Mortgage Strategy
24 September 2007

A shock may be good for all of us

24 Sep 2007

Those of you unlucky enough to have been at the Intermediary Mortgage Lenders Association dinner last Thursday could have been forgiven for mistaking it for a wake.

A&L raises rates for tracker range

24 Sep 2007

Alliance & Leicester has increased rates across its variable tracker range. Its two-year base rate tracker with a £599 fee is now priced at 5.79%, up from 5.59%, and its two-year base rate tracker with a £1,499 fee is now priced at 5.54%, up from 5.44%. It has also raised rates on its two-year FeeSaver tracker from 5.99% to 6.09%.

Advantage launches deal on ADV sub-prime range

27 Sep 2007

Advantage has launched the first exclusive deal on its ADV sub-prime product range with the Regulatory Association of Mortgage Packagers.

Affordable sub-prime dead, say 49% of readers

24 Sep 2007

Mortgage Strategy Online readers are split over the future of the sub-prime market, with 49% predicting the end is nigh for affordable mortgages for people with adverse credit histories.This week Mortgage Strategy asks: "Do you understand and feel comfortable selling offset mortgages?"

Amber to withdraw products

26 Sep 2007

Amber will be withdrawing all its current products, with the exception of SC100, on September 28.

AToM calls for pre-priced tranche lending

24 Sep 2007

All Types of Mortgages has called for a return to the days of pre-priced tranche lending.

B&B award for top women in property

24 Sep 2007

The success of women in the property investment market is to be recognised for the first time with the launch of the inaugural Property Woman of the Year awards.

Bankhall and Capita Enabler join forces

28 Sep 2007

Bankhall and independent platform provider Capita Enabler have launched a service for Bankhall members.

Bard's wisdom apparent in NR crisis

24 Sep 2007

William Shakespeare's Hamlet warns about the dangers of being a borrower and a lender and Northern Rock's struggles appear to prove his point, says Sue Read.

Bear Stearns' income falls

24 Sep 2007

Bear Stearns has seen a 61% fall in net income and a 38% fall in net revenue for Q3 2007. And Morgan Stanley reports a 17% fall in net income in Q3 2007, despite income for the first nine months of the year being a record $6.7bn compared with $5.3bn the year before. Meanwhile, Deutsche Bank chief executive Josef Ackermann has admitted that its Q3 results could be hit by the credit crunch.

BoE to auction off £10bn today

26 Sep 2007

The Bank of England is today auctioning off £10bn in loans to banks and lenders.The BoE revealed plans to hold four money auctions on September 19. The funds, which carry an interest rate of 6.75%, are on offer to help financial institutions avoid a funding shortfall like the sort that has hit Northern Rock. Although the names of the winning bidders will kept anonymous, the rumour mill is likely to identify the likely suspects.

BRE accredits 1,000th member

24 Sep 2007

BRE Certification has accredited the 1,000th member to its scheme for energy assessors and home inspectors.

Broadening appeal of bridging loans

24 Sep 2007

Bridging loans can be simple to source, with a range of terms available and a quick completion schedule. Traditionally funded by banks, an increasing volume of independent lenders are jumping into this arena, ensuring competition is fierce and driving rates downwards.

Brokers can play an important role

24 Sep 2007

When personal finance issues appear on the front pages of newspapers or lead news bulletins on TV, you know something has gone wrong.

Brokers expect to lose more than 10% of sub-prime business

27 Sep 2007

The majority of brokers expect to lose more than 10% of their sub-prime business because of repricing and lending criteria changes.

Brokers move enquiries online

24 Sep 2007

Bridgingloans.com says 1,000 brokers have registered online since its website launched three months ago. It says this suggests more brokers are moving their enquiries online from phone and fax services.

Brokers warned on panels

24 Sep 2007

Loanoptions.co.uk has warned brokersthat dealing with packagers that have limited lender panels could leave them high and dry.

C2 offers brokers bigger share of commission

24 Sep 2007

c2-financial has unveiled a new secured loan commission structure in a bid to lure brokers to the sector.

Charity lashes out at Abbey deal

24 Sep 2007

A debt charity has slammed Abbey's new 100%-plus product, saying borrowers who take it our are either "incredibly bold or in-credibly stupid".

CHL Mortgages launches variable rate buy-to-let deals

25 Sep 2007

CHL Mortgages has launched five variable rate products in its buy-to-let range, including three discount trackers and two trackers.

Cloud has a silver lining for brokers

24 Sep 2007

I'm writing this while feeling somewhat jet-lagged, having just returned from a long weekend in New York.

CML welcomes FSA PPI findings

26 Sep 2007

The Council of Mortgage Lenders has welcomed the publication of the Financial Services Authority's payment protection insurance review.

