Mortgage Strategy
2 September 2002

  • A timely move

    2 Sep 2002

    As a packager we have always supported NAMBA, and a body that truly represents the broker community is a great idea. By joining forces with an organisation like AIFA, which already has a good reputation and established members, the new trade body will hopefully have a considerable impact on the industry. Now is definitely the right time for this sort of organisation. Training and regulation is going to mean dramatic changes to the broker market as we know it and all brokers will need ...

  • Abbey National for Intermediaries launches

    4 Sep 2002

    Abbey National for Intermediaries was officially launched this week, which aims to offer a simple route to their portfolio of products and services. As exclusively revealed in Mortgage Strategy magazine last month, the new operation means that, by January 2003, intermediaries will have access to all of Abbey National's UK intermediary products, services and brands through one straightforward point of contact. Ambrose McGinn, director, Sales and Marketing at Abbey National ...

  • Abbey National rapped over pricing

    2 Sep 2002

    Abbey National is facing compensation claims after the Ombudsman ruled that its mortgage pricing policy was unfair. The bank was told it was wrong to prevent existing customers from switching from its SVR, currently 6.1%, to its cheaper tracker deal, introduced in August 2001. Abbey would not allow existing mortgage customers to switch to the new account without "reviewing or changing their mortgage". Abbey withdrew its Classic Base Rate Tracker for new business on Thursday. ...

  • All becomes clear(er)

    2 Sep 2002

    I thought I would let you have my views on the latest FSA consultation paper CP146 having read firstly the parts that apply directly to our business, then the rest. All is far clearer now and I do not have any problems with the details proposed. To see the three levels of proposed mortgage selling clears up a murky area as far as we are concerned. Our 'sub prime' business operates only via the internet and we have never given product advice, (in the terms described by CP ...

  • Alliance must act swiftly

    2 Sep 2002

    As a lender that conducts all of its mortgage business via the intermediary market we welcome the formation of a single trade body. NAMBA seemed to struggle to establish itself as a representative body. It has been obvious for some time that mortgage intermediaries desperately needed a common voice within the consultation process. Though, arguably, the vast proportion of the draft rules set out in CP146 are likely to be implemented, it is vital that intermediaries provide collective ...

  • AToM takes branded lending route

    3 Sep 2002

    Horsham based mortgage-processing company AToMmortgages has come together with GMAC-RFC to launch a branded remote processing partnership. This arrangement will enable AToMmortgages to market the full product range offered by GMAC-RFC and issue mortgage offers and arrange completions from its Horsham office.GMAC-RFC will site full time underwriting staff in AToMmortgages office to ensure swift turn round times as demanded by introducing intermediaries. Victor Jannels, ...

  • Average FTB pays £158,156, say moneynet.co.uk

    5 Sep 2002

    The latest moneynet.co.uk mortgage research for the month of August found that while the average property value was £192,971, the average value for a first time buyer (FTB) was £158,156. The research found that FTBs were looking for an average mortgage amount of £119,204 - a 75% LTV and those users seeking to remortgage their property required an average mortgage amount of £106,605 - a 52% LTV. Also it was found that a typical salary for an existing ...

  • Bank holds rates at 4%

    5 Sep 2002

    The Bank of England has held interest rates at 4% for the eleventh consecutive occasion. The Bank of England Monetary Policy Committee announced the news on Wednesday, with no change to the UK's repo rate. The most recent change in interest rates was in November 2001, when the MPC announced a 0.50% reduction to 4.0%. Reacting to the Bank of England's decision to leave interest rates on hold, Ian McCafferty, chief economic advisor at the Chamber of British Industry, ...

  • Big four banks trail in customer service

    4 Sep 2002

    Despite saying they compete on customer service, results from the Which? magazine member's annual customer satisfaction survey, show that the Big Four banks still trail behind smaller competitors. The new survey finds that Barclays, LloydsTSB and NatWest are still in the bottom category for satisfaction and HSBC is only average - only 30% of LloydsTSB customers were very satisfied compared with 80% of Smile customers. Barclays and NatWest fared little better at 35 and 31% respectively.

  • black&white appoint new GM

    2 Sep 2002

    Theblack&whitemortgagecompany has appointed Ian Jordan as general manager. Jordan has over 25 years of experience in customer and financial services working recently with Egg and as mortgage servicing manager for Prudential Bank. The re-mortgage specialist aims to write between £1 and £2bn in mortgage business this year from a standing start two years ago and is on target to achieve 300 fully CeMAP-qualified advisers by the end of this year. Company ...

