Mortgage Strategy
22 August 2011
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60 seconds with… Liz Locke
22 August 2011
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Age should not be consideration in agreeing mortgage
22 August 2011
I was interested to read about Mark Mullen taking over as chief executive officer at First Direct on September 1.I hope Mullen will do something about First Direct’s policy of barring people from mortgages because they will reach the age of 65 before completion.There are two points here. The first is that age should not be a consideration. The second is that they are at least losing my custom and possibly that of many others.NIGEL WICKENDE
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Approvals over 85% LTV at lowest since February
22 August 2011
Purchase approvals over 85% LTV were the lowest since February, accounting for only 8.5% of all approvals in July, down from 9.4% in June, e.surv’s Mortgage Monitor shows.
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Average rent reached £705 in July, says LSL
22 August 2011
In July the average rent in England and Wales rose by 0.6% to £705 per month, surpassing the previous high of £701 in June, according to the latest buy-to-let index from LSL Property Services.
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B2L is predicted to account for 20% of mortgages by 2015
22 August 2011
Buy-to-let could account for one in five mortgage deals by 2015, Capital Economics is predicting.
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Brokers must take up the cudgel for FTBs
22 Aug 2011
First-time buyers are the lifeblood of the housing market, yet there doesn’t seem to be a concerted effort to help them, so it’s up to advisers to take the initiative and get creative in their solutions for this group
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Brokers retained FTB share but lost remortgage business in Q2
22 August 2011
Brokers held on to their share of the first-time buyer market in Q2, but lost some of their remortgage sector share to direct business.Latest figures from the Council of Mortgage Lenders show intermediaries had a 64% share of the first-time buyer market in the latest quarter, down just 1% on Q1.Brokers’ share of the home mover market remained static at 55%, but they only claimed a 58% share of the remortgage market in Q2, down from 61% in Q1.But Robert ...
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Buy-to-let companies neglected by lenders
22 August 2011
CONOR MURPHY, MANAGING DIRECTOR, CAPRICORN MORTGAGES
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CAN YOU HAVE A POP TO WIN THIS BOTTLE OF MIGHTY FINE CHAMPAGNE?
22 August 2011
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Changes to Openwork senior management
22 August 2011
Openwork has appointed Paul Bridge as chief operating officer, replacing Mary-Anne McIntyre, who became chief executive officer in June. Bridge joins from Aviva, where he was interim change delivery director for life and pensions.
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Cheval increases LTV on first charge loans to 75%
22 August 2011
Bridging lender Cheval has hiked its maximum LTV on residential first charge loans to 75% from 70%. The higher LTV has a rate of 1.5% a month and is available with regulated and non-regulated loans.
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Danny Baker story gets message out to man on the street
22 August 2011
Just to add my voice to the comments left about Bright Grey’s article on the £30,000 gift made to Danny Baker from Chris Evans while he recovered from cancer, it seems that Baker’s actual financial situation is irrelevant to the argument here.Good for him that he could have raised the cash had he wanted to and even better that he had a wealthy friend around to loan him £30,000.The fact remains that the majority of people don’t have a rich mate or tens of thousands ...
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Document changes good for those who aren't order takers
22 August 2011
I was incensed by some of the comments on Mortgage Strategy Online over the story announcing Halifax’s changes to client documentation.In particular, the broker who proudly announced they had not used Halifax for years and asked any broker that had done to justify the cost to the client.Not every broker uses a lender based on cost. To that broker I would ask this what do you do with cases where you need to lend above commercial premises and the best price lender ...
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Dodgy clubs stoke rise in landlord repossessions
22 August 2011
DAVID LAWRENSON, EXPECT TO SEE MORE ROGUES
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Estate agents fined for parking fraud
22 August 2011
Six estate agents have pleaded guilty to fraudulently using flats they were selling to apply for parking permits.The employees at a Greene & Co branch in Maida Vale, west London have been fined between £500 and £1,670 each and ordered to pay costs.They admitted using the flats they were selling to fraudulently apply for residents’ parking permits, which allowed them to escape pay-and-display costs while they showed clients around properties.Westminster ...
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Expanding landlords should think family
22 August 2011
JOHN HERON, MANAGING DIRECTOR, PARAGON MORTGAGES
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Firms should get recruitment right first time round
22 Aug 2011
Recruiting the right people is vital to any business so starting with the right candidates is the first step
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Flexibility is vital in fixed rate deals
22 August 2011
RICHARD TUGWELL, HEAD OF INTERMEDIARY SALES, NORTHERN ROCK
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Gross lending shows 6% drop and CML warns there's worse to come
22 August 2011
Gross mortgage lending could fall further in coming months, the Council of Mortgage Lenders has warned.
