Mortgage Strategy
24 February 2003

  • 2.5 million take up offset banking as popularity grows

    27 Feb 2003

    Nearly 2.5 million adults in the UK have already taken up an offset banking offer, with more expected to follow as familiarity with the product grows. Research conducted for Intelligent Finance by ICM confirms the growing popularity of offset banking and suggests a further 10 million UK banking customers who don't currently use it would consider a switch to a bank that offered it. Grenville Turner, chief executive of Intelligent Finance, says: "It's no surprise ...

  • 50% unsure of own mortgage interest rate

    25 Feb 2003

    Nearly 50% of borrowers quizzed in a recent survey of mortgage loans are still unsure of the interest rate charged for their mortgage. Despite shopping around for the best deals on the market many people still don't know what interest rate they pay on their mortgage according to the results of the survey, conducted by Norwich and Peterborough (N&P). Although 97% of those people surveyed who have a mortgage are currently on a special deal, nearly half (49%) don't ...

  • Abbey boosts proc fees on flexible products

    24 Feb 2003

    Abbey National is increasing the procuration fees on its flexible mortgages by 0.1% - an increase of £150 on a £150,000 loan. The extra fee is part of a campaign to promote the advantages of flexible mortgages and becomes available today. Abbey admits its flexible range is a harder sell for intermediaries and loses out to short-term discounts and fixed mortgages in terms of rate. Guy Aldwinckle, head of mortgage marketing at Abbey National, says: "We understand ...

  • Abbey transacts over £100m through Trigold

    27 Feb 2003

    Abbey National has revealed it has transacted over £100m of mortgage business through the Trigold trading platform. Using the industry's first online acceptance-in-principle via a trading platform, intermediaries are spared from having to rekey data between the search and application stages, with data then pre-populated into Abbey National's own online system, Introducer Internet. Ambrose McGinn, sales and marketing director of Abbey National for Intermediaries, ...

  • APS Europe secures life assurance deal with LifeQuote

    27 Feb 2003

    APS Europe mortgage club has entered an agreement with LifeQuote, enabling its members to provide life assurance products. The LifeQuote sales and administration network offers pure protection insurance products, including life and critical illness cover. Intermediaries can source and quote from all of the top insurance companies via the APS Europe website. There are no membership fees or administration charges and LifeQuote offers generous rates of commission. APS managing ...

  • ARLA warns vulnerable tenants to use agents

    27 Feb 2003

    Friends and relatives of elderly people and potentially vulnerable tenants in the private rented sector have been warned to encourage the use of letting agents. The warning comes from the Association of Residential Letting Agents, which says the elderly and inexperienced should always rent through a regulated letting agent to allay fears over problem landlords who ignore maintenance and the condition of properties. Recent research undertaken by the charity Help the Aged ...

  • B&B on the brokerage acquisitions trail

    24 Feb 2003

    Bradford & Bingley is looking to buy other mortgage broking or financial advice firms to add to its MarketPlace and Charcol brands. Chief executive Christopher Rodrigues says: "With the markets where they are, some good businesses come up for sale. We are potential buyers if the right opportunity comes along." David Hollingworth, mortgage specialist at London and Country, says: "It has been B&B's strategy to be a financial adviser for a long time. It has Charcol ...

  • Bank of Ireland unveils deals

    24 Feb 2003

    The Bank of Ireland has launched two products. A buy-to-let deal is fixed at 4.99% until May 2008, before reverting to Bank base rate plus 1.75%. Redemption penalties of 7%, 6% and 5% apply to each consecutive year. The Bank is also offering a five-year fixed rate at 4.19%, reverting to base rate plus 1%. The same redemption penalties apply.

  • Bradford & Bingley cuts SVR

    24 Feb 2003

    Following the reduction in the Bank of England base rate Bradford & Bingley is reducing its Standard Variable Rate to new and existing borrowers. The SVR will reduce by 0.16% from 5.95% to 5.79%, effective from March 2.

  • Bristol & West unveils three buy-to-let deals

    27 Feb 2003

    Bristol & West Mortgages has revised its buy-to-let portfolio with the launch of three buy-to-let five-year fixed rate mortgage deals. The deals are all available up to 85% loan to value with no extended tie-in, and are available to purchasers and remortgagers. All are available to a minimum loan size of £15,001 for purchase and £25,001 for remortgage. The first deal is a five-year rate fixed at 4.99% until March 31 2008, with a £399 non-returnable booking ...

  • Britannia to launch offset mortgage deal

    26 Feb 2003

    Britannia Building Society will launch into the offset mortgage market next month. Graham Leftwich, head of corporate communications at Britannia, told Mortgage Strategy online: "What we are not doing is launching a current account mortgage. "We want to keep things as simple as possible for our borrowers and the best way to look at this is as a savings mortgage." Borrowers will have the ability to offset their instant access savings against a flexible mortgage. Leftwic

  • Britannic PR manager joins Mortgage Brain

    24 Feb 2003

    Mortgage Brain has appointed Claire Kennedy, former PR manager for Britannic Money, as its new head of marketing. Kennedy will take responsibility for marketing Mortgage Brain's suite of software including mortgage sourcing and electronic trading. Kennedy says: "Mortgage Brain offers the unique opportunity to be involved with the mortgage software sourcing provider and get in on the ground level of the mortgage trading exchange. The company is certainly going places ...