  • Brokers hail single trade body as a welcome development

    2 Sep 2002

    Mortgage brokers have given a cautious welcome to the decision by the Association of Independent Financial Advisers and the National Association of Mortgage Brokers and Advisers to build a unified trade body for mortgage intermediaries. The move has also been welcomed by IMLA chairman Tony Ward, who says the decision to regulate mortgage advice means "there is now even more of a requirement for an effective mortgage intermediary trade association". No details of the name, budget ...

  • Building a respectable image is vital to success

    2 Sep 2002

    With the announcement of a strategic alliance with AIFA, NAMBA continues its bid to become a nationally recognised trade association. NAMBA has had a hesitant start and linking to an already well-respected trade body can do absolutely no harm to its future prospects. The alliance should help them to build a respectable image in the eyes of prospective members that will clearly be vital to their ultimate success, or failure. Of course one of the key roles that a trade association for ...

  • Buy-to-let lending continues to grow

    2 Sep 2002

    Buy-to-let lending grew beyond £5.5bn and 58,000 loans in the first half of this year, according to CML figures. The private lettings sector has surged past the 42,000 loans, worth £4.1bn, advanced in the second half of 2001. CML figures show that the average maximum LTV requirement in the sector remains unchanged at 80% for the third successive half-year. Typically, lenders expect rental income to cover mortgage payments by at least 130%; a ratio that has ...

  • Capital Home Loans relaunch with new branding

    3 Sep 2002

    Capital Home Loans has been relaunched with new branding and a fresh range of market leading mortgage products. The move reaffirms the decision by CHL's parent, Irish Life & Permanent, to grow its UK mortgage business. CHS's old trademark had been replaced by two images. For homeloans, the image is of a group of trades and professional people, and for buy-to-let, a street scene with a for let sign. Alongside the branding, the company has taken the wraps ...

  • Charcol launch two fixed rates

    6 Sep 2002

    Charcol has just launched two fixed rate deals at 4.09% (fixed to 30/9/04) and 4.79% (fixed to 30/9/07) They are both available to 95% although they are best value under 85% loan to value as MIG is payable above this level. The 2-year fixed rate has a minimum loan value of 100k (this does not apply on 5-year rate). In the current market, the premium borrowers have to pay for the security of a fixed rate has decreased rapidly recently. For most of this ...

  • Chelsea launch two new fixed rate deals

    2 Sep 2002

    Chelsea Building Society will launch two new fixed rate mortgages on August 31 2002. On the same date the minimum loan applicable to the Buy to Let mortgage will be changed as well. Details of the 2 and 3 year fixed rate mortgage are as followed: 2 Year Fixed Rate o A rate of 2.99%, APR 5.4% fixed until November 30 2004 o The applicant will receive a cashback equivalent to 1% of the loan following completion. o An arrangement fee ...

  • Coventry updates portfolio

    3 Sep 2002

    Coventry Building Society has updated its mortgage portfolio and is now offering new products for house purchase, remortgage and buy-to-let. Its key features are: ? Current applied rate 4.85% (0.90% off SVR) ? Rate capped at 5.85% until 30 September 2007 ? £295 arrangement fee (added on completion) ? Discounted legal fees for remortgagors ? No overhanging ERCs

  • Demand for holiday homes soars

    3 Sep 2002

    The number of people remortgaging to buy a second or holiday home has trebled in the past four years, research from The Mortgage Business, the specialist lender, reveals. In 1998 one in twenty-five borrowers remortgaged in order to buy another property compared to one in six in 2001. In addition the research reveals that repaying an existing mortgage remains the most popular reason for remortgaging, with 40% of people switching to TMB to pay off existing mortgages and ...

  • Digest 'Cheapest' fixed rate

    2 Sep 2002

    Leeds & Holbeck has launched what it claims to be the cheapest ever 10-year fixed-rate mortgage with a rate of 5.25% until November 1, 2012. The loan is available up to 95% of property value and borrowers can make capital repayments of up to 10% each year. There is no higher lending fee up to 90% loan to value. Tony Burdin, head of marketing, says: "We believe this mortgage is the cheapest ever offered on a 10-year fixed rate." Meanwhile Yorkshire Building Society has launched ...

  • Does this spell the end of anarchy?

