Mortgage Strategy
24 June 2002

  • Abbey chief hints bank may be ripe for takeover

    24 Jun 2002

    Ian Harley, the chief executive of Abbey National, appeared to suggest the embattled mortgage bank was ripe for takeover when he described the company as a better target than most in an interview at the weekend. And in an indication the bank, which infuriated investors with an unexpected profits warnings earlier this month, would listen to offers Harley told the Sunday Times independence was a word not a strategy. His comments were published after it was revealed Abbey ...

  • Agency calls for more affordable country homes

    24 Jun 2002

    The Countryside Agency has called for an extra 10,000 new houses per year for rural areas, where houses are much less affordable than in urban regions. In its State of the Countryside 2002 report, the Agency, which advises the government on rural issues, describes pressure on housing as "the most pressing problem" in rural areas. The Agency has devised its own mortgage index, based on average earnings and house prices, to assess the affordability of homes. The situation is particularly ...

  • Amber sells £10 million mortgage portfolio to Universal

    25 Jun 2002

    Amber Homeloans Group is selling £10 million worth of prime mortgage assets to Universal Building Society, via its subsidiary Skipton Mortgages Limited. Amber, a wholly owned subsidiary of Skipton Building Society, is a mortgage lender in the specialist market, focusing its lending activities into specific niche areas including light/medium adverse, self certification, 100% loans and buy-to-let mortgages. In addition, the company sells and purchases bulk prime and specialist ...

  • Are the public really that stupid?

    24 Jun 2002

    I refer to Helen McCormick's article "Second charge needs regulation says FSCP"(Mortgage Strategy June 17 2002), which I read with great interest. I would now like the chance to voice my opinion on the matter. Every so often a few privileged semi-godlike individuals have this urge to cotton wool-wrap the consumer, even though we live in a hi-tech, educated, information-transparent society. It would seem we must spoon-feed the consumer every time. Thus, as a result, we are faced ...

  • ARLA clears up buy-to-let confusion

    26 Jun 2002

    The Association of Residential Letting Agents has rejected a statement issued on behalf of the Property Investment Show, which suggests that ARLA chairman John Crossley thinks the buy-to-let sector is too big to allow house prices to collapse. ARLA says that statement, release on 23 June, is incorrect. It refers to a national newspaper, where Crossley is quoted as saying that rises in house prices is unsustainable. Crossley goes on to say: "The private rented sector ...

  • Authorities warn first-timers of overstretching

    24 Jun 2002

    The FSA and the National Association of Estate Agents are warning borrowers to brace themselves for a drop in house prices and advising first-time buyers not to overstretch themselves. Howard Davies, chairman of the FSA, says he is particularly concerned for "over-borrowed young professionals". He says: "People are borrowing on very high multiples of income and very high LTVs. There are some risky loans out there and some people are taking on obligations that they may well live to ...

  • Bank may choose more jawboning of housing market, rather than higher rates

    25 Jun 2002

    A week ago, Bank of England Governor Sir Edward George ruffled feathers in the property market and whetted economists' appetite for an interest rate rise by saying that he would have "no option" but to increase rates if rising house prices threatened to push up inflation. Talk of a rate hike continued with the disclosure that George's Deputy and possible successor, Mervyn King, voted for a quarter point increase at the Monetary Policy Committee's meeting on 6 June. The ...

  • Britannic Money launches new 2-year 1.9% discounted product

    28 Jun 2002

    Britannic Money has launched a two-year discounted product. With a headline rate of 3.99%, the CAM specialist claims the product is one of the most competitive 2-year discounted products in the market place. Britannic Money is renowned for its innovative award winning mortgage products and believe that this latest offering is the perfect way for new customers to get an extremely low rate without relinquishing any flexibility - the product is a fully flexible current ...

  • Britannic Money lowers rate

    24 Jun 2002

    Britannic Money revamps its discounted mortgage range today in a bid to balance the weighting against buy-to-let loans on its back book. The Epsom-based lender has launched a market-leading two-year discounted product at 3.99%, with an underlying rate of 5.89%. A £195 admin fee can be added to the loan, which is available up to 95% LTV or 85% self-cert, with no overhang period at the end of the term. Clients can borrow up to a maximum of £400,000. Bob Perks, who joined ...

