 Aug 2004

    The mortgage, Share to Buy, enables up to four 20-somethings to club together to buy a property at a multiple of 3 x each of their salaries in London. With dramatic rises in property prices over the past few years, the scheme gives city dwellers a helping hand in purchasing their first property. The deal means each individual earns equity rather than pouring money down the rental drain. Tim Franklin, managing director of Britannia, says: "With many graduates and young ...

  • A View From The floor

    2 Aug 2004

    Children say the funniest things, as the saying goes, and this is backed up by Britannia's poll of 4,000 kids aged three to 16. It reveals that talking about finance is enough to baffle even the brightest sparks. We conducted the survey to find out how and at what age children develop an understanding of basic financial issues - and whether the government and industry should do more to help. Our poll finds that one in 10 children still don't know what a mortgage ...

  • Abbey increases savings rates and tracker mortgages

    6 Aug 2004

    Following yesterday's increase in the Bank of England's base rate from 4.50% to 4.75%, Abbey will make changes to its interest rates. Abbey is increasing interest rates across all onsale and offsale savings accounts by a minimum of 0.25%.  Some rates will go up by as much as 0.50%.

  • Abbey launches level paying field with flat-rate credit card

    3 Aug 2004

    Abbey is also promising fewer charges than conventional credit cards, with no annual fee, no cash advance fee for using cash machines, and fee-free cheques, so it's more affordable for people to use their flat-rate credit card however and wherever they like. The card also gives you more time to organise your cash, with an unbeatable 59 days' interest free period on the items you buy with the card. The new flat-rate card is in line with Abbey's commitment to ...

  • Advantage appoints BDM for North-East

    3 Aug 2004

    Peter Bass, head of sales and marketing, says: "Our business development team continues to grow from strength to strength. Derrick already has an excellent reputation in his field and I'm sure he will prove an invaluable member of our team. We pride ourselves on the quality of our business development managers and are already busy recruiting for further expansion to ensure that we continue to give quality support to the many networks on whose panels we are proud to sit. Derrick relishes ...

  • Amber appoints development manager for the South

    5 Aug 2004

    This will enable the company to give regional support to mortgage packagers and panels in the south-east of England. Miller joins Amber with over 20 years' experience in sales. He has worked for some years in Canada and since returning to the UK he has been employed as a mortgage adviser and a business development manager for Lambeth. Miller says: "I am very excited to be increasing the Amber sales team at this time of rapid expanding development. With our excellent ...

  • AToM appoints non-executive director

    5 Aug 2004

    Hearn has held senior management and board positions for the last 15 years across blue chip organisations such as BT, American Express and Britannic Money, where he increased flexible mortgage sales from £300m to £1.3bn. For the last 18 months, Hearn has been consulting in the financial services arena and has been instrumental in assisting AToM and the board in their readiness for direct authorisation and other strategic developments due to be launched later in the ...

  • AToM offers no hassle, high reward alternative to joining a network

    2 Aug 2004

    AToM will pay 65% of the lender's recommended procuration fee to introducers for effecting an introduction which subsequently completes. This opens up another dimension for those considering the potentially substantial impact of costs, compliance skill, and control to their business, which would apply if they become an AR with a single principal. Vic Jannels, group managing director of AToM, says: "There are many organisations for which mortgages may not be the core ...

  • B&W on course to achieve offset target

    2 Aug 2004

    The lender only entered the offset market in January with the launch of a range of capped, tracker, self-cert and buy-to-let options. B&W head of marketing Dominic Toller says: "Our aim is not to have the cheapest offset but to encourage brokers to sell ours for its features. No other lender offers offset on prime, buy-to-let and self-cert and we're confident we're on track to do 25% of our total lending as offset." B&W has carried out a comparison ...

  • B2L is safe in this overcrowded land

    2 Aug 2004

    With the stock market in the doldrums, buy-to-let was seen as the best place to put your money and a good way to save for old age. But now the big question we ask in our cover story starting on page 36 is whether the private rental market is still a great investment or a ticking timebomb waiting to explode. Buy-to-let has really taken off, growing to £19.3bn in 2003 from £3.1bn in 1999 and analyst Datamonitor predicts it will hit almost £32bn by 2008. But ...

  • BDS Mortgage Group adds Mortgage Trust to lender panel

    5 Aug 2004

    Mortgage Trust follows in the wake of the BDS direct panel announcement and takes the total number of direct lenders available to 20. It is currently in discussions with many other lenders and will release information about additional relationships in due course. The agreed procuration fee for direct Mortgage Trust cases is 0.50% and these should be submitted with a BDS sticker and submission sheet. Mortgage Trust is also available via BDS packaged lender panel alongside around ...

  • BM Solutions launches biggest ever generic buy-to-let range

    3 Aug 2004

    BM Solutions has also changed its pay rate calculation for a limited number of lifetime products. These products use the product pay rate of BBR + 1.35% for the basis of the rental cover, rather than BBR + 1.95%. In addition to this, remortgage customers have the added benefit of the same rate and a free remortgage service with a refund of the standard valuation fee. The buy-to-let range also includes, 5.95% fixed rate product until November 1, 2009, BBR + 1.95% for ...

  • Broker concern over accountability of surveyors

    2 Aug 2004

    In a letter to Mortgage Strategy, one broker, who asks not to be named in case it endangers his business, questions the system lenders use for selecting surveyors and argues that surveyors should be independent of applicants and lenders. He says: "Some lenders appoint surveyors almost exclusively from one firm or another, obviously due to a financial consideration." The broker accuses BM Solutions and a surveyor it uses of down-valuing properties for remortgage clients. He adds: ...

  • Brokers think lenders will face higher arrears soon

    2 Aug 2004

    Just four in 10 brokers responding to the monthly survey believed there would be no increase while one in 10 were unsure. The findings were backed up by the Council of Mortgage Lenders last week. While the number of mortgages in arrears and the number of properties taken into possession remained flat in the first half of 2004, Michael Coogan, CML director-general, warns borrowers could find future interest rate hikes hard to absorb. Dev Malle, associate director ...

