Mortgage Strategy
22 March 2004

  • Will repossessions rise due to increases in interest rates and consumer debt?

    22 Mar 2004

    Homeowners are entering a risky debt cycle. Significant outstanding balances from unsecured loans such as credit cards and personal loans could lead to a rise in repossessions. The housing market has been enjoying a period of growth with the lowest interest rates for 50 years and low unemployment across the country. This has created a feel-good factor and with money so cheap and accessible, many borrowers have created lifestyles for themselves that are funded from the equity in ...

  • 'Spray and pray' approach gives recruitment a bad name

    22 Mar 2004

    From Briony Gooch I was sadly unsurprised by the letter from Peter Bradshaw regarding his enhanced CV (Mortgage Strategy March 15). As a recruitment consultant I am embarrassed to be associated with this type of dishonest practice which is all too common. What I fail to understand is the reasoning behind it as nobody wins. The candidate feels underrated, the client has no trust in either the agency or the candidate and the agency gets no placement and no more business from ...

  • A good experience with MEX

    22 Mar 2004

    From Monty Burn It isn't often that I go on record praising lenders but my recent experience with Mortgage Express has been refreshingly pleasant. Not only has MEX got some excellent products - including its lifetime mortgage with an interest rate of 6.74% (as reported by Mortgage Strategy Online last week) - but its service levels are beginning to improve significantly. I have been saying for many years that lenders have not spent enough money ...

  • A quarter of FTBs face four to six year property wait

    23 Mar 2004

    One in four first-time buyers are now having to wait between four and six years to get on the property ladder, The Markertplace at Bradford & Bingley reveals. Over 51% of those polled say they feel feel property prices are rising faster than they can save and 50% are stuck paying off debts whilst struggling to save for a deposit. The First Time Buyer Report, commissioned by The MarketPlace, reveals that with spiralling property prices and increased debt first-time buyers ...

  • A special case for personal service

    22 Mar 2004

    In an increasingly technology-driven marketplace, some pundits argue that there is much less of a need these days for personalised contact between mortgage intermediaries and lenders. Agreements in principle and mortgage applications can be sent electronically and business volumes transacted in this way will certainly boom. Online case tracking provides a real-time method for getting an update on a mortgage application without even picking up the phone. Automated credit scoring ...

  • A View From The floor

    22 Mar 2004

    The term 'limited company' has a specific meaning. Not only does it signify you're dealing with a commercial enterprise, but it also spells out that the business has a limited liability. From a lending point of view dealing with a limited liability company inevitably means taking a different view of a deal. Lend to a limited company that goes bust and defaults and you have no means of recovering your debt - unlike lending to an individual where you can take action via ...

  • Abbey extends deadlines on tracker business

    25 Mar 2004

    Abbey has extended completion deadlines from three months to six months on all new variable rate tracker business as part of a drive to offer more flexibility to clients and to smooth the process for the intermediary. The new deadlines came into effect for applications made by intermediaries from March 15 2004. Intermediaries are also able to offer their clients a buffer of £750 on all Abbey mortgage applications below 90% LTV on all applications. These ...

  • Allied Dunbar regrets endowment complaint failures

    22 Mar 2004

    Allied Dunbar Assurance says it much regrets the failures in its customer complaints procedure following a fine of £725,000 by the Financial Services Authority. The company says it has improved its customer complaints procedure following an investigation and subsequent fine for failings in handling mortgage endowment complaints between May 2001 and April 2003, and stresses that handling complaints fairly is of great importance to the firm. It stresses that, as the ...

  • AMI issues guide to final mortgage rules

    23 Mar 2004

    The Association of Mortgage Intermediaries has issued a guide to the FSA's final mortgage rules. AMI's 'Guide Around the Mortgage Rules', which is free to its members, rewrites the Mortgage Conduct of Business Rules from the mortgage intermediary perspective. MCOB sets out the mortgage rules for lenders and administrators as well as intermediaries. The AMI Guide focuses purely on the important intermediary sections. The guide has been prepared as a simple ...

  • Assettrust appoints development and partnership director

    23 Mar 2004

    The board of Assettrust Housing Limited has appointed Vivian Rosser as development and partnership director. Rosser is joining AHL as partnership and development director from private developer St. James Group where he is currently group development director. Since 2002 at St James, he has been responsible for the delivery of the company's affordable housing programme, regeneration initiatives, and partnership working with a range of agencies. Giles Mackay, ...

  • At a crossroads in a foreign field

    22 Mar 2004

    The road to regulation and the task of choosing a compliance provider is a little like driving in a foreign country. To get to where you want you have to understand the signs and the road rules - not easy if you're in a country like China where you can't even read the language, let alone ask for directions. Intermediaries are now at a crossroads - one way lies direct authorisation by the FSA; another way is appointed representative status and a third (often forgotten) way ...

  • B2L deal for hotel rooms

    22 Mar 2004

    An innovative approach to buy-to-let was unveiled last week whereby investors can buy a hotel room and let it out to guests. Under the deal launched by GuestInvest, investors can buy a room, stay in it for up to 52 nights a year at £10 a night and let it out for the rest of the time. FPDSavills, which is offering 20 serviced rooms for sale under the scheme, says it is in talks with several buy-to-let lenders with a view to their financing mortgages for the scheme. The ...

  • Bank balances wide open to fraudsters, says Experian

    22 Mar 2004

    One in seven wouldn't notice if up to £500 disappeared from their bank balances leaving them wide open to fraudsters, research from Experian reveals. Whilst around 80% of people feel they could correctly estimate their bank balance to the nearest £100, 14% admit up to £500 could go missing without them even noticing and 3% could only estimate to within the nearest £1,000. Experian is a global information solutions company and provider of CreditExpert, ...

  • Bankhall and PMS offers Trigold

    23 Mar 2004

    Bankhall Point One and Premier Mortgage Services has revealed it will offer Trigold's Prospector Plus mortgage sourcing, electronic application and compliance software to its members. Each member firm can receive one copy per firm for free and order additional copies through Bankhall Point One. In addition, they will be given the opportunity to add the integrated Compliance Shield monitoring and auditing system to the package. Mike Buckley, sales director at Bankhall ...

