Mortgage Strategy
20 January 2003

  • 'Aggrieved' Britannia rebuffs mis-selling complaints

    20 Jan 2003

    Britannia Building Society says it is "aggrieved" by claims it is profiting at the expense of elderly borrowers who were allegedly mis-sold home income plans in the 1980s. Last week, Conservative MP Angela Browning highlighted the case of a constituent who was mis-sold policies by an employee of DBS Financial Management. Sonia Thompson, the adviser, later appeared in court charged with falsifying mortgage applications. Browning told the House of Commons: "Even when the ...

  • 1,000th firm joins Mortgage Promotions

    21 Jan 2003

    Packager Mortgage Promotions yesterday announced that the 1,000th firm had joined the rapidly growing network, which launched in July 2001. Nick Baxter, director of Mortgage Promotions, says: "We are delighted to have achieved this milestone so quickly. With an average of over three registered individuals per member firm it means that over 3,000 individuals have access to our products. This critical mass gives us significant buying power with our product provider partners and ...

  • 1st Software in partnership with Webline

    24 Jan 2003

    1st Software, a supplier of integrated technology solutions for financial advisers and intermediaries, has teamed up with Webline to give added functionality to its Adviser Office software systems. Webline, the UK's first provider of online comparative quotes to Origo standard, provides comparative quotations for level term, increasing term, mortgage protection, and family income benefit, with critical illness and waiver of premium options. Providers currently live on the service ...

  • Abbey National launches First Home Saver account

    22 Jan 2003

    Abbey National has launched a new First Home Saver account, the only high street savings account specifically designed for first-time buyers. The account is aimed at potential first-time property buyers who need to save for a deposit and will benefit from the regular savings aspect of the account. With the average house deposit now in excess of £18,000, would-be homeowners have to save more than ever to get on the property ladder. Compared with an average deposit ...

  • ABI welcomes polarisation reform

    21 Jan 2003

    The Association of British Insurers says the FSA's new proposals on polarisation announced today will lead to greater customer choice and improved information about financial advice. Alan Woods, head of life and pensions at the ABI, says: "These proposals represent a sensible liberalisation of the market which will improve customer choice. It will also give consumers clearer information about the cost and nature of advice. "We are pleased the FSA has abandoned its ...

  • Amber launches bespoke adverse range

    20 Jan 2003

    Amber Homeloans Ltd has launched a full adverse, menu-driven mortgage which can be tailored to suit each individual' s needs. The Bespoke Mortgage will help brokers provide an Amber mortgage for each of their clients regardless of their previous credit history. The bespoke mortgage carries a three-Month LIBOR pay rate (currently 4.03%) plus additional loading for risk based on LTV with a 1% discount until April 30 2004. Loans are available up to 85% LTV for loans between ...

  • Barclays celebrates offset mortgage on Australia Day

    23 Jan 2003

    January 26 is Australia's National Day, and Barclays is looking at the best and the worst of what the Aussies have given us, including offset mortgages. Openplan from Barclays and The Woolwich combines a current account, savings and mortgage, and Barclays offers its thanks to Australia where offset mortgages started. This is what the Openplan team thought were the best and worst things Australia has given to the UK. Top 10 things the Aussies have given us: 1. ...

  • BBA says mortgage lending slowed in December

    22 Jan 2003

    The UK mortgage market experienced a slowdown in December, with lending falling significantly from its record level of the month before, figures released by the British Bankers' Association revealed. The BBA, which published its monthly report on lending by the major British banks yesterday, says that mortgage lending stood at £5.08bn in December, down from £5.8bn in November and £5.6bn in October. CML figures also showed a slight decrease in lending over ...

  • BDS launches specialist sub-prime division

    20 Jan 2003

    BDS Mortgage Desk has launched a specialised division for sub-prime lending. The All Status Team will work closely with BDS' panel of 10 sub-prime lenders and a growing number of satellite partnerships. Ann-Marie O'Neill, head of sales and marketing, says: "It is important to offer introducers experience and knowledge when it comes to the sub-prime market. While sub-prime lending has been around for a number of years, it is still relatively new to a lot of introducers." BD

  • Be assured about life assurance

    20 Jan 2003

    Last week's column focused on an area of CeMAP paper one that gives many candidates particular difficulty - taxation. Another part of the syllabus that also presents problems is that of life assurance. Much of the difficulty can arise from not having a clear understanding of the various types of life assurance policy and how each of them works. There are just three fundamental forms of life cover, although there are variations on each. Term assurance is the most basic form ...