  • Brokers urged to apply for FSA posts

    2 Aug 2004

    On November 30 vacancies will arise as current non-executive directors complete their terms of office. The Treasury hopes to fill the posts with people who have integrity, standing and authority, with broad experience inside and outside the financial services industry. Chris Cummings, managing director of AMI, says: "The biggest attraction for any intermediary must be the knowledge that there is no better place to be to have a direct impact on the market. "The FSA board ...

  • Charcol offers two-year fix at 4.99%

    4 Aug 2004

    An additional remortgage-only version is fixed at 5.09% (6.5% APR), with free valuation and legal costs. Charcol has reduced the rate on its two-year fix to 4.99% (6.5% APR). This rate is available for both purchases and remortgages but a remortgage-only option is available at 5.09% (6.5% APR) with a free aluation and free legal costs. Early repayment charges apply on both deals only during the two-year fixed rate period and both offer the ability to overpay by ...

  • Charles Kennedy urges banks to assist those in financial need

    3 Aug 2004

    Charles Kennedy says: "People who find themselves in debt need to be able to access independent financial advice as soon as they are in difficulty. It is essential that good independent financial advice is available easily and locally. "Being able to access financial advice before things spiral out of controlcan help people avoid the many traps that may lead to further debt. "Today I am asking banks and other lenders to contribute as little as 0.01% of their profits to ...

  • CML makes adjustment to arrears and possessions data

    2 Aug 2004

    The earlier figures, based on a sample rounded up to represent the whole industry, overstated the total number of mortgages of 11.8 million, instead of 11.5 million. Wednesday's figures therefore similarly overstated the number of mortgage possessions and the number of loans in arrears. The revised data shows the same general trends reported on Wednesday, but is based on a lower number of mortgages overall, and shows a correspondingly lower number of possessions ...

  • Coventry announces half-year results

    4 Aug 2004

    Chief executive Martin Ritchley says: "The first half of 2004 represents another successful period for Coventry. Whilst there is anecdotal evidence of a slowdown in the housing market, our gross lending totalled over £1.1bn, only slightly down on the record achieved in the comparable period last year. On the other side of our business, savings receipts totalled £112m, up £83m on the first half of 2003. "These results have enabled us to achieve annual growth ...

  • Curriculum Vitae - Martin Ritchley

    2 Aug 2004

    Name: Martin Ritchley Age: 57 Company: Coventry Building Society Job title: Chief executive and director Where do you live? Coventry Describe your Current Job: In conjunction with the board, I am influential in determining the society's strategic direction. I am responsible for the achievement of key objectives. Managing and motivating people is therefore an important part of my role. An ...

  • Datamonitor predicts 82% growth in secured lending

    5 Aug 2004

    The UK secured loan market was worth £19.8bn in 2002, and has grown to £28.1bn. Research shows that 980,000 secured loans were taken out in 2003, compared to 380,000 in 2000. The average value per loan has also increased from £16,900 to £28,100 over this same period. Karina Purang, financial analyst at Datamonitor, says: "Consumers struggle to meet the repayments on their unsecured debts such as credit card balances and unsecured personal loans has contributed ...

  • Dear Delia

    2 Aug 2004

    Sheffield's student population means there is strong rental demand. Hilary thinks she needs an equity deposit of about £20,000. She can comfortably afford her residential mortgage payments and has saved £6,000. But she is worried the buy-to-let market is slowing down - are her concerns justified? Delia says: Hilary has done her research but may have trouble finding an affordable property that will pay for itself. To help her we have PMI's John Stewart and Nicola ...

  • Elephant Loans launches Right to Buy product

    5 Aug 2004

    Lending up to 80% of the property's open market value, the Right to Buy requires no income or rent references and allows buyers up to £2000 in CCJs. Mike Parker, business development manager at Elephant Loans, says: "This is a no frills product designed to help the professional mortgage advisor in assisting clients who require a high LTV and a fast offer for their Right to Buy. We're already experiencing a tremendous response to this product which has been well received ...

  • eMoneyfacts launches free life quotations and e-submission service

    2 Aug 2004

    The service offers quotations and e-submission capability across a wide range of insurance products, including life, critical illness, family income benefit and mortgage protection. PQS is available free to all Moneyfacts subscribers and has been made possible by eMoneyfacts teaming up with Webline? developer of the UK's first online quotation system. PQS is powered by Webline's own quotation and e-submission system. To gain access to PQS, intermediaries need ...

  • End to satellite packaging

    2 Aug 2004

    Post-regulation packagers will have to ensure that the audit trail is transparent and that all packaging fees are disclosed in the KFI. The thinking is that faced with the true cost of packaging, brokers and consumers will find the price unacceptable. David Copland, sales and marketing director at Pink Home Loans, says: "There are a lot of issues with satellite packaging - like why is it there in the first place? The reason is there's so much money from sub-prime commissions. "Lenders

  • Everything changes

    4 Aug 2004

    The mortgage industry is about to embark on a period of massive change, the biggest since the post-housing crash days of the 1980s. Of course this was when the banks and building societies surrendered their virtual monopoly of the home loan market and left the way open for new types of lenders like Kensington. Over the next few years we will see a huge shift in the way the industry does business, but more importantly, there will be a reduction in the number of companies ...

  • Exclusive: mortgageLink joins Mortgage Trading Exchange

    3 Aug 2004

    Network Data received its Minded To Authorise letter from the FSA last Friday and both companies have planned the integration in detail, which will take place in October in time for FSA regulation. It's thought that 3,500 mortgageLink users will be able to benefit from trading electronically with the UK's leading lenders. The Mortgage Trading Exchange has already seen transaction volumes exceed £5 billion since its launch last August and following a host of new lenders ...