    2 Sep 2002

    The Association of Independent Financial Advisers and the National Association of Mortgage Brokers and Advisers have joined forces to build "an effective trade body" for mortgage intermediaries by the end of the year. Described as a "strategic alliance", as yet no details of the name, budget or structure of the new body have been decided. But the news has been widely welcomed by an industry which has long been calling for a trade association to represent mortgage intermediaries. Over ...

  • Don't forget the way to Carnegie Hall

    2 Sep 2002

    Whichever might be your preferred 'technique' for exam-passing, there's one course of action Andy Couchman says is guaranteed to boost your chances of success... Do you remember that TV advertisement a few years ago in which an elderly lady asks a New York utility worker digging a hole in the road the way to get to Carnegie Hall? "Lady", he replies, "Practice". OK, it's hardly side-splitting stuff but the point is that the advertisement could just as well be talking ...

  • Don't keep us all waiting...

    2 Sep 2002

    Hot on the heels of CP146 came the announcement last week that the AIFA and NAMBA have agreed to form a "strategic alliance". They recognise that as regulation draws nearer, mortgage intermediaries need representation to government and the FSA on the formulation of policies and regulations. But as we explore in our cover feature starting on page 22, beyond this, the announcement actually says very little and rather like CP146, it has raised more questions than answers. What will this ...

  • Don't leave your future up to big boys

    2 Sep 2002

    Kean Seager weighs up the potential effects of proposals in CP146 and warns advisers that their livelihood depends on how they respond to the Financial Services Authority plansIsn't it typical? My first day back from holiday; I'm feeling relaxed, happy and at one with the world. Then what happens? Four pounds (yes, I weighed it) of Paper 146 is thumped down on my desk and...half an hour later I'm in need of another holiday. Consultation papers from the authorities are always ...

  • Equity-sharing improves social housing says CML

    2 Sep 2002

    Allowing tenants to buy a share of the equity in their home could help improve the status of social housing and bridge the gap preventing some people from becoming homeowners. In an article in Housing Finance, a journal published by the CML, equity stakes for social housing tenants could help spread the benefits of owning property. The article suggests that schemes offering equity stakes could be developed to meet localised conditions but would need to be fair and simple, as well ...

  • Fears of US compensation culture unfounded

    5 Sep 2002

    Independent market analyst DatamonitorÂ's new report, UK Personal Injury Litigation 2002, finds that fears of a US style compensation culture are unfounded. While the number of claims has risen, it is the spiralling cost of compensation that is causing the biggest headache to insurers, who are forced to hike up premiums on cars, homes and businesses. Meanwhile, Â'no win no feeÂ' accident intermediaries and law firms face serious hurdles if they are to continue ...

  • Focus to release new research

    4 Sep 2002

    Focus Solutions will be unveiling the results of its new electronic trading research, 'The Focus Quotient', at the second adviser.tech event in London this week. Focus surveyed over 60% of the UK's leading life and pensions product providers on the uptake of electronic trading in 2001 and their predictions for the next two to five years. Early indications from the research show that product providers are setting themselves some challenging targets, predicting that over ...

  • Foreigners get access to UK buy-to-let market

    2 Sep 2002

    Saudi princes and other wealthy foreign nationals are being offered a piece of the UK buy-to-let market via offshore companies and a new product funded by the Bank of Scotland. The product is the brainchild of packager EM Financial, which offers it exclusively up to a maximum loan of £25m. It is aimed at buy-to-let investors seeking to manage their portfolio with more sophistication - and pay less tax. Roger Morris, managing director of EM Financial, says: "This product doesn't ...

  • Genesis launch four non-conforming fixed rates

    4 Sep 2002

    Discovery, Columbia, Atlantis and Endeavour are four new, two-year, non conforming fixed rates released by the correspondent lender, Genesis HomeLoans plc. Available up to 90% LTV full status, Discovery offers a fixed rate of 5.74%, whilst Atlantis is available up to 85% LTV for self certification and up to 80% LTV for buy to lets at a fixed rate of 5.99%. Both products allow for £3,000 of CCJs in the last three years, unlimited defaults and two missed mortgage ...

  • GISC appoints Douglas Oliver as head of monitoring

    4 Sep 2002

    GISC has announced the appointment of Douglas Oliver as its new head of monitoring. Douglas Oliver worked for Guardian Royal Exchange / AXA Insurance for 30 years, were he held numerous senior management positions including operations manager of GRE's General Intermediaries Division. Commenting on his new role, Oliver says: "The regulatory strength of GISC's monitoring approach has always been to ensure that corrective action is taken by a member to remedy any identified ...