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Halifax clarifies proof of income requirements to aid processing
22 August 2011
Brokers have welcomed clarification from Halifax on what it will accept as proof of income from borrowers.
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Halifax to help rejects improve credit profile
22 August 2011
Halifax has launched a credit service to help first-time buyers understand why they have been rejected for a mortgage and improve their credit profile. The lender has teamed up with Experian to launch the Halifax CreditExpert service.
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Hope Halifax has a rethink on home retirement scheme
22 August 2011
The withdrawal of Halifax’s retirement home plan is a blow for those who reach retirement with a mortgage in place.Most don’t want to downsize or have done so already and most want to avoid the traditional equity release schemes to protect equity for family.It’s a great niche product that is seeing growing demand. We have a number of clients considering it but there won’t be time to get it set up for all of them.This leaves a limited marketplace with ...
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House prices drop to £231,543 in August
22 August 2011
House prices fell 2.1% in August compared with July, taking the average to £231,543, the latest house price index from Rightmove shows.
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Housing shortage will push values up 14% by 2015
22 August 2011
House prices are set to shoot up by 14% over the next four years, according to the Centre for Economics and Business Research.
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Independent brokers must justify the cost of going to Halifax
22 August 2011
I was interested to read last week about the changes Halifax has made to client documentation.I have had no issues with Halifax’s service for years as an independent broker I have not used it. Anybody calling themselves independent and using Halifax’s intermediary channel must justify the cost to their clients.Jeremy
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It's wrong to say a low base rate is not helpful to anyone
22 August 2011
In the wake of the Mortgage Strategy Online story on Moneysupermarket.com’s prediction that interest rates could fall as low as 0.25% there was an anonymous comment that said low base rates are no good for anyone. This is not correct.For borrowers it means debt reduction and more money for lenders to recycle back to the economy.The base rate is irrelevant to any lender, what is relevant is the margin over base that they can charge their profit.
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LAST WEEK'S WINNER
22 August 2011
“Leeds offers cashback for loose women.”RICHARD FITZPATRICK,IMA ASSOCIATES
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Leader: Take it with a pinch of salt
22 August 2011
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Lenders are hiking arrangement fees to offset cost of lower rates
22 August 2011
Lenders are trying to offset the costs of cheaper mortgage rates by increasing arrangement fees, according to industry commentators.
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Like England rugby, we need new ideas
22 August 2011
SOPHIE HALL, DEVELOPMENT DIRECTOR, INTELLIFLO
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Marketwatch
22 August 2011
This month’s base rate decision was the first unanimous one by the MPC in over a year so it’s now focussed on the economy not inflation. And the press carping on about high fees doesn’t tell the whole story
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Media Spotlight: Poorer Than Their Parents
22 August 2011
BBC Radio 4, presented by Alvin Hall
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Mixed fortunes
22 August 2011
The mortgage market has been in a state of flux since the financial crisis and, more than four years later, it is still battling economic and regulatory uncertainty. A plethora of issues look set to shake brokers’ world, from interest rate rises to Skype. Mortgage Strategy examines the 10 key things to look out for in the next few years
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More women and older people struggling with arrears
22 August 2011
The Consumer Credit Counselling Service received more than 20,000 calls in the first six months of the year from individuals in mortgage arrears.
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Mortgage services boss appointed by Connells
22 August 2011
Connells has appointed Adrian Scott as group mortgage services director. He joins from Kent Reliance where he was head of lending. His appointment follows a 50% increase in employed mortgage consultants at Connells.
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Mutuals offer crucial help to young buyers
22 August 2011
PAUL BROADHEAD, HEAD OF MORTGAGE POLICY, BUILDING SOCIETIES ASSOCIATION
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Never mind riots, capital still ticks all property boxes
22 August 2011
Despite making global headlines, it will take more than the recent lawlessness to tarnish London’s reputation
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Northern Rock rates go down by up to 0.9%
22 August 2011
Northern Rock has reduced rates by up to 0.9% and extended its £500 cashback incentive to include all buy-to-let deals with percentage fees.
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Northerners at higher risk of negative equity and arrears
22 August 2011
Northern mortgage borrowers are 35% more likely to be in arrears than those in the South, according to Standard & Poor’s.
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Number of £1m homes on market goes up 10%
22 August 2011
There were 21,319 residential properties on the market for £1m or more during Q2 2011, up 10% on Q2 2010, research by Investec Specialist Private Bank reveals.
