Mortgage Strategy
21 October 2002

  • 'Peter' and the guinea pig

    21 Oct 2002

    From Richard Griffith I refer to The Mortgage Mole and last week's comment on the "real" name of Peter Gladdy. It seems to me that you are making a mountain out of a molehill. To set the record straight, the only Dennis employed by Network Data Limited is shown in the accompanying photograph (see page 38). Dennis is a guinea pig who is the personal pet of Tracey Goodrum, our accounts manager. Dennis is employed as a confidential waste-paper shredder. I would appreciate it if ...

  • 'Serious' home-buyers keep the faith

    21 Oct 2002

    Independent brokers Mortgage Talk say the housing market is holding up well, despite ongoing worries over the robustness of the property market, writes Harriet Williams. Andy Frankish, a director of Mortgage Talk Direct, argues the market is finding strength as it marks a shift away from the 'casual buyer' across to the more serious purchaser. He says: "Recent price rises have seen some of the heat taken out of the property market, especially as many first-time buyers believe ...

  • 95% take up of Legal & General Group rights issue

    24 Oct 2002

    Legal & General Group has received valid acceptances in respect of 1,269,947,596 new Legal & General shares. This represents approximately 95% of the total number of new Legal & General shares offered to shareholders, pursuant to the 13 for 50 rights issue announced by Legal & General on 10 September 2002. A total of 1,341,565,833 new Legal & General shares were offered to shareholders in the rights issue, which closed at 9.30 on Tueday October 22. The remaining ...

  • A case of us watching them watching US

    21 Oct 2002

    This week the 89th Mortgage Bankers Association of America Annual Convention & Expo takes place in Chicago. The MBAA annual get together is, quite literally, the largest mortgage event of its kind in the world. Founded in 1914 as the Farm Mortgage Bankers Association, the MBAA represents the US real estate finance industry and now has 2,800 members including mortgage companies; brokers; commercial banks; credit unions and life insurance companies. And as well as the US's top ...

  • After the goldrush...

    21 Oct 2002

    The UK property market has kept its head while all around it have been losing theirs. Technology has crashed, stockmarkets floundered, annuities plunged and job security dived, but house prices keep powering remorselessly upwards. In February, the price of the average UK house broke through the £100,000 level for the first time and the doomsayers redoubled warnings of an impending crash. And, as we revealed last week, by the year 2052 that same average will have hit the £1m ...

  • Amber gives green light to new range

    21 Oct 2002

    Amber Homeloans has improved its light to medium adverse product range by reducing rates on both of its two-year fixed rate mortgages, arming brokers with Amber's lowest ever fixed rates. A fixed rate of 5.49% now applies to a full-status two-year fixed rate until January 31 2005. A two-year fixed rate for self-certification is 5.95%. Gordon Jolly, managing director of Amber Homeloans, says: "We are particularly pleased to be able to offer our lowest-ever fixed mortgage rates. ...

  • Anger and frustration for 90% of call centre consumers

    25 Oct 2002

    Latest research from Mintel finds call centres are dramatically failing in terms of meeting customer service expectations. Exclusive research questioning 2,020 adults finds just 5% of consumers having never experienced a problem with a call centre. A further 5% of adults do not use call centres. By far the biggest consumer complaint when telephoning a call centre is the time spent waiting on hold, with some 60% of adults frustrated about having to hang on for long periods ...

  • Average house price for self-employed tops £150,000

    23 Oct 2002

    The UK average purchase price for the self-employed is just under £152,000, according to UCB Home Loans, the specialist subsidiary of Nationwide Building Society, compared with a UK average house price of around £111,000. In its first self-employed report, called 'Self Starter', UCB reports that London tops the regional league with self-employed people paying around £211,000 for a home, compared with the lowest price of around £105,000 in Northern ...

  • Banks to streamline

    21 Oct 2002

    The management of Clydesdale and Yorkshire Banks is to be streamlined by parent, the National Australia Group, in order to eliminate duplication and improve the effectiveness of local management, writes Harriet Williams. The post of chief executive of Clydesdale and Yorkshire Banks is to be held by Steve Targett, who will also continue in his current role as chief executive of Financial Services Europe. The current chief executive of Clydesdale and Yorkshire Banks, Grahame Savage, ...

  • Berkeley Morgan Group recruits executive director

    22 Oct 2002

    The OFEX traded insurance and financial services provider, Berkeley Morgan Group, has appointed Alan Taylor to be an executive director of the company and group compliance director. Prior to joining Berkeley Morgan Group Taylor was managing director of DBS Financial Management, the UK's largest IFA network with over 2,500 registered individuals. He had been with DBS for eight years including four as compliance director. DBS was acquired last autumn by Misys, the software ...

  • Big players start to circle First National

    21 Oct 2002

    Lloyds TSB and GE Capital are believed to be among the bidders for First National, the specialist arm put up for sale by Abbey National. Lloyds is understood to have offered less than Abbey's preferred asking price of around £800m. Unless the bidding picks up, analysts say that Abbey may try to cash in by selling First National - which includes First National Mortgage Company - as separate business units. GE Capital, which own specialist lender igroup, is thought to ...