  • Brokers are technophiles

    24 Feb 2003

    More than 75% of mortgage brokers consider themselves to be technophiles rather than technophobes, research from Best Advice Mortgage Centre reveals. The survey, based on interviews with 320 intermediaries, found that all used a computer and the internet on a daily basis. Only two out of 10 wanted to receive information from lenders by fax, compared to eight out of 10 who preferred email updates, while nine out of 10 said they would use online applications and decisions in principle ...

  • Brokers urged to apply early as MCCB registration renewal begins

    25 Feb 2003

    The Mortgage Code Compliance Board has begun the renewal process for registered IFAs and mortgage advisers. Over 13,000 mortgage lenders and intermediaries across the UK will receive MCCB registration renewal forms in the coming weeks, as the regulator begins the renewal process for 2003/4. The MCCB has attempted to improve the efficiency of the process by pre-populating documents with information already held by the Board, with firms asked to confirm or amend this information ...

  • Buy-to-let confidence still high

    25 Feb 2003

    Two out of five consumers would consider purchasing a buy-to-let property if they were in a position to do so, latest research from Mintel reveals. Men are happier with the idea of BTL investments than women - some 29% of men would strongly consider such a purchase compared to 24% of women. With concerns over the state of the housing market running high and price falls already having been reported in parts of London and the South East, it might be expected that chief ...

  • CBI trims forecasts for economic growth

    24 Feb 2003

    The CBI has trimmed its forecast for economic growth this year and next, blaming a weak global economy for suppressing a UK recovery. It believes UK growth will average 2.2% in 2003, a downward revision of 0.2%. The CBI says growth will average 2.4% in 2004, a downward revision of 0.3%. The CBI believes borrowing will rise to £26.7bn in 2003/4, some 2.7bn higher than Treasury forecasts. The CBI says that household consumption, supported by a strong market ...

  • Chase de Vere/MX Financial Solutions to merge

    25 Feb 2003

    Up to 350 staff at MX Financial Solutions are set to lose their jobs following the announcement that the IFA outfit will be merged with Chase de Vere Investments. The combined body will operate in future under the Chase de Vere Investments brand, with approximately 350 staff - 40% of the total workforce - set to leave the firm as a result of the merger. Parent company the Bank of Ireland Group made the announcement yesterday, saying it intends to develop the newly merged ...

  • Chelsea Building Society reduces mortgage variable rate to 5.59%

    25 Feb 2003

    Chelsea Building Society has announced its decision to reduce its standard variable rate by 0.10% from 5.69%, (typical APR 5.9% variable) to 5.59%, (typical APR 5.8% variable). The reduction is in response to the Bank of England's decision to cut the bank base rate by 0.25% earlier this month. The 0.10% reduction will also apply to any products linked to the Society's SVR, including the Cashback Plus, buy-to-let, Concept, Prospect, student buy-to-let and the Society's ...

  • CHL calls for transparency on 'MIG-free' products

    24 Feb 2003

    Capital Home Loans has called for more transparency in the mortgage industry on products claimed to be MIG-free. CHL says there are many lenders who claim to have MIG-free products but once the borrower exceeds the 90% loan to value threshold, they are charged a MIG insurance premium from a trigger point of 75%. Abbey National claims to be MIG-free, but data from Moneyfacts shows its products are only MIG-free up to 89.9% loan to value. Once the borrower hits 90% they ...

  • Compliance costs could break brokers

    24 Feb 2003

    Compliance costs will force two out of 10 intermediaries out of the mortgage industry while six out of 10 say the future looks bleak, research from Bankhall Point One reveals. Of the 102 professionals surveyed, 97% thought regulation would increase, with a third believing it would increase significantly. Three-quarters thought the costs of compliance to their business were high, with a quarter of those believing it to be excessive. Some 87% predicted compliance costs will increase ...

  • Consumer awareness of borrowing options grows

    28 Feb 2003

    Record levels of remortgaging in the UK housing market suggests consumers have a higher awareness of borrowing options open to them now than every before. January saw a repeat of December's gross mortgage lending total of £13.0bn, with net lending (i.e. after redemptions and repayments) rising by £5.4bn in the month, compared to £5.1bn in December and £4.1bn in January 2002. The normally subdued picture of weaker mortgage demand over the winter ...

  • Conveyancer to offer surveys

    24 Feb 2003

    Legal Marketing Services, which offers conveyancing services nationwide, is to expand into surveys. 121surveys will launch on March 3 2003. As with 121legals, 121surveys will be available to the public via estate agents, mortgage brokers and financial advisers and will set new standards in customer service. Homebuyers or sellers will be able to track the progress of their case on the internet and can expect the written report within two to five days of the survey taking ...

  • Coventry launches double discount rate mortgage

    27 Feb 2003

    Coventry Building Society has launched a 1.80% Flexx discount mortgage for first-time buyers, house movers or remortgagors. The product carries a 1.80% discount (off SVR) until September 30 2005 - making the current applied rate 3.85% - then 0.66% discount (off SVR) until September 30 2008 and carries no early redemption charges. The product also carries flexible features, includes free valuation and remortgage transfer service, with an arrangement fee of £295, or £195 ...