Commercial First appoints national network manager

24 Sep 2007

Commercial First has appointed Paula Purdy to the newly created role of national network manager.

Complete adds Platform to onsite underwriter list

26 Sep 2007

Complete Mortgage and Loan Services now has nine onsite underwriters after adding Platform to its books.

Consumers embrace offset advantages

24 Sep 2007

At first glance, sat nav systems, blogging, online gambling, carbon footprints, reality TV shows and healthy school dinners don't have much in common, but they are all new concepts that have soared in popularity in recent times. The public seems to be less affected by the shock of the new these days.

Credit crunch biting buy-to-let, warns Moneyfacts

27 Sep 2007

Moneyfacts.co.uk has warned that the credit crunch it starting to bite the buy-to-let sector.

Credit Suisse to cut mortgage-backed security jobs

26 Sep 2007

The Credit Suisse Group will cut 150 jobs in the US and UK as a result of the recent market turbulence.

CurriculumVitae

24 Sep 2007

I wanted to be a journalist but when I was younger I was shy and retiring. How I have changed.

Dear Delia

24 Sep 2007

Dear Delia My client is 24, living in Liverpool and looking to buy his first property for 80,000. He is finding it difficult to get a good deal due to a County Court judgement he acquired two years ago.

Demand still outstrips supply

24 Sep 2007

In spite of a fall in the number of buyer enquiries, demand for property continues to outstrip supply because of a lack of new housing.

Direct Group teams up with The Mortgage Lender

25 Sep 2007

Direct Group will supply all insurance products and administration services to South coast based mortgage and secured loan broker, The Mortgage Lender.

E2M end of season sale

24 Sep 2007

Easier2Move has announced a sale on all sale and purchase work instructed up until September 30.

Easier2move appoints account manager

24 Sep 2007

Easier2move has appointed Samantha Jones as account manager for the East Midlands and East Anglia.

Enterprise adds four underwriters

24 Sep 2007

Enterprise Broker Services, the packaging arm of Enterprise Group, has appointed four underwriters to its new business team. Jason Badla, new business director at Enterprise, says: "We are expanding so we can continue to meet our 24-hour turnaround promise."

Equity release club to launch

24 Sep 2007

Equity Advice is launching an equity release club today. It will be headed by Stuart Wilson, managing partner of Equity Advice.

Evaluate to develop a secured loans platform

24 Sep 2007

Evaluate Technologies is developing an integrated trading platform for secured loans, designed at encouraging more directly authorised brokers to step into the market.

Experts head off crash fears

24 Sep 2007

Last week the Royal Institution of Chartered Surveyors lowered its expectations for house prices over the next 12 to 15 months from a predicted rise of 3% to no change.

Finance & Mortgage Solutions launch AIP link

24 Sep 2007

Finance & Mortgage Solutions has launched an integrated application in principle form with Trigold’s E-Trading Centre.

Fitch moots future for Northern Rock

24 Sep 2007

Northern Rock’s battle to continue as a stand alone company with a new business model looks increasingly difficult, says Fitch Ratings Financial Institutions Group.

FSA findings spell the death of single premium PPI, warns the AFB

26 Sep 2007

Robert Sinclair, the associate director of the Association of Finance Brokers, says the Financial Services Authorities warning that firms are not treating customer fairly when selling PPI is the death knell for single premium PPI.

Government should manage demand, not bow to it

24 Sep 2007

From Arron Bardoe

Halifax to provide GI products to Positive Solutions

27 Sep 2007

Halifax general insurance has launched a deal to provide its general insurance products to Positive Solutions members. The deal means that Positive Solutions' network of 1674 advisers will be able to provide Halifax's insurance products.

Heritable appoints new director

26 Sep 2007

Heritable Bank has appointed Andrew Scotting as a director of its structured property finance team.

HIP providers offer deferred payment scheme

24 Sep 2007

HIP Payment Services, LMS and other Home Information Pack providers have joined forces to offer a deferred payment scheme to consumers.

Home owners would ride out a price fall

24 Sep 2007

With turmoil raging in the wholesale credit markets, a recent report by the Building Societies Association shows that house buyers are more savvy about their purchases than many commentators have argued, and that a house price crash is unlikely.

Hometrack to open shop in Oz

24 Sep 2007

Hometrack has purchased a 50% share in Residex, an Australian residential statistical research company and is forming new company Hometrack Australia.

HSBC to close US lender

24 Sep 2007

HSBC Finance, the US arm of HSBC Holdings, is to close its wholesale mortgage lender Decision One Mortgage, which originates sub-prime mortgages through brokers. Around 750 staff will be affected. Meanwhile, Llanera, a Valencia-based real estate group, is in talks to avoid bankruptcy after the slowdown in the Spanish property market caused a liquidity crisis.

