Mortgage Strategy
22 April 2002

  • "Mortgage in minutes" from Doshpoint

    24 Apr 2002

    Financial services website doshpoint.com launched a 'mortgage in minutes' service yesterday, offering customers quick access to over 4,000 mortgage products from 172 UK providers. Customers browsing for a mortgage quote online, can log onto www.doshpoint.com, select the mortgage option and fill out an online questionnaire before selecting the appropriate mortgage. The service is free and customers are not obliged to accept quotes offered to them. John Witney, managing ...

  • 1st software targets depolarisation compliance

    25 Apr 2002

    IFA and intermediary technology provider 1st Software, launched its new Adviser Office range yesterday. Four versions of the Adviser Office system (Premier, Professional, Enterprise or Enterprise Wide) cater for the specific needs of different size adviser firms, from sole-trader to a large national organization. The new product range contains all the services and information needed for compliant and efficient business management and is designed to adapt for adviser ...

  • A little bit of loyalty goes a long way

    22 Apr 2002

    What would you say is the single greatest concern facing the UK's leading mortgage brokerages today? Intensifying regulation? Mounting compliance costs? The emergence of online mortgage transactions perhaps? To my mind, the answer is simpler than all of that because it lies very much within a company's borders - its staff and, more fundamentally, retaining its staff. As somebody who has recently made an exodus from the self-employed ranks back into an employed role charged ...

  • Abbey National brings financial services to the workplace

    23 Apr 2002

    Employers will be encouraged to offer new employee benefits packages to employees as part of a new employee benefits package launched by Abbey National this week. The initiative is targeting medium to large sized businesses, enabling employers to offer their staff a wide range of Abbey National financial services and accounts. More than 100 relationship managers and sales support staff throughout the UK will work with employers to plan, implement and administer the schemes. New ...

  • Abbey teams up with Axa Sun Life

    22 Apr 2002

    Abbey National has teamed up with life assurance provider, Axa Sun Life Direct in a new partnership designed to capitalise on the FSA's depolarisation of the direct investments market. Under the arrangement, Axa Sun Life will offer its Guaranteed Over 50 Plan to Abbey National customers. The plan provides customers with peace of mind, giving a fixed sum paid out on death. It will be available via a trial direct mail campaign to selected Abbey National customers starting ...

  • And results just in...

    22 Apr 2002

    I thought Mortgage Strategy's readers may like to see our list of performance ratings that we have given lenders to whom we introduce business (on a scale of one to 20, with 20 being the best). Although by no means scientific, it is, I believe, a true reflection across this sector of the market: •Future Mortgages: 18 Very good, especially the web-based process •Kensington Mortgage Company: 16 Very good •Equity Funding Corporation: 16 Very good •Platform ...

  • Auburn new MSMS head of business development

    25 Apr 2002

    Marlborough Stirling Mortgage Services (MSMS) boosts expansion with new appointment Marlborough Stirling Mortgage Services (MSMS) has appointed John Auburn as head of business development. John will be responsible for expansion and development of the company's client base. His role will support company growth and further build on MSMS' reputation for tailored TPA and outsourcing solutions for the mortgage marketplace. John joins MSMS having spent over ...

  • Average house price to rise to £300,643

    22 Apr 2002

    The average house price in the UK looks set to rise to £300,643 by 2020 - an increase of 197 per cent on today's typical home value, figures from the Centre of Economics and Business Research reveals today. CEBR says that the increases and value of residential property will vary widely throughout the UK over the next 20 years. Londoners will once again feel the brunt of the increase in property prices as the value of the average house in the capital rises from ...

  • Average house to cost £5m in 50 years

    26 Apr 2002

    Research from Yorkshire Bank predicts that the average home could cost nearly £5 million in 50 years' time. The Yorkshire Bank's prediction is based on prices growing at the same rate as they have since 1952. Property prices have increased 50-fold since 1952, with average prices rising from just £2,028 to £100,400 today. But the Bank says that if this growth continues the average home will be worth £4.97 million by 2052. It ...