  • Brokers warned over cold-calling lead costs

    24 Jun 2002

    Brokers have been alerted to outfits who are cold-calling brokers offering unqualified mortgage leads. David Rogers, proprietor of intermortgage, says he has received four calls in the last two weeks from firms offering details of customers alleged to have showed an interest in raising finance or moving home following cold-calling questionnaires. One company offered to provide a minimum of 10 deals a week at £70 a lead, plus VAT, with an additional 'success fee' of ...

  • Charcol offer 3.49% fix

    27 Jun 2002

    Charcol is offering an exclusive mortgage, fixed at 3.49% until 1/12/03 reverting to a tracker at Bank Base Rate +1.24% to 1/12/07. The lender will refund the valuation fee, and redemption penalties only apply for the first 2 years. Ray Boulger, senior technical manager at Charcol, says: "This mortgage offers excellent value to anyone wanting guaranteed initial low payment stability, coupled with no nasty lock-ins. Not only do the redemption penalties only apply for ...

  • Charteris and IoD launch e-Business awards

    26 Jun 2002

    Charteris and the Institute of Directors have launched this year's e-Business Transformation Awards (eBTA). Now in its third year, the eBTAs were created in order to recognise those organisations which are genuinely improving business performance by developing and implementing e-business initiatives. The awards are open to individuals and organisations of all sizes in the public and private sectors, within national or global markets, wishing to raise the profile of ...

  • CII and LIA join forces to keep advisers compliant

    24 Jun 2002

    The Chartered Insurance Institute and the Life Insurance Association are entering a joint partnership agreement to develop the definitive online compliance and competency system for the financial planning market. The agreement will be formally signed off in July. Both organisations are currently involved with their own competence systems. The CII recently launched its compliance and competency system (CCS) to satisfy demand for training and maintaining competence by individuals ...

  • CII announces annual financial services conference

    26 Jun 2002

    The Chartered Insurance Institute will hold its UK Insurance and Financial Services Conference 2002 in Birmingham on the 26 and 27 of September. The CII promises an event that will be "challenging, stimulating, controversial and rewarding", with discussions on the key themes of regulation and reputation. The conference will be supported by a series of breakout sessions addressing technical, people and distribution issues. Top speakers include John Tiner, Ron Sandler, ...

  • CII makes passing exams easier

    28 Jun 2002

    A new online service from the Chartered Insurance Institute (CII) is about to let students sitting exams into the minds of the examiners. Exam Reports and Guides Online is now live on the CII's website www.cii.co.uk, enabling candidates to choose from over 100 instantly downloadable reports and guides, at a cost of £6 (plus VAT) each. With the July exam session just around the corner this new online service is a major help to study and exam preparation. Candidates ...

  • Claws are sharpened for predatory lenders

    24 Jun 2002

    Predatory lending is the hard sell of high-priced or unsuitable mortgage products to vulnerable borrowers. It occurs when brokers and lenders target those who are financially challenged or disadvantaged, who will typically have equity in their homes, a reduced income, mounting debts and a poor credit history, as well as relationship and health problems to boot. As we explore in our cover feature starting on page 22, the practice is rife in the US. Some brokers have even set up special ...

  • CML insurance costs worry brokers

    24 Jun 2002

    The CML has been accused of hypocrisy by mortgage brokers after it defended its members' costs for MPPI policies. Mortgage borrowers are the group most vulnerable to being overstretched with extra debts such as loans, finance deals and credit arrangements, and the lenders' trade body has urged caution. CML director-general Michael Coogan says: "Against the current economic backdrop it would be worrying if there were large-scale problems in coping with debt. The fact that ...

  • DEBT report says legal system "fails creditor"

    28 Jun 2002

    The Plowden Report on DEBT has highlighted important shortcomings in the remedies available for creditors to enforce their debts. The Report was compiled by London and Newcastle barrister's chambers Plowden Buildings (Chambers of William Lowe QC) as the results of a round table consultation with debt professionals and practitioners. Among the round table's recommendations for change include:- On Small Claims: ? A more liberal approach should be ...