  • Fall in average asking prices

    5 Aug 2004

    Housing market is now finally responding to higher borrowing costs as sellers recognise that price rises are becoming unsustainable This interim report is compiled from asking prices of actual properties put on sale through estate agents who advertise on the Rightmove property website from July 10-31, 2004, a sample of approximately half the market Interim data on asking prices of properties coming onto the market released prior to the MPC meeting yesterday provides ...

  • Finance pages review online

    2 Aug 2004

    From today the Mortgage Strategy website, which had almost four million page impressions last month, will be featuring twice-weekly reviews of the personal finance pages from the national press - penned by the industry's finest. These reviews are already a highlight of headlinemoney.co.uk, but now What Made the Headlines will be available through Mortgage Strategy Online. Every Monday and Wednesday a personal finance journalist - selected from a pool of highly respected ...

  • First National and Advantage celebrate anniversary of co-branded partnership

    5 Aug 2004

    The co-branded relationship between First National and Advantage has been extremely successful for both companies, developing and strengthening the long-standing affiliation, increasing revenue and further enhancing service quality. As part of its ongoing commitment to the relationship with Advantage, First National has deployed an underwriter to work onsite at Advantage head office, to provide local support and enhance the underwriting process. Having a First National employee ...

  • FSA fines Berkeley Morgan employee for market abuse on OFEX

    3 Aug 2004

    Davies, who was in a position of trust at OFEX company Berkeley Morgan Group, purchased 4,000 BMG ordinary shares while in possession of information concerning BMG's interim results. Andrew Procter, director of enforcement at the FSA, says: "This is the first time that we have fined someone for market abuse on OFEX, reminding investors that the FSA can and will take action against market abuse on any of the UK's prescribed markets. "The FSA has fined three individuals ...

  • FSA rubbishes claims it is losing its grip on regulation

    2 Aug 2004

    Industry sources contacted Mortgage Strategy claiming that the FSA was looking to scrap the final stage of authorisation whereby a committee convenes to decide whether or not a firm goes through. When combined with another story - that the FSA had been expecting 12 networks to apply for authorisation but has received 66 applications - the picture is one of the FSA seriously underestimating the scale of the task. Other industry sources last week claimed that the FSA was ...

  • Get to grips with the FSA regulations now

    2 Aug 2004

    A recent survey reveals that only 32% of intermediaries intending to be directly authorised say they are confident that they have a full understanding of FSA rules. "You might say that under the circumstances that's pretty good going," says Dev Malle, associate director of operations at Pink Home Loans. "But the point remains that all intermediaries must ensure they are compliant with regulation. Come Mortgage Day, they will have no choice but to be 100% conversant with what ...

  • GMAC-RFC celebrates record month

    4 Aug 2004

    This increase is spread across all product areas.   GMAC-RFC attributes this result to the recent launch of its online automated decisioning system. July 28 saw a record number of decisions made online.   Jeff Knight, head of marketing services at GMAC-RFC, says: "Like many other lenders, we are enjoying record new business volumes this year, highlighted by this figure. However, in contrast to others, our service is up-to-date and we are aggressively pricing new products ...

  • Green four-year fixed rates for N&P customers

    4 Aug 2004

    N&P's green four-year fixed rate mortgages (5.64% without incentives or 5.79% with incentives) are available now for homebuyers and remortgagors of residential properties. For every green fixed rate mortgage that is taken out, N&P will plant enough trees to offset the carbon dioxide emissions caused by using fossil fuels in the home, for cooking, heating and lighting for five years. Gary Lacey, group product manager for N&P, says: "We hope these fixed rate mortgages ...

  • HBOS confirms it may bid for Abbey

    3 Aug 2004

    HBOS has said that the review may or may not lead to an offer. Abbey National shareholders were hoping that Abbey would become the subject of a bidding war after the bank agreed a takeover deal from Spain's Santander Central Hispano last week, valuing it at £8.1bn, or 54p a share. HBOS's interest in a counter-bid emerged after key Abbey shareholders criticised the deal with Santander, which they said included too little cash and insufficient scope for cost-cutting.

  • Higher rates on saving bonds from Yorkshire

    3 Aug 2004

    The Society's Rollover Bond will now pay 5.35% gross p.a. for all accounts opened in August 2004. The interest rate on the bond is set on the first working day of each month and then fixed for the following year. At the end of the year, savers can allow the bond to rollover into a one year fixed rate Rollover Bond with another competitive rate. The August Treasure Bond, a children's version of the Rollover bond, is also set at 5.35% for a year. Both bonds ...

  • House buyers remain defiant despite rising interest rates

    6 Aug 2004

    The findings show that 4% of Britons expect to move house within the next year, a slight decrease on the 5% of those questioned in the spring who said they intended to move within a year. The findings also show that long-term confidence in the property market is stable, with 7% of Britons claiming they will move within the next two years - the same as in the spring. The movingimproving index found that people in London and the North-West are the most likely to be planning a move ...

  • House of Finance launches network alternative

    5 Aug 2004

    HOF is offering intermediaries the opportunity to become licensees of the firm, similar to a franchise. Licensees will be able to offer consumers mortgage and general insurance products as well as benefiting from additional revenue streams, such as, pensions, investments, whole of life protection, unsecured lending, credit cards and debt management. As well as an initial three-day residential course covering all aspects of compliance, products and software and the provision of ...

  • How marketing within law firms has changed over the years

    4 Aug 2004

    Up until the late 1980s law firms were restricted from marketing themselves in the same way as other businesses, but 20 years ago this all changed when the Law Society relaxed their rules on law firm publicity. Prior to this point firms would have built up a customer base which they would have hoped to retain through their quality service and due to the lack of competition from other firms marketing the benefits of their service there would not of been the same fear of loosing ...

  • If lender service is poor why not use a packager?

    2 Aug 2004

    I have been reading with interest - and some sympathy - brokers' letters to Mortgage Strategy bemoaning the poor service levels currently being provided by some lenders. It must be said that if ever there was a clear reason for brokers to take advantage of the services of packagers then the authors of these letters have hit upon it. Whilst we cannot package for some of the offending lenders we can for the likes of Mortgage Express, with whom we have an excellent relationship ...