  • Don't be duped into joining a network

    24 Feb 2003

    Pink Home Loans and ICMG are warning brokers not to get duped into joining a network at N4. Both firms are working on compliance services to provide brokers with practical alternatives to appointed representative status. Mark Howell, marketing manager at Pink, says: "A lot of networks are putting out the view that brokers need to join because compliance will be difficult. We're saying that brokers don't have to." Pink is creating a raft of support services ...

  • Early retirement for chairman as AMP reports record losses

    27 Feb 2003

    Stan Wallis, chairman of troubled financial services group AMP, has retired five months earlier than planned this week following the group's record losses. Losses of Australian$896m (£325m) were announced by the group, last week with industry sources saying Wallis' decision to stand down before his intended date in July. The group said this week that 2002 operating margins at its UK financial services companies, including Pearl, NPI and London Life, fell 36% ...

  • Employer support for staff taking exams grows

    24 Feb 2003

    Support from insurance and financial services employers for staff taking exams and professional qualifications has increased since 2000, a report from the Chartered Insurance Institute reveals. The findings are presented in the CII's Company Education Support 2002 research report, based on a written survey questionnaire completed by 162 employers. Generally employers offer more support now than was the case when the survey was first run in 2000. For example, in 2000 ...

  • Employers encouraging support for education, says CII

    25 Feb 2003

    Insurance and financial services employers are increasingly offering their support to staff taking exams and professional qualifications has increased. The findings are presented in the CII's Company Education Support 2002 research report, based on a written survey questionnaire completed by 162 employers. Comparisons are given with a similar report published in 2000. Highlights from the report are that generally, employers offer more support now than was the case ...

  • Equifax Europe appoints chief information officer

    28 Feb 2003

    Credit check agency Equifax has announced the appointment of Mark Breese as chief information officer with full responsibility for Equifax's IT service and strategy across its European operations. With over 25 years experience in technology, Breese will oversee the IT function within Equifax where he will be responsible for developing and implementing the systems strategy for Italy, Spain and the UK. Breese began his career as a computer operator and programmer before ...

  • EU Directive could cost UK households £40 a year, says CIFAS

    27 Feb 2003

    The proposed European Consumer Credit Directive could cost every household in Britain £40 a year to meet the cost of additional fraud. In its current, preliminary form the draft Directive proposed by the European Commission removes the right of lenders to check information supplied by consumers on applications for mortgages, credit cards, loans and bank accounts, by restricting their enquiries to creditworthiness. The UK's Fraud Prevention Service, CIFAS, which ...

  • Flagship Homeloans relaunch

    24 Feb 2003

    Solent Mortgage Services' correspondent lender Flagship Homeloans has relaunched into the market. FHL will market Platform products backed up by the quality of service provided by SMS. In line with FHL and Platform's cascade underwriting approach, prime, non-conforming and niche products are available, including self-certification and buy-to-let. To coincide with the launch, Flagship is offering an exclusive one-year 1.7% discount on its non-conforming ...

  • Fledgling self-cert player thinks fast

    24 Feb 2003

    County Home Loans County Home Loans is the branded lender of packager County Mortgages. It is an all-status lender providing mortgages for those who have a chequered credit history, difficulty proving their income, and for those wanting to invest in property. For the full-status client County allows access to market-leading fixed rates, which start from 3.95% fixed until April, 2005 at 90%LTV. Funded by GMAC-RFC, its head office is in Fareham, Hampshire (pictured above). Q: ...

  • FSA censures two IFA firms

    26 Feb 2003

    The Financial Services Authority today issued public censures against two firms of independent financial advisers following decisions by the Financial Services Authority Interim Tribunal. Eurosure Investment Services Limited of 126 London Road, Boston, Lincolnshire was found to have "failed to take reasonable steps to conduct the Pensions Review in accordance with prescribed standards" by breaching PIA Rules 1.3.1(6), 1.3.1(a), 7.2.2(3) and 7.2.3. Meanwhile, Warwickshire-based ...

  • Genesis cuts standard variable rate

    24 Feb 2003

    In line with the latest drop in the Bank of England base rate to 3.75%, Genesis Home Loans has cut the standard variable rate on all schemes in its exclusive Gemstones range. The variable rate has been reduced by 0.15% to 5.59% and applies to all non-conforming Gemstone products as well as its two niche products, Pearl and Jade. The non-conforming range offers mortgage facilities for all clients with adverse credit history up to 95% LTV purchase and remortgage. Self-certification ...

  • GISC denies closing doors to new members following press gaffe

    25 Feb 2003

    The General Insurance Standards Council was forced to clarify that it will not be closing doors to new members following the publication of an incorrect article. A news story falsely reported that the GISC had closed its doors prompted the insurance regulator to make the announcement, with GISC chairman Anthony Howland Jackson unequivocally stating that the body had no such intentions. The report centred around a speech given to insurance practitioners by GISC policy ...

  • GMAC commercial arm finances London sports club

    24 Feb 2003

    GMAC Commercial Mortgage Corporation 's Asset-Backed Lending group has entered the European market, providing fixed rate equipment financing for the Reebok Sports Club in London's Canary Wharf . The club opened at the end of 2002. ABL, in conjunction with the GMACCM Chicago retail office and Dublin-based GMAC Commercial Mortgage Bank worked with the borrower, Sportsplex, to structure and close the transaction. The Canary Wharf location is the first Reebok Sports ...