  • Digging the dirt in the mortgage world

    24 Jun 2002

    World cup? What World Cup? So England are on their way home. Looking back over the last few weeks, Mole has had a lot of fun, mainly turning up late and having two-hour lunch breaks. Mole does realise that sounds like a normal working day for some of you. However, at least one broker has managed to obtain some joy from the England team. Julian Wells, marketing manager at Mortgages PLC, placed two bets on the England/Denmark game: one on Rio Ferdinand to score the first goal, the other ...

  • Don't assume you possess the facts

    24 Jun 2002

    This column has frequently reminded students that, while they will have a good working knowledge of giving mortgage advice and associated matters, this in itself will not be sufficient to ensure success in the mortgage advice exams. The exams are set on the syllabuses relating to each of the qualifications and these cover a much wider area than most advisers deal with in their day-to-day work. Furthermore, students may well be tempted to skim read or skip completely some areas of the ...

  • Don't ignore the high street

    24 Jun 2002

    After reading last week's feature on how lenders are stretching definitions of 'mainstream', I feel compelled to point out that many mortgage brokers are still chasing sub-prime deals when they should really be looking for a high-street bargain. The commission payments are better in non-conforming and that is the overriding factor for some. Some brokers are costing their customers good money by refusing to take a new look at how generous the mainstream has become. Brokers ...

  • East Anglians consider an early release

    25 Jun 2002

    Nearly half the people who live in East Anglia would consider taking out an equity release scheme in the future, lastest research from Norwich and Peterborough Building Society reveals. Over three quarters or respondents have heard of equity release schemes. Women are more forward thinking when it comes to retirement planning than men - while 50% of N&P's female customers aged under 20 years old have already thought about their retirement, the same could not be ...

  • Electoral Commission continues to oppose roll sale

    24 Jun 2002

    Proposals to reopen sales of the electoral roll for credit-checking purposes suffered a setback last week, as the body that oversees the register announced it opposes sales on any grounds. In response to a government consultation, the Electoral Commission says: "Electoral registers should be compiled exclusively for electoral and other limited statutory purposes and they should not be made available for sale for commercial purposes." Draft regulations would make an edited version ...

  • FSA launch online learning service

    26 Jun 2002

    The Financial Services Authority has launched Learn Online - an interactive web-based service to help consumers learn the basics of personal finance. The site provides a comprehensive introduction to financial services and products, covering three sections: - how to work out what you might need; - the different types of financial products that are available,from borrowing to insurance, saving, investment and pensions; and - questions to ask before ...

  • GMAC-RFC pulls out of TMPC deal

    24 Jun 2002

    GMAC-RFC has withdrawn its underwriters from the premises of The Mortgage Placement Company. A van arrived to collect files and computer equipment from TMPC offices in central London on Thursday last week. Last Friday, the three employees of GMAC-RFC based at the correspondent lender were asked to go to its Bracknell HQ and allocated new duties underwriting applications for other business partners. Stephen Knight, chairman of GMAC-RFC (pictured), says: "I can confirm we have withdrawn ...

  • Homebuyers warned of extended-term mortgage costs

    27 Jun 2002

    Home buyers are demanding longer repayment terms for their mortgages, in some instances up to 40 years. Last month, national brokers Charcol commented that increasing house prices could see significant extensions on loans. Andy Frankish, director at Mortgage Talk Direct, has experienced clients asking for extended terms and urges buyer looking at such products to consider the options with caution. He says: "While I can understand that many first-time buyers feel ...

  • I beg to differ

    24 Jun 2002

    I have just read the response from Sohan Jheeta for last week's problem case (Mortgage Strategy, June 17 2002) and I cannot comprehend why he is recommending Matthew raises the finance on his residence. The result is a greater risk to his residence and not having the ability to deduct the interest on the loan against the rental income he receives for income tax purposes. Matthew is a higher rate taxpayer and will, therefore, pay tax at 40% on his surplus rental income. It is inferred ...

  • IFAs pass judgement on the FSA

    25 Jun 2002

    IFAs will get the chance to deliver their verdict on the Financial Service Authority thanks to a new survey commissioned by the Financial Services Practitioner Panel. The panel has appointed BMRB International to ask financial services firms what they think about the FSA's regulatory performance. It will provide the first authoritative industry assessment of the performance of the FSA since it assumed its full powers last December. The panel commissioned BMRB to ...