  • Halifax launch new savings account

    6 Sep 2002

    People save for all sorts of things such as holidays, weddings and cars but some are saving for much more unusual things, new research from Halifax has revealed. Halifax's new online savings account, Web Saver, allows customers to name their own accounts. Some of the names people have chosen produced some very interesting results. While the majority of customers chose pre-set options like "new car" or "Christmas", some customers were very specific about what they were ...

  • Herbet may appeal against CHL

    2 Sep 2002

    IFA Chris Herbert, who lost his appeal against his former employer Chancery Mortgages and Capital Home Loans, is considering whether or not to appeal the case. He is now consulting solicitors over a new possible appeal and says: "The problem is an appeal would be expensive and I have to act very quickly. It's not the money. "What really concerns me is there is no way I can protect myself or a client against inaccurate marketing claims. In this case I knew my client's ...

  • House price slowdown but no slump, yet

    2 Sep 2002

    The National Institute of Economic and Social Research predicts a slowdown in the housing market, but says that a sharp turnaround is unlikely whilst housing is in short supply and interest rates remain low. The data was commissioned by Pinnacle Insurance. Following strong growth in house prices in the first half of the year, Pinnacle has revised its forecast of house price inflation for 6% to 10% for 2002. Compared with the Nationwide and Halifax indices for house prices for ...

  • Just A Mortgage signs a quintessential partner

    3 Sep 2002

    Just A Mortgage has signed an agreement with the upmarket online members' club, Quintessentially, to be its exclusive provider of mortgage services. Just A Mortgage operates as a seamless "bolt-on" to its introducer's services, acting as part of their own organisation, without the need to comply with regulatory requirements or employ and train staff. Aaron Simpson, director, Quintessentially, says: "We find the best of the best for our members and that can be anything ...

  • L&G Bank launch 5.19% flexi-fix

    5 Sep 2002

    Legal & General Bank are launching a flexible mortgage to intermediaries fixed at 5.19% until December 1 2005. The fixed interest rate of 5.19% (APR 5.20%) is available on loans up to 90% of the property value. Interest is calculated daily and loans are available for house purchase and remortgage. Borrowers can make overpayments, underpayments, take payment holidays and re-borrow from their accumulated reserve. Redemption charges will apply only if the entire ...

  • Land Registry publish Commonhold consultation

    4 Sep 2002

    The Land Registry has published a consultation paper on the draft Commonhold (Land Registration) Rules. The Rules are about the land registration process for commonhold documents and registering freehold estates in commonhold land under the Commonhold and Leasehold Reform Act 2002, which received Royal Assent on 1 May this year. The consultation only deals with a part of the Act that relates to the new scheme for the ownership of flats and other interdependent units. Under ...

  • Leeds & Holbeck launch base rate tracker

    6 Sep 2002

    Leeds & Holbeck are offering a fee-free base rate tracker mortgage. The product guarantees to match the Bank of England Base Rate plus 0.29% until November 1 2004, giving an initial rate of 4.29%. The loan is available up to 95% of property value and there is no Mortgage Indemnity Guarantee (MIG) up to 90% loan-to-value. Borrowers will also receive free mortgage payment protection insurance for six months. In addition there are no application or completion fees, ...

  • Lenders urged to adopt arrears rules early

    2 Sep 2002

    Consumer groups are asking lenders to enforce some of the FSA's near-final rules before mortgage regulation officially starts in mid-2004. The Federation of Information and Advice Centres has already asked the CML whether arrears guidelines could be put in place now. Responding to the request, Bernard Clarke, communications manager for the CML, says: "It is too early to say. It is something we will consider and we will respond in due course." FIAC is specifically asking ...

  • Looking for a triumph in adversity...

    2 Sep 2002

    Q: How is National Guarantee structured? A: National Guarantee is a packager and was formed in 1996 by brokers Keith Robinson, managing director, and Dale Robinson, sales director, for intermediaries looking to place sub-prime business with lenders. We saw a gap in the market with increasing numbers of intermediaries finding it difficult to place clients with adverse credit difficulties. Our structure is very similar to lenders operating in the marketplace - we have a mortgage ...