  • Barker makes her mark

    22 Mar 2004

    The Barker review of housing supply emerged as a clear winner over the Miles report into longer term fixed rates, judging by the reaction it got from the chancellor in last week's Budget speech. Gordon Brown told MPs that he accepts Kate Barker's conclusion in her final report, Delivering stability: Securing our future housing needs, that more property is needed to tackle inflationary pressures in the housing market. In 2001, only around 175,000 houses were built ...

  • Barker review says current rate of housebuilding is not an option

    22 Mar 2004

    Britain urgently needs up to 140,000 extra new homes each year or faces increasing problems of homelessness and constraints on economic growth. That was the verdict of Kate Barker's review of housing supply commissioned by the Treasury. Barker (pictured), also a member of the Bank of England's Monetary Policy Committee, says: "Continuing at the current rate of housebuilding is not a realistic option unless we are prepared to accept increasing problems of homelessness, ...

  • Bond2Let beefs up top team

    22 Mar 2004

    Bond2Let, the Glasgow-based company specialising in the buy-to-let market, has promoted Derek Hughes to the position of director of operations. Hughes has spent the past 14 years working for Bond2Let's parent company Opus Mortgages, where he most recently held a senior operational role. Prior to this, he gained underwriting experience with a specialist mortgage company that worked exclusively for Bristol & West and National Homeloans. Malcolm Mercer, managing ...

  • BoS says sorry for porn deal

    23 Mar 2004

    The Bank of Scotland has issued a public apology after it admitted to part-funding the purchase of 45 pornographic titles from publisher Richard Desmond. The bank has promised to review its lending policy after it confirmed it had extended more than £5m of debt financing to a company called Remnant Media to buy the adult magazines from Desmond's portfolio. The titles include Asian Babes, Readers' Wives, Mothers-in-Law and 60 Plus. In a press statement Bank ...

  • Bristol & West offers buy-to-let tracker

    26 Mar 2004

    Bristol & West Mortgages is offering a new buy-to-let tracker mortgage. Available at Bank base rate plus 1.15% for the term of the mortgage, the company says that despite ongoing speculation, the buy-to-let market remains strong and there is a continued demand for buy-to-let mortgages.

  • Britannia hikes rate on HomeSaver account to 6%

    22 Mar 2004

    Britannia is increasing the rate on its HomeSaver account to 6% gross ito help first-time buyers climb on the first rung of the housing ladder. HomeSaver is designed to help first-time buyers save for a deposit by encouraging them to pay a set sum every month, as a practice for paying a mortgage, as well as home movers who can deposit lump sums whenever they are able. From April 1 the account will pay an interest rate of 6% on a minimum balance of £250 up to £50,000. ...

  • Broker, just get on with it

    22 Mar 2004

    From Dave Rogers Ever heard the phrase evolve or die? We know that regulation is going to happen, we know when it's going to happen and we know the options. It's time for brokers to make a decision, so join a network or go for direct regulation - and then get on with your lives. If your cup is half empty you will no doubt complain but you will get over it. But if your cup is half full you will do what has to be done and work through it, all the while ...

  • Brokers win Mini Coopers in BMS prize draw

    22 Mar 2004

    BM Solutions has completed a double car giveaway with lucky brokers Robin Tinder and Steve Kerrigan each walking away with a brand new Mini Cooper. Every time Tinder and Kerrigan submitted an online application they were added into the BM Solutions prize draw. The Minis were on offer to celebrate the success of BM Solutions online, and the one-minute mortgage. Brokers can now secure a virtual offer, subject to valuation, in less than one minute. Over 80% of ...

  • Brown and Miles were last

    22 Mar 2004

    During last week - Budget week of course - the rough cost to a lender of buying a tranche of money to lend as a fixed rate, known as the swap rate, rose slightly. • One-year money is up 0.04% to 4.59% • Two-year money is up 0.07% to 4.73% • Three-year money is up 0.06% to 4.83% • Five-year money is up 0.04% to 4.91% The question is - with the cost of five-year money still below 5%, are there any lenders brave enough to try a sub-five-year fixed ...

  • Brown concentrates on the big picture, leaving us to the debate

    22 Mar 2004

    We are probably a year from a general election and the Budget last week left us under no illusions about what front the chancellor will be fighting on - tax. For those interested in mortgages, Brown stated that reform of the housing market was vital "to tackle potential inflationary pressure in housing, and potential bottlenecks in the supply side of the economy." He went on to say that last year he "identified the housing market and housing finance as major barriers to meeting ...

  • Burns-Anderson reveals network proposition

    24 Mar 2004

    Burns-Anderson has revealed its network offering for mortgage advisers looking to become appointed representatives or go directly authorised. The company says it will allow members to grow and prosper securely and is specifically designed to attract those mortgage advisers operating at the quality end of the marketplace. And it will be delivered from within other mainstream regulated services, rather than via a separate network. The network has no upfront fees ...

  • C&G reprices two-year fix and four-year cap

    22 Mar 2004

    Cheltenham & Gloucester is repricing its two-year fixed rate and four-year capped rate mortgages to replace those announced on January 19 2004. Prices of the remainder of the range are unchanged but end dates have been refreshed. C&G continues to offer fee-free remortgaging on an ongoing basis for loans of £25,000 and over, which includes waiver of the £299 administration charge, free legals or a £150 contribution toward legal costs, no valuation charge ...

  • Callcredit introduces online CIFAS service

    26 Mar 2004

    Callcredit has launched its CIFAS service which will give CIFAS members online access to the latest fraud intelligence within an hour of it being added to CIFAS' centralised fraud investigation database. With a high percentage of repeat frauds committed within hours of the original offence, Callcredit wanted to protect lenders and other service providers by providing them with the most up-to-date fraud intelligence data available. The credit reference agency worked ...