  • Banks urged to help low income earners

    25 Apr 2002

    Research published this week suggests that the banking system is failing to address the needs of low income consumers. The Financial Services Consumer Panel has today written to the British Bankers Association, HM Treasury and the Department for Work and Pensions, expressing concern at the lack of access to the recently launched basic bank accounts. The Government has pressed for bank accounts to be made more open to low income consumers. Economic Secretary Ruth Kelly ...

  • Bournemouth ripe for Portman release plan

    22 Apr 2002

    Portman Building Society is the latest lender to jump on the equity release bandwagon, piloting its first equity release mortgage in nine locations in the Bournemouth area. Lynsey Hallam, communications officer at Portman, says: "This very area-specific pilot will establish what the need is for the product in the heartland area. We anticipate extending it to our other branches later in the year. "There is great potential out there for this kind of product, particularly with our ...

  • Brokers set to race for Future 500

    26 Apr 2002

    Future Mortgages is launching a new quarterly survey that aims to get to the very heart of the mortgage industry. 500 top UK mortgage brokers will be given the opportunity to voice their opinion on a range of market issues. The survey will begin on a quarterly basis and will explore overall market conditions, looking at interest rate predictions, growth of mortgage business, and the popularity of product types. The survey will also aim to court opinion on the ...

  • Brown appoints new MPC member

    26 Apr 2002

    Chancellor Gordon Brown announced the appointment of Marian Bell to the Bank of England's Monetary Policy Committee (MPC) yesterday. Bell, an economic consultant, worked previously as head of research at the Royal Bank of Scotland's treasury and capital markets division and will replace Dr Sushil Wadhwani, whose term expires on 31 May. She will take up her membership of the MPC on 1 June. However, due to prior commitments, she will attend her first committee meeting ...

  • Brown's Budget

    22 Apr 2002

    Budget-watchers waiting for a mention of 'stamp duty' or 'housing market' will have been disappointed last Wednesday. Having had the media and the ministers whet the nation's appetite for an NHS-dominated Budget, Gordon Brown duly stuck to the main course. Beyond a 1-penny increase in National Insurance contributions, proposals for changing the threshold for stamp duty or changes to VAT on new dwellings were conspicuous by their absence and, for the mortgage industry, ...

  • Budget blues for self-employed brokers

    22 Apr 2002

    The latest Budget leaves many self-employed brokers in the UK facing financial hardship, according to the Federation of Small Businesses. The FSB describes the decision to increase National Insurance Contributions by 1% as a "tragedy" for the Britain's three million self-employed. The Federation also claims that Brown has failed fulfil his pledge to encourage enterprise. John Walker, FSB policy chairman, says: "The rise in employers' National Insurance is a direct ...

  • Budget help for financial advisers

    26 Apr 2002

    The Institute of Financial Services has produced a tool to help financial advisers keep on top of the changes in the latest budget. This CPD update tool comprises a bank of 50 questions on budget changes, and covers the issues arising from the recent budget announcement. The bank is split into ten topic groups. The topic groups are: ? Stakeholder Pensions - Contributions ? Stakeholder Pensions - Concurrency Rules ? Stakeholder Pensions ...

  • Buy-to-let could burst house-price bubble

    22 Apr 2002

    Market pundits are warning that the current levels of interest in the buy-to-let market could burst the property bubble. Data collected on UK 'wealth owners', released last week by Tulip Financial Research, reveals that the property market could be set for a surge in investment of almost £10bn in 2002. John Clemens, managing partner of Tulip, says: "Wealth owners have become disenchanted with their traditional investments and with their investment advisers, and have ...

  • CAMs celebrate 5th Birthday

    26 Apr 2002

    Britannic Money this month celebrates the fifth anniversary of its current account mortgage - launched back in April 1997. Since they launched the mortgage in the UK, many other lenders have followed suit with the likes of Virgin and Intelligent Finance launching a variation of their original theme. The pioneering Britannic Money mortgage gives the borrower the option of accelerating their savings by combining their mortgage and bank accounts, the proof is in the pudding: For ...