  • Major expansion at TMPC

    4 Sep 2002

    The Mortgage Placement Company (TMPC) has announced the taking of additional office space at their London head office that will now give accommodation for 50 staff. Occupation of the new floor is set for September 30, and additional in-house staff from Mortgages plc as well as new senior underwriting and sales staff will move in. A statement issued from TMPC, says: "This will allow TMPC to expand even further without compromising on service."

  • Meacher backs sustainable towns

    2 Sep 2002

    Michael Meacher MP, the UK Environment Minister, has given his strong support to a new partnership that aims to bring sustainability to towns and cities around the world. Speaking at the inaugural meeting of the Global Alliance for Building Sustainability (GABS) in Johannesburg earlier today, Meacher welcomed the recognition that the built environment is one of the major contributors to global warming. He also applauds the international nature of the Alliance and says: ...

  • Moneyfacts to go online

    2 Sep 2002

    Financial services listings paper Moneyfacts is creating a website portal for intermediaries. The site www.brokerscreen.co.uk will contain Moneyfacts product selections for mortgages, life and pensions, loans, cards and business finance. The Moneyfacts team of financial researchers will constantly keep the site updated that will provide an independent source of information for all financial professionals.

  • Mortgage club with a personal touch

    2 Sep 2002

    Scottish Life Mortgages today unveils a new mortgage club in partnership with Personal Touch Insurance. Scottish Life will be offering a panel including Abbey National, HBOS, Cheltenham & Gloucester, Legal & General, Cheshire Building Society, Northern Rock and Alliance & Leicester. Five further lenders are yet to be confirmed. The deal follows roadshows held at Premiership club stadiums including Highbury, Villa Park and Old Trafford last week, and builds upon an existing ...

  • Mortgage Promotions breaks £1m proc fee barrier

    2 Sep 2002

    Mortgage Promotions has announced that it has paid out more than £1 million of procuration fees to its members since launching only a year ago. Nick Baxter director mortgage promotions, says: "We are delighted to have achieved this milestone so quickly. When you think we launched only a year ago with a zero membership. "Since then we have had to sign up member firms, now more than 780 of them, they have had to place business through our panel and the cases have ...

  • Mortgages PLC reports record business

    2 Sep 2002

    Mortgages PLC has reported record business levels following the enhancement of its product range and broadening of its distribution in recent months. In July, the lender received in excess of £100 million of mortgage applications, up from approximately £60 million in April. Completions for July were also at a record level of approximately £50 million. The news comes nine months after the acquisition of the company by Nikko Principal Investments. Trevor ...

  • My Mortgage Week

    2 Sep 2002

    Monday It's my first day back from a two-week holiday in France. I'm trying hard to get back into the swing of things but am finding it difficult after such a long break. Spend the morning catching up on numerous unread emails and returning lots of phone calls. There is an email from our public relations company summarising the main points of CP146, along with the full 300-page document. I read through the summary and make a mental note to look at the larger document as soon as I've ...

  • NAMBA will now have the weight to develop its role

    2 Sep 2002

    From Mike Davies Bristol & West Mortgages welcomes the new alliance between AIFA and NAMBA. Mortgage brokers are a significant feature of the consumer market place and, as such, should have a say in the way the FSA frames the rules which will govern the way they deal with their clients. Since CP70 and the publication of the high level proposals for mortgage regulation we lenders have had a strong influence on the look and feel of the proposed regulations both as individual ...

  • Nobody understands packagers' influence

    2 Sep 2002

    Consumers and the FSA are unaware of the role packagers play in the mortgage process, with one survey revealing 100% of homebuyers did not know their role in the advice process. Not one of 100 homebuyers surveyed by The Mortgage Watchdog were aware of packagers' function, and managing director Monty Burn suggests a similar lack of understanding is exists within the FSA following recent consultations. Having recently spoken with the FSA on the issue, Burn says the regulator was ...

  • Norwich Union launch income protection sales aid

    5 Sep 2002

    A CD ROM sales aid designed to support intermediaries selling income protection is now available from Norwich Union Healthcare. It provides a quick way of producing illustrations, giving instant access to 32 premium variations. It also cuts down on the time an intermediary has to spend on the phone by enabling them to calculate their client's premiums themselves. And it reduces the time spent on paperwork by providing a structured approach to completing illustration ...