  • Gross advances up more than 40% for HBOS Group

    26 Feb 2003

    Gross advances for HBOS subsidiary firms - Halifax, Bank of Scotland, Birmingham Midshires Solutions, The Mortgage Business and Intelligent Finance - increased by 42% in 2002. HBOS Group gross advances rose to £57bn, representing a 26% share of the UK mortgage market with net lending of £23bn, a 29% share. In total HBOS has grown the retail mortgage book to £150bn of assets in 2002. Intelligent Finance remains on target to break even by the end of ...

  • Half of all new loans are for remortgaging

    24 Feb 2003

    Remortgaging as a proportion of new lending broke through the 50% mark in January for the first time on record. Figures from the CML show that, of the total £18.6bn gross advances, £9.6bn (52%) was accounted for by remortgaging. Total lending in January last year was £13.4bn. Lending for house purchase totalled £7.5bn, well up on the £6.7b in January 2002, but accounted for only 40% of the total, the lowest proportion on record. Only one-third ...

  • Have your say on the movers and shakers

    24 Feb 2003

    It's official. The self-cert mortgage market is now growing even faster than the booming mainstream sector and could be worth nearly £20bn by 2007. As we report on page 4, research from Datamonitor shows the UK self-cert market accounted for £9.8bn of gross advances in 2002 and now makes up 5% of the UK mortgage market. That's an annual growth rate of 27.7% over the last five years. For those of you already signed up to our news alert service on www.mortgagestrategy.co.u

  • HBOS pre-tax profits top £3bn

    25 Feb 2003

    HBOS has announced strong preliminary results for 2003, with the finance giant announcing pre-tax profits of £3,062m. The 22% increase in pre-tax profits across HBOS' five mortgage brands - Halifax, Bank of Scotland, Intelligent Finance, Birmingham Midshires, The Mortgage Business - included a 29% market share of net UK mortgage lending. James Crosby, chief executive of HBOS, says: "These results demonstrate that HBOS's distinctive pro-competition strategy ...

  • HBOS puts its muscle behind NAMBA

    24 Feb 2003

    NAMBA, soon to be renamed AMI, has secured the support of the HBOS Group, Mortgage Strategy can exclusively reveal. HBOS is the largest name to have given its backing to the trade body, which has received confirmation of support from igroup, Sun Bank, and the Derbyshire and Manchester building societies. The Woolwich and Mortgages PLC are also understood to be finalising details of their support as associate members. NAMBA currently receives £5,000 from larger associate ...

  • Helpline to limit number of users

    24 Feb 2003

    The National Mortgage Helpline reports that demand for its residential mortgage leads service has been so great that it will soon have to stop taking on new IFAs and independent mortgage advisers for many areas of the UK for the foreseeable future. Nigel Pritchard, National Mortgage Helpline's marketing director, says: "We are very pleased with the number of advisers joining, a lot of whom have come after having heard good things about the quality of our leads from others using ...

  • House price inflation remains subdued

    24 Feb 2003

    The hometrack national February survey of the housing market reveals house price rises of only 0.1%, the same as the previous two months, and follows a nine month steady decline in house price inflation since May's peak of 2.0%. The slowdown has been mostly due to prices of higher value homes falling in London and the South Eastern counties. While only two areas reported overall house price declines, Central London & City (-0.2%) and London North (-0.1%), eleven areas ...

  • House price rises slow

    24 Feb 2003

    House price inflation remains subdued with no evidence of any spring revival in an increasingly sluggish market, the hometrack national survey for February reveals. Hometrack recorded average price rises of only 0.1% following a nine month steady decline in house price inflation since May's peak of 2%. The slowdown has been mostly due to prices of higher value homes falling in London and the South Eastern counties. While only two areas reported overall house price ...

  • HSBC cuts mortgage rate

    24 Feb 2003

    HSBC Bank will cut its variable mortgage rate by 0.15% to 4.60% on March 5. The rate for loans of £250,000 and above will also fall by 0.15% to 4.35%. Tony Ashford, general manager for personal banking at HSBC Bank, says: "We've tried hard to strike a fair balance between the interests of borrowers and savers. The results speak for themselves - from March, HSBC will once again have the lowest variable mortgage rate on the high street. "At the same ...

  • HSHL to continue trading as separate brand

    24 Feb 2003

    High Street Home Loans will continue trading as a separate brand following its acquisition by GMAC-RFC last week. GMAC-RFC describes HSHL as "another distribution arm" and says reports of HSHL becoming a lender in its own right are wrong. Gina Collman, GMAC-RFC's head of corporate communications, told Mortgage Strategy "we have absolutely no plans whatever" to sell HSHL in the future. She says: "HSHL was acquired to support our strategic growth plans." Gary ...

  • Inland Revenue systems failing small businesses

    24 Feb 2003

    Self-employed brokers and other small businesses are suffering at the hands of an Inland Revenue in crisis, say the Liberal Democrats. Government data suggests that the Inland Revenue has spent £17m on its internet tax return system which has been used by only 1.5% of relevant taxpayers - and over its first three years has cost £4m more than first estimated. The Lib Dems claim the government has failed to give clear guidance and develop uncomplicated tax ...