  • BM Solutions launches professional buy-to let product

    25 Oct 2002

    BM Solutions has entered the professional landlord market with the launch of a new product, ཕ to let'. Available exclusively through Mortgage Intelligence, ཕ to let' is aimed at the professional portfolio landlord. The mortgage is available at 0.98% over the Bank of England base rate for two years reverting to 1.95% over Bank of England base rate for life. Landlords will be able to borrow up to £2.5m on a maximum of 25 properties, with a loan-to-value of ...

  • Bolton's ideas branded "fatuous and arrogant"

    21 Oct 2002

    Michael Bolton is under fire again this week with one packager deriding his attempts to reform the packaging market as "fatuous and arrogant". In a letter to Mortgage Strategy, David Gould, sales and marketing director at Chester-based packager The Select Partnership, says: "The central theme of his argument seems to focus on the question of transparency. I say 'seems' because I find his points opaque and, at best, confused." Referring to an article by Bolton that appeared ...

  • Britannia names new intermediary brand Platform

    22 Oct 2002

    Britannia Building Society has announced that the name for its new one-stop shop for mortgage intermediaries will be Platform. The new business, formed from the merger of Britannia subsidiaries Platform Home Loans and Verso, will launch in January 2003. It remains business as usual for both operations until then. The Platform name has been chosen following independent research conducted by Britannia with a group of leading mortgage intermediaries. The research showed ...

  • Britons delay long-term financial planning

    22 Oct 2002

    On average people expect to buy their first home by the age of 29 and to retire aged just 56, despite the fact that few are making adequate financial provision, suggest research findings from Insight Investment, the asset manager of HBOS plc. The research reveals that, on average, people expect to: * buy their first home when they are 29 * start a pension at 29 years old * quit work aged just 56 years old * trade in stocks and shares from the age of 34 The ...

  • Britons waste over £1bn in unnecessary inheritance tax

    23 Oct 2002

    Over £1bn will be served up unnecessarily to the taxman through people paying more in inheritance tax than they need to, suggests research from IFA Promotion, the organisation promoting the benefits of independent financial advice. Latest figures from IFAP's annual Wasted Tax campaign show that this year alone more than 260,000 estates will be applying for probate with assets totalling nearly £36bn - of this £2.3bn will go to the taxman. Contributing ...

  • Broker warns about inappropriate use of self-certification mortgages

    22 Oct 2002

    A broker has warned that the recent rise in house prices has resulted in some buyers being sold self-certification mortgages that are inappropriate to their needs. Andy Frankish, a director at Mortgage Talk Direct, the national direct selling department of independent broker Mortgage Talk, says: "As house prices have continued to spiral in the last twelve months or so, homebuyers have felt under intense pressure to move up the property ladder. As a result, some borrowers have ...

  • Brokers see lender regrets over cheap fixed rates

    21 Oct 2002

    Lenders that rushed to offer cheap fixed rate deals a few weeks ago may be regretting their decision, says independent broker Mortgage Talk. Andy Frankish, a director of Mortgage Talk, claims the market is already seeing sign that some lenders have miscalculated, with several high street names withdrawing fixed rate products launched only recently. He says: "Some lenders seem to have been surprised by the Bank of England's decision to leave interested rates unchanged ...

  • Building societies urged to "return to radicalism"

    23 Oct 2002

    Delivering the sixth annual Building Societies Association Lecture Philip Middleton, head of retail banking at Ernst and Young, said that conditions were ideal for a resurgence of the strengths of mutually owned financial institutions in delivering "first class financial services rooted in social value rather than profit maximisation." However, the ability of the UK's 65 building societies to capitalise on the potential of one of the most exciting periods in their history could ...

  • CBI sees manufacturing recovery hopes dashed

    24 Oct 2002

    Hopes that manufacturing is on the brink of recovery have been dashed by another decline in orders and output. The CBI's Quarterly Industrial Trends survey shows confidence falling for the first time since January, prompting firms to cut investment and jobs. The employers' organisation chose not to call for an immediate cut in interest rates in face of the continued uncertainty about the health of the international economy and the recent tick upwards in underlying ...

  • CBI urges caution over minimum wage

    25 Oct 2002

    The CBI has urged caution over the next rise in the minimum wage in a bid to protect the most vulnerable sectors of the UK's fragile economy. It will publish its evidence to the Low Pay Commission, which in February will recommend a new rate for the government to introduce from October 2003. Digby Jones, director-general of the CBI, says: "The minimum wage has so far been a success and it should not wither on the vine, so business supports modest rises if economic ...