  • Ombudsman finds against Abbey

    2 Sep 2002

    Abbey National has received the Ombudsman's decision on a mortgage rate complaint. The cashback mortgage deal in question was linked to the Abbey National Standard Variable Rate, and Abbey National argued it could not be linked to its new, lower, Classic Base Rate Tracker mortgage. The Ombudsman has upheld the adjudicator's original decision on this issue, and has found against Abbey National in a provisional decision. Abbey National is disappointed as ...

  • OneSearch Direct comes to London

    2 Sep 2002

    OneSearch Direct is to launch in London and the South East later this month. The service, first launched in Scotland more than 10 years ago, handles more than 50% of all property services north of the border. So far this year it has been launched in Yorkshire and Greater Manchester. OneSearch Direct claims it is the fastest local search available. Normally solicitors would have to spend weeks trawling through local authorities' data storage systems to complete a search. But ...

  • Over a third of homeowners happy where they are

    2 Sep 2002

    Over a third of people have lived in their current home for at least 10 years, with those that do move tending to stay in the same area, according to recent research. The data, collected by NOP on behalf of Halifax Estate Agents, also reveals that when people do move, only a quarter of those interviewed had moved more than 10 miles away from their current house. 36% of those questioned had not bought a home in the past 10 years with regional variations revealing Midlanders ...

  • PAA set to double its intermediary membership

    2 Sep 2002

    The Professional Advisor Alliance (PAA), the UK-wide grouping of intermediaries that provides independent mortgage advice to moneysupermarket.com customers, is set to double the number of intermediaries in its alliance to over 600. Launched in May 2002, the PAA now has more than 300 intermediary members. It receives 270 mortgage, term assurance and pension leads a day from moneysupermarket.com and its portal partners, and 52% of leads referred result in a sale within two to three months. ...

  • Park Row appoint communications head

    6 Sep 2002

    Park Row Group plc (Park Row), the national financial advice firm, has appointed Jo Smith as head of communications, a newly created role in the company. Jo will be responsible for internal and external communications and will aim to develop a media relations programme to expand consumer knowledge of financial products, demonstrate the benefits of independent advice and attract high calibre financial advisers to Park Row. In addition, Jo will develop and build business ...

  • Pink offers new fixed deal

    2 Sep 2002

    Pink Home Loans today launches a five-year fixed rate, funded by Birmingham Midshires Solutions, with a cashback of 6%. The product is fixed at an initial rate of 5.39% until October 1 2007, reverting to Pink's SVR of 5.95%. This new product offers borrowers the opportunity of an upfront lump sum with the added stability of fixing their payments for five years. The cashback is aimed at attracting customers looking to fund stamp duty on purchases or to carry out home ...

  • Plan to end penalties for early repayments

    2 Sep 2002

    Lenders will no longer be able to charge borrowers over the odds for settling personal loans early under new government proposals. Lenders currently calculate redemption charges by the 'Rule of 78' - a clause of the Consumer Credit Act that invariably overestimates the amount of capital left to be repaid. The rule applies to unsecured and secured loans of less than £25,000, though this limit may increase in 2004. In one example, a consumer was charged an extra £1,300 ...

  • Professional Advisor Alliance to double membership

    3 Sep 2002

    The Professional Advisor Alliance (PAA), the UK-wide alliance of intermediaries that provides independent mortgage advice to moneysupermarket.com customers, is set to double the number of intermediaries in its alliance to over 600. This is due to a huge increase in the volume and quality of mortgage leads referred to its existing 300 plus intermediary members. The PAA recently conducted research with its intermediary members into the quality of the leads it was distributing ...

  • Put sector interest before egos

    2 Sep 2002

    You are in for a rude awakening if you have not got to grips with the latest regulatory wake-up call from the Financial Services Authority. For CP146 has just hit the streets, and it makes gripping reading for anyone involved in the UK's booming mortgage industry. But brace yourselves. There are only three months for mortgage professionals to offer their crumbs of thought to the FSA, such is the regulator's need for consultation with the industry. A failure to get up to speed ...

  • Remortgages treble

    2 Sep 2002

    The number of people remortgaging to buy a second or holiday home has trebled in the past four years, research from The Mortgage Business reveals. In 1998 one in 25 borrowers remortgaged to buy another property compared with one in six in 2001. Repaying an existing mortgage is the most popular reason for remortgaging. Borrowers appear to be taking advantage of low rates of interest on mortgages to consolidate debts, with one in five remortgaging to pay off loans and credit cards. Mark ...