  • IFAP looking at brand for mortgage brokers

    2 Aug 2004

    IFAP was set up in 1989 to promote the value and accessibility of independent financial advice to the public and represents over 10,000 IFA firms. Its database includes mortgage IFAs, but it is in discussions with mortgage lenders about funding a new brand promoting non-IFA whole of market mortgage advisers. IFAP is primarily funded by product providers and three mortgage firms, GMAC-RFC, Mortgage Express and the London Mortgage Company IFAP chief executive David Elms ...

  • Industry reacts to base rate rise

    6 Aug 2004

    John Goodfellow, chief executive of Skipton, says: "Unless this rise has a more dramatic effect than the last, I'm sure we will see another increase in the not too distant future. This will represent good news for savers but will place further strains on households that continue to pile on the debt." Michael Coogan, director-general of the Council of Mortgage Lenders, says: "The Monetary Policy Committee members have recently made a point of emphasising that it is not in ...

  • Interest rate rises dampen consumer confidence

    3 Aug 2004

    The latest Woolwich Consumer Confidence Index shows a 3% fall this July. The Woolwich index shows that 62% of homeowners believe their property will continue to increase in value compared to 65% in June and 67% in May. Despite the downward trend, consumer confidence is significantly higher than this time last year, when it was at 55%. Andy Gray, head of mortgages at Barclays and The Woolwich, says: "This continued fall confirms our prediction that confidence would gradually ...

  • Interest rates rise to 4.75%

    5 Aug 2004

    The Bank of England announced today that interest rates are to rise by 0.25% to 4.75%.

  • Internet Insite

    2 Aug 2004

    As I tour the highways and byways of mortgage broker websites - after looking at so many it's a wonder I can still sleep at night although my wine consumption has noticeably increased - I see lots of good things. Unfortunately they are sometimes spread rather thinly and never appear all on one site. It's critical when designing a website to put yourself in the mind of the mortgage prospect. What do they want to know? What language do they respond to? How will they use the site? Have ...

  • Irish Permanent International launches offshore buy-to-let tracker

    6 Aug 2004

    The Isle of Man-based lender's tracker is designed to increase the number of borrowers taking advantage of the tax-saving benefits of offshore mortgages. Such advantages apply to UK residents with dual or overseas nationality and expats, who can potentially reduce or eliminate capital gains tax, inheritance tax and higher rate Income tax on net rental income.   The buy-to-let tracker is at the Bank of England base rate, plus 0.65% for 65% LTVs and 0.75% for 75% LTVs until June ...

  • Knight Funding extends 'no fees' offer

    6 Aug 2004

    Also on offer for the same period are bonus discounts of 0.25% on top of the Platform standard discounts, plus a 1% procuration fee. The offer does not apply to Knight Funding's other PMPA/Platform offer of a three-year stepped discount that extends for the whole redemption fee period. Brokers can access Platform's products and download Knight Funding's application from Trigold. Knight Funding CEO Frances Scanlan says: "This special offer has already proved very popular ...

  • L&G predicts early confusion after regulation will not last

    2 Aug 2004

    Historically when major changes have been introduced to the UK financial services market there have been early teething problems as providers, advisers and consumers adjust to new rules, working practices and, critically, increased documentation. However, over the longer term most evidence is that the benefits make the adjustment to a new regime worth it. Stephen Smith, director of housing marketing, says: "While homeowners will notice more detailed and potentially baffling ...

  • Leeds & Holbeck announces strong half-year results

    4 Aug 2004

    The first half of 2004 has seen a continued buoyant northern housing market, which is at the heart of the Leeds-based building society's operations. This underpinned strong growth in mortgage lending, pushing up completions by 32% to a record £816m. An 11% rise saw the society's assets increase to £5.9bn, consolidating its position as the UK's eighth largest building society. There was an assets rise by 11% during the first half of 2004 to a record £5.9bn, ...

  • Legal services firm celebrates 30 years

    3 Aug 2004

    Over 40 company staff, the chief executive and the original founder of the company gathered near STL's offices while speeches were made from the mayor of Woking and the group's founder, Brian Thorogood. Also celebrating was STL's recently appointed non-executive director Hugh Dunsmore-Hardy, former chief executive of the National Association of Estate Agents. As a frequent media spokesperson covering property and estate agency issues, Dunsmore-Hardy will be ...

  • Legislation and regulation will lead to higher standards, says Zurich

    2 Aug 2004

    While the planned legislation, including the introduction of Home Information Packs, will be a major step forward in improving standards in the property industry, estate agents should play their part in a move toward a market with higher standards by making their voice heard, says Zurich national estate agency development manager Frank Lowe. His comments follow government plans, released last week, to improve estate agency standards. Consumer minister Gerry Sutcliffe announced ...

  • Let the financial product design professionals get on with their job

    2 Aug 2004

    As predicted a couple of weeks ago, Labour's meeting to discuss future policy has hit the headlines in the financial press. Plans to allow pensioners to supplement their incomes by using equity release have caused the predictable furore. However, the detail of the story is rather different. This is a policy proposed by a political party, not the Treasury. The ideas have been put forward and debated by Labour's National Policy Forum. They will be taken to the annual conference ...

  • Lifelink Services recieves notification of MTA letter

    5 Aug 2004

    Lifelink Services is close to achieving its planned recruitment target for mortgage and GI appointed representatives, and expects to stop actively recruiting over the next couple of months. Managing director Mike Gosnell is responsible for compliance and setting up the web-based systems through which the network will operate. Gosnell says: "As a proposed network that applied for authorisation very soon after the opening date, we are delighted that our MTA is being ...

  • Light at the end of the lifetime tunnel

    2 Aug 2004

    The powers of the FSA were extended by the Treasury in December 2001 to include mortgage lending, sales and administration. The economic secretary at the time, Ruth Kelly, stated that the change to regulation would provide a "better deal for consumers across a range of financial services together with a streamlining of regulation which will benefit business". Since then the FSA has published a series of regulatory documents including the Mortgage Conduct of Business which collectively ...