  • CML figures show record lending

    22 Apr 2002

    A strong rise in loans for house purchase took mortgage lending to the record level of £16.6 billion in March, according the monthly CML/DTLR Survey of Mortgage Lenders based on mortgage completions from both banks and building societies. Lending rose sharply from February's total of £13.3 billion and was considerably higher than the £12.3 billion recorded in March 2001. Loans for house purchase increased to £9.3 billion in March or 56% of gross advances, ...

  • CML reveals net loss

    22 Apr 2002

    Relatively few people are using the internet to take out a mortgage, research from the Council of Mortgage Lenders reveals. While the internet is highly popular with customers for gathering information and comparing products, the number of online mortgage applications is low. But the advent of a secure electronic signature could trigger an increase. The CML research says customers still want face-to-face contact when making a large-scale financial commitment. Many new entrants ...

  • CML's single regulator call

    22 Apr 2002

    The Council of Mortgage Lenders last week called for a single regulator for both first and second charge loans, writes Robyn Hall. Addressing the CML's annual lunch, chairman Andrew Pople stressed the need for a single regulator. But John Vickers, OFT director-general, told members: "The government has decided on separate regulators for both first and second charge mortgages. The OFT agrees that polarisation is restrictive and new measures should be introduced to enhance competition ...

  • Commercial lending book sale for Barclays

    23 Apr 2002

    Barclays Plc, Britain's fourth-largest bank, is in talks to sell £900m of loans from its commercial mortgage book. The move comes as the bank revises its loan portfolio. The bank is in talks to sell the book jointly to GE Capital - which owns igroup - and Citigroup Inc - which owns Future Mortgages. An agreement is expected in May, with completion pencilled in for November. It is not yet certain where Barclays intends to use the money ...

  • Consumers' Association attacks CP121 proposals

    25 Apr 2002

    The Consumers' Association this week slammed the Financial Services Authority's (FSA) plans to transform the way financial products are sold as being anti-consumer and urged the regulator to go back to the drawing board and think again. The FSA's plans are hugely risky for ordinary consumers and will increase the grip that the big banks have on the financial advice market making it even more difficult for consumers to save for a comfortable future. Responding ...

  • Datamonitor call for equity-release overhaul

    25 Apr 2002

    The potential market for equity release products is being threatened by the poor historical reputation of the schemes, according to independent market analyst Datamonitor. The study suggests the memory of poorly designed home income plans sold in the 1980s, which left countless policyholders financially devastated, has affected the market and calls for providers to restore consumer confidence by tackling the market's image problem. Providers are also encouraged to ...

  • Datamonitor records dramatic rise in card fraud

    26 Apr 2002

    Credit card debt grew by 21% per annum between 1997 and 2001, according to independent market analyst Datamonitor. In its most recent report, 'UK Plastic Cards', balances outstanding grew from £19m in 1997 to £41.8m by 2001. The results highlight changing public attitudes to debt, with more and more consumers borrowing on cards at levels previously considered to be socially acceptable. As UK consumers become increasingly comfortable with plastic, the ...

  • Digest US be warned: the Brits are coming

    22 Apr 2002

    A UK specialist internet broker will soon be able to accept mortgage enquiries from US homebuyers and pass leads on to a major US broker. Maurice Edgington, chief executive of e-mortgage-uk.com, originally planned to launch the site to the US market in March. But technical problems mean the service is now planned to go live at end of this month. He says: "We are trying to overcome technical problems in distributing the enquiries to the correct US state for them to be handled once ...

  • Discounts squeezed by record demand

    25 Apr 2002

    Record mortgage lending is forcing some lenders to re-price their leading discount deals to prevent service problems, says Charcol, the leading mortgage and financial adviser. As lenders across the board continue to increase their fixed rates, the popularity of discount deals is, in some cases, causing lenders to retreat from offering market-leading deals. Charcol's Ray Boulger says: "Mortgage applications are continuing at high levels and as a consequence over the ...