  • CIFAS launches ID fraud web pages

    23 Mar 2004

    The UK's fraud prevention service - CIFAS - has launched its new identity fraud web pages. The pages are designed to help consumers who are the victims of Britain's fastest growing crime - identity fraud with cases up from 20,000 in 1999 to 101,000 in 2003. The new web pages may be accessed either from www.cifas.org.uk or from www.identityfraud.org,uk Topics covered include: ? The difference between identity fraud and identity theft ? Why an ID ...

  • Clear Cut cuts homes deal

    22 Mar 2004

    Telephone-based brokerage Clear Cut Mortgages has signed an exclusive deal with house builder Bryant Homes to offer advice to purchasers looking for property. Visitors to Bryant's developments in the UK will now be encouraged to contact Clear Cut for mortgage advice. Clear Cut says Bryant sees it as a convenient choice for potential purchasers partly due to the hours it is open for telephone business - from 8am to 8pm Monday to Friday and from 9am to 6pm at weekends. Bryant ...

  • Clear Cut urges lenders to make offsets easier to compare

    24 Mar 2004

    Clear Cut Mortgages is calling on lenders to make offset products easier to compare. The company says that although lenders' claims are not deliberately misleading, they are confusing homeowners and could hinder the uptake of the products. Ben Thompson, director of Clear Cut Mortgages, says: "In the worst circumstances, borrowers can end up with the wrong product for their circumstances. "Because product advertising carries potential savings from offsetting ...

  • Commercial First securitisation raises £132m

    22 Mar 2004

    Commercial First has completed its first securitisation worth £132.5m, which closed on March 15. The firm says the issue was well received and that the bond offering was significantly oversubscribed. Over 75% of the issue was awarded the top AAA rating by agencies Moodys and Fitch. City law firm Clifford Chance was retained as Commercial First's legal advisers with Barclays Capital lead manager. KPMG provided audit services. Philip George, managing director ...

  • Complete Network welcomes FOS funding proposals

    26 Mar 2004

    The Complete Network has welcomed the FSA's proposed funding arrangements for the Financial Ombudsman Service with regard to mortgage firms and general insurance intermediaries. Bill Warren, director of the Complete Network, says: "The proposed case fee of £550 is reasonable, when combined with the fact that there will be no general levy in the 2004/05 financial year. "The FOS has a well deserved reputation for dealing with complaints in a fair and reasonable ...

  • CurriculumVitae - Adrian Coles

    23 Mar 2004

    Name: Adrian Coles Age: 49 Company: Building Societies Association Job Title: Director-general Where do you live? Surbiton Describe your current job: Representing the interests of building societies to regulators, government, MPs, media and the City. Also advising societies on policy issues and developing a framework to give societies the information they need to run their businesses. In addition, ...

  • Days to regulation: A critical life choice for brokers

    22 Mar 2004

    This week I look at the arguments for and against joining a life company as an appointed representative for mortgage and insurance sales. I am talking about the likes of Friends Mortgage World, Legal &General, Zurich Mortgage Network, and MGM Home Finance. The arguments for centre on the financial strength of the life companies and their many years of experience. When the Financial Services Act 1986 came into force, the majority of life companies set up an ...

  • Dear Dippy

    22 Mar 2004

    Dear Dippy Mark is a carpenter earning around £40,000 a year who became self-employed a year ago. He has a £80,000 fixed rate mortgage on a property worth £140,000 and wants to borrow £30,000 to reschedule his debts and for a new kitchen and bathroom. Last year he missed two payments and incurred several defaults while establishing his business. Dippy says: This is a difficult case which will require the broker to evaluate the client's circumstances ...

  • Discontent mounts over Gooding's network plan

    22 Mar 2004

    Rumbles of discontent over Charles Gooding's role as chairman of the Association of Mortgage Intermediaries were growing last week with the issue being raised at the latest top level meeting of intermediary lenders. Gooding sparked controversy earlier this year after it emerged he was planning to launch a network. First4Brokers will be launched with Keith Heron, chief executive of the National Association of Commercial Finance Brokers. Since the issue was highlighted ...

  • Don't fall behind in arrears revision

    22 Mar 2004

    The management of arrears is a topic that is covered in the syllabuses of the mortgage advice qualifications. One of the 10 commitments in the Mortgage Code requires subscribers to treat all cases of arrears and financial difficulty 'sympathetically and positively'. Section eight of the Code sets out additional information. A lender's first step will be to contact the borrower to talk, though the Code also states that borrowers should contact their lenders as soon as ...

  • E.surv celebrates third anniversay with Loans.co.uk

    23 Mar 2004

    E.surv, one of the leading firms of chartered surveyors in the UK and the largest distributor of mortgage valuations, celebrates its third anniversary with Loans.co.uk this month. The company has supplied valuation services to packager Loans.co.uk for several years, appointed as panel manager in 2001, the relationship is stronger than ever before with both firms experiencing unprecedented growth over that time. Richard Sexton, e.surv's national business development ...

  • EMS in national promotion drive

    22 Mar 2004

    Ethical Mortgage Solutions has announced the first stage of an aggressive marketing campaign whereby it will mail out details of its sub-prime broker network to almost two-thirds of all UK households. The direct mail campaign will take place over the next two months ahead of a £1.25m lead generation marketing campaign via Sky TV and the national press, planned for May. EMS says it will send direct mailshots to all households in the postcode areas signed up to ...

  • Exclusive: Freedom buys majority stake in Mortgage Next

    25 Mar 2004

    Direct to consumer operation Freedom Finance has acquired Mortgage Next for an undisclosed sum. Mortgage Strategy can exclusively reveal that direct to consumer broker Freedom Finance has taken a 55% stake in the network. Mortgage Next directors Martin Maynard and Justine Tomlinson will retain a 45% stake in the company. Freedom Finance recently unveiled plans for the Freedom Mortgage Network, appointing Stephen Atkins as its managing director, the former network ...

  • Falcon chooses Quay Software for back-office technology

    24 Mar 2004

    Falcon Group has chosen Quay Software to supply its new back-office technology This is the third phase in a 12-month redevelopment of the company's IT. The first project was to update the firms website, which was completed within the allotted time and within budget. Falcon selected Quay Software's Modular Website as the technology platform for the new site. The next project to be initiated was in April last year. Focussing on web technology, Falcon Group wanted ...