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Olympics may cause a ripple, not a splash
22 August 2011
RICHARD SEXTON, BUSINESS DEVELOPMENT DIRECTOR, E.SURV
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Rate hold is unanimous but QE hike is discussed
22 August 2011
Further quantitative easing could be on the cards in the coming months, minutes of the Monetary Policy Committee’s August meeting have revealed.
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Riot-hit offered payment holidays
22 August 2011
Lloyds Banking Group, Santander and the Royal Bank of Scotland say they will consider offering mortgage payment holidays to those affected by the riots.The British Bankers’ Association says any Santander mortgage customers who have lost their homes as a result of the unrest should contact the lender and it will look at the best way to work with them.Meanwhile, Halifax says clients can apply for a payment holiday if their home has been affected in the recent riots.
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Rising rents and mortgage fees drove up July inflation
22 August 2011
Escalating rental costs and mortgage fees have been partly blamed for an increase in inflation in July.
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Sales are a great way to beat holiday blues
22 Aug 2011
Nigel Stockton, financial services director at Countrywide, casts a critical eye over the industry
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Savills makes £400,000 from disposal of SPF
22 August 2011
Savills made a profit of £400,000 from the sale of Savills Private Finance, its accounts reveal.
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Suitability letters could prevent PPI mis-selling claims
22 August 2011
In the last two issues of Mortgage Strategy I have read with some interest the ongoing debate regarding PPI and the ambulance chasing companies pursuing its supposed mis-selling.While I despise these parasitic companies, we as advisers have in our toolbox the ideal defence the suitability letter.I was taught by an old school adviser that thorough fact-finding and a complete suitability report covering every aspect of the sales process will protect us ...
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TBMC and Shepshed tie up for 3.99% B2L deal
22 August 2011
TBMC has launched an exclusive buy-to-let mortgage with Shepshed Building Society. The scheme is a 3.99% discounted rate for three years available up to 70% LTV. It has no early repayment charges, a completion fee of £849 and a booking fee of £150.
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TBMC unveils exclusive buy-to-let products
22 August 2011
TBMC has launched two exclusive buy-to-let products from Hinckley & Rugby Building Society. It is offering a two-year fix at 2.99% up to 60% LTV with a £2,495 completion fee and £250 booking fee, and a two-year discounted rate at 2.99% up to 60% LTV with £1,249 completion and £250 booking fees.
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The Mortgage Mole
22 August 2011
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Threatening legal action over PPI claim could do broker more harm than good
22 August 2011
In last week’s Mortgage Strategy it was stated that brokers who sue clients for making a payment protection insurance mis-selling claim could be in breach of the Financial Services Authority’s Treating Customers Fairly rules.That aside, we need to establish whether there is a live county court action being pursued against the lender or the broker.The original story in the August 8 issue of Mortgage Strategy was about a broker looking to sue a former client ...
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Time lenders woke up to the need for equity release plans
22 August 2011
The withdrawal of Halifax’s retirement plan will leave elderly home owners with one less option to service their retirement needs.It appears that this product has been too successful and Halifax has perhaps panicked as it doesn’t want to be the biggest player in the equity release market.I’m not sure why this might be but at some stage it and other lenders will have to wake up and realise they will have to offer their elderly home owner customers this type of ...
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TMW reduces rates and extends overpayment
22 August 2011
The Mortgage Works has cut some of its rates by up to 1.40% and extended its 20% annual overpayment allowance to all products. It is offering a two-year fixed rate at 2.24%, with a 1.5% arrangement fee up to 70% LTV.
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Trade bodies to lobby MoJ on rogue firms
22 August 2011
The Association of Mortgage Intermediaries is joining forces with the Council of Mortgage Lenders and the British Bankers’ Association to try and put an end to unscrupulous claims firms.
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Webster calls it a day at Swift but plans to return to industry soon
22 August 2011
John Webster has resigned as chief executive officer of sub-prime lender Swift. Webster joined Swift in 2006, having previously been managing director of Preferred Mortgages for five years. He officially left on August 12 but has been absent from the business for the last two years for personal reasons.
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Week in Numbers
22 August 2011
$32bn The amount General Electric chief executive Jeff Immelt said his firm had to write off at its financial services business unit in 2009 and 2010.
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Yorkshire poaches chief executive from HSBC
22 August 2011
Yorkshire Building Society has appointed Chris Pilling, currently head of branch network at HSBC, as its new chief executive. He will join on December 31, taking over from Iain Cornish.