  • BM Solutions launches online service with bigger proc fee

    20 Jan 2003

    BM Solutions is celebrating the official launch of its online service today by paying an extra £50 on top of the standard proc fee for each online application that proceeds to completion. This follows a successful pilot where over 1,000 intermediaries pre-registered for BM Solutions Online in its first four days alone. The programme has been designed to save time and money for intermediaries with real-time case tracking, product matching, client illustrations and finance ...

  • BMS is first sub-prime lender to join ZAN panel

    20 Jan 2003

    BM Solutions has joined ZAN Mortgage Solutions, the Zurich Advice Network mortgage panel, writes Helen McCormick. ZAN is one of the UK's three largest mortgage clubs, along with Prudential's Premier Mortgage Services and Legal & General's mortgage club. BM Solutions is the 16th addition to the Swindon-based panel and the only sub-prime lender. ZAN mortgage franchise director Richard Coulson told Mortgage Strategy: "BM Solutions is one of the more forward-thinking ...

  • BMS is first sub-prime lender to join ZAN panel

    24 Jan 2003

    BMSolutions has become the first sub-prime lender to join ZAN Mortgage Solutions, the Zurich Advice Network mortgage panel. Michael Bolton, director of mortgages, BM Solutions, says: "ZAN is one of the UK's biggest mortgage clubs and, as the first sub-prime lender to join the panel, we're looking forward to making members awnare of our market leading product portfolio." Richard Coulson, ZAN mortgage franchise director, says: "BM Solutions is one of the more ...

  • Britain's economy is 'in recession'

    20 Jan 2003

    The British economy has slumped into recession, a leading investment bank has said. ING Financial Markets has predicted that figures due for release by the government on Friday will reveal that gross domestic product declined by 0.3% during the fourth quarter of last year, with a further drop of 0.2% predicted for the present quarter. Two consecutive quarters of negative GDP is generally interpreted as a definition of recession. Economists at ING blame the ...

  • Britannia's online mortgage application offers 10-minute decision

    22 Jan 2003

    Britannia Building Society has this week launched an online mortgage application which enables applicants to obtain a real time, credit scored, online decision for their mortgage in 10 minutes. The entire application process at www.britannia.co.uk, including receipt of a decision and entry of all other relevant information, is expected to take individual applicants just 15 minutes to complete and joint applicants 20 minutes. Britannia says this is unique to the UK financial services ...

  • Building society runners aim for £300,000 Shelter donation

    20 Jan 2003

    Ninety five employees from the building society sector will be taking part in this year's Flora London Marathon on April 13 to raise funds for homeless charity Shelter. Funds raised by the sector will assist Shelter's work with homeless children and continue the long-standing partnership between Shelter and the sector. Shelter works tirelessly helping 100,000 people each year but for every person running the Flora London Marathon (approximately 30,000 runners), ...

  • Buy-to-let continues to grow and heads north

    22 Jan 2003

    Rising house prices are encouraging more people to enter the buy-to-let market as landlords, with a transfer in interest away from London and the South-East and towards the Midlands and the North, UCB Home Loans says. The report by Nationwide's specialist self-certification lender, which gives a detailed breakdown of current buy-to-let activity across the UK, refers to a number of areas in which buy-to-let activity is buoyant, including Wakefield, Leeds, Middlesbrough, Stockton, ...

  • CA attacks FSA rules on financial advice and polarisation

    22 Jan 2003

    The Consumers' Association says that the FSA's proposals in its consultation paper on the draft rules governing the sale of financial product have missed the point and will not help get consumers better products and advice. Mick McAteer, senior policy advisor at the CA, says: "All along we have said that the FSA's determination to abolish polarisation misses the point. These proposals don't address the real problems in the financial services industry. Instead they ...

  • CML urges homeowners to claim tax credits

    21 Jan 2003

    With publicity for the new tax credits system beginning shortly, the Council of Mortgage Lenders is urging homeowners to check whether they are entitled to claim the credits. At present, only half of eligible homeowners are claiming credits. An estimated £1bn a year of unclaimed tax credits are accounted for by homeowners. The CML's reminder is part of the industry's ongoing drive towards making home ownership more sustainable - providing creative ways of ...

  • Complaints about estate agents go through the roof

    21 Jan 2003

    Complaints against estate agents surged to record levels in 2002, up by 15% on the previous year to more than 6,000, The Guardian's Jobs & Money section revealed last week. According to the Estate Agents Ombudsman, estate agents beat their previous record for complaints in 2001, when the total rose by 25%, despite an ongoing investigation into the industry by the Office of Fair Trading. Six agents were banned from doing business last year by the OFT following serious breaches ...