  • Ifonline manager moves to Mortgage 2000

    24 Jun 2002

    The Mortgage 2000 group has appointed former IFonline-Trigold national account manager Alan Collinson as head of its m2-mortgage club. Collinson's previous career highlights include stints at Mortgage Express, Bradford and Bingley, The North East Co-operative Society, National and Provincial Building Society and the Life Association of Scotland. Sean Hornsby, sales and marketing director of Mortgage 2000, says: "This is a key appointment for both the Mortgage 2000 ...

  • Intermediary response

    24 Jun 2002

    Ray Boulger, senior technical manager at Charcol, says that by highlighting the plus points, a good broker could make the difference as to whether the client is accepted or not Despite the obvious negatives, there are several positive aspects to this case. The 25% deposit is a great help and it appears that Diana is making a fresh start financially after her divorce. Although her income comes from multiple sources - which I assume means PAYE from more than two jobs ...

  • Irish consumer group warns of cheaper home loans

    24 Jun 2002

    Banks entering the Irish market will only slash ?20,000 off average mortgage interest repayments if they take on the main players, the Consumers Association of Ireland warned last week. Ireland's Central Bank is due to licence new lending banks this week and if the new banks get their distribution right they could save Irish home buyers an average ?20,000 on their mortgage interest repayment bills. But a spokesman for the CAI says: "The only way any new lender entering ...

  • Jennings ends association with trade body Namba

    24 Jun 2002

    Julian Jennings, founder and former self-appointed chief executive designate of Namba, is ending his relationship with the trade body by "mutual agreement", Mortgage Strategy can reveal. Controversy over Jennings' former business dealings had led senior industry figures to question Namba's fitness to represent mortgage brokers. Jennings has taken a back seat since the Namba steering committee formed in February, but now even his administrative involvement is coming to an ...

  • Keep on track

    24 Jun 2002

    In the light of the growing momentum against major lenders who are operating dual variable rates, I call on mortgage advisers to make their customers aware of the benefits of fully transparent products such as base rate trackers. The financial services Ombudsman has added C&G to the growing list of lenders whose customers have successfully filed complaints about dual mortgage pricing. C&G joins Halifax, Nationwide and HSBC, with a ruling on the first Abbey National complaint also due ...

  • Lender's response

    24 Jun 2002

    Julian Wells, marketing manager at Mortgages PLC, says that the client's credit problems will be best accommodated by a self-cert mortgage from a non-conforming lender This is an interesting case. In the eyes of most lenders, Diana has a number of issues that will present her with difficulties in obtaining a mortgage. CCJs, mortgage arrears and multiple addresses in a short period of time are all going to cause problems. Diana is typical of the type of borrower ...

  • Lenders meet to clarify correspondent lending

    27 Jun 2002

    Members from the UK correspondent lending community met last week in an attempt to bring greater clarity to the niche sector. Major correspondent funders including GMAC-RFC, Platform Home Loans, Preferred Mortgages and Southern Pacific Mortgage Company met senior management teams from four correspondent lending companies to agree a definition to the controversial of what constitutes correspondent lending. Representatives from Genesis Home Loans, High Street Home Loans, ...

  • Lost your keys? Halifax say you're probably a Gemini

    28 Jun 2002

    You can forget nurture when it comes to home insurance it's all down to nature, according to the latest research from Halifax General Insurance. Its figures show that when someone is born determines who is most and least likely to have household insurance, and claim on it. Out of the twelve signs of the zodiac those born under Aries are most likely to insure their home and belongings whereas the most likely to be stung by an uninsured loss are scorpions. But ...

  • Manchester IFA offers property scheme

    28 Jun 2002

    Manchester-based Glaisyers Financial Services is supporting a new product that enables investors to benefit from the property boom without the commitment of having to buy a house. The scheme, launched by NDF Administration Ltd, offers the investor a return equal to the increase in the value of the Halifax House Price Index over the 5-year term. The scheme has a 100% capital protection and the scheme is backed by Abbey National Treasury Services. Simon Creeber, IFA at ...