  • Liverpool Victoria sees 133% rise in sales

    6 Aug 2004

    Income protection sales have increased 133% year on year and quarter on quarter sales are up 29%. The surge in sales is a reflection of Liverpool Victoria's continuing commitment to provide quality protection products at competitive prices. Liverpool Victoria believes the key reasons behind the success of its income protection offering are product quality, claims payment, online processing and a fast turnaround. Mike Newton, group sales director, says: "Many ...

  • Lynx Financial Systems becomes AttentiV

    3 Aug 2004

    AttentiV's new look has been created by Cheshire based design consultancy Axon Garside & Co. Chief executive of AttentiV, David Webber, says: "Launching the new AttentiV Systems Group company on the stock exchange gave us the ideal opportunity to re-think the image of Lynx Financial Systems, and to arrive at a new look and name in line with the name of the parent company. It's an exciting phase for us at AttentiV and we look forward to moving forward with an eye-catching, ...

  • Major introducers sign up to use Mortgage Brain protector system

    2 Aug 2004

    Mortgage Brain's protector compliance solution, which was announced in November 2003, supports both principal/appointed representative? and directly authorised? status mortgage introducers. The majority of the UK's largest mortgage introducers and networks are now committed to using Mortgage Brain's protector. Pam Hawkins, senior compliance delivery manager at Pink Home Loans, says: "After an extensive review of the solutions available, we selected Mortgage ...

  • Marketing Brief

    2 Aug 2004

    When my lords and masters at Mortgage Strategy HQ decided they wanted to run a series of reviews of commercial mortgage material, I reckoned without the reluctance of some lenders to provide the stuff for me to review. One such lender is Lancashire Mortgage Corporation - but then it's probably still smarting from my review of its website in September last year. Fortunately I do get to contact some lenders who are an absolute pleasure to deal with. This week I've been looking at a ...

  • Mortgage 2000 adds 28 lenders to MTE

    2 Aug 2004

    The new lenders include Bristol & West, Skipton, Chelsea, Leeds & Holbeck and Cheshire, which have been added to the pre-existing core lenders Halifax and Nationwide. Sean Hornsby, managing director at Mortgage 2000, says: "With 30 lenders now available, Encore is at the forefront of sourcing system connectivity. "Pre-populating application forms within the MTE on Encore is the next step in the improvement of online services for brokers at point-ofsale." And ...

  • Mortgage firm growth leads to recruitment drive

    3 Aug 2004

    The firm, which currently has branches in Wednesbury and Bloxwich, and operates a nation mortgage web site, is looking to recruit around five permanent staff members and up to 50 self-employed mortgage advisers. The positions have arisen as a direct result of the demand for the services of Bill Sunner and his team, with the company expecting at least 50% growth in its trading. Bill Sunner, Mortgagestop managing director, says: " This has been an amazingly busy time for ...

  • Mortgage packagers confident of the future

    3 Aug 2004

    It says packagers intend to continue operating within the mortgage industry after regulation is introduced in October 2004. The study shows that the most popular option for packagers following regulation is to split the business, creating an authorised broker and a pure packager function. Almost four out of 10 packagers (39%) stated that this is their intention. The next popular option it is to remain a pure packager, with three out of 10 (30%) opting for it, whilst ...

  • Mortgage Talk in strategic alliance with Advantage Home Loans

    4 Aug 2004

    In making the decision to refer its sub-prime cases to Advantage Home Loans, Mortgage Talk is able to ensure that all applications are handled with the same degree of service and levels of professionalism as those going to high street lenders. This includes lending arranged for customers and buyers through Mortgage Talk's extensive estate agency and builder contacts. Advantage Homes Loans has the ability to cascade prospective borrowers' situations down a wide ...

  • Mutual assistance for mortgage brokers

    2 Aug 2004

    The Derbyshire is the 11th largest building society in the UK, with £3.9bn of assets, and aspires to be the number one retail financial services provider in its heartland. It has 52 branches, primarily in the Midlands, over 438,000 customers and 650 employees. Its head office is Duffield Hall (pictured above) in Duffield, Derbyshire. The company has a telephone lending unit, Derbyshire Direct, offering a range of mortgages and an intermediary support team. Insurance and financial ...

  • Mutual One releases general insurance manual

    3 Aug 2004

    Mutual One has commissioned Thomas Eggar solicitors to write the manual. Thomas Eggar has been involved in the production of Mutual One's mortgage regulation manual subscribed to by 46 building societies and nine other lenders. Twenty five building societies have expressed an interest in the manual, which will be released in stages. The first issue has now been released. In view of the level of interest shown, the manual will also be made available to other mortgage lenders ...

  • Nationwide unveils range of fixed rate mortgages

    3 Aug 2004

    The two-year fixed rate is available from 5.39%, the three-year fix from 5.69%, and five-year fixed rate from 5.79%. All Nationwide fixed rates allow borrowers the additional flexibility to overpay or underpay during the fixed rate period and are available to all borrowers. Nationwide will withdraw its current range of fixed rate mortgage products from close of business on August 2.

  • Network Data receives MTA letter

    3 Aug 2004

    Richard Griffiths, managing director of Network Data, says: "Our MTA letter follows in-depth checks carried out by the FSA into our three-year business plan submitted to the FSA as part of our application process. "The plan shows that we expect to support over 1,000 appointed representatives. We regard the MTA letter as a vote of confidence in the infrastructure we already have in place to provide a full support service including compliance and a training and competence regime."

  • New business development manager appointed at Heritable

    3 Aug 2004

    Roger's role will be to develop the bank's relationships with key introducers of mortgage business and build relationships with lending panels. He will be based at the bank's head office in Mayfair, London, where his responsibilities will encompass new business development and the management of existing business relationships. Thompson says: "I am delighted to join Heritable, the bank has already made substantial progress in the residential mortgage market ...