  • Co-op agrees first sub-prime product range

    20 Jan 2003

    The Mortgage Distributors Cooperative has agreed its first sub-prime product range, backed by Kensington Mortgages and Preferred Mortgages. Both lenders are funding discounted, medium adverse products that cover applicants with CCJs totalling between £2,500 to £6,000. The products are available for self-cert and status borrowers. The Kensington-backed range includes four products. For lower adverse applicants, there are self-cert and status variants on a three-year ...

  • Coventry woos first-time buyers with new products

    20 Jan 2003

    Coventry Building Society has launched a new range of mortgages aimed at attracting the first-time buyer market. Coventry has launched a range of first time buyer-only products including a 1.40% discount (current applied rate 4.35%) until September 30 2005 before changing to a 0.76% discount until September 30 2008. Among fixed rate deals on offer to first time buyers, the Coventry is also offering a 4.45% rate until September 30 2005, changing to a 0.76% discount until ...

  • Cover yourself when Processing mortgages

    20 Jan 2003

    From Ronnie Bowes In view of the position in which several thousands of intermediaries now find themselves - and particularly after reading the recently published letter from Michael Lawrence (Mortgage Strategy, January 6) regarding his inability to pass the CeMAP exam - I must tell you what transpired when we had our annual inspection by the MCCB at the beginning of last year. It was pointed out to the young lady (who was most understanding and courteous towards us) how we ...

  • Flexible and offset mortgages offer tax planning benefits

    22 Jan 2003

    As the end of the tax year approaches, Savills Private Finance recommends would-be borrowers to consider a flexible or offset mortgage to take advantage of the potential tax planning benefits they offer. A key advantage for taxpayers is that their savings, interest on which would usually incur tax, will be offset at the mortgage rate, with no tax to pay. Flexible mortgages also allow borrowers to make overpayments. Money that has been overpaid can be drawn back from the ...

  • FSA advises consumers to plan for a challenging year ahead

    23 Jan 2003

    The Financial Risk Outlook 2003, published yesterday by the Financial Services Authority, highlights a number of risks associated with the economic outlook and depressed conditions in financial markets. FSA managing director Carol Sergeant says: "The year ahead should be one of modest recovery. But there are considerable uncertainties and plenty of reasons for caution at a time when more consumers look financially stretched and some sectors have seen their profitability and capital ...

  • FSA confirms relaxation of mortgage endowment time bar rules

    22 Jan 2003

    The Financial Services Authority yesterday published its policy statement on relaxing time bars for mortgage endowment complaints. The rule changes will reduce the risk that some endowment policyholders who may have been mis-sold policies will miss the opportunity to complain because they did not realise they had a potential claim and failed to act in time. Some consumers, however, still face the risk of being too late to complain if they feel they were mis-sold to. There ...

  • FSA unveils draft rules on depolarisation

    21 Jan 2003

    The Financial Services Authority yesterday published Consultation Paper 166 setting out the detail of how it proposes to abolish the polarisation regime for those advising on packaged product business. The FSA board's decision to abolish polarisation was announced on November 21 2002 following lengthy consultation. David Severn, head of retail projects at the FSA, says: "The new regime is aimed at increasing choice for the vast majority of consumers for whom the polarisation ...

  • Full disclosure? Tell us about it

    20 Jan 2003

    Continuing our overview of CP160 on insurance selling from last week, we pick up at Chapter 7 and look at the matter of status disclosure. The FSA regards this disclosure as a very important matter and is adamant that customers should receive such information at the initial point of contact (not at the conclusion of a contract) as it may influence the customer's decision about whether to use the intermediary firm (see box for the information that has to be disclosed about the ...

  • GMAC Commercial Mortgage Europe opens new UK office

    23 Jan 2003

    GMAC Commercial Mortgage Europe recently announced the opening of its new United Kingdom office located in London's West End at Buchanan House on St James Square. GMACCM Europe offers a range of services for the European commercial real estate industry including lending, equity co-investment and servicing. GMACCM Europe completed close to 1bn euros in European transactions. James A. Dalton, president of GMACCM Europe, says: "Our current pipeline is very ...

  • GMAC picks 40 firms for Partner plan

    20 Jan 2003

    GMAC-RFC has launched a 'Platinum Partners' programme for 40 selected packagers. The initiative signifies a break from recent trends in the nonconforming packager industry, with several lenders dropping low-volume and low-quality packagers from their packager panels. Companies within the new initiative will be offered facilities including compliance and regulatory seminars, early notification and access to exclusive products, access to onsite underwriters, marketing ...