  • MCCB accused in 'advice-only' row

    24 Jun 2002

    A mortgage broker has accused the MCCB of trying to phase out the giving of information to clients in order to justify its continued existence. Alan Reynolds, broker at Cheltenham-based Mortgage Arrangers, believes the Mortgage Code regulator is trying to make clients' consultations with brokers advice-only sessions. Reynolds told Mortgage Strategy: "Under MCCB rules on what constitutes advice or information, you can't do remortgages, for example, because to do that requires ...

  • Money management is "single" priority

    27 Jun 2002

    Calls for more financial advice to help single parent families save money for the future could rise today after research conducted by Birmingham Midshires reveals that nearly one in two single parent families (48%) claim to have no money left at the end of each month. In addition, single parents have an average total savings pot of just £500, compared to a national average of £7,061. At a time of rising house prices, increasing household debt and the prospect ...

  • MoneyNet mortgage research profiles FTB

    26 Jun 2002

    Research by personal finance web site www.moneynet.co.uk says the average first time buyer earns £33,776 a year; is looking to buy a property worth £124,301; and wants to borrow £114,676 - 80% of the value of their chosen property. The research - taken randomly from 4,000 mortgage enquiries throughout May 2002 - provides a profile of the average user looking to purchase or remortgage a property. It includes statistics for average property and mortgage ...

  • Mortgage lending grows by 19% per month

    24 Jun 2002

    Mortgage lending reached a new peak for the third month in a row in May when gross advances totalled £19.5 billion - an increase of 19% over April's revised total of £16.4 billion. This unprecedented increase reinforces the CML's view that a modest rise in interest rates sooner rather than later is desirable to avoid the possibility of sharper increases in the future. The combination of higher interest rates this summer and affordability constraints ...

  • Mortgage.com takes the hard work out of client follow-up

    26 Jun 2002

    Mortgage.com is offering to help brokers follow up their existing clients for new business opportunities. Mortgage.com will launch its new telesales service in July. Stuart Wilson, managing director, says: "We are always looking for ways of adding further value. We think our latest plans will add more reason for IFAs to give us all their mortgage business, and earn for five minutes work what currently takes them six to 10 hours. "We will now not only deal with ...

  • Mortgages PLC pushes packager offering

    28 Jun 2002

    Mortgages PLC is offering the UK's largest packagers a range of market leading products in a step to continue its increasing market share. The range includes rates from 5.75% (APR 7.45), self certification up to 80% LTV with no references, no verification checks up to 75% LTV for self employed on a self-cert basis, and self certification available up to £650,000. Peter Beaumont, sales and marketing director of Mortgages plc says: "It is important to us that we ...

  • MPC considers rate rise

    24 Jun 2002

    The chances of interest rates rising in the next few months are increasing, the minutes of the last Monetary Policy Committee meeting reveal. Mervyn King, deputy governor of the Bank of England, voted for a quarter-point rise in base rates at the last meeting of the MPC. Although King was defeated 7-1 to leave rates on hold at 4%, MPC minutes show that other members also feel that robust house prices and high public spending will bring a rate rise forward. The only question is "how ...

  • My mortgage week - Tim Surley

    24 Jun 2002

    Monday: I have an early start in central London attending a workshop on Bradford & Bingley's mortgage strategy with senior colleagues. I spend part of the afternoon answering correspondence and reviewing the results of last month's intermediary satisfaction survey. I take the opportunity to ring a couple of customers who have made specific comments. Take time to read Mortgage Strategy, as ever on a Monday, before finally signing off a postcard mailshot we are sending out to ...

  • NAEA sees housing boom continue

    24 Jun 2002

    Reports of more cautious consumer spending during May do not extend to the housing market, reveals the latest monthly housing market survey by the National Association of Estate Agents. NAEA chief executive Hugh Dunsmore-Hardy says this month's survey offers positive news for the economy as confidence in the housing market shows little sign of abatement. He says: "Consumer confidence has played a crucial part in keeping the British economy out of recession over the ...

  • New communications manager for Portman

    24 Jun 2002

    Portman Building Society has appointed a new group communications manager in the shape of Helen Shaw. Shaw will work from the society's head office in Bournemouth. She will have responsibility for all aspects of internal and external communication. Portman says the appointment demonstrates its commitment to developing stronger media relations with national, regional and trade press. Robert Sharpe, chief executive of the Portman Building Society, says: "The society ...