  • OFT stops misleading Right to Buy adverts

    5 Aug 2004

    Mike Cooke, from Staffordshire, was publishing advertisements that gave the impression that the government intended to end the Right to Buy scheme and that council tenants who wished to buy their homes needed to act urgently. The advertisements stated 'Buy your council house while you still can' and 'The government may soon take away your right to buy your council house but you still have time if you move quickly'. The Right to Buy scheme helps council tenants ...

  • Online code of conduct training for brokers

    2 Aug 2004

    More than 40 lenders have signed up for the product and the CML hopes more will follow. The programme is designed to educate firms and IFAs about the measures being brought in by the Financial Services Authority. It incorporates a test which once completed means the individual is trained under the new regulations. The CML produced the programme with Absolutely Training. Kate Main, senior policy adviser at the CML, says: "It is electronic so it can be updated every time ...

  • Packager code plan shelved

    2 Aug 2004

    At its latest meeting last Thursday IMLA members decided that developing a code of conduct for packagers was out of the question. A proposal had previously been put forward and IMLA had set up a working party - which included compliance expert James Mayne - to draw up the outline of a code. IMLA members include Platform, Kensington Mortgages, Mortgages PLC and Preferred - all keen supporters of the packaging community. But the code is believed to have been given the boot ...

  • Paymentshield appoints sales director

    4 Aug 2004

    Paymentshield hope to capitalise on Fulluck's wealth of knowledge and experience gained from over 25 years working within the financial services sector. Fullock has held senior management positions at a number of major building societies, and more recently worked for Norwich Union in the sales and strategic partnerships division. Rick Riding, Paymentshield's chairman, says: "We have been lucky enough to have David working with us on a consultancy basis since his departure ...

  • Pink Home Loans adds Holloway Friendly to panel of insurance providers

    3 Aug 2004

    Holloway says the Flex and Protect Plan, available exclusively through Pink Home Loans, is more flexible than traditional accident sickness and unemployment plans and can be tailored to fit client circumstances. It offers income protection up to 60% of earnings, not just mortgage cover, with optional unemployment cover giving greater flexibility to clients. The client can also choose from a wide range of deferment periods so the plan can dovetail with existing cover held by the ...

  • Pink reduces fees in summer sale

    5 Aug 2004

    Pink customers will benefit from reduced upfront costs across a range of competitive products such as the flexible lifetime tracker, funded by Platform. The flexible lifetime tracker, for clients wishing to self-certify their income, has a rate of BBR+ 1.24% for the life of the mortgage and no early repayment charge at any time. Mark Howell, marketing manager at Pink Home Loans, says: "The summer sale has been devised to further enhance our branded lending offering to ...

  • PolicyPlus poised for TEP expansion

    5 Aug 2004

    Investec, Beale Dobie and Policy Portfolio's parent company, announced this week that they will no longer be buying TEPs. This is part of a worldwide review of their core business. Jo Bridger, marketing manager, says: " The TEP market is thriving because TEPs offer outstanding value to investors looking for the combination of strong growth prospects and high guarantees. "PolicyPlus expansion is great news for policyholders who are looking to sell their policies for ...

  • Prices rose 1.35% in June, says Halifax index

    5 Aug 2004

    House prices increased by 1.3% in July, which was similar to the increase in June of 1.2%. June and July's gains were significantly below the average monthly increase of over 2% during the preceding six months. The average UK house price rose above the £160,000 mark for the first time in July 2004 to £161,831. This is more than double the average UK house price of £78,055 five years ago (July 1999). Recent interest rate increases and constraints on first-time ...

  • Problem Insurance offers cover for unoccupied properties

    3 Aug 2004

    Problem Insurance's helpline can help people who find it difficult getting household and motor insurance, however diverse the nature or circumstances of the quote. Jason Hulott, development manager at www.protection-insurance.com, says: "Property inheritance is getting more and more common, yet finding an insurer who will provide cover for a property that is unoccupied for more 30 days? can be difficult and expensive. "This also applies to people having major cosmetic ...

  • PTI enhances packaging service

    6 Aug 2004

    The expanded service will complement the existing personal touch packaging operation, which is operated in association with em-financial. PTI is negotiating deals with a number of packagers. Six have already joined the PTI packaging panel. PTI sales development manager Nazia Cleall says: "PTI believes in giving intermediaries greater choice, not restricting them to small panels of providers. Our approach provides access to a huge marketplace as well as to an expanded ...

  • Rate rises will drive market, says Mortgage Talk

    6 Aug 2004

    Mortgage Talk Operations director Andrew Frankish says: "The Bank of England's Monetary Policy Committee took the decision to raise the base lending rate to 4.75% yesterday, and this will serve further to fuel growth in the remortgage market. "Only a few years ago, remortgaging was very much a minority activity, but increased competition and choice in the marketplace has seen a huge increase in the number of homeowners looking to switch lenders and save money. Statistics ...

  • RBS profits soar, but ethics questioned

    4 Aug 2004

    The challenge came on the same day that RBS announced a 12.5% profit rise to £3.85bn. BP was forced to suspend work on the BTC pipeline after breaching Georgian national law last week. In June this year, RBS was named in an international report as one of four UK banks failing to implement its own environmental and social guidelines on project finance. Friends of the Earth's head of research Dr Dan Barlow says: "While RBS' profits are soaring, it ...

  • Refining the marketing mix

    2 Aug 2004

    Marketing activity should focus on meeting customer needs or solving a problem - the 'them' words as the author calls them. But I believe that the reputation and credibility of the supplier is also important so a mixture of the two things is the best approach. Marketing material should start by highlighting the need and then explain how the supplier can meet it. But it must go on to convince the potential customer that yours is the best firm to meet this need as, in the vast majority ...