  • Goldman & Co denies bid rumours

    23 Jan 2003

    Goldman & Co, a Manchester based specialist brokerage, deny all rumours that they have received a bid for their business.

  • High Street Home Loans launches online Monopoly League

    20 Jan 2003

    High Street Home Loans is organising the mortgage industry's first ever online Monopoly League, with the winner and partner celebrating with a Caribbean holiday cruise worth more than £2,000. Gary Forrest, managing director of High Street Home Loans, says: "Monopoly is probably the UK's favourite Christmas afternoon family game - everybody has played it at some time. Now it's time to find out who in the mortgage industry knows their Angel from their Water Works." Fifteen ...

  • Homebuyers holding off as market slows, says RICS

    24 Jan 2003

    House hunters are holding off buying property until they can see which way the market is moving. The Royal Institution of Chartered Surveyors' housing market survey for the final quarter of 2002 shows that potential buyers have put their plans on hold while waiting to see whether house prices will fall dramatically or whether the market will have a soft landing. RICS reported slight price falls in London, and the number of enquiries from potential buyers and the level ...

  • Homebuyers stay calm despite economic uncertainty

    24 Jan 2003

    The number of people intending to buy a new home in the next two years has remained stable at 11% for the third consecutive quarter, finds Alliance & Leicester's quarterly movingimproving index. Whilst this figure has fallen from a high of 15% two years ago, the findings suggest that there has been a measured cooling among prospective homebuyers. While housing market reports are sending conflicting messages to UK homeowners and prospective homebuyers, the new findings ...

  • Kylie and Co brighten up our dreary days

    20 Jan 2003

    From Bill Aspinall Carole Colyer-Worsell (Letters to the editor, Mortgage Strategy January 13) clearly has her knickers in a twist when she protests over "titillating photos of women" in Mortgage Strategy. As a firm, we feel strongly that pictures of Mole, Paul Fox, Richard Griffiths et al dressed in their Y-fronts would put brokers off Mortgage Strategy for life. No, we're quite happy with Kylie and Co brightening our dreary winter days, thank you Carole. And ...

  • Lifestyle Finance commits £10 per completion to children's charity

    22 Jan 2003

    Rotherham-based sub-prime mortgage broker/packager Lifestyle Finance has committed to donate £10 for every mortgage it completes in 2003 to the South Yorkshire children's charity, Help a Hallam Child, run by Hallam FM Radio. The appeal helps local children and also contributes to national children's charities. The total value of the Lifestyle Finance contribution is estimated to reach £100,000 by the end of 2003. Managing director Mike Worthington ...

  • Manufacturing industry sees further decline in operations

    23 Jan 2003

    The number of manufacturers operating below capacity has risen to a 20-year high, fuelled by a relentless two-year decline in orders and output. The CBI's Quarterly Industrial Trends survey, published yesterday, also shows manufacturers' confidence dropping further as weak global demand threatens to keep the sector mired in recession. It finds that 74% of firms are now working below capacity, the highest percentage recorded since January 1983. This follows two ...

  • MCCB to ensure supervision by random checks

    20 Jan 2003

    The MCCB says it will enforce last December's examination qualification requirement with random checks and reviews of sales processes, writes Harriet Williams. Supervision arrangements will come in for special attention amid fears that some intermediary firms are using compliance networks to rubber-stamp unauthorised advice. A senior industry source told Mortgage Strategy: "Brokers without CeMAP or MAQ qualifications are readily accepted into the remote supervision ...

  • Mortgage lending reached £219bn in 2002

    22 Jan 2003

    Mortgage lending totalled £219bn in 2002, based on figures released yesterday by the Council of Mortgage Lenders. Over the year, remortgaging accounted for 38% of all lending at £83.6bn, the highest figure on record. Lending in December reached £19.5bn, showing no sign of any seasonal slowdown. Remortgaging remained strong in December, accounting for 39% of the total. Lending for house purchase totalled £10.6bn for the third consecutive month, ...

  • Mortgage Next launches Direct 2 Source service for sub-prime business

    24 Jan 2003

    Independent mortgage distributor Mortgage Next has launched a new Direct 2 Source service especially for the sub-prime sector. The quantity of sub-prime lending being received through Mortgage Next's specialist packaging facility has increased by 60% year on year. Direct 2 Source enables introducers to send applications direct to a panel of four sub-prime lenders, including Kensington Mortgage Company and Platform. Introducers will retain the same level of procuration fees ...