  • Focus and Fidelity provide e-business softward demo

    26 Mar 2004

    Focus Solutions, the creator of goal:technology, has teamed up with Fidelity Information Services, a division of Fidelity National Financial, to provide an e-business software demonstration for the global retail banking market. Goal:technology has provided a demonstration interface to Fidelity's Corebank solution, an integrated set of banking components that provides continuous real-time processing. Chris Venvell, director of partnerships at Focus Solutions Group, ...

  • Freedom Mortgage Next deal - Full details

    25 Mar 2004

    Mortgage Next, the UK's largest independent mortgage distributor, has today sold a majority shareholding to Freedom Finance in a deal which values Mortgage Next at £22 million. Martin Maynard and Justine Tomlinson, founders and joint owners of Mortgage Next, have retained a 43.5 per cent shareholding and will continue to run the business and implement its plans to provide mortgage intermediaries with a comprehensive network solution after M day on October 31 2004. Rupert ...

  • FSA application takes just 90 minutes, says ADMA

    22 Mar 2004

    The Association for Direct Mortgage Authorisation says that the time taken to complete a Financial Services Authority application takes no more than 90 minutes. It says that brokers who have attended its free workshops on regulation have confirmed that an hour-and-a-half is the average time it has taken. Jason Rogerson, spokesman for ADMA, says: "The free workshops are tailored to help attending brokers complete their applications. It has been able to demystify the whole ...

  • FSA cost estimate shocks brokers

    22 Mar 2004

    The Financial Services Authority's estimate of how much the implementation of regulation will cost firms has surprised many in the industry. The FSA has published estimates stating that a firm with a sales staff of one to two will incur average one-off costs of between £1,900 and £3,700, then between £3,800 and £5,600 annually. The figures had not been widely picked up on by the industry as they were published as point six of an FSA press release ...

  • FSA fines Allied Dunbar £725,000

    22 Mar 2004

    The Financial Services Authority has fined Allied Dunbar Assurance £725,000 for serious flaws in its procedures for handling mortgage endowment complaints. The failures, which occurred between May 2001 and April 2003, exposed large numbers of its customers to potential loss. The firm is now voluntarily reviewing complaints rejected from January 2000 and April 2003, including around 1,000 endowment complaints that were rejected during the period of breach and which ...

  • FSA publishes funding proposals for FOS

    22 Mar 2004

    Proposals for the funding of the Financial Ombudsman Service by mortgage firms and general insurance intermediaries has now been published. The proposals extend existing funding arrangements for FOS to mortgage firms and general insurance intermediaries and are based on the FSA's approach to setting fees for these sectors. For FOS, two new industry funding blocks will be created: one for mortgage business and one for general insurance broking. The funding block ...

  • FSA publishes funding proposals for FSCS

    22 Mar 2004

    Proposals for the funding of the Financial Services Compensation Scheme by mortgage firms and general insurance intermediaries has now been published. The proposals extend existing funding arrangements for FSCS to mortgage firms and general insurance intermediaries and are based on the FSA's approach to setting fees for these sectors. For the FSCS, there will be two separate sub-schemes, with one for mortgages and the other for general insurance brokers. Firms ...

  • FSA tables 'should be publicised'

    22 Mar 2004

    Professor David Miles is recommending that the FSA requires the full website address of its mortgage comparative tables and a short description of their purpose be included on all mandatory disclosure documentation given to clients. This is despite the admission in his report, The UK mortgage market: Taking a longer term view, that the number of visitors to the tables at www.fsa. gov.uk/tables has fallen to 1,000 a month from 7,000 when they were launched. In his chapter ...

  • Genesis unveils improved insurance panel

    25 Mar 2004

    Genesis Home Loans has unveiled an improved insurance panel in the run-up to Mortgage Day.   The panel, now consisting of Paymentshield, CETA, Select & Protect and LifeQuote, covers the full range of intermediary insurance need from buildings and contents, accident and sickness, income protection and life cover.   Genesis has developed the panel to provide competitive commission rates for its intermediaries who sell insurance products. Additionally, online quotations are ...

  • Giving brokers their place in the sun

    22 Mar 2004

    Spain The Spanish Property And Investment Network was launched in 2003 by general insurance network CETA. The company's objective is to help buyers purchase property in Spain either as an investment, for retirement or as a holiday home. With rental yields falling in the UK there is growing interest in owning property overseas. SPAIN provides a comprehensive service including finding the right location, arranging finance, sorting out legal issues and putting the property ...

  • Government gives £690m boost to key workers

    24 Mar 2004

    The government has given a £690m boost to key workers in London and the South-East to help them to get a foot on the property ladder. The aim of the programme is to keep skills needed in key frontline public services, such as teachers, nurses and the police. Workers have a choice between either a homebuyer loan of up to £50,000 to buy a house on the open market or a new property built by a registered social landlord, shared-ownership of newly built properties ...

  • Government publishes youngsters guide to stashing cash

    22 Mar 2004

    The government has published a pocket-sized book called Money M8 to help make youngster moneywise and get to grips with their finances. The book is aimed at 16 to 24 year olds moving into adulthood. Starting with the basics, such as finding a bank account and how to avoid debt, the guide is packed full of essential facts and tips. It explains, for example, how different types of credit, such as overdrafts and credit cards, work and how they can be used sensibly. Jonquil ...

  • Gross profits rise at Lighthouse

    26 Mar 2004

    The Lighthouse Group has revealed that gross profits swelled by 83% in 2003 from 2.6m in 2002 to £4.8m. The company says that following growth during 2003, Lighthouse is now ranked as seventh largest group in the UK, servicing all types of advisers. The retail financial services market is now estimated at £5bn per annum, of which £3.3bn is handled by IFAs. Increasingly the product providers are focussing on using the largest IFA groups as primary distributors. ...

