Mortgage Strategy
26 April 2004

  • All your network questions answered by the industry's leading experts

    26 Apr 2004

    Will the compliance requirements of a network be more onerous than direct regulation by the FSA? Richard Griffiths is managing director of Network Data Compliance is inextricably bound up with good business practice. Any attempt to cut corners on FSA compliance procedures will be detrimental to client relationships and the wellbeing of your firm. If you are directly regulated and your PI insurer finds out about shortcomings in your compliance procedures any claims may ...

  • A view from the floor

    26 Apr 2004

    Much is said about growth in the non-conforming sector of the mortgage market but little is made of the sustained growth in green lending. Could this be because pundits find it difficult to pin down what a green mortgage is? All Ecology mortgages have some environmental benefit but you don't have to be green to get one. We are often more flexible than the majority of lenders when it comes to the types of properties we will lend on. We specialise in lending on dwellings ...

  • Abbey chief executive appointed to FSA practioner panel

    30 Apr 2004

    The Financial Services Authority has appointed Luqman Arnold, chief executive of Abbey, and Alan Yarrow, vice-chairman of investment bank Dresdner Kleinwort Wasserstein, as members of the Financial Services Practitioner Panel. The panel is a statutory body that represents the interests of practitioners within the regulatory framework, principally by ensuring that the FSA takes account of the views and concerns of regulated firms in the development of regulatory policy and in ...

  • Abbey revises fixed rate mortgage range

    26 Apr 2004

    Abbey is increasing the interest rates on its two, three and five-year fixed rate mortgages with effect from April 19 2004, reflecting the higher costs of borrowing on the money markets. The interest rate on Abbey's 15-year fixed rate mortgage will remain unchanged at 5.74%. Abbey's fixed rate mortgages are aimed at people who want the reassurance of paying the same amount for their mortgage each month and who value longer term security against any future increases ...

  • Are lenders pushing offset mortgages?

    26 Apr 2004

    Some brokers have commented that consumers going direct to lenders are being 'blinded with science' and being advised to take out offset deals regardless of their circumstances. So, Mortgage Strategy asks: Are borrowers being encouraged to take out offset mortgages despite the product not being suitable for them? Mike Fitzgerald, Brentchase Financial Services No. The majority of clients we put on offset deals have read about them and ask for these products. ...

  • ARLA and NAEA announce joint training programme

    30 Apr 2004

    The Association of Residential Letting Agents and the National Association of Estate Agents have announced plans for a joint training programme for lettings and residential management. From August 2004, the training programme for all members of both organisations will be formulated and managed jointly. The two organisations believe that the hallmark for professional bodies and regulated practitioners is in the training and qualifications offered and gained. Adrian ...

  • B&W launches capped offsets

    26 Apr 2004

    Bristol & West Mortgages is launching two offset mortgages with the added security of a capped rate. Clients can choose either a 4.89% (base rate plus 0.89%) for the term of the mortgage capped at 5.89%, or opt for a deal at 4.99% (base rate plus 0.99%) for the term of the mortgage capped at 5.99% with free legals for remortgagers and free valuation. Given the widely held belief that interest rates will continue to rise B&W says clients' concerns that they ...

  • Bananas Inc launches branded lending operation with SPML

    29 Apr 2004

    Bananas Inc has launched a branded lending operation with the support of Southern Pacific Mortgage Limited that is expected to generate £50m of additional mortgage lending over the coming 12 months.   The branded lending business, which will retain SPML branding, started operating at Bananas Inc's Whiteley, Hampshire offices this week. It is serviced by its own underwriting staff and a team of processing personnel. The move takes Bananas Inc into new areas of the sub-prime ...

  • Bradford & Bingley adviser wins round-the-world holiday

    28 Apr 2004

    Bradford & Bingley mortgage adviser Sally Jackson has won a round-the-world holiday for two from non-conforming mortgage broker and packager Earth Finance. The month-long holiday will be taken in 2005, and will transport Jackson and her partner Dave to Hong Kong, Singapore, Sydney, Auckland, Fiji, Los Angeles and New York. Jackson was selected at random as the winner from everyone who filled out an entry form at Earth Finance's stand at the 2003 Mortgage Expo at Earl's ...