  • My mortgage week - Brian Everett

    20 Jan 2003

    Monday: A brisk start as I need to be on the road for 7.00am. I relocate to Bristol soon but until then I travel to Bristol on Monday mornings and back to Cheshire on Friday afternoons. While this is not particularly productive time, it allows me time to think of the week's activities. I like to set objectives and this is a good time to ask myself what I would like to achieve. By setting small objectives, I can tackle big projects one step at a time and ensure I am making progress. ...

  • NAMBA confident of securing funds

    20 Jan 2003

    NAMBA is close to securing the funding it needs to establish itself as the primary trade body for mortgage intermediaries, Mortgage Strategy can reveal. NAMBA's role within the Association of Independent Financial Advisers and its plans for funding were the key issues discussed at a meeting of the NAMBA steering committee last week. Sources say the committee is awaiting confirmation of "significant funding from within the mortgage industry" - the last issue to resolve ...

  • New chairman for Financial Ombudsman Service

    21 Jan 2003

    The Financial Services Authority has appointed Sue Slipman OBE as the new chairman of the board of the Financial Ombudsman Service. The board runs the single ombudsman scheme set up by the FSA under the Financial Services and Markets Act 2000 to deal with complaints against the financial services sector. Slipman joins the FOS from Camelot Group, where she has been responsible for environmental and social responsibility since 1998. Previously she was director of the ...

  • New managing director at Origo

    21 Jan 2003

    The chief executive of Origo, the Edinburgh-based financial services e-standards body, is to retire at the end of March. Sandy Neilson has led the firm for 11 years and intends to pursue a mix of non-executive and other interests both in the financial services arena and further afield. Neilson will be succeeded at Origo by fellow executive, Paul Pettitt, who will take overall charge as managing director on April 1. Currently Pettitt is responsible for all of Origo's ...

  • New managing directors at Trigold

    22 Jan 2003

    Bill Safran and Martin Colyer have been appointed joint managing directors of Trigold. Safran was previously sales and marketing director, and Colyer was finance and operations director. Safran says: "We have a strong experienced management team leading a business with market-leading products in an exciting, growing and innovative marketplace where our technology and services can make a big difference for lenders and intermediaries."

  • New scheme targets postcode-specific leads

    20 Jan 2003

    The National Mortgage Helpline is seeking independent mortgage advisers interested in a consumer-facing lead generation proposition. The new service provides mortgage advisers with leads to individuals interested in mortgage advice in specified postcode areas. The leads, generated through a 24-hour telephone helpline and the company's web site, www.national-mortgage-helpline.co.uk, are immediately forwarded to the appropriate adviser via email. Mortgage advisers can ...

  • New schemes for housebuying in France and Italy

    24 Jan 2003

    Those wishing to buy a property in France are being offered the chance to repay their mortgage over a more favourable period, under a new scheme offered by leading overseas mortgage specialists Conti Financial Services. Hove-based CFS can arrange lending of up to 85% of the value of the property over a period of up to 25 years. The new scheme increases the existing repayment period by five years and further brings it in line with the majority of other European countries. Simon ...

  • Newcastle Building Society launches offset tracker mortgage

    22 Jan 2003

    Newcastle Building Society has launched an offset tracker mortgage at 4.5% with no early redemption penalties, and with an initial discounted rate of 3.9%. The product, which the society believes is market-leading, is available to potential and existing homeowners. The initial rate of 0.1% below base (3.9%) for six months reverts to 0.5% over base for the remainder of the term (4.5%). The mortgage is available online now and in branches by end of the month. Applications ...

  • No learning infrastructure to support new exams regime

    20 Jan 2003

    From Rod Williams I read with great interest the letter submitted by Michael Lawrence (Mortgage Strategy January 6). I am almost 59 years old and, like Mr Lawrence, an IFA with over 30 years of experience in the financial services industry. During this time, I think I have provided good reliable advice to my clients on a whole range of products, including mortgages. Unlike Mr Lawrence, however, I was fortunate enough to pass the Mortgage Advice Qualification on my ...

  • Not quite the stuff of Alice in Wonderland

    20 Jan 2003

    From Robert Clifford Stuart Glendinning's letter in the January 6 edition of Mortgage Strategy rightly recognises that mortgageforce's revenue-share strategy "makes sense" and is "effectively risk-free". Yet he believes we're in Wonderland. I regret that, much like the Queen of Hearts, my comments appear to have turned Stuart red. Knowing Stuart as I do, I know that he will understand that my opinions on pay-per-lead were intended to be generic and fair. I could not give a ...

  • OFT publishes guide on legislation

    24 Jan 2003

    A new guide to help businesses understand consumer and competition legislation has been published by the OFT. The guide, Running a Business, outlines the legislation under which the OFT has powers and responsibilities. It summarises laws that apply to all businesses from large companies to sole traders covering issues such as: ? Anti-competitive agreements ? Abuse of a dominant position ? Mergers ? Consumer credit ? Unfair contract terms ? Misleading ...