IMLA asks BoE to continue liquidity support

27 Sep 2007

The Intermediary Mortgage Lenders Association has called on the Bank of England to continue its ongoing liquidity support to stabilise money market rates.

Industry begins to circle the wagons

24 Sep 2007

Market players are going on the defensive in light of the current uncertainty and when the dust settles our working world is likely to have changed, says Rob Griffiths.

Inflation could be below target for the next year

24 Sep 2007

In August, the Consumer Price Index, the government's measure of inflation, dropped to 1.8% from 1.9% in July and 2.4% in June.

Just Retirement sales boom

24 Sep 2007

Sales of annuity products rose 11% to £551.6m from £252.6m in 2006, while sales of equity release advances were up 176% to £125.2m from £43.3m.

L&G ad campaign for mortgage club

24 Sep 2007

Legal & General plans to bolster its mortgage club proposition with a press and online advertising campaign targeting directly authorised brokers, appointed representatives and IFAs. The campaign is due to start on October 1.

Lack of understanding fuels public hysteria

24 Sep 2007

"I think therefore I am," said philosopher René Descartes. Of course, the glib corollary is that if one fails to think, one ceases to exist.

Lenders discuss bridging trade body

24 Sep 2007

Cheval says it is a step closer to creating a trade association for bridging lenders, following a meeting with 10 lenders and the Council of Mortgage Lenders last Thursday.

Lexicon on acquisition trail with purchase of Barton Gold

25 Sep 2007

Lexicon has agreed terms to purchase London-based mortgage club Barton Gold, Mortgage Strategy Online can exclusively reveal.

Looking for guidance from within

24 Sep 2007

The regulator wants to vet trade bodies' industry guidance which could mean that firms end up relying more on their inhouse compliance officers, says Bill Warren.

Marketwatch

24 Sep 2007

Swaps plunged further last week, although on Tuesday they did go up sharply but the previous drops meant they finished down on the week.

Mform calls for clarity in deals

24 Sep 2007

Mform.co.uk is urging lenders to make deals more clear to customers by dumping unnecessary fees. It claims start-up fees on the 20 most competitive deals range from zero to £2,100 while rates range from 5.3% to 6.29%.

Money Partners on the hunt for buyer

27 Sep 2007

Money Partners has confirmed it has appointed a team of advisers to find potential business partners interested in funding, investing in or buying the lender.

Mortgage Intelligence reveals £2m profit

24 Sep 2007

Mortgage Intelligence says it made £2m in profit last financial year - and shrugs off any suggestion that it will be affected by the closure of Close Mortgages.

Mortgage Trading Exchange continues summer loyalty promo

26 Sep 2007

The Mortgage Trading Exchange is continuing its summer loyalty promotion until October 14.

MPLC suspends adverse ranges

24 Sep 2007

Mortgages PLC has suspended its heavy and unlimited adverse deals. It has also cut LTVs on its medium adverse range from 85% to 80% and in its light adverse range from 90% to 85%. LTVs on its super-light, near-prime and near-prime plus self-cert ranges are also being cut from 90% to 85%.

Network Data's shares tipped to recover

24 Sep 2007

A leading investment research firm has tipped Network Data Holdings to double its current share price in a year's time.

Northern Rock share price surge amid takeover talks

26 Sep 2007

Northern Rock’s share price has surged 11.59% to 182p after the bank revealed it was holding talks over potential takeover bids.

NR says it will not raise rates

24 Sep 2007

Northern Rock says it has no immediate plans to raise its mortgage rates despite speculation that it was set to hike its prices.

OECD warns UK may need to boost interest rates

28 Sep 2007

The Organisation for Economic Cooperation Development has advised that the UK may have to boost interest rates in order to bolster the economy.

Ombudsman to axe 25% of staff

24 Sep 2007

The Financial Ombudsman Service is likely to cut 25% of its employees, after a fall in the number of mortgage endowment complaints caused it to review its staffing needs. At the peak of complaints in 2005, the FOS was dealing with more than 250 complaints a day relating to shortfalls in the performance of mortgage endowments.

Over half of B2L investors to buy more this year

24 Sep 2007

The Association of Rental and Letting Agents says 54% of all buy-to-let investors expect to increase their portfolios over the next year.

Packager hits back at BBC mis-selling report

26 Sep 2007

Personal Touch Packaging has hit back at last night's BBC Radio 4 programme that reported on serious mis-selling of self-cert mortgages in Britain's sub-prime sector.

Packagers to see volumes cut by 50%, warns Advantage

25 Sep 2007

Advantage has warned packagers that the credit crunch could see their business volumes slashed by 50% unless they re-evaluate their business models.