  • Investigate the real Meaning of 'MIG-free'

    24 Feb 2003

    From Trevor Child I was surprised to see in the February 17 issue of Mortgage Strategy that Capital Home Loans was one of lenders singled out as charging MIG. Capital Home Loans has never charged MIG on buy-to-let products. We do not charge MIG on self-certification home loans. We also have a full-status bank base tracker product that allows borrowers up to 95% LTV, again with no MIG charge. It is interesting to note that there are many lenders who claim to have MIG-free ...

  • Land values rise 808% in 20 years

    24 Feb 2003

    The value of residential building land has risen on average across England & Wales (excluding London) by 808% over the last 20 years, research from Halifax reveals. The research shows there has been little change in the regional ranking of residential land. London was ranked first in terms of price per hectare in Autumn 1983 at £759,000 and remains at the top of the table. A 624% increase has taken the price per hectare to £5,493,000 today. A ...

  • Leeds & Holbeck launches fixed rate range

    28 Feb 2003

    Leeds & Holbeck Building Society is offering a range of three and five-year fixed rate mortgages. The loans include a 3.99% three-year fixed rate available up 95% LTV with no higher lending fee up to 90% loan-to-value. Borrowers can make capital repayments of up to 20% each year, with a completion fee of £299. A 4.39% three-year fixed rate available up to 90% LTV also allows borrowers to make unlimited capital repayments with no lock-ins at any time. The loan includes ...

  • Legal & General cuts equity release rate

    25 Feb 2003

    Legal & General Mortgages has reduced the fixed interest rate charged on its equity release mortgage. The product is now priced at 6.95% (APR 7.4%) throughout the life of the mortgage. Customers are safeguarded against negative equity with the product, which meets the Safe Home Income Plans (SHIP) standards, and borrowers are guaranteed to be able to live in their properties for the rest of their lives or until they permanently leave their homes. No monthly payments ...

  • Lenders, please stop the bickering for all our sakes

    24 Feb 2003

    From Brian Pitt Your magazine educates, informs and yes, even entertains the UK broker community, but I must admit that I'm getting a bit bored reading the ever-increasing volume of nonsense from lenders who seem unable to keep their squabbles with rivals out of national publications such as your own. Over recent weeks, we have witnessed a steady increase in the level of correspondence on the level of: 'my dad's car is bigger than your dad's car' which, as a ...

  • Life and pension sales remain stable despite market downturn

    26 Feb 2003

    Sales of all life, pension and collective investment products remained stable in 2002 despite worsening market conditions, the Association of British Insurers says. Research conducted by the ABI suggests new business sales are up by 1.0% on 2001, from £11bn to £11.1bn. The figures are released in the same week as the latest data on the number of stakeholder sales since the product was launched in April 2001. Some 1.25 million stakeholder pensions were sold ...

  • Lifestyle expands into intermediary sector

    24 Feb 2003

    Lifestyle Finance Limited is expanding its packaging activity into the broker introduced mortgage sector. Since its inception in 2001, Lifestyle Finance has dealt direct with borrowers via the company's call centres in Rotherham and Liverpool. The company is now entering the intermediary sector, offering fast-track packaging to mortgage introducers who do not package sub-prime applications for themselves. In addition to building strategic packaging partnerships with individual ...

  • Menu approach works for me Name and address supplied

    24 Feb 2003

    I refer to BM Solutions' Steve Sandiford's letter in the February 10 issue of Mortgage Strategy: 'Simple sub-prime product design is the way forward'. I find it rather alarming that BMS' head of product strategy finds the GMAC menu approach hard to fathom. It is also insulting that Mr Sandiford implies mortgage intermediaries too, find this system difficult - as if it is beyond our comprehension. I am writing as a CeMAP qualified mortgage adviser (as are ...

  • Mercantile launches base rate tracker

    24 Feb 2003

    Mercantile Building Society has launched a three-year stepped tracker mortgage. The deal gives an initial rate of 3.25%, a discount of 0.5% below the Bank of England base rate for the first year of the mortgage. During the second year, borrowers move to Bank of England base rate, which is currently 3.75% and in year three the mortgage rate payable is base rate plus 1%. Borrowers benefit from daily interest and there is no tie-in after the discount period. A ...

  • Mortgage Express celebrates mx-online anniversary

    27 Feb 2003

    Mx-online, the direct to broker internet facility from Mortgage Express, celebrates its first anniversary this week, having achieved over £1bn in applications and 12 million hits since its launch last year. Charles Johnson, e-commerce manager at Mortgage Express, says: "Decisions in principle consistently come back within 30 seconds, and an independent survey by BDRC shows a staggering 93.2% satisfaction rate among brokers who use the service" John Wade of brokers ...

  • Mortgage network to offer services to IFAs nationwide

    24 Feb 2003

    The Mortgage Support Network launches this week to offer compliance and other services to brokers and IFAs nationwide. Since 1996, Mortgage Support has been solely responsible for the case placement, compliance, sales training, marketing and packaging for several of the Midlands' largest privately owned mortgage broking firms. During 2002, the Midlands-based network worked with a group of mortgage lenders and insurance providers on an offering for all mortgage professionals.