  • Guaranteed launches new-build buy-to-let deal

    23 Mar 2004

    Guaranteed HomeLoans has launched an exclusive new-build buy-to-let product with a 15% gifted builder's deposit. The firm has negotiated the product with a member of its lending panel, and also features a 1% discount for 12 months following completion. The maximum LTV must not exceed 85%, with rental coverage to cover LTV + 40%. Applicants must be on a minimum salary of £30,000 and cannot exceed 10 properties per customer, totalling a maximum of £1m. This ...

  • How was the Budget for you?

    22 Mar 2004

    Chris Cummings, director, AMI The Barker review of housing supply got considerably more time in the chancellor's speech than did Miles. He was much more keen on directly addressing Barker's recommendations and announced that the Deputy Prime Minister will be taking these on through further, more detailed consultations. The announcement that there will be consultations on the real estate investment trust is interesting. This could prove to be an opportunity for the market. Stamp ...

  • Howard says housing review is too little, too late

    22 Mar 2004

    Conservative party leader Michael Howard slammed last week's Labour Budget and indicated that the Barker report into housing supply had come too late. In the Opposition's response to the Budget, Howard told the House of Commons: "So far, all the government has achieved is to hold the record for the lowest number of new houses built in peacetime since 1924." But he said the Tory party would "scrutinise with care the implications of Barker's proposals". Howard's ...

  • Industry underestimating impact of regulation, warns law firm

    22 Mar 2004

    Mortgage firms are risking their business by severely underestimating the impact of Financial Services Authority regulation, warns international law firm DLA. Firms need to have completed and submitted an application form by April 30 to guarantee authorisation by the time the regulations come into force on October 31. Being unauthorised from this date onwards could lead to fines or prosecution.   Helen Marshall, regulation partner at DLA, says: "The biggest concern is ...

  • Insurer spearheads training solutions for FSA compliance

    25 Mar 2004

    Pinnacle Insurance has launched an online FSA compliance training system for intermediaries. The company says that the Pinnacle Proficiency Solutions' website means clients, intermediaries and their personnel can now benefit from modular, internet-based insurance sales training. Each internet student has an individual username and password that gives them access to the appropriate learning modules and test pages. Training modules can be accessed via a menu ...

  • Interest rates in Budget spotlight

    22 Mar 2004

    The lowest interest rates for 40 years have contributed to a strong economy and the longest period of sustained growth for 200 years, Chancellor Gordon Brown said in his Budget speech. Rates peaked at 16% in the 1990s but are now just 4%, while mortgage rates are averaging 5% compared with 15% in the 1980s and early 1990s. Brown added that growth in 2003 stood at 2.3% and that the UK economy would strengthen throughout 2004 with estimated growth of between 3% and 3.5%. Paul ...

  • Interlink Premier Network in liquidation

    24 Mar 2004

    Interlink Premier Network has called in administrators and is going into immediate liquidation after failing to secure a capital injection. This is being seen by some as a warning to mortgage brokers considering joining a network to check the capital adequacy of any firm before they sign up or consider direct FSA authorisation. The Cardiff-based IFA network with around 200 members ceased trading on March 19 and has contacted the FSA to cancel its network permissions. ...

  • Kent Reliance to transfer branch network to agencies

    26 Mar 2004

    Kent Reliance has revealed that subject to regulatory approval, it plans to transfer its branch network to agencies. The move comes after a comprehensive review of the branches and follows the successful transfer of the Faversham branch in 2001 and Ashford in 2002. As the only building society based in Kent, the society is determined to retain a high street presence whilst continuing to provide the highest standard of service to members. A small number of established ...

  • KMC loses Bier in surprise departure

    22 Mar 2004

    Rob Bier has left Kensington Mortgages as managing director after just five months. Industry sources tell Mortgage Strategy that Bier parted company with Kensington earlier this month due to working differences. KMC says Bier, who joined the firm at the beginning of October 2003, left by mutual consent. John Maltby, group chief executive of KMC, is taking over his duties until it is decided whether a replacement will be sought. Alistair Pate, spokesman for KMC, ...

  • Lib Dems say Equitable Life withholding vital data

    25 Mar 2004

    The Liberal Democrats have accused Equitable Life of withholding crucial data requested in a Parliamentary question on the grounds of commerical confidentiality. Vincent Cable MP, Liberal Democrat shadow chancellor, says the information details how much Equitable Life policyholders have lost - over and above losses made by policyholders of other firms. Cable says: "I have been reassured by the government that they want to release thesefigures. However, I understand that ...

  • Manchester Mortgage Expo goes high-tech

    23 Mar 2004

    Visitors to the Mortgage Business Expo Manchester in May will be given personalised event planners when they arrive. Organiser Clarion Events have invested in forward looking touch-screen technology that will highlight relevant stands when visitors list their interests. This latest touch-screen technology is intended to ensure that visitors do not miss any exhibitors that would be relevant to them. For exhibitors, it also helps increase the volume of relevant visitors ...

  • Marking time

    22 Mar 2004

    The initial reaction of the mortgage industry to last week's Budget was hardly earth-shattering with responses ranging from "damp squib" and "terribly boring" to "non-event". But this is not surprising given that this was designed as an election Budget from the always prudent chancellor Gordon Brown who this year appeared to go out of his way not to upset any apple carts - or voters. "It was a bit of a non-Budget really. It was terribly boring, though I wasn't really ...

  • M-Day can be your independence day

    22 Mar 2004

    A key issue to consider when choosing a network is that of independence. Your principal's definition of this ambiguous word may differ considerably from yours. If you want a network that will remain impartial and offer you unconditional access to the whole of the market, make sure you find out where you stand before you sign up. IFAs and brokers have always valued being able to call themselves independent and lenders recognise this. Paul Darwin, head of intermediary lending ...

  • Miles plan will curb choice

    22 Mar 2004

    From Mike Fitzgerald Professor David Miles' 246-page report makes interesting reading. There have been many comments on the subject but I think Neil Collins in his Daily Telegraph City comment summed it up. "Enough pie charts to make you sick," and "a year to come up with the bleedin' obvious" were just two of his comments. Miles did say that our industry is dynamic and intense with products emerging at regular intervals. The market is also extremely competitive. App

  • MMC gets in shape for its network bid

    22 Mar 2004

    The Mortgage Marketing Centre, one of the UK's first packaging and placement companies, has entered into an alliance with the Manchester, which has acquired a minority shareholding in the company. MMC says the investment and the benefits that such an alliance will bring will support its strategy of applying for network status. Chris French, MMC managing director, says: "MMC figured that to satisfy its risk-aware culture, additional compliance and systems investment ...