  • DPA guidance on anti-money laundering legislation

    26 Apr 2002

    The Treasury yesterday issued guidance to the financial sector on the interaction between the Data Protection Act 1998 and the UK's anti-money laundering legislation. Concerns had been expressed by some institutions that the obligation not to 'tip off' individuals conflicts with the requirement in the Data Protection Act to disclose information held on an individual. The guidance offers advice to institutions on how to deal with a 'Subject Access Request' ...

  • Egg launch e-mail account transfer

    23 Apr 2002

    Online financial services outfit Egg this week launches an initiative to enable customers to transfer money to any of the UK's 110 million bank accounts via e-mail. 'Egg Pay' is the result of research from Egg and MORI showing that a third of all British adults - some 14 million people - say that they are interested in digital payment services. Some 20 million British adults now using e-mail, whilst cheque usage has seen a 34% decline since 1990. Money can be ...

  • Electoral role access row causes delays

    22 Apr 2002

    Lenders are warning of underwriting delays unless commercial access to the electoral role is restored. Sales of the register to credit reference agencies have been suspended since December after a UK judge ruled that voters had a right to veto the use of their details by commercial organisations. As a result, regulation to be set out by the government will create 'parallel' registers - including one for commercial use. But despite repeated promises of action, the DTLR has ...

  • Endowment holders encouraged to maximise policy sales

    24 Apr 2002

    Homeowners considering disposing of an endowment policy are being reminded that selling can fetch an average of £1,000 more than the surrender value offered by the issuing life office. With many people expected to remortgage before a possible rise in interest rates, endowment policy purchaser Beale Dobie is reminding homeowners that non-life office outfits can offer improved rates. It is estimated that around 1,000 people a week miss out on this potentially higher ...

  • Endowment holders should sell rather than surrender

    22 Apr 2002

    Traded Endowment Policy (TEP) company Surrenda-link has told borrowers they would do better to sell their endowment policies than surrender them. Endowments are frequently surrendered to meet the one-off costs of moving home - estimated in excess of £4,000 for an average mid-market move. Matthew Roche, marketing manager at Surrenda-link, says: "Given the costs incurred when moving house, endowment holders should certainly ensure that they are getting the maximum value for ...

  • Express support for duty raise

    22 Apr 2002

    Mortgage Express supports the Council of Mortgage Lenders' campaign urging the government to stop homebuyers from being unfairly penalised by stamp duty (Mortgage Strategy April 15 2002).The organisation is proposing that the threshold should increase from £60,000 to £85,400 to reflect the recent rise in house prices. However, Mortgage Express does not believe this to be enough. Properties in London and the South East account for over 50% of stamp duty revenues and thresholds ...

  • Finance Bill published

    25 Apr 2002

    The Finance Bill 2002 was published yesterday. Paymaster General Dawn Primarolo says: "The Government is committed to creating a modern and fair tax system which encourages work and saving, raises sufficient revenue to pay for investment in public services, and in which everyone pays their fair share. "The Finance Bill introduces important measures to modernise taxes to keep pace with real world developments and with the global economy, to promote enterprise, and to ...

  • Firms freed from upward-only commercial rent reviews

    24 Apr 2002

    A new voluntary code of practice for commercial property leases was launched yesterday, in an effort to end upward-only rent reviews. The code, which aims to provide a more flexible commercial property market was developed in response to a request by regeneration minister Sally Keeble in October 2001. Keeble says: "We want a property market that offers certainty to investors, more choice to occupiers and which, particularly at the small business end, is better informed. ...

  • Fiver fee should stay MCCB tells Treasury

    22 Apr 2002

    The MCCB plans to ask the Treasury to reconsider its proposals to abolish the £5 fee for the arrangement of mortgages where advice has not been provided. Its draft response to the Treasury's consultation on mortgage regulation, seen by Mortgage Strategy, says that there is evidence of firms abusing the current system by refusing to refund advance fees and that "it would be unfortunate if consumers received less protection under the new regime". The MCCB suggests that the ...