Paradigm launches bridging lender panel

24 Sep 2007

Paradigm Mortgage Services has unveiled its bridging lender panel with Cheval Bridging Finance the first lender available to members.

Platform appoints two BDMs

24 Sep 2007

Platform has appointed Andrew Hepworth and Stephen Challis as BDMs for Yorkshire and the South Coast respectively. They will report to regional sales managers Richard Daibell and Keith Hickman.

Positive brokers could reap reward

24 Sep 2007

Positive Solutions' parent company Aegon had agreed to distribute 40% of the firm's value above £200m to qualifying partners in 2010. Positive Solutions has a points-based scheme to reward brokers.

Preferred unveils rate and criteria change

26 Sep 2007

Preferred has made rate and criteria changes that include making its self-cert products only available to self-employed people.

Prices persevere, says Your Move

28 Sep 2007

Your Move says property prices remain resilient despite the tumultuous mortgage market.

RAMP appoints compliance associate

26 Sep 2007

The Regulatory Alliance of Mortgage Packagers has announced the appointment of Andy Setchell to the post of compliance associate.

Recruitment drive for advisers

24 Sep 2007

Torquil Clark Mortgages has launched a recruitment drive to add self-employed advisers across the country to its team.

Regulator does listen to logical lobbying

24 Sep 2007

As a columnist, it is all too easy to knock the establishment. We can make negative comments and generally carry little in the way of accountability, un-less our comments are libellous.

Sales of £1m properties tripled in past five years

24 Sep 2007

There has been an almost three-fold increase in the number of million pound property sales in England and Wales over the past five years, research from Halifax Estate Agents reveals.

Scruitinising self-cert

24 Sep 2007

Growing public interest in self-cert has led to expansion in the sector but brokers and lenders must take care as the regulator is taking a keen interest in it, says Leah Milner

Select offers free legals and cash back incentive

24 Sep 2007

The Select Partnership has today launched a free legals scheme on remortgages.

SLB offers free offsetting facility

24 Sep 2007

Standard Life Bank is offering its existing customers a free offsetting facility to help them pay off their mortgages more quickly. Available until October 5, the limited offer is available to users of all SLB's variable rate products as well as certain of its fixed rate mortgages and replaces the lender's usual offset arrangement fee of £99.

Standard Life Assurance scoops arts and business award

27 Sep 2007

Standard Life Assurance has won the arts, business and sustainability category at the Arts and Business Awards for its partnership with Children’s Classic Concerts.

Success in a fragmented market

24 Sep 2007

Brokers should focus on strong sectors in the mortgage market and look to these for growth opportunities rather than be swayed by generalised comments about a downturn, says Mel Dring.

Swift joins Beacon Mortgages panel

25 Sep 2007

Swift is joining the panel of Beacon Mortgages. The link-up will allow brokers to access Swift’s product range via Beacon Mortgages and it means brokers who choose to access these competitive products, through Beacon, can take advantage of Beacon’s case management application system and Swift’s electronic identification facility. Both are designed to save brokers time.

TBMC hangs up on 0870 numbers

24 Sep 2007

The Business Mortgage Company has axed its 0870 numbers. Andy Young, chief executive officer of TBMC, says it has replaced them with local numbers. The new telephone and fax numbers are 029 2069 5400 and 029 2069 5401.

The mystery of the coolest customers

24 Sep 2007

If you are reading this, you aren’t a Northern Rock saver panicking about your money - unless you’re still waiting in a queue outside your local branch and reading this to help pass the time.

Time to look at non-borrowing options

24 Sep 2007

For those of you who watched Disney films as a children, the past couple of weeks may have brought back memories of the run on the bank portrayed in Mary Poppins - but without the picnic on the ceiling and with a lot fewer people laughing.

Treasury calls in Goldman Sachs

25 Sep 2007

The Treasury has brought in Goldman Sachs for advice on the options for Northern Rock, newspaper reports claim.

Turning the direct-to-consumer tide

24 Sep 2007

Nearly two years ago I spoke at the Mortgage Business Expo in London to encourage more advisers to enter the equity release market. One of the objections to entry, outside of those of regulation, was the question of whether there is enough business in the market for everyone.

UKValuation launches AVM for insurance

25 Sep 2007

UKValuation has launched an automated valuation model insurance solution as part of its integrated approach to risk management for lenders.

Vertex appoints two directors

24 Sep 2007

Wave reduces max loan to £500k

28 Sep 2007

Wave has reduced its maximum loan to £500,000.

We need to know our financial status

24 Sep 2007

The credit crunch has been the cause of much discussion and concern in the financial community, but it is only in the past couple of weeks that it has had a tangible effect on the man on the street in the UK.