  • Clients avoid fixed rates in bid for cheaper deals

    21 Oct 2002

    The price of fixed rate deals has crashed in recent weeks, but consumers are still favouring discounts, brokers say. Kevin Duffy, managing director of Hamptons International, says that people are avoiding fixed rates because the base rate has not moved for 11 months. Consumers are preferring to take their chances on a discount or tracker over the next two years. He adds: "This could be the difference between them affording a £300,000 property or not. Property inflation and ...

  • Close Brothers to offer 'hands-free' mortgages

    21 Oct 2002

    Private bank Close Brothers has launched a service that leaves advisers free to remortgage clients as they see fit - without consulting the borrower first. The service, run by Close Brothers Military Services, will see officers in the armed services hand power of attorney to the bank. After establishing the borrower's broad product wants with a fact find, CBMS will then act on its own recommendations. Al Voice, managing director of CBMS, says: "Just as stockbrokers offer an ...

  • CML expects "extremely strong" lending to continue

    21 Oct 2002

    Gross mortgage lending in September remained high at £19.7bn, reveals the latest survey of mortgage lenders completed by the CML. Although this represents a slight easing back from the record lending levels over the summer, it is still significantly higher than the September 2001 figure of £13.7bn. The CML expects lending to continue at extremely strong levels for at least the rest of this year. Loans for house purchase totalled £10.6bn in ...

  • CML voices concern over FSA plans

    21 Oct 2002

    The CML has issued a draft response to CP146, which finds "real regulatory risk" in FSA plans for mortgage sales by filtering questions. The CML says consumers may well confuse information with advice, which could cost lenders and brokers dear. The response, seen by Mortgage Strategy, says the CML is "surprised and concerned" at FSA plans to drop the "reasons-why" letter that currently forms part of MCCB requirements. The report says: "The absence of this evidence will put firms at ...

  • Commercial First starts marketing campaign

    21 Oct 2002

    Sub-prime packager Olympian Financial has started to market specialist commercial mortgages from Commercial First - the new lending venture founded between ex-igroup boss David Johnson and Trigold chief executive Martin Finegold. Essex-based Olympian started marketing the range on October 16, and has so far received over 40 broker queries. Interest rates on the range start at 8%, and a lending ceiling of £1.5m applies. Mel Fordham, managing director of Olympian, ...

  • Consumers let down by FSA on endowment mis-selling, says CA

    22 Oct 2002

    New research released by Consumers' Association and Which? shows that only 17% of consumers with an endowment mortgage think that the Financial Services Authority (FSA) is doing enough to tackle their problems. The research also shows that 87% are unaware that the FSA has a factsheet designed to help people make a complaint and only half of consumers who have actually made a complaint are aware of the factsheet's existence. Since the Consumers' Association launched ...

  • Cooley takes finance role at MPLC

    21 Oct 2002

    Mortgages PLC has poached Tim Cooley from Kensington Mortgage Company to become MPLC's chief financial officer. Cooley joins MPLC's executive board which includes chief executive Trevor Pothecary, chief operating officer Paul Thomas, sales and marketing director Peter Beaumont and finance director Derek Wilson. Cooley, a qualified accountant with more than 13 years experience, has so far enjoyed a glittering career and was head of structured finance at KMC for five years. ...

  • Days to regulation: Dear FSA, [your comments here] Declaration of independence

    21 Oct 2002

    Richard Griffiths begins his trawl through the FSA's CP146 questions, one-by-one, suggesting responses to each. In some cases, more detailed suggestions can be found on our websiteFollowing on from last week's inaugural article, with its call to arms to respond to CP146, we start with Question 1 asking for comments on the proposed guidance. As the other 34 questions are focussed on specific issues, this is the only open-ended question we can use to get a number of things off ...

  • Demand for life and pension products unexpectedly strong

    23 Oct 2002

    Consumers show confidence in retail financial institutions by indicating a higher than expected product take up in the coming months. This emerges from the latest Financial Activity Bulletin produced by Martin Hamblin GfK and John Gilbert Associates. The survey found that 80% of consumers indicated that they would be financially active in the coming 6 months - saving, investing, borrowing or repaying debt. The number of consumers saving or investing rose from 64% in ...

  • Directors face jail for regulatory breaches

    21 Oct 2002

    UK company directors have little idea of the risks and liabilities they face, a new report warns, writes Robyn Hall. The London School of Economics says companies are unprepared to deal with a regulatory crisis and fail to monitor and influence new regulations. The report, for law firm DLA, reveals that while 96% of respondents believe regulatory risks are growing, almost a third (30%) of boards are unaware of activities in their companies which could lead to a regulatory intervention. ...

  • Directors face jail for regulatory breaches Adverse 100% LTV likely

    21 Oct 2002

    Lenders say the time of 100% LTV mortgages in sub-prime could be just around the corner. Both Future Mortgages and Preferred Mortgages relaunched 95% LTV products last week. The Future product offers a headline rate of 6.5% including a 1.25% discount and CCJs of up to £2,000. Preferred offers a discounted rate of 6.99%. But Mortgages PLC has pulled out of the 95% market for the time being. Head of marketing Julian Wells says: "You can't take bucketloads of business on 95%, ...