  • High Street loyalty costing homeowners billions

    23 Apr 2002

    UK homeowners are wasting up to £5bn a year by postponing important financial decisions, a report has said. The average UK household loses at least £200 a year by banking with a High Street banks, keeping savings in low-interest accounts, and failing to pay bills by direct debit, research by Zurich Bank suggests. Householders could save even more money if they switched mortgages to a loan with a betterrate, the bank said. The survey suggests seven ...

  • Home repossessions at record low levels

    26 Apr 2002

    Repossession orders have fallen to their lowest ever level, according to the Lord Chancellor's department. Just 9,840 repossessions orders were made in English and Welsh courts during the first quarter of 2002, of which 5,997 were suspended. Though the number of home repossession applications made by lenders rose slightly during the quarter, with 16,484 actions compared with 14,556 during the previous quarter, the figures do not indicate how many houses have actually ...

  • IFAs and advisers offered ERA estate agency deals

    26 Apr 2002

    Global estate agency ERA is recruiting financial advisers, mortgage brokers, solicitors, accountants and general insurance brokers interested in becoming directly involved in estate agency ownership. ERA are seeking to open 500 estate agency branch offices nationally over the next five years and expect that up to 12% of the appointments could come from new business start-ups from the personal finance industry. The US-based outfit has nearly 3,000 offices in 26 countries ...

  • Independent better than authorised

    26 Apr 2002

    Consumers seeking financial advice would much prefer to go to an adviser called "independent" than one called "authorised", research commissioned by IFA RJ Temple reveals. Liz Walkington, communications manager at RJ Temple, says: "In relation to Consultation Paper 121, the FSA seems to suggest that IFAs who want to continue operating on a commission basis, but still deal with the whole market-place, could simply adopt the AFA title and carry on as if nothing had changed. "Our ...

  • InfoPrompt adds Irish company reports to services

    25 Apr 2002

    InfoPrompt, the UK's leading internet-based provider of company financial reports and data, has extended its portfolio to cover Irish businesses. Annual company accounts and returns, certificates of change of name, directors and registered offices of firms in the Republic will be included in the technology outfit's offering, primarily aimed at risk assessment analysts. Details of court proceedings and insolvency details are also included, with information on company structure ...

  • Inheritance Tax bill could hit 1.4m households

    25 Apr 2002

    Up to 1.4 million UK homeowners could now face paying inheritance tax, according to Halifax. A 16% increase in the Inheritance Tax threshold in the last five years has not kept pace with house price growth of 52% in during the same period. Almost three times as many properties are now liable to pay Inheritance Tax due to house price increases taking property values beyond the£250,000 threshold announced in last week's budget. In 1997, around 500,000 ...

  • Intermediary Response

    22 Apr 2002

    This is a fantastic opportunity for James to make some life-changing decisions. I will have to make some assumptions since there is not a great deal of information about James' salary or personal circumstances. I do not know if he has a wife and kids to care for. I do know that he has a large amount of cash to play with and a flat in which I would assume there is decent equity, along with a good job to go to in six months. This will involve what we can safely assume is an above-average ...

  • Irish advantage for those operating in the euro

    22 Apr 2002

    UK lenders offering products in the Republic of Ireland will have a competitive advantage over rivals should the UK opt for entry into the single currency. At present, only Bank of Scotland operates in the Irish market, though Bank of Ireland also have a separate Irish mortgage loan book. Ronny McColly, national sales manager for Bank of Scotland, told Mortgage Strategy: "Most people are still waiting to see where the UK will place itself. As a lender we certainly have an advantage. ...

  • It's harder on your own

    22 Apr 2002

    I am a one-man broker and operate from home. I have been arranging mortgages and relevant unregulated insurance products since 1985. During that time I have witnessed the introduction of the Financial Services Act as well as the Financial Planning Certificate - which, I have to say, was not particularly welcomed by intermediaries at the time. However, both were relevant to the insurance industry and made complete sense. As a result, FPC was accepted as the industry standard qualification. Now ..