  • Rental returns carry most weight in buy-to-let sector

    2 Sep 2002

    Expectations among buy-to-let investor landlords are changing, according to the new quarterly survey from Paragon Mortgages. The September survey of buy-to-let trends in the Private Rented Sector shows capital appreciation is no longer the prime factor influencing buying and selling decisions in the Buy to Let sector. It is now the rental return that carries the most weight in the decision-making process. The Paragon PICT Index, the Property Investor Confidence Tracking ...

  • Requirement to tell about endowment market

    2 Sep 2002

    New FSA rules on the selling of endowment policies took effect yesterday, with life offices now required to inform policyholders about the traded endowment policy market. The rules were implemented to help consumers get better value when cashing in their with-profits endowment policies by explaining that policyholders may receive a better price for a policy by trading it on the TEP market. The changes will ensure policyholders get information on all the options open to them in ...

  • Savers miss out on best rates

    3 Sep 2002

    Two-thirds of British savers are missing out on better interest rates, research from MoneyFacts reveals. In the current low interest rate environment, it can be difficult to achieve a good return on personal savings. The average interest rate on savings up to £2,500 held in an instant access account is just 0.46%. Given the relatively low return delivered by most deposit savings accounts, it is surprising that more than two-thirds of Britons choose to put their ...

  • Savills offers new base rate tracker

    2 Sep 2002

    Savills Private Finance is offering a tracker mortgage with a cashback equivalent of 6% of the loan amount. The rate tracks the Bank of England Base Rate, currently 4%, at a guaranteed margin of +1.29% for three years, followed by Base Rate +0.99% for life. The deal is available for both new purchases and remortgages for loans up to £2m, with an arrangement fee of £299 redemption penalties in the first three years from 6% in year one to 4% in year three. Mark ...

  • Slowdown in consumer spending sparks retail slump

    5 Sep 2002

    The slowdown in consumer spending appears to have set in with annual growth of retail sales at its weakest for nearly two years, according to the CBI's latest distributive trades survey. For the fourth successive month, growth in sales undershot expectations. Asked to compare sales with a year ago, 35% of respondents said sales were up while 30% said they were down. The balance of plus 5% compares with plus 16% in July, making this the slowest rate of growth since ...

  • Small packagers face big squeeze

    2 Sep 2002

    Small scale mortgage packagers could feel the squeeze with reduced distribution opportunities after the MCCB qualification deadline in December. Although 31,000 have passed either the CeMAP or MAQ exams from 76,000 registered to sit them, over 40,000 have yet to pass either of the exams. With the addition of those advisers who have not bothered to register for the exams, distribution channels are likely to reduce. Peter Beaumont, sales and marketing director at Mortgages PLC, says: ...

  • Standard Life Bank launches business bonds

    2 Sep 2002

    Standard Life Bank has launched 12 and 18-month business bonds designed to help businesses maximise the interest earned on their savings. The bank is targeting business customers looking to set aside funds for tax purposes and is offering interest rates of 4.20% gross for 18 months or 4.00% gross for 12 months for customers depositing £50,000 or more in a Standard Life Bank Business Bond. Standard Life Bank is also offering business savings customers a new 60 Day ...

  • Sweeteners on the rise

    2 Sep 2002

    Lenders and packagers are offering increasing cashback features on mortgage products to help offset additional costs faced by housebuyers. Pink Home Loans today launches a five-year fixed rate funded by BM Solutions with a cashback of 6%. Charcol also introduced a lifetime tracker with 6% cash back, also through BM Solutions. David Copland, sales and marketing director for Pink Home Loans, says: "The five-year fixed rate, combined with this cashback offer, must be one of the best ...

  • The big freeze continues into September but don't rule out a cut in the coming months, says Charcol

    6 Sep 2002

    Ray Boulger, senior mortgage technical manager at Charcol, yesterday dismissed the Bank of England's decision to hold interest rates as "unsurprising". He told Mortgage Strategy online: "Today's freeze was generally unsurprising. "Clearly there hasn't been enough change in the UK economy in the last month to warrant a cut, despite the FTSE's dip below the 4,000 mark once again. "However, we don't rule out a cut in interest rates in the coming ...