  • Fee-free with N&P

    23 Oct 2002

    Norwich and Peterborough is set to remove the arrangement fees from its discounted and tracker mortgage schemes, with effect from Friday 25 October 25. The building society's standard variable mortgage rate is currently 5.69%. Stephen Penlington, N&P's general manager residential mortgages, says: "Consumer research shows that our customers dislike mortgage administration fees. We have therefore removed them entirely from our discounted rate and base rate tracker ...

  • FSA protects endowment funds from fines

    21 Oct 2002

    New FSA rules mean that any fines imposed on life insurance companies must be paid by shareholders, not out of long term funds such as endowments. Howard Davies, FSA chairman, says: "In the past, firms have paid fines for rule breaches out of long term funds. We proposed this rule change as we believe that, where possible, fines imposed on a firm should be paid by its the owners and shareholders rather than out of funds from which policyholder benefits are paid. "This ...

  • General insurance regulation consultation announced

    22 Oct 2002

    Proposals to regulate the sale of general insurance were announced yesterday by Ruth Kelly, Financial Secretary to the Treasury. These take account of the EU's Insurance Mediation Directive that was adopted by the European Parliament on 30 September 2002. Commenting on the publication of Regulating Insurance Mediation Ruth Kelly says: "The proposals will enhance consumer protection in an important area of people's lives. Everyone takes out a general insurance ...

  • Genesis launches new product range

    23 Oct 2002

    Correspondent lender Genesis Home Loans has launched a new sub-prime product range. Nigel Gardner, operations director at Genesis Home Loans, says: "The Metals and Elements range is funded by Mortgages plc, as part of a significant branded lending arrangement, and marks the beginning of a new relationship with our fifth funding partner, that we hope will go from strength to strength." The 16 products in the range cover purchases and remortgages, with full status and ...

  • GISC must remain in place, says Treasury

    23 Oct 2002

    Ruth Kelly, financial secretary to the Treasury, yesterday paid tribute to the work of the current insurance regulator, GISC. She said: "I am grateful for GISC's on-going work in raising standards, enhancing consumer protection and raising the reputation of the industry. I should also like to pay tribute to GISC staff for all their efforts. It is important that GISC remains in place and is effective until statutory regulation comes into force to ensure a smooth transition. ...

  • GMAC-RFC launches its lowest ever buy-to-let fixed rate

    24 Oct 2002

    GMAC Residential Funding has launched its lowest ever buy-to-let fixed rate at 4.99% to January 2005 for loans up to 75%. For loans up to 85% LTV, the fixed rate is 5.39%. GMAC-RFC has also doubled the maximum allowable portfolio size to £2 million. The maximum individual loan is £750,000, and eligibility is based principally on the rental value covering 130% of the mortgage payment, calculated at their competitive 5.74% SVR. Mortgage offers are typically ...

  • GMAC-RFC launches redesigned fixed rate

    24 Oct 2002

    GMAC Residential Funding has launched a redesigned and enhanced fixed-rate deal for mainstream borrowers. The rate is now reduced to 3.95% until January 1 2005 and is available up to 90% LTV and 4.15% up to 95% LTV. The product offers a faster turnaround, vital for both intermediaries and their clients, as no income references are normally required. Gina Collman, head of corporate communications at GMAC-RFC, says: "We wanted to make this product even more attractive, ...

  • Halifax launches new generation internet credit card

    25 Oct 2002

    Halifax has unveiled a new generation internet credit card offering an interest rate for retail purchases of 9.9% APR plus 0% interest on balance transfers for five months. Called h2x, the new credit card takes advantage of the lower costs of the internet as a distribution channel. The h2x card also offers up to 59 days interest free credit on purchases and an online shopping service, which helps customers find some of the best retail prices available. The card channels ...

  • House prices record lowest monthly rise since January

    21 Oct 2002

    House price rises averaged 0.5% in the last month, reveals the hometrack national October survey of the housing market. These increases are a long way from May's high of 2.6%, and are the lowest monthly increase since January. However, with the exception of Central and East London, and Wiltshire, prices continued to rise across all counties. House prices have risen by 13.3% since the beginning of 2002 and hometrack says they are set to rise by 15% this year. ...

  • ICMG set to process commercial loans in New Year

    21 Oct 2002

    Southend-based packager ICMG will start processing commercial loans in January 2003 - and is promising to help brokers cash in through a lead-buying scheme. ICMG expects to complete £100m a year on the commercial side - half from brokers and half direct. The packager's new investment comes on the back of Commercial First Mortgages Limited - the new lending venture between former igroup managing director David Johnson and Trigold chief executive Martin Finegold. Chris ...

  • IFAs inadvertently laundering £1.5m each every year

    24 Oct 2002

    Every IFA firm could inadvertently be laundering on average an estimated £1.5m each every year. The figure was revealed at the Society of Financial Advisers (SOFA) half-day forum on money-laundering. However, of the 56,000 disclosures of money-laundering activity to the National Criminal Intelligence Service (NCIS) since September 11 2001 only 0.36% (just over 200) were reported by IFAs. In his keynote presentation, Marc Egerton FCII MSFA, chairman compliance ...