  • Mortgage Advice Bureau signs up Midlands estate agents

    24 Mar 2004

    Mortgage Advice Bureau has signed up estate agents Hunters in Solihull and Taylors in Dudley. The company says this further establishes the MAB franchise network in the Midlands and provides a firm footing for expansion across the region. Hunters and Taylors add 14 branches to the MAB network, taking its total outlets to over 200.   Geoff Taylor, managing director of Taylors, says: "The company was searching for a high profile company that shared its business vision.  ...

  • Mortgages PLC appoints operations director

    25 Mar 2004

    Mortgages PLC has appointed Hugh Meechan as operations director. Meechan, who will be based in the company's Glasgow office, joins on June 1 and will have responsibility for all operational aspects of the business from underwriting to administration, HR and IT. He will join the Mortgages PLC board and will report to Trevor Pothecary, group chief executive. Pothecary says: "Meechan has an outstanding track record in operational roles and brings with him exactly the ...

  • N&P awards architect £5,000 eco prize

    23 Mar 2004

    Norwich and Peterborough has awarded a Spalding-based architect £5,000 as the top prize for its ecological self-build competition. Jerry Harrall and Kay Woods have won the prize which is given out to people who had a home built to their own individual design, incorporating energy-saving features. Around 20,000 people self-build their homes every year, it is estimated, and that number is growing.  Harrall and Woods made environmentally-friendly features ...

  • N&P reveals 7.4% drop in profits in 2003

    24 Mar 2004

    Norwich and Peterborough has revealed that in the same year the company became an independent financial adviser, pre-tax profits dropped by 7.4% in 2003 to £14.5m. On the plus side, gross mortgage advances increased by 16% to £659m with total mortgage balances up 9.1% on 2002, with redemptions at £398m. And total assets of the group increased to £2,837m, up 10.6% on the previous year. And the group says its capital position remains strong, with ...

  • NAEA disappointed by OFT report

    25 Mar 2004

    The National Association of Estate Agents says it is disappointed that the Office of Fair Trading's report on the estate agency market did not take its recommendations further with the introduction of minimum qualifications and self-regulatory licensing. The study assessed customer satisfaction with estate agents by interviewing a number of consumers who had recently bought or sold a property. Peter Bolton King, chief executive of the NAEA, says: "While the NAEA is ...

  • Networkone launches service charter

    23 Mar 2004

    Networkone is to launch a service charter to its intermediary partners who join the Cardiff-based mortgage network as appointed representatives. The charter will be rolled out next month to its existing portfolio of ARs and the growing army of intermediaries that it's currently in negotiations with. So far the network has signed up 90 individuals and organisations on an interim contract basis - a figure that takes it close to its overall first phase goal of recruiting ...

  • Networkone plans service charter for ARs

    22 Mar 2004

    Cardiff-based networkone is to launch a service charter for its appointed representatives outlining minimum standards members can expect from the network. The network will roll out the charter next month to its existing ARs and to the intermediaries it is in negotiations with. The charter includes a commitment to deliver the highest standards of servicing for members which will typically mean ARs can expect specialist mortgage cases to proceed to a formal offer within ...

  • OFT publishes critical report on estate agency market

    23 Mar 2004

    The Office of Fair Trading has found that many estate agents suggest buyers would be more successful in getting the house they want if they use the financial services offered by the agent. This finding builds on the view in the market that many estate agency chains actively encourage housebuyers to seek mortgage advice from their inhouse advisers, rather than see an independent broker of their choice. In its report into the market in England and Wales, published today, ...

  • OFT report didn't go far enough, says B&B Estate Agents

    24 Mar 2004

    The head of Bradford & Bingley Estate Agents says the Office of Fair Trading's report on estate agents didn't go far enough. Gary Verity, managing director of B&B Estate Agents, says that while the proposals on improving transparency and service are to be welcomed, enforcing a statutory code of conduct would have helped change the public perception of estate agency, enabling it to be recognised as a professional and reputable industry. He says: "Like all professions, ...

  • OFT report on estate agents is disappointing, says RICS

    24 Mar 2004

    The Royal Institution of Chartered Surveryors has called the Office of Fair Trading's report on estate agents published yesterday "disappointing," saying regulated estate agents and consumers deserve better. "The report published by the Office of Fair Trade on estate agency is disappointing, offering nothing particularly new. Regulated estate agents and consumers deserve something better, says RICS. Jeremy Leaf at RICS says the report offers nothing particulary new. ...

  • Origo to hold e-commerce workshop for IFAs

    26 Mar 2004

    Origo, the UK's financial services industry standards body, is encouraging IFAs in Scotland to voice their opinions on e-commerce in the life, pensions and collective investments industry. Following the success of the recent focus group held in London in January, Origo is holding another workshop for IFAs in Glasgow. Led by Robert Reid, former chair of SOFA and practising IFA, the event will be held on April 14 2004 in the Baird Lounge, at Hampden Park, Glasgow. The ...

  • Paragon appoints head of mortgage underwriting

    25 Mar 2004

    Paragon Mortgages has appointed Mike Potter to the newly created post of head of mortgageunderwriting from March 15 2004. Potter has been with Paragon since August 1987 and spent his 16 years' service in the underwriting department, most recently managing underwriting services. He holds the Certificate in Mortgage Advice and Practice qualification and the Diploma in Mortgage Lending. John Heron, managing director of Paragon Mortgages, says: "This is a new post the ...

  • Personal Touch offers Mortgage Brain software to members

    26 Mar 2004

    Personal Touch Finance is to offer Mortgage Brain's compliance software to 1,200 of its members. Mortgage Brain says its compliance solution was key in Personal Touch Finance's decision to offer the mortgage sourcing compliance software solutions. Earlier this year, Personal Touch laid out its plans for a regulated IFA network for investments, mortgages and general insurance, and can now add Mortgage Brain to the list of products and services it offers to members. ...