  • Mortgage Next launches Direct 2 Source

    24 Feb 2003

    Mortgage Next has launched a new 'Direct 2 Source' initiative, which enables intermediaries to deal directly with a panel of leading sub-prime mortgage lenders. The panel, which includes Kensington, Platform, The Mortgage Business and BM Solutions, gives brokers access to a wide range of market leading sub-prime products, including a number of exclusives. Brokers can deal directly with a dedicated advice and underwriting team within each lender and will benefit ...

  • My mortgage week - Paul Hunt

    24 Feb 2003

    Monday: The start of a busy week as Platform launches today. I fly to Plymouth to help with a launch presentation to Western Mortgage Services. WMS is vital to Platform as it administers our loans once they are complete. Before I get to Gatwick, I receive a call from Guy Batchelor telling me he can't make the trip as he's locked himself in his squash court. Once in Plymouth, I set up the venue and then present to nearly 200 staff. Then it's out for a meal and an early night - ...

  • NAMBA to court FSA outsiders

    24 Feb 2003

    NAMBA is likely to allow unregulated finance brokers and second charge lenders to become affiliated members. Chairman Charles Gooding says: "To be a full member of AMI you will need to be a registered mortgage broker, because one of the most important things that we will be involved in will be lobbying the FSA, our regulator in 18 months' time. "However, we are mindful that there are many brokers out there who will not need to be regulated, who are involved in buy-to-let, ...

  • New IT manager at Chartered Insurance Institute

    27 Feb 2003

    The Chartered Insurance Institute has appointed Kevin Mills as the new IT manager of its computer support group. Mills will have responsibility for the CII's IT infrastructure, IT policy, and managing the relationship with CODASciSys, which is the CII's key outsource partner for the delivery of Helpdesk, IT facilities management and AS/400 development and support. Mills will be involved with the IT aspects of all new product and premises development to ensure a ...

  • Offsetting can benefit second charge borrowers as well as savers

    26 Feb 2003

    Offset mortgages could be the best solution for borrowers looking to reduce the cost of secured debt. Though the promotion of offsetting so far has focused primarily on the benefits of reduced interest rates by offsetting savings against the mortgage, their future appeal may be as much to reduce the cost of expensive unsecured debt. In an article published this week in the CML's Housing Finance magazine, national research body NOP Financial suggests many customers ...

  • One in 10 considering equity release

    24 Feb 2003

    More than one in 10 consumers are likely to take out an equity release plan in the next 12 months, research from NMG reveals. The results support CML statistics that estimate the value of the equity release market to be between £50bn and £100bn. NMG considered the opinions of consumers and IFAs on their awareness, understanding, product and channel preferences and likelihood to take out an equity release plan. 12% of respondents said that they were 'likely' ...

  • One true voice for intermediaries is now a possibility

    24 Feb 2003

    The FSA's plan to introduce the new regulatory regime with a big bang in 2004 will shake up the way intermediaries operate. Not to mention the possible knock-on effects of the European Consumer Credit Directive, as well as other government-inspired initiatives such as the seller's pack and sustainable home-ownership. Hardly a day goes by without us hearing the views of various parties: lenders via the British Bankers Association, the Council of Mortgage Lenders and the Intermediary ...

  • Positive packager response to Mortgages PLC roadshow

    27 Feb 2003

    Mortgages PLC says it has receives an overwhelming response to its packager strategy workshops due to be held in March. The majority of the packagers who work with Mortgages PLC have expressed interest and provided feedback on the content of the events. The road shows will be chaired by Peter Beaumont, Mortgages PLC's sales and marketing director, with speakers including Richard Griffiths of Network Data, Vic Jannels of All Types of Mortgages (also a founder director ...

  • Preferred Mortgages opens first Scottish office

    25 Feb 2003

    Preferred Mortgages has opened its first office in Scotland. The non-conforming mortgage lender has opened its Glasgow office as a base for its Scottish operations and as a bridgehead to offer a more localised and tailored service to Scottish and Northern Irish mortgage introducers. The office opened yesterday and will provide each introducer, large and small, with direct access to Preferred's specialist underwriting team. The proximity of the office will also enable ...

  • Profits dive at Abbey National

    26 Feb 2003

    Abbey National, the UK's second largest mortgage lender, has reported its first ever full-year loss. Abbey, which is also the UK's sixth largest bank, posted a loss of £984m for 2002, compared with a profit of £1.47bn a year earlier. Worryingly for the bank's staff, Abbey said it was looking to save £200m in its core personal finance business - which means job cuts will no doubt be on the cards. The group warned in November that ...

  • Protect your interests on insurance

    24 Feb 2003

    In the January 13 and 20 issues of Mortgage Strategy, we took a high level view of the FSA's CP160 - insurance selling and administration. We will now spend a couple of weeks considering the response. The insurance market covers products such as buildings and contents, income and payment protection, term assurance and critical illness options. In short, most of the insurance products that are sold with a mortgage. They normally account for a significant proportion of a broker's ...

  • Pru profits top £1bn but market downturn affects growth

    26 Feb 2003

    Prudential has announced is preliminary results, showing a 2% increase in operating profit to £1.13bn. Prudential, owners of the Scottish Equitable mortgage club, saw new business profits increase by 15% to £774m, with total insurance and investment sales of £27.6bn, up 29% on 2001. Prudential chairman David Clementi says: "We are a major international financial services group with a strong franchise, excellent people and a strategy focussed on delivering ...