  • Independent mortgage and loan checking service launched

    22 Oct 2002

    LoanCheck, an independent mortgage and loan checking service, has launched today. The service, primarily accessed via the web, will quickly tell borrowers whether their mortgage and/or loan repayments and financing fees really add up. And, if they don't, LoanCheck will help them to seek recompense. John Patterson, chairman of LoanCheck, says: "Most borrowers don't know the finer details of their mortgage or loan, or if they've been fairly treated by their lender. ...

  • Insurance regulation proposals could leave consumers at risk, warns CA

    23 Oct 2002

    The Consumers' Association has welcomed new proposals by the Treasury to regulate general insurance but warns that, unless they are extended to include travel insurance sold by travel agents, consumers could be open to abuse. A Holiday Which? survey showed that 85% of consumers buying insurance for foreign package holidays bought their policies from travel agents or tour operators.1 Later research of Which? members revealed that consumers are twice as likely to be very dissatisfied ...

  • Is Right to Buy draining areas of affordable housing and creating a strain on the public purse?

    21 Oct 2002

    John Prescott has pledged to 'act' on the Right to Buy scheme, but is that anything more than a ploy to enable New Labour to dodge the real issues?John Prescott's recent pledge to 'act' on the Right to Buy scheme indicates that this long-debated policy is at last up for review. In doing this, the key questions ministers must ask themselves are whether it makes economic sense and how it sits alongside the government's current priorities. The Right to Buy has benefited ...

  • Is your pint half full or half empty?

    21 Oct 2002

    Before I start on any serious comment on the Financial Services Authority's mortgage consultation document CP146, I'd like to confess something. I like real beer. I can't say that I drink a great deal of beer, I am more of a Chardonnay or gin and tonic man, but, when I do, I like to drink real quality ale. There's nothing better on a Sunday afternoon than to find a country pub that serves England's finest. For me, make it warm and flat just like the Essex countryside where ...

  • Market woes fail to dampen consumer confidence

    24 Oct 2002

    Researchers have found stock market slumps and the threat of war on Iraq have failed to dent people's confidence about their household finances. The report, by economic analysts Experian Business Strategies, said optimism about the prospects for household finances over the next year was at the highest level ever recorded. The report, which covers the period from July to September, showed 33% of a sample group of 6,024 people in the UK expected their personal finances ...

  • Mind your language, it's term-time

    21 Oct 2002

    There are particular topics and terms in the syllabuses of the mortgage advice qualifications where there is potential for confusion in the minds of candidates who are not fully prepared. Some of these have been dealt with previously in this column. They include, for example, the matters that are contained in a mortgage offer rather than in a mortgage deed and the meaning and use of covenants in a mortgage deed on the one hand and in relation to a particular property on the other. Two ...

  • Monopoly money warning

    21 Oct 2002

    "Monopoly buyers" who invest all their money in buy-to-let property will be hardest hit if the housing market falters, says Manchester-based commercial property lawyer Glaisyers, write Mortgage Strategy staff. Mike Charlesworth, a partner at Glaisyers, says: "The housing boom continues to outpace all other forms of investment at the moment but it is essential that investors do not get carried away. All the signs are that interest rates will remain low and more would-be tenants will ...

  • More advisers pass MAQ

    24 Oct 2002

    A further 705 people passed the Mortgage Advice Qualification (MAQ) in September, taking the total number of holders of the qualification to nearly 10,000. Results of the September exam session were released on Friday (Octobe18 r) via the Chartered Insurance Institute's online exam results service and through a postal notification. A total of 1,317 candidates sat the exam with 54% achieving a pass. To date the CII has 7,336 entries for the three remaining exam sessions in ...

  • More leads for mortgageforce members

    25 Oct 2002

    Nicholas King Homes, a leading privately-owned new homes developer, has appointed mortgageforce, the UK's largest mortgage franchise to panel manage its exclusive mortgage products and to provide mortgage advice to its homebuyers. Nicholas King Homes will promote a range of bespoke mortgage deals from all of its developments, which are situated around the M25 to the north, west and south of London. Mortgageforce managing director Rob Clifford, says: "We now have 18 ...

  • Mortgage lending jumps to £7bn at Standard Life Bank

    22 Oct 2002

    Mortgage lending at Standard Life Bank has reached a new high of £7 billion. The Bank says this success follows the expansion of the mortgage product range and the Bank's particular strength in the first time buyer and discounted rate market. Figures for September 2002 show that mortgage completions have increased by over 300% since January 2002. Anne Gunther, chief executive of Standard Life Bank, says: "In May this year we broached the £6 billion barrier. ...