  • Pink upgrades telephone system

    22 Mar 2004

    Pink Home Loans has introduced a new telephone system which makes it easier for customers to access the teams they speak to on a regular basis. The sales and service teams are divided into regional groups to provide dedicated support for brokers. This allows customers to speak to the same teams every time they contact Pink, which in turn enables them to build better, long-term relationships with the people dealing with their enquiries. It recognises the customer's ...

  • Platform appoints BDM for West Midlands

    24 Mar 2004

    Platform has appointed Darrell Walker as business development manager for the West Midlands.   Walker joins Platform from Barclays Bank where he was corporate business manager in the West Midlands area, working closely with mortgage and commercial lending introducers. He also has broad experience of providing advice to customers in previous roles at Coventry, Alliance & Leicester and NatWest.   Jeremy Duncombe, head of sales at Platform, says: "Platform is already ...

  • PMS adds GMAC-RFC to panel

    25 Mar 2004

    GMAC-RFC has become the latest lender to join the Premier Mortgage Service Panel. The panel aims to provide mortgage advisers with a comprehensive and fully integrated one-stop product and benefit service. This is linked to their specialist compliance services through Bankhall/Point One which will be particularly advantageous with the forthcoming FSA mortgage regulations. As the UK's 13th largest lender, GMAC-RFC brings with it a wide range of leading products, from ...

  • Questions of accuracy

    22 Mar 2004

    From Barry Cash In Mortgage Strategy March 8 you got the answers to two questions in Mortgage Master or Mortgage Moron wrong. Question 1: Which of the following best describes a remortgage? The correct answer is D. You have given B which is a description of a further advance. Question 4: Which of the following statements is false in relation to cashback mortgages? You give A as the false statement when it is true. The false statement is in fact C. Barry ...

  • Rating agency to keep eye on B&B

    22 Mar 2004

    Bradford & Bingley has been placed on rating agency Standard & Poor's CreditWatch over concerns about its vulnerability to house price falls and the heavy involvement of its Mortgage Express subsidiary in buy-to-let. The move comes just a few weeks after reports from investment firms Durlacher and Morgan Stanley raised questions about Mortgage Express' over-dependency on buy-to-let. Standard & Poor's concentrates on the fact that B&B's strategy ...

  • Rising debt influences rate decisions, says BoE deputy governor

    24 Mar 2004

    The deputy governor of the Bank of England says rising indebtedness of UK families and monetary stability all play a part in rate rise decisions. Sir Andrew Large was speaking to the Association of Corporate Treasurers in Newport yesterday. He says: "On the whole the increasing availability of debt is beneficial. Debt helpfully allows households, companies and even countries to smooth their spending patterns. But as with many things in life, there are potential downsides. "I ...

  • Sage creates premier group of lenders

    22 Mar 2004

    Sage Mortgage Network, part of the Inter-Alliance group, has put together a premier panel of lenders to provide a raft of exclusive deals to members. Lenders who sign up to the panel free of charge will have to provide exclusive products for a minimum of 12 weeks a year and brokers will receive the whole proc fee. Lenders who have signed up to the premier panel include Bristol &West, The Woolwich, Norwich and Peterborough and Birmingham Midshires. B&W ...

  • Scottish Widows Bank enhances graduate mortgage

    26 Mar 2004

    Scottish Widows Bank has enhanced its popular graduate mortgage by extending the range of interest rate options available. From March 24 2004 a stepped discount over three years and a two-year fixed rate will be introduced. The stepped discount offers a 1% discount in year one, 0.5% in year two and 0.25% in the final year. The bank's standard variable rate is currently 5.24%. The two-year fixed rate is 4.98% for loans up to 90% of the property's value ...

  • Sesame adds 10 more lenders to its panel

    22 Mar 2004

    Sesame has added another 10 lenders to its network panel, joining Abbey and Halifax, Mortgage Strategy has learned. In a circular to members issued last week the lenders signing up were named as Royal Bank of Scotland, The One Account, The Woolwich, GMAC-RFC, Bank of Scotland, BM Solutions, NatWest, Intelligent Finance, Standard Life Bank and The Mortgage Business. The circular states: "In many instances lenders who are part of the Mortgage Select panel will be offering ...

  • SHIP accepts NLML as member

    23 Mar 2004

    New Life Mortgages Limited has been accepted as a member of SHIP, the equity release industry trade body. The company says that with formal regulation of lifetime mortgages not taking place until October, it is important for any new player to join SHIP, which has performed an excellent job in imposing minimum standards on those wishing to offer products to this age group. Peter Lucas, chief executive at New Life Mortgages Limited, says: "NLML are looking forward to ...

  • Smart to create franchise for M25-based brokers

    22 Mar 2004

    Middlesex-based brokerage Smart Mortgage Group is creating a franchise out of its brand. It is targeting brokers in the M25 area looking to expand, with the first operation in Southall opening next month. Smart is applying to be directly authorised and will use the Pink network for compliance servicing. Bob Singh, director of Smart, says: "The proposition is aimed at one or two-man band brokerages who don't want to grow on their own and would prefer to work to a proven ...

  • Soaring lending fuelling housing bubble, say Lib Dems

    26 Mar 2004

    The Liberal Democrats have warned that soaring mortgage lending is fuelling an unsustainable house price bubble. Commenting on the British Bankers' Association which shows approval for loans for house purchase is up 56% in value on the year, he says large numbers of people are gambling on the house price boom, which they may regret if house prices start to fall. Vince Cable MP, shadow chancellor for the Liberal Democrats, says: "In the Budget the chancellor failed ...

  • Stroud & Swindon launches two lifetime trackers

    23 Mar 2004

    Stroud & Swindon has launched two flexible mortgages which track the Bank of England base rate for the lifetime of the mortgage. At 0.75% above base rate, with free legal fees for remortgages and free valuation, the company says this makes the product an attractive long term proposition for borrowers looking for a predictable interest rate and the advantages of a flexible loan. The maximum loan to value is 75% with a completion fee of £295. A variation on this ...