  • Broker accused of duping clients

    26 Apr 2004

    A Newcastle-based brokerage was in the spotlight last week over claims it was misleading Right to Buy borrowers and flouting the Consumer Credit Act. Using hidden cameras, the BBC's Watchdog filmed advisers at Nationwide Mortgage Services stating that getting a mortgage was a complicated practice and making clients sign contracts allegedly legally binding them to a flat fee agreement of £1,995, seemingly irrespective of the size of the mortgage. One couple featured ...

  • Brown dismisses IMF housing concerns

    28 Apr 2004

    Gordon Brown has dismissed fears of a housing market meltdown, following warnings from the International Monetary Fund that it was the biggest risk economic stability in the UK. Last week the IMF forecast growth of 3.5% in the UK, but warned that it was concerned about the possible effect of rising interest rates on the housing market. But speaking at the spring meetings of the IMF and the World Bank in Washington over the weekend, Brown challenged the funds' findings, ...

  • CETA Life links up with Mortgage 2000

    28 Apr 2004

    CETA Life, a subsidiary of CETA, has linked up with Mortgage 2000 to provide an integrated mortgage and life system for financial advisers. The technology link, which involves Mortgage 2000's sourcing software Encore and CETA's Life system, enables brokers to enter client data into the Mortgage 2000 Encore system and obtain a life quote at the same time they search for a mortgage product. The CETA Life system, which is available free of charge, gives brokers access ...

  • Chancellor indicates support for base rate increase

    29 Apr 2004

    Chancellor Gordon Brown yesterday indicated his support for another increase in the Bank of England base rate. Speaking at the annual convention of the Institute of Directors at the Royal Albert Hall, Brown said the government's fundamental duty was to sustain economic stability. He says: "We will put stability first, now and in the future. We will never make the mistakes of the late-1980s and early 1990s when monetary disciplines lapsed and were forgotten. "At ...

  • Charcol launches two-year fixes

    27 Apr 2004

    Charcol has launched a range of two-year fixed rate deals. The lower rate of 4.49% is available to both purchasers and remortgagers. There is also a deal specifically for remortgagers fixed at 4.69%. This product comes with a free valuation and free legals. Both deals come with early redemption charges for the first two years and the facility to overpay by up to 10% each year. Ray Boulger, senior technical manager at Charcol, says: "These deals offer exceptional ...

  • Cheer up - it might never happen

    26 Apr 2004

    Beyond the worlds of John le Carré and Raymond Chandler there aren't many places where the knock on the door is as synonymous with fear and foreboding as it is in the financial services industry. Mortgage intermediaries have since 1998 grown accustomed to occasional MCCB inspections visits but with the onset of statutory regulation many are asking when, why and how the FSA will make site inspections of its own. The surprising answer is that, for those who successfully meet their ...

  • Clydesdale targets brokers with two-year fixes

    26 Apr 2004

    Clydesdale Bank makes its first big push into the intermediary market this week with the launch of a selection of two-year fixes exclusive to Charcol. The vanilla deal is available to all borrowers and is fixed at 4.49% (5.7% APR). There is also a remortgage deal fixed at 4.69% with free valuation and free legals. Both come with early redemption charges for the first two years and the facility to overpay by up to 10% each year. Although Clydesdale hasn't ...

  • CML backs Which? campaign to regulate estate agents

    29 Apr 2004

    The Council of Mortgage Lenders is lending its support to the Which? Move It campaign aimed at introducing mandatory regulation of estate agents. With research showing that less than half of consumers think that estate agents pass all offers to sellers, when failure to do so is a criminal act, Which? is adopting the unprecedented approach of demanding that the government reject the recent Office of Fair Trading's 'woefully inadequate' recommendations to deal with the ...