  • Regulation places heavy burden on industry, says CML

    4 Aug 2004

    The CML says that regulation will also have a major impact on the industry's needs to process and present data. It says: "Making information available to consumers is at the heart of the new regulatory regime to be overseen by the Financial Services Authority. When the Treasury originally announced its plans for regulation in 2000, it identified reliable information for customers as a cornerstone of the new approach." Mortgage Day coincides with the date by which the industry ...

  • Remortgaging inches up in June, says CML

    3 Aug 2004

    But remortgaging only accounted for 39% of total lending compared with 46% in June last year. Ray Boulger, senior technical manager at Charcol, says: "Although the percentage has fallen, this is due to an upturn in the purchase market rather than a downturn in remortgaging. We expect remortgaging to remain popular now that it is really a culture rather than a fad. The remortgage mindset is now firmly entrenched. "This, coupled with the outlook on interest rates and ...

  • Santander will urge Abbey to cross-sell products

    2 Aug 2004

    Santander states: "On the insurance side, Banco Santander believes it can significantly increase the penetration of general insurance and protection products by more effectively selling to Abbey's mortgage customer base." But this strategy is unlikely to be well received by mortgage brokers who risk losing out if Abbey targets their clients to meet this objective. Abbey spokesman Matt Young says: "We will be trying to improve our cross-sales. The first product the ...

  • Scottish Provident adjusts premium rates

    3 Aug 2004

    The vast majority of rates will go down as a result, with a small handful seeing a slight increase. Variations in the cost of individual policies are dependent on their specific criteria. Sue Wilkinson, head of life and health propositions at Abbey for intermediaries, says: "These rate changes are just another example of how we are reinforcing Scottish Provident's position as a leading provider of protection products, across the board. "In almost all areas we have ...

  • Self-cert needs an overhaul

    2 Aug 2004

    I've always wondered just what it is that self-cert lenders are trying to achieve. I asked a representative of a major self-cert lender at last year's Mortgage Business Expo what they mean when they advertise or promote self-certification. Of course, I got the expected stock answer: "There are many cases whereby borrowers in certain professions such as taxi drivers, tradesmen etc. find it difficult to verify all their income. There is also the divorcee who receives maintenance ...

  • Share the work and make money

    2 Aug 2004

    In basic terms the options mortgage brokers have for advising and selling protection insurances are: do it, don't do it or get someone else to do it. The introducer option is the one getting the most focus now, even from the 'doers'. Not many brokers will be in the position to have their own IFA division and the introducer route as a means of replicating such a division is a consideration for those who want to offer general insurances to clients. Protection insurances ...

  • Smart Move and Scorex deliver 15 second on-line mortgage decision

    3 Aug 2004

    The move will automatically apply a credit search capability to their system, across a panel of lenders, leaving just one footprint. This agreement will also give the Smart Move system the ability to overlay credit score cards from lenders which means fully credit checked, underwritten and credit scored decisions in seconds across a panel of lenders of choice. This makes the system particularly attractive to lenders, networks and intermediaries because it facilitates ...

  • Solent Mortgage Services announces tie-up with Amber

    3 Aug 2004

    Paul Robinson, SMS' chief executive officer, says: "Amber provides a superb range of mortgage options which our brokers will want to use. Amber's appointment also enhances Solent's commitment to its mortgage network partners by adding a lender of Amber's pedigree to its lending panel." Mike Perry, associate director, sales and marketing, says: "We are delighted to add Solent Mortgage Services to the Amber Homeloans panel. This is the beginning of a new and exciting ...

  • Spanish homes needn't costa packet, says Norwich & Peterborough

    3 Aug 2004

    Over three quarters (76%) of those people surveyed don't yet own a second home but 75% would choose to buy one. And, of the 24% who do own a second home, nearly seven out of 10 (68%) would choose to buy another in the future. More than three out of five (66%) have chosen to buy a holiday home abroad, in places including Spain, Cyprus, Florida, France and Turkey. Of those asked, 93% say their holiday home is available to others for use, including family and friends. When ...

  • Surveyors should be held accountable after regulation

    2 Aug 2004

    I would like to draw your attention to a group of individuals who are inextricably involved with the mortgage process, who receive substantial sums of money from lenders and whose opinions are accepted without question - yet who do not seem to have any form of robust compliance system. No, not solicitors but surveyors. The system that some lenders use for selecting surveyors is questionable to say the least. The surveyor should be independent of the applicant and lender and equally ...

  • Taking account of deposit accounts

    2 Aug 2004

    Deposit accounts are probably the most straightforward form of savings vehicle and CeMAP students might be forgiven for skipping over this subject in their study materials in the belief that their simplicity means that there is little or nothing to learn about them. However, they do form part of the syllabus for CeMAP paper one and students should ensure they are not too complacent about their knowledge of the subject. Students who can correctly answer the following three questions probably ...

  • Taking the plunge

    2 Aug 2004

    Buy-to-let has been a roaring success but some claim its growth has increased housing market volatility and could precipitate the long-feared property crash. The question now is whether the private rental market is still a great investment opportunity or a ticking timebomb. The buy-to-let market has certainly enjoyed astonishing popularity, growing sixfold over the past five years, with £19.3bn advances in 2003 against £3.1bn in 1999, latest figures from Datamonitor ...

  • Taking the slow road to regulation

    2 Aug 2004

    For the past 10 weeks I have worked my way through the main attributes appointed representatives should be looking for in a mortgage network. In that time I have watched with interest as a stream of networks have received their minded to authorise letters or variation of permissions from the FSA, and listened to the growing chorus in the trade press pleading with uncommitted brokers not to leave things until the last minute. One of the better articles was penned by Frank ...

  • TBMC launches top 10 buy-to-let products on Trigold

    2 Aug 2004

    This is the first time it is promoting its product range on an externally run mortgage sourcing system. The top 10 products includes schemes as well as shared exclusive products from a range of lenders, including Mortgage Express, PIMS, Platform, Paragon, CHL and the launch with Freedom Finance. Paul Rockett, a director of TBMC, says: "For some time now we have operated our own online illustration system for buy-to-let, and this has been well received by our existing ...