  • Tax decisions not enough

    22 Mar 2004

    Chancellor Gordon Brown's announcements in his Budget last week that Stamp Duty will be frozen while the minimum threshold on Inheritance Tax will be increased to £263,000 have received a muted industry reception. Announcing details of his eighth Budget last Wednesday, Brown said he would freeze Inheritance Tax and raise the minimum threshold by 3% from £255,000 to £263,000. This would result in 95% of estates being exempt from inheritance tax. But ...

  • The Funding Corporation acquires Abbey block discounting ops

    23 Mar 2004

    The Funding Corporation has acquired the block discounting operations of Abbey Business. The complex £43m transaction marks TFC's move into the business-to-business sector, broadening its base from its current range of consumer-facing financial offerings in branded and non-branded personal loans and car finance. The acquisition enables TFC to provide finance facilities for smaller companies wishing to provide or create credit products - on their own branded ...

  • The Mortgage Mole

    23 Mar 2004

    Heavy Duty What a week! Cheltenham, Liverpool winning 3-0 against Portsmouth, Cheltenham again, drinks with Lon- don's footballing ...lite at the exclusive Kingly club off Carnaby Street - of which Mole is now a member - and finally the rugby at Twickenham courtesy of those nice folk at Preferred. A sporting extravaganza if ever there was one. A shame then that the Budget fell slap-bang in the middle of it all. And what a belter it was, leaving Mole with the prospect ...

  • The simple way to compliant KFIs

    22 Mar 2004

    Last week saw the release of a thought-provoking communication from Mortgage Brain that should be of interest to those concerned about documentation compliance. After the furore of the Mortgage Code Arbitration Scheme award concerning responsibility for inaccuracies in sourcing software systems it was refreshing to hear Mortgage Brain's commitment to produce Key Fact Illustrations within the FSA's tolerance threshold (1% or £1, whichever is the greater). Unless you are joining ...

  • Three non-conforming lenders join RAMP panel

    22 Mar 2004

    Kensington Mortgage Company, First National and Preferred Mortgages have become the latest lenders to join the Regulatory Alliance of Mortgage Packagers. The sub-prime lenders were added to the 12-strong panel last week taking its total to 15. They join Capital Home Loans, igroup, Platform, MPLC, SPML, Future, The Mortgage Distributors Co-operative and GMAC-RFC branded lending partners Victory Homeloans, Enterprise Homeloans, County Homeloans, em-financial and Pavillion Homeloans. John ...

  • Trigold runs KFI prototype

    22 Mar 2004

    Sourcing system Trigold says it has the prototype for its Key Facts Illustrations and other online compliance services ready in line with FSA requirements for brokers. Following last week's ann-ouncement by Mortgage Brain that it has been demonstrating its KFIs at compliance forums over the past few weeks, Trigold says its prototype is up and running. Trigold joint managing director Bill Safran says: "The prototype has been shown to major lenders and intermediary customers ...

  • UCB launches online buy-to-let guide

    25 Mar 2004

    UCB Home Loans has launched an online guide for investors in buy-to-let property. The site provides hints and tips with regional statistics and valuable information for budding landlords. It's accessible from UCB's homepage or at www.ucbhomeloans.co.uk/buytolet provides a comprehensive guide to the buy-to-let market, including advice on investing and regular update reports. Charles Reed, managing director at UCB Home Loans, says: "The site has been designed ...

  • Unregulated estate agent market is 'frightening', say Lib Dems

    24 Mar 2004

    The Liberal Democrats have described as "frightening" the fact that £118bn of property transactions are dealt with by agents not signed up to the Ombudsman's code of practice. Commenting on the OFT report which recommends more price competition and improved self-regulation among estate agents, Malcolm Bruce MP, Liberal Democrat shadow DTI secretary, says most people would be horrified to learn the industry is largely unregulated. He says: "This is leaving thousands ...

  • VerbalStore launches voice recording service

    23 Mar 2004

    VerbalStore has launched operational VerbalStore ASP. The application service provider offers clients interested in voice recording and monitoring a prepaid service, enabling companies and home users to benefit from contact centre grade voice recording and monitoring technology in an easy to use and control solution that caters from one channel to many. The service offers users the ability to address compliance, regulatory control, staff and employee training, quality ...

  • We know your game, Gordon

    22 Mar 2004

    Another Budget from Chancellor Gordon Brown has come and gone leaving many in the industry wondering why he bothered, other than using it to launch Labour's re-election campaign. With an election definitely happening next year it's hardly surprising Brown did not want to tinker too much with taxes that would grab the headlines - notably Stamp Duty. Although there was a collective sigh of relief around the industry last Wednesday when the chancellor decided not ...

  • What did you think of the Budget?

    22 Mar 2004

    Steve Aldous, general manager, sales and marketing, Skipton Watching the Budget was like seeing a photo of Jordan - a couple of interesting points but nothing revealed that you didn't already expect to see. The big disappointment was that the chancellor hadn't heeded calls to increase the threshold from which Stamp Duty is paid. With numerous reports, including that of Kate Barker, stating that demand in the housing market is strong and likely to get stronger, the outlook ...

  • Would Miles' plan make it even tougher for FTBs?

    22 Mar 2004

    The Miles report, The UK Mortgage market: Taking a longer term view, published on March 12 in the run-up to the Budget made several recommendations about the future of lending. Professor David Miles wants consumers to be provided with greater quantities of information in a more transparent fashion and also makes suggestions as to how the products could be financed. A key proposal was for lenders to make all products available to all borrowers - new and existing. So, ...

  • Wrong answers don't help me

    22 Mar 2004

    From Kevin Neil I am currently studying for CeMAP Bridge paper and find your Mortgage Master or Mortgage Moron section useful - but only when it gives the right answers! I am sure that in the March 8 issue, the answer given for Question 1 is wrong. Kevin Neil Parker Kelly Financial Services By email Editor's reply: Apologies to all those who noticed the mistakes and well done to eagle-eyed Barry Cash and Kevin Neil for pointing it out. The mix-up ...

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