  • Record growth for Premier Connections

    27 Feb 2003

    Premier Connections has reported growth of over 500% growth since its first years results in 2001/2002. The intermediary network for life, medical, general insurance and mortgages is currently receiving 2,500 proposals a month and this figure has risen steadily since launch. Premier is using this growth to build on and develop the service it provides, with benefits such as free professional indemnity cover and websites for all members, and a dedicated support team both at head ...

  • Research warns against inadequate mortgage protection insurance

    28 Feb 2003

    Just over one-third of homeowners have protected their mortgages with payment protection insurance or critical illness cover, research has revealed. Research by Rotherham-based broker Mortgage Talk suggests 36% of homeowners have no MPPI cover, with 21% holding payment protection insurance, and just 4% with critical illness cover. A further 11% have both payment protection insurance and critical illness cover. Mortgage Talk warns that too many homeowners are continuing ...

  • Save children from being disinherited

    24 Feb 2003

    Imagine how you would feel if you were told that in the event of your untimely demise, your children could end up with next to nothing from your estate even if you have made a will (which most people have not). The evil that so cruelly deprives children and other loved ones of their rightful legacy is called, among other things, 'sideways disinheritance'. And with divorce and subsequent marriages so rife, its tentacles are insidiously worming their way into your client bank ...

  • Scottish Life Mortgages waives admin fee on adverse products

    27 Feb 2003

    Leeds-based packager Scottish Life Mortgages has waived its £100 administration fee on all adverse products offering a 1% procuration fee. Scottish Life is also offering to refund the valuation fee on completion from all non-conforming cases processed with Britannia's intermediary subsidiary Platform. The offer is open to all cases with a minimum loan size of £50,000 and maximum property value of £250,000.

  • Self service

    24 Feb 2003

    Intermediaries have had to become increasingly aware of the self-certification market as working patterns have changed in the past 10 years, and new lenders coming into the area have made products more competitive. Most people no longer have a job for life and many of us are either paid some of our salary in bonuses or have income outside of our salaries. All of this can make it more difficult to comply with the conditions imposed by mainstream lenders, creating an opportunity ...

  • Self-cert growth outpaces mainstream

    24 Feb 2003

    The self-cert mortgage market is now growing faster than the mainstream market and could be worth nearly £20bn by 2007, research from Datamonitor reveals today. Market analyst Datamonitor says the UK self-certification market accounted for £9.8bn of gross advances in 2002 and now accounts for almost 5% of the total UK mortgage market. This represents an average annual growth rate of 27.7% in the last five years - outstripping even the record volumes in the mainstream ...

  • Splitting up: pensions and divorce

    24 Feb 2003

    The contents of the Institute of Financial Services' CeMAP study manuals are updated each year, with revisions to the manuals usually published in July. Examinations from the following September 1 are based on the contents of the revised manuals. Students who already have a study manual should automatically receive revised pages from the IFS. It is essential that students who are sitting their examinations on or after the following September 1 incorporate these revisions into ...

  • SPML holds seminars on regulation timetable

    24 Feb 2003

    Southern Pacific Mortgage Limited has reported on two recent seminars it held on the subject of mortgage regulation . At the seminars, the FSA's Tim Howarth, project manager for high street firms authorisation, presented the timetable for regulation and urged everyone in the mortgage industry who thinks they may need to be authorised to start acting soon. The final rules are due to be announced in the autumn of 2003 and the FSA will start to accept applications ...

  • SPML prime product launch gets mixed response

    24 Feb 2003

    Brokers and packagers both say that Southern Pacific Mortgages Limited cannot expect its new prime mortgage range to compete with established mainstream lenders. With a headline two-year fixed rate of 4.75% up to 75% LTV on full-status loans, SPML admits it is pushing the definition of prime. Dean Taylor, SPML marketing manager, says: "Mainstream lenders are dipping into off-prime. We're pushing our boundaries up that way and ultimately will be able to compete on these ...

  • Staking a claim on the new frontier Ever submitted mortgage enquiry or application over the internet

    24 Feb 2003

    Internet usage in the UK is on the increase. In fact, that doesn't really do the online revolution justice - online sales in the UK have almost doubled in the last year alone, and internet shopping is growing 15 times faster than other retail sales. Furthermore, the IMRG research organisation estimates that UK online retail sales are growing three times faster than in the US - definitely food for thought. Consumers have embraced the plethora of information that the internet ...

  • Standard Life wins awards for apprenticeship programme

    27 Feb 2003

    Standard Life has been recognised for its Modern Apprenticeship Programme, winning two awards for its efforts. Standard Life's MAP initiative won first prize in the 'Large Employer' category at the Scottish Modern Apprenticeship Awards 2002, and also came first with four employees being the first to complete their MAP specialising in information systems. Standard Life is the largest financial services company in Scotland to have embraced the customer service ...

  • Strong results for Cheshire Building Society

    28 Feb 2003

    Cheshire Building Society transacted over £1bn of mortgage advances and opened over 80,000 accounts for members in 2002. The strong results were published in the society's annual report published this week and comes amid an extensive programme of modernisation. The programme has seen the society introduce new computer systems, expand its customer contact centre and e-commerce facilities, improve branch environments and introduce employee performance management and reward ...