  • Mortgageforce signs deal with new homes developer

    21 Oct 2002

    New homes developer Nicholas King Homes has appointed mortgage franchise operation Mortgageforce to panel manage its exclusive mortgage products and to provide mortgage advice to its homebuyers. Nicholas King Homes will promote a range of bespoke mortgage deals from all of its developments, which are situated around the M25 to the north, west and south of London. Robert Clifford, managing director of Mortgageforce, says: "We now have 18 major housebuilders, IFAs and ...

  • Mortgages PLC appointed to Friends Provident's mortgage lender panel

    24 Oct 2002

    Mortgages PLC has been appointment to Friends Provident's mortgage lender panel. Friends Provident has operated a mortgage club exclusively for its appointed representatives and direct sales force since 1999. The network operates under the brand name of Friends Mortgage World, or FMW, as it is more commonly known. Friends Provident continually reviews the support it provides and welcomes feedback from intermediaries to improve the delivery of effective marketing ...

  • MPC EDGES NEARER RATE CUT

    23 Oct 2002

    Three members of the Bank of England's interest rate setting committee voted for a cut in rates at their last meeting, minutes of the session have shown. Members of the Bank's Monetary Policy Committee voted by six to three to keep rates on hold at 4%. The three advocating a cut were Christopher Allsopp, Kate Barker and Steven Nickell. They felt the rate should be reduced to 3.75%. The MPC has left rates on hold since November last year to try to safeguard the ...

  • MPLC poach Cooley from KMC

    21 Oct 2002

    Mortgages PLC has poached Tim Cooley from Kensington Mortgage Company to become MPLC's chief financial officer. Cooley joins MPLC's executive board which includes chief executive Trevor Pothecary, chief operating officer Paul Thomas, sales and marketing director Peter Beaumont and finance director Dereck Wilson. Cooley, a qualified accountant with more than 13 years experience, has so far enjoyed a glittering carreer and was head of structured finance at KMC for ...

  • My mortgage week - Kevin Paterson

    21 Oct 2002

    Monday: My week begins with a 4.30am start to get the 6.05am train from Reading to Manchester and spend the day with one of our regional directors. The train is in danger of being on time, which must have occurred to the staff as they immediately take steps to rectify this unacceptable flirtation with punctuality and delay entry to the station by a respectable 15 minutes. At the branch office, I go from one meeting to another with a sandwich thrown in around 12.30pm, followed by a lengthy ...

  • New appointment to Principality board

    23 Oct 2002

    Principality Building Society has announced the appointment of Haydn Warman, currently director of operations, to its main board. A solicitor, he joined the society as an executive in 1985. Warman is director of operations at the Cardiff-based society, having held various executive posts over the past 17 years. Warman is also a member of the Asset and Liability Committee, the Credit Committee and a trustee of the society's pension scheme. Current responsibilities include ...

  • New appointments to Financial Services Practitioner Panel

    24 Oct 2002

    The Financial Services Authority has appointed two new members to the Financial Services Practitioner Panel, which represents a cross section of regulated firms. They are Alan Ainsworth, Deputy Chairman of Threadneedle Investment Services Ltd and James Crosby, Chief Executive of HBOS. They replace Barry Bateman, who retired from the Panel on September 30 having been one of its founder members from 1998, and Ian Harley, who also retired from the Panel earlier this year. Jonathan

  • New fixed rates from Pink

    25 Oct 2002

    Pink Home Loans is adding three new fixed rates to the product range it offers through sub-prime lender, Platform Home Loans. Rates of 4.99% up to 75% loan-to-value, 5.49% up to 85% loan-to-value and 5.99% up to 95% loan-to-value are available across selected areas of the Platform Home Loans product range. David Copland, sales and marketing director comments: "Pink Home Loans is adding to its comprehensive range of sub-prime mortgage products with the addition of these ...

  • New property investor wizard launched

    25 Oct 2002

    Melbourne-based Mainstream Computing has released a new Property Investor Wizard for use on web sites, intranets, call centres and offline. Dr Mark Blakey, managing director at Mainstream Computing, says: "This software lets residential property investors set up a complete portfolio in moments. They can see how and when they become able to purchase further properties and get a good feel for what the limiting factors are. They can also see in very concrete ways what the downstream ...

  • Packagers failing in duty to support intermediary needs

    22 Oct 2002

    A packager claims that the majority of UK mortgage packaging organisations are failing in their duty to ensure that intermediaries at the heart of their distribution channels successfully complete one of the new professional qualifications before the end of 2002. The accusation is levelled by Newcastle-based packager Best Advice Mortgage Centre. Latest figures from the Mortgage Code Compliance Board reveal that a staggering total of 37,204 advisers, a figure that represents ...

  • Pink and Platform launch new fixed rates

    21 Oct 2002

    Pink Home Loans is adding three new fixed rates to the product range it offers through sub-prime lender Platform Home Loans. One-year fixed rates of 4.99% up to 75% LTV, 5.49% up to 85% LTV and 5.99% up to 95% LTV are available across selected areas of the Platform Home Loans product range. David Copland, sales and marketing director of Pink, says: "Pink Home Loans is adding to its comprehensive range of sub-prime mortgage products with the addition of these new fixed ...