  • New discount deals through Exclusive Connections

    25 Jun 2002

    Mortgage Express has launched two new discount rate products in association with mortgage packaging network Exclusive Connections. The first new product offers a discounted rate of 1.11% for the first two years followed by the underlying variable rate BBR + 2% up to 90% LTV. It is available with 80% LTV for first time buyers and remortgages. Minimum loan size is £50,000 with a maximum of £1 million. The product features a debt consolidation facility of up ...

  • New property prices more than double

    27 Jun 2002

    The average price of a new property has more than doubled in the last ten years, research from the Halifax reveals. Ten years ago the average price of a new property in the UK was £70,518 and now it is £153,010. Regionally, the biggest rise in the average price of a new property has been in the South East where there has been a 166% increase, exceeding the 154% gains in both Greater London and the South West. The smallest rise has been in Scotland, which ...

  • Next Generation Mortgages launch SPML exclusive

    26 Jun 2002

    South Wales-based packager Next Generation Mortgages Limited has launched an exclusive remortgage product in partnership with SPML. Terry Markham, Operations Director at NGM, says: "It is important to add value to our intermediaries business and we have accomplished this by supplying free conveyancing on remortgage products up to 95% LTV with rates starting as low as 5.95%. "The product has been designed to give our introducing intermediaries the edge over their competition ...

  • Norwich Union reveals neighbours from hell

    27 Jun 2002

    Britons have gone into overdrive when it comes to falling out with their neighbours - and that's only if they get to know them. New research shows that selfish car parking is currently the biggest 'hot potato' in neighbourly living - causing more than three million households to do battle with the people next door. But nearly a quarter of people wouldn't know who to complain to, admitting that they just don't know who lives there. Research ...

  • Number of those in arrears falling

    24 Jun 2002

    The number of people having difficulty paying back their mortgage is much lower than in the 1990s, but more than one in 10 have problems with their payments. A survey of English housing says that 1.1m people with a mortgage, some 13% of the sample, find it difficult to repay - 7% lower than in 1993 to 1994. CML figures say that arrears and repossessions have also declined over the same period. Of those people having difficulty with repayments, 2% said they were in arrears. ...

  • Olympian packager signs up Mortgages Plc

    26 Jun 2002

    Mortgages Plc has become the latest product provider to join the panel of sub-prime packager Olympian Financial. Mel Fordham, managing director of Olympian Financial, says: "Mortgages Plc is a very welcome addition to our panel. The company has got a good reputation and a strong range of mortgage products that will be of benefit to our intermediaries. In addition, we have been able to negotiate a competitive range of procuration fees with Mortgages PLC - and have ...

  • Online help for endowment mortgage holders

    24 Jun 2002

    Traded endowment policy (TEP) expert Surrenda-link is offering endowment mortgage holders advice on how to handle their investments through an online guide. The guide features comment from industry experts, national survey results and answers questions on the difference between surrendering and selling a policy and on how easy it is to make a sale. The guide also provides contact details of life offices to obtain a surrender value and explains how to get a market valuation. ...

  • Out to get you

    24 Jun 2002

    When was the last time you were involved in a conversation on predatory lending? It certainly doesn't rate in most people's top 10 topics of the moment - in fact, there is very little understanding of the concept in the UK mortgage market. However, in the US the issue is hot news and has been increasing in importance for some time. Predatory lending is the term that is used to describe the practice of some brokers and lenders who target ...

  • Packager goes coast to coast for kids' charity

    28 Jun 2002

    A northern packager is set to put his body on the line to raise over £5,000 for UK children's charity Sargent Cancer Care for Children. Paul Smith, of Newcastle-based Best Advice Mortgage Centre, will attempt to complete an arduous 140-mile bike ride - which normally takes at least two days - in just 18 hours on Sunday 7 July. The trek takes in some of the North's most rugged terrain, starting in Whitehaven and finish in Tynemouth. Smith will pass through ...

  • Packager grows its role with new sales director

    24 Jun 2002

    Mortgage distributor and packager Members Mortgages have appointed Clive Watkins to the new position of sales and marketing director. Watkins was previously head of intermediary lending at Bristol and West and director of sales and marketing with The Mortgage Business. Derby-based Members Mortgages, one of the Manor Group of businesses, provides mortgage services to a large number of unions through affinity programs. Over the last two years the company has developed a ...