  • Over 1,800 passed MAQ exam in December

    20 Jan 2003

    A total of 1,816 people passed the MAQ examination in December to take the total number of qualification holders to 13,711, the Chartered Insurance Institute says. During 2002 the CII examined just under 16,000 MAQ papers. To help those who still need to meet the MCCB requirements the CII is running an extra exam session in February. CII marketing director Steve Wellard says, "The CII is very pleased to have been able to play a major part to help advisers meet the MCCB's ...

  • Packager tie-up creates lending unit

    20 Jan 2003

    Packagers EM Financial and Mortgage Match have joined forces to create a branded lending unit. EM Residential Funding will receive packaged cases from around the country at its central London offices. Edward Strange, former business development manager at Mayfair-based The Mortgage Placement Company, has been appointed managing director. GMAC-RFC and SPML have already signed distribution agreements with EM Residential Funding and Strange says it is possible they ...

  • Platform set to unveil new brand strategy

    20 Jan 2003

    Platform, the new one-stop lending arm of Britannia created from the merger of Platform Home Loans and Verso, will unveil its new brand on January 30. Platform's range of products will include the buy-to-let and self-cert products that used to be sold through Verso and the non-conforming range that was under Platform Home Loans, plus a number of new products. Guy Batchelor, sales and marketing director, says: "The new brand is clear, consistent and, as it is a revised ...

  • Portman appoints director of marketing

    24 Jan 2003

    Portman has appointed Andrew McQueen as director of marketing. McQueen joins the society on February 3 and will be responsible for all marketing functions within the Portman Group. He was previously at Goldman Sachs and has much relevant experience gained from the publishing, dotcom and financial services sectors. Portman's group development director Matthew Wyles says: "I am delighted that we have succeeded in attracting someone of Andrew's calibre. His appointment ...

  • PRESCOTT ANNOUNCES RIGHT TO BUY REFORMS

    23 Jan 2003

    Measures to reform the Right to Buy scheme and bring it up-to-date in areas under greatest housing pressure were announced yesterday by Deputy Prime Minister John Prescott. The changes, aimed at meeting local housing market pressures, reducing homelessness and exploitation of the Right to Buy scheme, will mean maximum discounts available to council tenants purchasing their homes being reduced to £16,000. Forty-two local authorities in parts of London and the South-East ...

  • Product changes at Irish Permanent

    24 Jan 2003

    Irish Permanent has announced a range of product improvements designed to build market share in both the buy-to-let and home loan sectors. The lender, whose UK base is in Hammersmith in London, is putting the changes in place following extensive consultation with intermediaries. They comprise loan-to-values lifted to 85% of £1m for buy-to-let; rent cover reduced to 125% and based on monthly interest payments; individual self-certification buy-to-let limit lifted ...

  • Record response to Chancery Law Group campaign

    21 Jan 2003

    Chancery Law Group has attracted over 3,000 enquiries within weeks of the launch of its £140,000 Sunday Telegraph campaign to increase public awareness of the soaring costs of failing to plan for inheritance tax. The promotion involves the Sunday Telegraph running a series of editorial features that alert the public to the growing problems of inheritance tax and the costs associated with later life. Chancery Law Group expects the promotion to lead to increased enquiries ...

  • Rightmove predicts renewed interest in property market

    20 Jan 2003

    Seasonal decreases in the housing market during January have been less pronounced than those in 2002, says property website Rightmove.co.uk. Year-on-year house price inflation rose to 26.5% compared to 22.1% in December. Between December and January prices slipped by 0.4%, a modest amount contrasted with the big seasonal fall of 3.9% in January 2002. The nationwide estate agency website says number of properties coming onto the market has risen sharply (almost 40,000 ...

  • Roll up for the Monopoly League

    20 Jan 2003

    High Street Home Loans is organising the mortgage industry's first Monopoly League, with the winner and their partner celebrating with a Caribbean cruise worth more than £2,000. Gary Forrest, managing director of High Street Home Loans, says: "Monopoly is probably the UK's favourite afternoon family game - everybody has played it at some time. Now it's time to find out who in the mortgage industry knows their Angel from their Water Works." Fifteen regional ...

  • Scottish Equitable Protect adds five-year reviewable rates across critical illness range

    23 Jan 2003

    Scottish Equitable Protect is adding a five-year reviewable rates option on critical illness cover within its mortgage and business protection menu products, which means that this option is now available across the company's entire critical illness range. The new option means that IFAs now have the choice of recommending rates which are guaranteed for five years, and then reviewed and guaranteed on a five-year cycle thereafter, or guaranteed rates, which are guaranteed to remain ...