  • Leader - Hidden in small print: Duty concessions

    22 Apr 2002

    Gordon Brown let the mortgage market down last week. Not only did he slap an extra penny on income tax, he also ruled out any changes to the stamp duty threshold. The surprise move on income tax was dressed up as a 1% increase in National Insurance contributions (NIC) - effectively reversing 1999's 1p basic rate cut - to kick off a 43% cash injection to an ailing NHS. Overall, Brown has managed to swell the Treasury's coffers to £6.1bn next year and £8.3bn in ...

  • Lender Response

    22 Apr 2002

    Unfortunately, job insecurity is now a fact of life and James' situation is not uncommon. However, the timing is particularly bad because he wants to buy a new house and I am not surprised that he is having trouble finding a mortgage. Many lenders will be credit scoring his application and rejecting it because he is 'technically' classified as unemployed. James needs to approach a mortgage broker who will be able to find him a lender who specialises in this type of application. ...

  • MCM offer CeMAP olive branch to advisers

    23 Apr 2002

    Mortgage Code Masters are offering study courses to brokers worried by the onset of the Mortgage Code Compliance Board's 1 January qualification deadline. The firm based in Weybridge, Surrey, is offering intensive one and three-day courses in Gatwick and Watford in June and July. Courses for CeMAP 1, 2 cost £175 plus VAT, as does the bridge paper and CeMAP 3. Mortgage Code Masters director Fay Harris warns brokers to be aware of the N2 supplement published ...

  • Mortgages Plc launch new non-conforming range

    24 Apr 2002

    Non-conforming lender Mortgages plc has launched a new product range covering light, medium and heavy adverse, right-to-buy, and buy-to-let. Discounted rates are also available, starting from 5.00% (6.63% APR) at 75% LTV, and loans are now available up to 95% LTV, and the range features a 1.5% discount available on all products to 1.8.03 (1% on buy to let). Expatriates, foreign nationals, and borrowers unable to provide proof of deposit will all be considered. Clients ...

  • MP: don't keep deposit

    22 Apr 2002

    A backbench Labour MP is calling for a national scheme to be introduced that will help safeguard tenant deposits. Pilot schemes in Anglia, Merseyside, Brent and Camden, Brighton, Norfolk and the West Midlands already require landlords to hold deposits in separate bank accounts, or to make separate insurance provisions for damage costs. The schemes, introduced in 2000, were extended for another two years in February after Croydon Central MP Geraint Davies tabled an early-day motion, ...

  • My mortgage week

    22 Apr 2002

    Monday: My personal FA is the statuesque Heather Brady of Sun Bank, who decides to call me at 8.30am. She has clearly forgotten that I am an insomniac, so I have difficulty talking and breathing at this time of the morning. I'm currently involved with the total refurbishment of a large student property in the Midlands and Heather is arranging a further advance for me. As a serial 'buy-to-letter' I've plenty of experience in dealing with lenders and I have to say that my portfolio ...

  • No stamp duty changes says Brown

    22 Apr 2002

    Chancellor Gordon Brown let the mortgage market down last week, slapping a penny on income tax and freezing the stamp duty threshold. The surprise move on income tax was dressed up as a 1% increase in National Insurance Contributions (NIC) - reversing 1999's 1p basic rate cut - to kick off a 43% increase in cash to the ailing NHS over five years. Brown vowed to abolish stamp duty for commercial transactions in the UK's most deprived areas. But industry pundits were disappointed ...

  • Norwich Union teams up with Northern Rock

    25 Apr 2002

    Norwich Union has added Northern Rock to their IFA Mortgage Club Panel, taking Norwich Union's mortgage panel to 24 lenders. Norwich Union has worked closely with Northern Rock for a number of years and has previously distributed its products through Your Move Estate Agents, who are owned by Norwich Union. John Whitehead, head of mortgage development at Norwich Union, says: "Our experience with Northern Rock has been entirely positive and we believe that the range ...