  • Paul Duckworth appointed managing director of xit2

    25 Jun 2002

    xit2, the provider of outsourced process management for the lending industry, has appointed Paul Duckworth as managing director. Duckworth will be responsible for developing new business and implementing customer relationship strategies for the company's Valuation Exchange, Conveyancing Exchange and Repossession Exchange. He takes over from Simon Henson who will become Chief Executive of the xit2 group. Duckworth, who has spent the last 18 months as sales director ...

  • Record demand at Exclusive Connections

    25 Jun 2002

    Mortgage packaging network Exclusive Connections has announced a record month of mortgage completions. The network achieved £77 million of mortgage completions in May, more than doubling the network performance for May 2001. Exclusive Connections attribute the increase to strong demand fuelled by low interest rates coupled with a quality service proposition from its mortgage packaging members. Patrick Day, managing director of Exclusive Connections, says: "These ...

  • Savills private Finance launches market leading fixed rates

    27 Jun 2002

    Independent mortgage broker Savills Private Finance (SPF) has launched two market leading mortgage deals. With the FSA and even the Council of Mortgage Lender expressing support for an interest rate increase, the broker is offering borrowers the chance to fix at a rate of 5.49% over five and 10 years respectively. Simon Jones, associate director at SPF, says: "With the current expectation that interest rates are going to rise, these two fixed rate mortgages offer an ...

  • Savills Private Finance research bucks trend in FTB research

    26 Jun 2002

    Research by broker Savills Private Finance reveals that property is more affordable today for first time buyers than it was 10 years ago. As a percentage of salary, mortgage repayments for first time buyers are at a lower level for both London and the rest of the UK than they were in 1992. Mortgage repayments on the average UK property of £70,600 represents 22% of a first time buyers salary today compared to 33% 10 years ago. Buyers in London need to pay ...

  • SLB to launch CeMAP training programme

    24 Jun 2002

    Standard Life Bank is investing in a CeMAP training programme to ensure its most valued introducers stay in business after December's qualification deadline. The lender could stage as many as 15 workshops around the UK. It expects around 200 introducers to attend the training sessions, which should be underway by August or September. Senior staff at SLB decided to take a more active role in training after realising there is still low awareness of CeMAP among mortgage introducers. Alan ...

  • Solent look to Future

    28 Jun 2002

    Solent Mortgage Services (SMS), has been appointed by Future Mortgages as an approved packager to distribute its non conforming product range. Ian Balfour, marketing director of SMS says: "A packager's strength lies in the service and choice it offers its broker base. Agreements, like this appointment to the Future panel, continue to enhance our already significant product offering and illustrates the importance that key non conforming lenders place on us. Future is one of ...

  • South East still desirable despite soaring prices

    25 Jun 2002

    Spiralling property prices in the South East are failing to deter homebuyers, the latest findings from Alliance & Leicester's quarterly moving improving index reveal. The index shows that 17% of prospective homebuyers will be looking to move to the South East in the next two years. With almost one in five prospective homebuyers in London looking to move elsewhere in the South East over the next two years, the latest findings fuel concerns that house hunters in the ...

  • Spanish sun brings securitisation cheer

    24 Jun 2002

    GMAC-RFC, Kensington Mortgage Company, Mortgages PLC, Platform Home Loans and Southern Pacific Mortgage Limited are writing 25% to 50% more business than this time last year. Speaking at a seminar on the developments in the UK mortgage-backed security market in Barcelona last week, all were agreed that the UK market for non-conforming loans was in a "healthy state". Delegates at the sixth Global Asset Securitisation conference heard panellists discuss origination strategies and ...

  • SPML completes £230m asset securitisation

    28 Jun 2002

    Southern Pacific Mortgage Limited (SPML), has successfully completed the securitisation of £230 million of its mortgage assets. The sub prime lender's securitisation, which was sold both to UK and European investors, includes both first and second charge mortgages and was arranged by Lehman Brothers and Barclays Capital. Th securitisation was managed by Commerzbank A.G and NIB Capital N.V. £198.6 million of the total was given the highest rating of AAA ...