  • Scottish Provident offers support package for intermediaries

    23 Jan 2003

    Scottish Provident is offering intermediaries the chance to try its Self Assurance Lifeline service so that they can experience first hand the services on offer, before recommending it to their clients. The Self Assurance Lifeline, which was set up in 1999, is a confidential phone-based support package included free with all Scottish Provident plans, offering practical advice and information to policyholders and their intermediaries, on: Legal enquiries ? The ...

  • Scottish Widows announces with-profits bonus payouts

    20 Jan 2003

    Scottish Widows policyholders are set to benefit from bonuses of more than £500m added to with-profits policies in 2002, despite the third consecutive year of negative stock market returns. Mike Ross, chief executive of Scottish Widows, says: "The last three years have seen unprecedented sustained falls in stock market levels, which - together with lower interest rates - have affected the returns on most types of investment. "Even those such as fixed interest ...

  • Size matters when it comes to direct action

    20 Jan 2003

    Mortgages Direct Mortgages Direct is the dedicated mortgage specialist of Europe's largest independent estate agent, TMXspicerhaart, offering financial advice to homebuyers within its network across the UK. The parent company originated in East Anglia with three branches back in 1989. It now has 250 branches nationwide including brand names such as Haart, Spicer McColl, Darlows, and Felicity J Lord and aims to provide the 'total moving experience'. The firm employs over 2,000 ...

  • Skipton to acquire third IFA firm

    20 Jan 2003

    Skipton Building Society has announced plans to acquire a 75% shareholding in IFA firm Pearson Jones Plc, subject to regulatory approval. An initial purchase price of £3m, with a maximum potential consideration of £9m will be paid. This brings the total number of subsidiaries within the Skipton Group to 17. Pearson Jones is a firm of independent financial advisers which specialises in wealth management. It offers a wide range of services, including self-administered ...

  • Standard Life reduces withdrawal values

    21 Jan 2003

    Standard Life yesterday announced a further reduction in values paid on withdrawals from its with profits fund. The adjustment, which applies to surrenders, switches and transfers, follows a significant increase in withdrawal activity. Conventional life policies will now be subject to a Surrender Value Reduction of up to 20%, while unitised pensions will be subject to a reduction of up to 25%. Similar changes will apply to other types of life and pensions policies. ...

  • Standard Life welcomes polarisation proposals

    23 Jan 2003

    Standard Life has welcomed the next stage of the depolarisation consultation process, the issuing of CP166 - Reforming polarisation: Removing the barriers to choice. The life company believes the proposals outlined in the paper will facilitate better access to advice on suitable products and greater choice for consumers, and is pleased that the value of independent advice has been recognised. Feilim Mackle, managing director of sales, says: "This is generally good news ...

  • Stroud and Swindon launches new fixed rate mortgage range

    24 Jan 2003

    Stroud and Swindon Building Society is launching two three- and five-year fixed rate mortgages. Available from 24 January, the three-year product is fixed at 4.44% and the five-year at 4.74%. An early repayment charge is only made within the fixed rate period, and borrowers can repay up to 25% of the loan without charge at any time, subject to conditions. The three-year fix has a discount of 0.5% for a further two years after the initial three-year fixed rate period. ...

  • Surge in e-business for adviser.tech exhibitors

    23 Jan 2003

    Adviser.tech exhibitors including Norwich Union, Legal & General and Webline have all reported significant growth in their online business in the past few months. Norwich Union saw its e-business increase 47% in the second half of 2002, with 86% of this coming via the company's own extranet service Since its launch in April 2002 Legal & General's e-Protection Choices has significantly increased the volume of protection business submitted online, helping the company ...

  • Surrenda-link offers investors TEP bargains

    22 Jan 2003

    TEP trader Surrenda-link says that traded endowment policies remain an attractive investment for those looking for higher than average growth, coupled with lower than average risk. The company claims that investors can carry on making gains even if equity markets continue to fall or even if policy bonus rates are cut again this year, as has already been announced by certain life companies. The guaranteed value of a TEP often exceeds its purchase price which translates into a ...

  • The attraction of e-marketing Tips on new media marketing

    20 Jan 2003

    With research showing that 34 million people in the UK have access to the internet, it is a marketing channel that cannot be ignored. This, plus the huge growth in the use of email, means that today's technology provides a powerful new medium on which financial advisers can promote their businesses and generate leads. The internet has 9,000 new users a day according to the above-mentioned research, which means a large and growing number of people who can use it to shop for ...