  • Teaching lenders a lesson

    2 Aug 2004

    Reading Andy Wilgoss and Jonathan Cornell's response to my Letter of the Week (Mortgage Strategy July 26) it appears that my suggestion that that they should live in the real world struck a blow they feel was below the belt. With regard to it being unprofessional to highlight lenders' shortcomings and working with them to improve service, obviously we and many other brokers have tried without success. Naming and shaming is a tried and tested method of making things better. We ...

  • The Miles report hasn't had much impact yet so what is the future for long-term fixed rate mortgages?

    2 Aug 2004

    Jeff Kirk is Corporate Relationship Manager of Leeds & Holbeck At Leeds & Holbeck the belief is that long-term fixed rate mortgages are here to stay. The society is now the UK's only provider of guaranteed fixed rates over 25 years and recent rises in interest rates prompted a surge in applications which saw the long-term product sell out of its allocation of funds. Continued demand has seen the society launch its third range of long-term fixed rate products over ...

  • The Mortgage Mole

    2 Aug 2004

    DEL-IGHT The kind folk at Norwich Union added some spice to life by inviting Mole to a drinks reception at Just Oriental on Wednesday. Despite there being a lack of fogies in the bar for them to flog their equity release products to, the NU guys were on top form. Mole thinks a certain NU PR bears an uncanny resemblance to Racquel from Only Fools and Horses. Del-Boy was nowhere to be seen however… TOO DRUNK Rumours of spectacularly bad behaviour from ...

  • Time-bar waivers could break IFAs

    2 Aug 2004

    By removing the three-year restriction, recommended in FSA guidelines, on customers who wish to make a complaint about mortgage endowment mis-selling, intermediaries say they will no longer be able to quantify risk and that they may be in danger of breaching FSA fit and proper rules. Prudential, which lifted its time-bar in June, says the move was in order to ensure fair and consistent treatment of its customers. But Brian Lentz, principal and protection specialist at ...

  • TMO unveils prime self-cert deal

    5 Aug 2004

    Some of the features of the self-cert product are 5.69% fixed for two years, then 1.3% discount for one year - 75% LTV. 5.79% fixed for two years with 1.3% discount for one year - 85% LTV, and 5.99% fixed for two years with 1.3% discount for one year - 90% LTV, available for both purchase and remortgage. There is 1% cashback paid on completion to offset the set up charges, only available on 90% LTV plus optional £200. It also offers an optional ...

  • Towards an electronic marketplace

    2 Aug 2004

    Heard the one about the mortgage broker, the lap dancer and the accurate Key Features Illustration? No? Unfortunately few others have either. While you're right to groan at such an opening, the offence felt will be nothing compared with how the underlying reality could hit business later this year. Last week this page echoed growing concern about lender and sourcing system preparedness for Mortgage Day. This week, I focus on specifics and what can be done about the problem. Regardless

  • Trade body formed for independent brokers

    2 Aug 2004

    Danny Mahon, director of Equfund and founder of IMA, tells Mortgage Strategy: "We know after two decades in the industry that we can get exclusive mortgage products and promotional facilities on behalf of IMA members." Mahon says both he and his fellow directors are looking to drive home the message that IMA members will be independent and not tied appointed representatives masquerading as independent. The IMA will not charge a membership fee and will be funded by supporting ...

  • Treasury confusion over reversions

    2 Aug 2004

    Last Monday's publication of the paper, Defining Home Reversion ,followed the statement on May 10 by Ruth Kelly, financial secretary to the Treasury, that home reversions would be regulated. The objective was to bring home reversions into line with lifetime mortgages and under the remit of the FSA. However, coming up with a clear definition appears still to be a tricky area. The recently published paper describes a home reversion as "involving arrangements whereby the consumer ...

  • US market is not so fixed in its ways

    2 Aug 2004

    For most of us, our interest in the US market is just a passing one - like many I had always assumed that the bulk of US residential mortgage business is backed by fixed rates and long-term ones at that. That assumption is being challenged by the CFA. Its research showed that lower income and minority mortgage customers are more likely to choose an adjustable rate mortgage. ARMs tend to fix the mortgage in its initial stages, typically for the first three to 10 years. In ...

  • Von Daniken moves back into her home

    2 Aug 2004

    Samantha, 41, has been thrown a lifeline by bridging loan specialist Bristol & West Investments. Mortgage Strategy has championed Samantha's case since she was forced out of her Norfolk home to live in her car in June. Mortgages PLC foreclosed on £546,000 of self-cert mortgage debt but Samantha claimed she was put in this position after being defrauded by her former partner. Her plight was soon brought to the attention of the National Association of Mortgage ...

  • Watch out for those banana skins

    2 Aug 2004

    So there are now less than 90 days before the statutory regulation of our industry. If you've decided to opt for direct authorisation and have received your minded to authorise letter, I expect you are now in the final stages of organising your compliance controls and systems and are probably feeling comfortable about the transition from MCCB to FSA regulation. Similarly, if you've opted for appointed representative status and are mid-application - minded to authorise issues ...

  • Will house prices fall or is this just a blip?

    2 Aug 2004

    Hometrack's latest monthly survey covering July shows that house prices have fallen for the first time this year. The figures show a 0.1% fall in prices, following a steady reduction in house price inflation over the past six months from the peak of 0.9% seen in February. Recent interest rate rises are thought to have contributed to the house price fall, with people refusing to pay over the odds for property. So, Mortgage Strategy asks: "Do you think this ...

  • Yorkshire urges public to join charity drive

    2 Aug 2004

    From August 6, for three weeks, all Yorkshire's 131 branches will be donating money collected from its innovative Small Change Big Difference scheme, whereby members donate three pence interest to the society's Charitable Foundation. Over 300,000 of the members are already signed up to the scheme, which has generated more than £130,000 for charitable donations. It is hoped that by inviting those who have contributed to the fund to recommend where it is spent, more ...

Poll

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

Current Issue

Lending Zone
petitions
debate
Define Advice
Advanced search