  • Statistics, damn statistics

    24 Jun 2002

    In your edition of July 17 you quoted that only 1% of brokers supported Namba as a trade body. You further quoted Nick Baxter as saying that the industry needs a trade body with no commercial interests, implying that commercial interests affect Namba. I would take issue with both of these comments. Your first point is based on a Future Mortgages survey of 500 brokers. If you take the MCCB number of registered advisers, you will find that the sample questioned by Future was only just ...

  • Sun Bank urges first-timers not to be put off house buying

    25 Jun 2002

    Sun Bank, the specialist mortgage lender, is urging first time buyers not to be put off house buying as a result of recent comments made by Sir Howard Davies, chairman of the Financial Services Authority. Sun Banks plea comes in response to comments made by Sir Howard Davies on BBC News 24's Business Today programme, in which he warned that some people may "live to regret" taking out large mortgages in the current housing boom. He went on to say he had "concern about over-borrowed, ...

  • Taking business away from the high street

    24 Jun 2002

    For the last two years, Newcastle-based High Street Home Loans has been one of the pace setters in the booming correspondent-lending sector of the mortgage industry. HSHL is on course to write £375m of new business this year - a huge growth compared to the figures it delivered in 2001. According to HSHL, the good times are set to continue with correspondent lending accounting for at least 15% of all specialist lending by the end of 2003. Its HQ (pictured above) is based in Newcastle.

  • This week's problem case

    24 Jun 2002

    Diana has recently divorced her husband of 10 years. She had a joint mortgage with him that ran into arrears, but they sold the property and cleared the debt. Diana has an annual income of £15,000 from multiple sources and two outstanding CCJs for £2,000. She has been renting at a number of addresses in the last 12 months and, therefore, has difficulty proving her residency. She now wishes to purchase a £50,000 property with a £12,500 deposit.

  • Verso joins PMPA lender panel

    27 Jun 2002

    Professional Mortgage Packagers Associates (PMPA) has announced the appointment of Verso to its panel of mortgage lenders. Jon O'Brien, group co-ordination manager for PMPA says: "We have been immensely impressed with the level of service Verso have given to PMPA members in recent months. In addition to this they have expressed a desire to support PMPA by way of delivery of exclusive products and excellent back-up support for it's members." PMPA now has 10 panel ...

  • We CAM, we saw, we conquered

    24 Jun 2002

    Having read your coverage of our decision to trademark 'CAM' (Mortgage Strategy June 17 2002), I think I detected a little irritation from our competitors. For Scott Mowbray to say that we "get the huff" brings pots and kettles to mind. We, on the other hand, were a little amused and bemused. While I have no interest in a handbags at dawn standoff, I thought it worth putting the record straight. Our decision was straightforward - we did introduce current account mortgages ...

  • West Brom agrees MIG deal with Royal & Sun Alliance

    27 Jun 2002

    West Bromwich Building Society and Royal & SunAlliance yesterday announced a sole partnership deal to provide household insurance and Mortgage Indemnity Guarantee cover to West Bromwich Building Society customers. Designed to suit homeowners, Buildings and Supersure insurance, underwritten by R&SA, include a number of new additional features. At no additional cost, customers receive alternative accommodation for pets, accidental damage caused by pets, lock replacement ...

  • Why you can't always rate the APR

    24 Jun 2002

    Frank Chacko considers the use of the APR as a way of comparing loan products and finds that it has a number of potentially critical flaws that could mislead the consumer. Today, anyone with a basic level of creditworthiness can buy a loan just like any other product. But with loans, the product purchased requires payments in the future and this makes price comparisons difficult. This is because the charge for the 'time value' of money is not intuitive - there can be different repayments

  • Yacht an adventure for mortgage man

    24 Jun 2002

    A senior manager at Britannic Money is leaving the comfortable world of mortgage lending to be part of the crew in a gruelling round-the-world yacht race. Andrew Hatley, corporate account manager, sets sail from Liverpool on October 27 aboard a 60-foot clipper. For the 5,300 miles and six weeks before Cuba appears on the horizon, Hatley and 14 other crewmates will be drenched by storms as they wrestle with sails and suffer the inevitable bouts of seasickness. But there will be ...

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