  • The dark side

    20 Jan 2003

    Single premium mortgage payment protection insurance may form only a tiny part of the home loan protection market, but it generates a disproportionate level of controversy. While regular monthly premium products are enthusiastically promoted by government, insurers and lenders, the single premium model is shunned by many. Its more vehement critics argue that the product should be driven into the protection wilderness with those who sell and promote it. Single premium ...

  • The MarketPlace launches exclusive three-year fixed rate

    21 Jan 2003

    The MarketPlace at Bradford & Bingley has launched an exclusive three-year fixed rate mortgage funded by Bristol & West. The product is aimed at first-time buyers and has a pay rate of 4.49% (5.9% APR). There is a maximum LTV of 95%, is MIG free to 95%, and there is £300 cashback. There is no arrangement fee or extended tie-ins beyond fixed period and there is a free valuation. David Bitner, spokesman for the MarketPlace, says: "This is a cracking product for ...

  • The Mortgage Mole

    20 Jan 2003

    Big Daddy Those of you who have had compliance visits from the MCCB will know how keen it is to keep brokers on the straight and narrow. But now Mole can exclusively reveal the true extent of the body's secret intelligence network. I hear that one Friends Provident manager in Salisbury got quite a shock after handing a draft copy of a letter to the regulator to the office temp. "Oh, my Dad does something for them," came the response from the undergrad. The father in question? ...

  • The Staffordshire pilots bill payment service

    21 Jan 2003

    Staffordshire Building Society is piloting a new scheme which, if successful, would mean that members could arrange the supply of their telephone, gas and/or electricity services through the society and make one payment each month. The new service is to be called Staffordshire PaymentPlus and will be available to both existing members and non-members of the society. It recognises that many people are fed up of paying too much for their phone, gas and electricity bills and that ...

  • This week's problem case

    20 Jan 2003

    Ian is a first-time buyer looking for good value on a mortgage product. Typically for the cash-strapped first-time buyer, money is tight and Ian has a deposit of just £4,000. He needs to arrange a £96,000 mortgage to secure the property he has found. Ian is keen to make the most of his deposit to secure some equity in his property but realises that choice may be limited. He is keen to get things moving as soon as possible. Intermediary response Mike Waite, director ...

  • Three-year stepped discount from Earl Shilton Building Society

    24 Jan 2003

    Earl Shilton Building Society will launch a new three-year stepped discount with no extended tie-in on February 1. The product has a 1.95% discount for the first two years, giving a pay rate of 3.65%, followed by 0.95% discount for the following year, a pay rate of 4.65%. There is an arrangement fee of £295 and a valuation fee would be payable. Existing mortgage customers moving house and investors of two years standing or more would receive £100 of valuation ...

  • Time to drive off the mortgage sharks

    20 Jan 2003

    For such a tiny part of the home loan protection market it's rather surprising that single premium mortgage payment protection insurance can generate so much controversy. That is of course, until you look at the rogue advisers that are touting this product to unwary clients. As we investigate in our cover feature starting on page 23, there'd be no love lost if single premium MPPI could be driven out into the protection wilderness - along with all those that sell ...

  • Top-up fees could lead to 100% rise in graduate debts

    22 Jan 2003

    Changes in funding for higher education could mean that students will leave university with debts up to 100% higher than in 2002, Barclays says. Education secretary Charles Clarke recently announced that students could be saddled with debts of over £21,000 following the introduction of top-up fees. The Barclays graduate survey has shown that graduate debt has risen dramatically in recent years. While in 2000, debts stood at just £5,000, by 2001 they had risen ...

  • Trigold to power AXA Mortgage Solutions

    22 Jan 2003

    Trigold is powering the AXA Mortgage Solutions mortgage sourcing proposition to AXA advisers. The Trigold Prospector system forms an integral part of the AXA Mortgage Solutions offering, which integrates into one package, including mortgage sourcing, life assurance protection, mortgage payment protection cover and building and contents insurance, with full compliance support across the proposition. Bill Safran, joint managing director of Trigold, says: "Trigold Prospector ...

  • West Brom to establish a brave New World

    20 Jan 2003

    West Bromwich Building Society is to launch an intermediary subsidiary in autumn this year under the name New World. The New World brand was acquired in March 2002 when the society acquired a residential UK mortgage portfolio from the Commonwealth Bank of Australia. The acquired portfolio sits on the books of the West Bromwich Mortgage Company, a purpose-designed subsidiary whose assets do not confer full membership rights of the building society proper. From ...

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