  • The LIA is here to bring clarity to the confused

    2 Sep 2002

    From John Ellis I was fascinated to read the letter from Ray Curwen in the 27 August issue of Mortgage Strategy. I cannot but agree that, if you list all the many proposals which are pouring out from Government and regulators regarding financial advice - whether mortgage, investment, or insurance - it is possible to get very confused. Our job at the Life Insurance Association [LIA] is to sort out the confusion and tackle the specific issues, one by one so as to try to work towards ...

  • The Marketplace offers credit adverse a better fix

    2 Sep 2002

    The MarketPlace at Bradford & Bingley this week offers a new fixed rate mortgage for borrowers with past credit difficulties. The product, funded by BM Solutions, carries a 5.89% initial rate until October 1 2004 with a 1% cashback and redemption penalties in the fixed rate period only. The product is available to a maximum LTV of 90% and has no extended tie-in. David Bitner, mortgage technical manager for The MarketPlace says: "This is a very attractive deal for borrowers ...

  • The Woolwich forecast death of property ladder

    4 Sep 2002

    More people now aspire to an ideal lifestyle rather than specific sized property, research from The Woolwich reveals, leading to claims that the traditional property ladder has collapsed. People are now progressing towards security - not status. Nearly half of us (46%) say that being mortgage free is the ultimate goal. Only 16% dream of a mansion in the country. Even less (15%) aspire to a five bedroom detached house. The most reliable indicator of having progressed ...

  • This week's problem case

    2 Sep 2002

    Steven, 27, earns £35,000 per year as an IT consultant on a fixed contract. His wife, Stephanie, 24, is a part-time hairdresser earning £12,000 per year average. First time buyers, they want to buy a £140,000 semi in Southport and have a £10,000 deposit. Intermediary response Ray Boulger, senior technical manager at Charcol, says the client should concentrate on rehabilitating his credit record and seek a property when the affordability outlook is ...

  • TMB appoint Armstrong to East Midlands BDM

    4 Sep 2002

    The Mortgage Business has appointed Gary Armstrong as business development manager for the East Midlands region. He joins TMB from Intelligent Finance where he liased closely with IFAs as an account executive. Overall he has more than 20 years experience working in financial services. Mark Bergin, director, sales and marketing at The Mortgage Business, says: "Gary brings a wealth of experience to TMB. His first-hand knowledge of the intermediary market is very important ...

  • UK high-net worth waste £2.2bn tax

    4 Sep 2002

    Over half of the UK's high net worth individuals waste nearly £2.2 billion in unnecessary tax according to research from IFA Promotion. Continuing its 'war on wasted tax,' IFA Promotion has extended its tenth annual TaxAction research to look at high net worth individuals and can reveal that they throw away over £390 million though miscalculating tax payments and a further £1.8 billion by not taking advantage of tax breaks. They found that the ...

  • UK leads the way for new homes

    5 Sep 2002

    The UK probably has more methods of constructing homes than any other country in the world - and the number is growing all the time, according to new research published by the CML. New building techniques, market pressures, planning policy and building regulations are forcing construction firms to re-consider the way houses are built. And the huge demand for new homes and a shortage of conventional building skills are adding to the drive to build more houses using non-traditional ...

  • Weak demand sets back service sector

    2 Sep 2002

    The recovery of the service sector has been set back by weak demand, according to the latest quarterly survey by the CBI and Grant Thornton. Worst hit were consumer services firms, such as hotels and restaurants, which said they expect profitability over the next quarter to fall at the fastest rate for four years. Business and professional services firms, such as advertising agencies and management consultants, said they saw no sign of a previously forecast rapid turnaround ...

  • Yorkshire BS reduces rates

    5 Sep 2002

    Yorkshire Building Society has reduced the rates on its flexible tracker and 2 and 5 year flexible mortgages with effect from September 10. The new rated products are in addition to Yorkshire's fully flexible 10 year fixed rate Your Choice mortgage which offers a tracker rate with a fixed rate cushion and the Offset account. All Yorkshire mortgages are calculated on a daily basis and are fully flexible allowing under payments, payment holidays, lump sum repayments ...

  • Yorkshire launch drop mortgage

    5 Sep 2002

    Yorkshire Building Society has launched a "drop" mortgage whereby borrowers can take a three year tracker with the option to drop into a fixed rate at any point and without any charge. Borrowers signing up for the deal will be able to take advantage of a low base rate with the security of stabilised payments when rates increase. Like all Yorkshire mortgages, it is fully flexible allowing lump sum repayments, over payments, underpayments and payment holidays at any time ...

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