  • Promotion at Intelligent Finance

    23 Oct 2002

    Brian Ewing has been promoted to head of sales with Intelligent Finance. Ewing's promotion follows the merger of the sales and marketing teams at the bank which resulted in Ian Jeffery taking over the new role of sales & marketing director. Ewing, who has been with the bank since its formative stage, started out as a regional manager for the northern area before becoming national sales manager last year. His latest promotion is testament to the amount of hard work ...

  • Public confusion between fees and commission

    21 Oct 2002

    Nearly two in five people would expect to pay fees for the services of an IFA, says research from RJ Temple. Less than half as many think the adviser would be remunerated by commission, while more than one in 10 believe advice would be entirely free. This is despite the fact that IFAs have been disclosing commission for several years. The research found that 15% of respondents expect to pay a fee for a consultation; 11% would expect to pay a fee if they took ...

  • Regulation will have 'far-reaching' impact

    21 Oct 2002

    Regulation will have far-reaching consequences for the industry - way beyond those requirements outlined in CP146, Marlborough Stirling has warned. Marlborough Stirling say lenders will need to reassess traditional tied relationships with life offices and intermediaries will need to consider their alternatives in a post-CP121 world. The costs of compliance will be shared throughout the industry but will present different challenges to each sector. The rise in admin costs for the intermediary ...

  • Remortgaging fuels lending rise

    21 Oct 2002

    Mortgage lending rose by £5bn in September, slightly more than August's rise of £4.8bn, reveals the latest figures from the UK's biggest banking groups. Consumer credit was also stronger, rising by a record of £1.2bn as against £1bn in each month of the previous three months. Total deposits increased strongly, by £5.1bn to £612bn. Following strong repayments of £3.7bn in August, the financial sector increased its borrowings ...

  • Research points to changing role of UK webmasters

    23 Oct 2002

    Fewer than a third of large and medium-sized UK financial services companies employ a dedicated webmaster, according to new research conducted on behalf of FileNET, a provider of enterprise content management solutions. Furthermore, marketing departments appear to wield more control over web content than any other corporate function, with 38% of marketing departments authorised to submit or update website information. The survey of 100 IT managers found that responsibility ...

  • Rising house prices fuel social change

    21 Oct 2002

    Rising house prices and falling stock markets are changing definitions of society's "haves" and "have nots", says the CEBR. Relative movements in inflation, government spending, tax and interest rates are transferring economic power from what advertisers might call As and Bs, to C1s and C2s, from those in their 50s to those in their late 20s, from private sector workers to public sector workers, and from the South to the North. Since January 2000, stock markets have ...

  • Service winner

    21 Oct 2002

    From Tony Revans Bucking what seems to be a trend, I put pen to paper not to moan, but to praise exceptional service. Here's the story: Faxed mortgage application on Wednesday Paper application received by the Building Society on Thursday Valuer instructed on Friday Valuation on the Monday Offer received Tuesday Funds Released on the Thursday. Just over a week from application to release of funds; this is, in my view, worthy of recognition. The company ...

  • Sir Eddie hints a rate cut may be on the cards

    21 Oct 2002

    Sir Edward George, governor of the Bank of England, last week hinted that interest rates might be cut in the near future to safeguard global recovery against unstable financial markets. Sir Edward said that the "nervous breakdown" suffered by the international equity markets shifted the debate, both in the markets and within the Monetary Policy Committee "back to the possible need for further monetary stimulus". Speaking to the North West Development Agency, he added that the significant ...

  • Specialist lender with the General touch

    21 Oct 2002

    Q: How is igroup structured? A: igroup is a member business of GE Consumer Finance, one of the four new businesses created out of the restructuring of GE Capital in August 2002. Internally, the business is structured along clear functional lines, each with a function leader reporting into the CEO. The principal customer-facing functions include sales and marketing, originations and servicing - all supported by a number of back-office functions including risk, finance, IT, legal and ...

  • Stamp duty move could help Muslims

    21 Oct 2002

    The government is considering stamp duty reforms to make it easier for the UK's three million Muslims to obtain a mortgage. A working party on Islamic financial services says it enjoyed a "sympathetic" response when it met with Ruth Kelly, financial secretary to the Treasury, last week. The independent party was convened by Bank of England governor Eddie George and has the backing of the CML. Andrew Buxton, chairman of the working party and former chairman of Barclays Bank, told ...

  • Surge in £1m-plus properties

    21 Oct 2002

    Over 9,000 properties have been sold for more than £1m in England and Wales since the beginning of 1995, reveals Halifax figures. The London districts of Kensington & Chelsea and the City of Westminster alone have accounted for 44% of all the sales of properties in England and Wales worth over £1m during this period. Districts in southern England have consistently represented the overwhelming majority of property sales valued over £1m. This ...