  • Number of mortgage complaints rise

    22 Apr 2002

    Lenders are receiving record levels of consumer complaints, confidential research seen by Mortgage Strategy reveals. The Halifax dual interest rate debacle is just one factor that has raised awareness amongst borrowers about the need to scrutinise their mortgage statements more closely. Lenders more likely to attract complaints include those that have been or are on the acquisition trail, lenders subject to takeover or merger plans and lenders that have had to adapt to a foreign ...

  • Packagers should remain 'pure'

    22 Apr 2002

    I was intrigued by your stance that packagers should become regulated by the FSA. The CML clearly believes that they should be unregulated and, in my view, the latest HM Treasury proposals indicate that packagers should not be regulated when the FSA takes the helm. As you point out, the real issue here is how you define what a mortgage packager does. How they operate today should also be a good indicator as to whether they should be regulated under the FSA or not. Today, if a packager ...

  • RBS gives low start to small business

    23 Apr 2002

    Small businesses are to be offered a 'low start' option for flexible business loans advanced by The Royal Bank of Scotland. The loan is designed to give small businesses a kick start whether they are setting up from scratch or planning to expand. Businesses can make 30% of their loan repayment during the first six months and 60% for the second six months with the full repayment starting only in year two, giving businesses breathing space they need to fully benefit ...

  • Record revenues for E-Loan

    26 Apr 2002

    E-Loan Inc reported a first-quarter profit of $1.6 million, or 3 cents per share, on record revenue of $20.76 million, the Dublin-based online mortgage lender said yesterday. That compares to a $16.31 million loss, or 30 cents per share, with revenue of $16.36 million in the same quarter a year ago. The company didn't disclose any one-time gains or losses, but last year's figures included $13.1 million in noncash marketing costs and amortization of goodwill and ...

  • Rising insurance sales closing mortgage cover gap

    24 Apr 2002

    Take up of Mortgage payment protection insurance (MPPI) increased last year, with more than a third of mortgages taken out in the last six months of 2001 protected by policies. Figures from the Council of Mortgage Lenders (CML) and Association of British Insurers show take up was now at 36%, compared with 32% of mortgages in the first half of the year, with a total of 22.5% of all mortgages, or 2,534,000 borrowers, protected by MPPI. In 1998, only 23% of mortgages were ...

  • Royal Bank of Scotland revamps buy-to-let

    25 Apr 2002

    The Royal Bank of Scotland is revamping its buy-to-let mortgage range, to capture an increased share of the booming property market. The market for buying properties to rent out grew by 77% during 2001 to around £14.7 billion as demand for rented accommodation rose. From Monday, RBS will increase its maximum portfolio limit from two to five, in addition to allowing 10 times annual rental income, and incorporating additional purchase costs into the loan. Peter ...

  • Simplified underwriting offered to low LTV borrowers

    23 Apr 2002

    Independent mortgage broker Mortgage Talk is offering simplified underwriting facilities for borrowers that do not need to exceed 75% LTV ratios. The service is specifically targeted at borrowers looking to arrange a swift and easy completion and enables borrowers to arrange a suitable mortgage simply by agreeing to a credit search and property valuation. Mortgage Talk also offers borrowers looking to arrange a quick move with EasyMove, a scheme matching borrowers with ...

  • SPML delays prime launch due to record success

    22 Apr 2002

    Southern Pacific Mortgages Limited has delayed the launch of its prime product range until at least June. SPML had planned to launch the new range in March but claims the move had to be put on hold after writing record levels of business. SPML figures show that completions per month rose from £50m in December to £75m in April - an increase of 50% in just five months. Lehman Brothers International, SPML's major shareholder, has been looking to sell the sub-prime lender ...

  • The best source for a top-rated service

    22 Apr 2002

    Q: How is HML structured? A: Homeloan Management Limited is a wholly owned subsidiary of Skipton Building Society. It is focussed at the business-to-business services marketplace and employs around 500 staff. The HML team includes managing director Steve Haggerty, sales and marketing director Tim Fletcher, finance director Liz Blythe and director of operations David Grant. The company was set up in the late 1980s to take advantage of new powers granted by the 1986 Building Society ...