  • Support groups are the Future, not networks

    24 Feb 2003

    From David Harvey How refreshing to feel 10 years younger just by reading Mortgage Strategy. I am writing, of course, with reference to Richard Griffiths' regulation article on page 20 of your February 17 issue. The network concept discussed is way out of date. Bankhall is 10 years old this year. After six years with DBS, now part of Misys, I joined Bankhall five years ago. The difference was amazing then and continues to be so now. When Bankhall's broker support ...

  • The Marketplace offers stepped discount remortage deal

    26 Feb 2003

    The MarketPlace at Bradford & Bingley is targeting remortgage borrowers with the launch of an exclusive stepped discount mortgage. The deal, funded by Coventry Building Society, carries an initial rate of 3.85% (5.2% APR) until September 30 2005 and later reverts to 4.99% (0.66% discount from SVR) until September 30 2008. The deal carried no redemption penalties, includes free valuation and legals (or cashback) and is available to a maximum LTV of 95%. David ...

  • The mortgage mole

    24 Feb 2003

    Passing out A mixed bag of cultural experiences for Mole as the Celtic tribes clashed at Murrayfield last week. While alcoholics south of the border often think of the extra hour's drinking time of Scottish licensing laws with envy, Murrayfield appears to have fallen to Jacobite puritanism. Mole and other guests of Scottish Widows Bank were dumbstruck when their impressive pitch-side view briefly disappeared behind a blind. Evidently ground licensees wished to hide debauched corporate ...

  • The Woolwich looks underground for house price inflation

    26 Feb 2003

    Homeowners close to London underground tube lines and stations have been among the winners in the property boom of the last five years. Those living on the Northern Line benefit most from the tube, living in the most expensive properties, according to the survey conducted by The Woolwich. Meanwhile, the Jubilee Line has jumped from fourth position to second with properties along the capital's newest tube route doubling in value over the last five years. The Woolwich ...

  • This week's problem case

    24 Feb 2003

    Mr Tate is a first-time buyer. He used to be an HGV driver but an accident four years ago left him off work for a year. During this time he got five CCJs totalling £6,000 after defaulting on his car loan. He picked up three more CCJs worth £2,600 after being made redundant 18 months ago. But he has been working in a haulage firm for a year now on a good salary. The NHBC-approved builder selling him the home is willing to fund the 5% deposit. Intermediary response SBHD: ...

  • Treasury prepares for worst with green paper on 'operational disruption'

    27 Feb 2003

    The Treasury is exploring methods for controlling threats to the operation of the financial services industry during times of operational disruption caused by terrorism, freak events and adverse weather. Operational disruption includes problems arising from physical causes, such as a terrorist attack or severe adverse weather, or from IT difficulties such as computer bugs or viruses. The consultation seeks views on improving the way the financial system works in crisis ...

  • Trigold launches Prospectorplus

    27 Feb 2003

    Independent trading platform Trigold has added to its range of intermediary technology products with the launch of Trigold Prospectorplus. Trigold Prospectorplus provides intermediaries with an integrated solution to key financial service providers, with an integrated sourcing system for insurance, including CETA, The Source and Paymentshield. Trigold Prospectorplus also offers source, quote and apply facilities for secured loans via Freedom Finance, and integration into ...

  • UCB Home Loans revises product range

    28 Feb 2003

    UCB Home Loans has made a series of reductions to its mortgage range due to take effect from March 1, including a new tracker product. UCB, Nationwide's specialist self-certification lender, will launched a FlexiPlus five-year tracker mortgage at 4.60% (base rate plus 0.85%), with features including overpayments, underpayments, payment holidays and a drawdown facility. The range of fixed rate mortgages will include a two-year fixed rate at 4.49% (decreased by 0.3%); ...

  • Webline goes live with Unipass access system

    27 Feb 2003

    Webline, the UK's first provider of online comparative quotes to Origo standard, has unveiled a new corporate identity and become the first to go live with Unipass digital access certificates. UNIPASS, developed by Origo, is a key used by financial advisers to gain access to industry websites replacing the need for hundreds of different passwords and log-on details. The certificates are recognised worldwide as a secure way of doing business online and are available free of ...

  • Who's tops now there's a credible alternative?

    24 Feb 2003

    From Steve Sandiford I was pleased to see Peter Stimson's response to my earlier letter in Mortgage Strategy February 17 - 'Justifying GMAC-RFC's number one lender claim'. I have no issue with what GMAC-RFC did or did not do in 2001, nor even in 2002: it might indeed have been number one when it had no real competition. My point is that now there is a credible brand in the market, I would be interested to see how confident GMAC-RFC is in asserting that it is still ...

  • Yorkshire Building Society launch new range under 5%

    25 Feb 2003

    Yorkshire Building Society has launched a full new range of fully flexible mortgages including fixed rates from two to 10 years. Every deal in the range is under 5% - a record in the society's 150 year history - with borrowers offered full flexibility with unlimited overpayments on all its new mortgage range, whilst most other major lenders restrict overpayments without penalty on some or all of their mortgages. Yorkshire mortgages are fully portable enabling borrowers ...

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