  • The Mortgage Mole

    21 Oct 2002

    I dig America Mole will be sampling the delights of the 89th Mortgage Bankers Association of America Annual Convention & Expo by the time you read this. Yep, Mole's ventured over for the last three years running. First it was San Francisco, last year Toronto and now we're in the Windy City of Chicago. Mole will be joined by the mortgage faithful including Prudential's John Malone and BMS's Steve Sandiford and decreasingly popular Michael Bolton. Not forgetting regulars, ...

  • The original Crusade didn't end too well, either

    21 Oct 2002

    From David Gould It is a rare occasion that I feel moved to make a comment about an article I have read in any publication but I think that it is time to address Michael Bolton's zeal in his crusade to reform the packaging market. The central theme of his argument seems to focus on the question of transparency. I say "seems" because I find his points opaque and, at best, confused. May I remind Mr Bolton that packagers were created ostensibly for lenders to sub-contract some ...

  • The trouble with procuration fees...

    21 Oct 2002

    Andrew Seymour believes that, no matter how hard the FSA tries to inject 'respectability' into the market, until proc fees are standardised, there will always be troubleMuch of the finger-pointing regarding the mis-selling of lending products is directed towards the broker. But how can regulatory bodies expect advisers to always give 'best advice' when the cynic in me believes some lenders are using procuration fees to influence an intermediary's product recommendation? The ...

  • This week's problem case

    21 Oct 2002

    John, 23, and Ann, 24, want to purchase a first home. John is a plumber earning £20,000 and Ann is a secretary on £15,000. They need to borrow £105,000, have £5,000 for a deposit and no other debts. They want advice as to whether a fixed or discounted mortgage would be most sensible in the current climate and want a product that will suit their future needs. Intermediary response Mike Rothman, senior mortgage consultant at Surrey-based Best Advice, ...

  • Three new appointments at igroup

    25 Oct 2002

    Igroup has announced three new senior executive appointments. Peter Brennan has been appointed chief operating officer. He was previously operations director. Graham Brent is to take on the role of director of originations He has over 21 year experience in the consumer finance industry. He joined igroup in 1998 and has held a number of senior customer-facing roles, his most recent being head of customer sales. Ann Lippiatt has been appointed human resources ...

  • Tie-ins leave mortgage borrowers unhappy

    21 Oct 2002

    Nearly one and a half million homebuyers in the UK feel trapped in their mortgage deals thanks to penalty clauses, says Virgin One. While more than a third of people questioned admit they simply went for the cheapest deal at the time, 12% say they regret not taking other factors like charges into account. Scott Mowbray, One account spokesman, says: "Of course everyone wants the cheapest possible deal because there are so many other expenses when moving home and you want ...

  • Treasury confirms N4 date for 2004

    21 Oct 2002

    The mortgage industry started the regulation countdown in earnest last week, as the government confirmed there are 710 days until N4. Ruth Kelly, financial secretary to the Treasury, says: "I am happy to confirm that mortgage and general insurance regulation will come into force simultaneously. Following the adoption by the European Parliament of the insurance mediation directive, the date this will be achieved can be confirmed as October 2004." In the meantime, she says, government ...

  • Treasury urged to avoid undermining competition and consumer confidence

    23 Oct 2002

    The Association of British Insurers (ABI) is concerned that government proposals could result in some types of general insurance product being un-regulated, and as a result threaten competitiveness and disadvantage consumers. The industry has warned against an inconsistent approach amongst different market sectors. The Treasury consultation document sets out the proposed sales regime for general insurance products, which will take effect when the FSA assumes responsibility ...

  • VirginOne calls for best buy tables to be updated

    23 Oct 2002

    The VirginOne account is calling for 'best buy' tables to be updated, after research showed that nearly one and a half million homebuyers in the UK regret being lured into their mortgage on price alone. According to the independent research carried out for the One account, 1.35 million householders say they feel shackled by unexpected penalty clauses, while more than a third of those questioned admit they simply went for the cheapest deal and one in eight say they regret ...

  • Watchdog set to give the 'Full Monty'

    21 Oct 2002

    Self-styled mortgage watchdog Monty Burn is planning to accept leads from unqualified brokers and promote consumer awareness of "rip-off" tactics. The new venture has an accompanying video, which will be distributed to consumers through public libraries and video shops, as well as through schools and universities. The 22-minute "Full Monty Experience" features Del Boy-style salesmen and their mis-selling tactics. The video explains the Mortgage Watchdog policy of lender-subsidised ...

  • When a man loves an idea - a change of heart is in order

    21 Oct 2002

    From Neil Moakes Ahhh, Michael Bolton, just the sound of that name strikes fear into the hearts of music lover and mortgage packager alike. The music lovers dislike the long-haired crooner who appears to only be able to sing one song (my apologies to those who actually like Michael Bolton's songs), the other is disliked by mortgage packagers countrywide. (Hmm, I feel like I should apologise to those who actually like and agree with Michael Bolton's strategies, but tell me, ...

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