  • This week's problem case

    22 Apr 2002

    James is an investment broker with a city firm and has bee made redundant. Fortunately, he has received a large pay-off and has already secured alternative employment. However, because of fine print in his previous employment contract, he cannot join the new firm for six months. James wants to sell his London flat and buy a new home, but he is having enormous difficulties finding a mortgage.

  • Three additions to Mortgage Next panel

    24 Apr 2002

    Nationwide, Britannic Money and SPML have this week signed agreements to distribute mortgage products through Mortgage Next. The deal brings the number of lenders on Mortgage Next's panel up to 22, and products will be available to Mortgage Next's 6,000 broker members from 1 May 2002. Martin Maynard, managing director of Mortgage Next, says: "Our three agreements with Nationwide, Britannic Money and SPML are a testament to Mortgage Next's position in the distribution ...

  • TMB changes 'house to house' rules

    26 Apr 2002

    Customers with adverse credit histories over three years old, but with a clean subsequent history, will be accepted for mortgage offers by The Mortgage Business (TMB). TMB are also offering a higher capital raising facility of up to £150,000 on their 'House to House' mortgage deals. It was previously £50,000. Mark Bergin, director of sales and marketing, The Mortgage Business says: "We are confident that the changes make these products even more competitive ...

  • TMB revamps product range

    25 Apr 2002

    Specialist lender The Mortgage Business (TMB) announced a redesign of its buy-to-let and let-to-buy range yesterday. Changes to the TMB range include removing the maximum age and higher percentage advance fee (HPA) rules on its ten to let product, in addition to capital raising on investment products raised to £150,000. Previously a borrower had to repay the mortgage in full by the age of seventy opening the possibility of being a professional landlord to a whole ...

  • TMPC claims Scottish lending first

    22 Apr 2002

    The Mortgage Placement Company is claiming to be Scotland's first correspondent lender when it launches in Glasgow this week under the same name. All mortgages processed in Scotland by TMPC will pass through its new centre in Glasgow's Hillington Industrial Estate. Managing director Edwin Coughtrie told Mortgage Strategy: "We have basically married our London base with the new operation in Glasgow and have set up 10 people to produce and market just for the Scottish mortgage ...

  • UCB goes for self-cert facelift

    26 Apr 2002

    Specialist lender UCB Home Loans is to change its self-certification mortgage range with effect from next Monday (29 April). The changes will see discounted rate loans replaced by tracker rate mortgages and an adjustment of fixed rates, bringing buy-or-let and residential mortgage rates even closer together. The company is introducing a new two-year fully flexible tracker mortgage, a three-year tracker mortgage and a three-year buy-or-let tracker product, to replace existing ...

  • We're living in a material world

    22 Apr 2002

    The achievement of a mortgage advice qualification is dependent upon having good knowledge and understanding of the syllabus and study materials, together with the ability to apply that knowledge and understanding to the questions in the exam. This column has already emphasised that an effective programme of study will be essential to ensure success. The materials to be used in preparing for the exams will consist primarily of the exam handbook, the Institute's study materials and ...

  • White to reply

    22 Apr 2002

    In response to Bob Riach's letter published on April 15 2002. In last week's Mortgage Strategy, Bob Riach criticised the 'white-label' site offered by Mortgage 2000. Our white-label site is an internet mortgage comparison facility available to any intermediary that can be badged up in the intermediary's name and attached to the broker's existing website or have a new one created. The cost of this 'state-of-the-art' consumer-facing website is only £35 per ...

  • Xerox win Nationwide processing deal

    23 Apr 2002

    US owned office suppliers Xerox have sealed a multi-million pound deal with Nationwide Building Society. The Xerox consortium consists of Xerox Global Services (XGS), Sefas Innovation, Pitney Bowes, CACI AnaData and Formscan. As prime contractor, XGS will co-ordinate participation by the four other consortium members to develop and deliver Nationwide's end-to-end Automatic Document Factory (ADF). By communicating with customers through the applications, Nationwide ...

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