  • CML unveils online training package

    27 Apr 2004

    The Council of Mortgage Lenders has produced a flexible online training package to familiarise lending staff with the new requirements of FSA regulation. Costing around £50 per customer, the package has been designed to help lenders and intermediaries deliver tailored training for a variety of job roles and aims to give students a good understanding of the practical requirements of the FSA rulebook. Produced in conjunction with online specialists, Absolutely Training ...

  • CML welcomes quality standard for prefabricated building systems

    27 Apr 2004

    The Council of Mortgage Lenders has welcomed yesterday's announcement by the Building Research Establishment of a new quality standard for prefabricated building systems. With the Government keen to promote the use of modern methods of construction, the CML believes the market needs a set of recognised standards to ensure that the new generation of prefabs are durable, robust, and suitable for mortgage lending purposes. The CML says the new standard should provide ...

  • Compliance is much more than a bolt-on to Network Data

    26 Apr 2004

    From Richard Griffiths Ian McIver of Whitechurch Network contributes to the dialogue between his colleague Neal Smith and myself (Mortgage Strategy April 19), opening with the view that Neal is right and by implication I am wrong. No surprise there, and please form an orderly queue with the many people who think likewise. Ian then launches into a tirade about accuracy and correctly points out the incongruous (I can do long words as well, four syllables and more) inclusion ...

  • Conti Financial Services launches Swiss mortgage scheme

    28 Apr 2004

    Conti Financial Services has launched a mortgage scheme for UK buyers of residential property in Switzerland. The scheme, offering minimum rates of 2.25% for a repayment-only Swiss francs mortgage, has been developed in response to demand from UK buyers who recognise the investment and holiday rental potential of Switzerland, and is available for property purchase or as refinance for improvements. Conti senior partner Simon Conn says: "Switzerland has long been renowned ...

  • Conti looks to East Europe

    26 Apr 2004

    Conti Financial Services is expanding into countries earmarked to become members of the EU. The company already offers mortgage products in Poland and is close to entering Romania and Bulgaria. It also plans to move into the Czech Republic and Hungary by the end of the year. The moves are part of the firm's five to 10-year plan to expand across Europe, taking advantage of the boom in emerging markets. Clients' reasons for borrowing abroad include wanting ...

  • County Homeloans reintroduces No Income Declaration self-cert deal

    30 Apr 2004

    County Homeloans has re-introduced its No Income Declaration self-certification mortgage - the only scheme of its kind currently available in the UK. The product, which does not call for any income to be stated or proofs of income, has been repriced and has now been re-introduced by County because of broker demand. Most other lenders require some form of stated income on their self-certification mortgage applications, however, with County's self-certification product, ...

  • Curriculum Vitae - Tony Salentino

    26 Apr 2004

    Name: Tony Salentino Age: Younger than Mike Hill and just older than Damian Cain (my co-directors) Company: Complete Mortgage and Loan Services Job Title: Director Where do you live? Hedge End, near Southampton. Describe your current job: Strategic planning and marketing of CMLS as a mortgage and loan packager; maintaining strong lender relationships and negotiating exclusive products with panel ...

  • Dear Dippy

    26 Apr 2004

    Dear Dippy Jonathan, a 25 year old full-time hotel porter earning £16,000 a year, lives with his parents and wants to buy two buy-to-let properties in Manchester - a two-bedroom terraced for £35,000 and a two-bedroom semi-detached for £45,000.The rental yields are £200 and £250 per calendar month respectively. He has a deposit of £12,000 for the properties. What options are available? Dippy says: With the buy-to-let market still booming in the North, ...

  • Direct Mortgage Answers joins Network Data as appointed principal

    30 Apr 2004

    Direct Mortgage Answers, a national packager based in East Anglia, has joined Network Data as an appointed principal. Network Data has set out its stall as the network of choice for brokers in the UK market who opt for appointed representative status under the FSA regulations. To accommodate packagers operating in the UK market, Network Data's offering enables them to carry on with their day-to-day activities without the overhead of developing and maintaining full ...

  • Don't become a post-Mortgage Day criminal, warns AMI

    26 Apr 2004

    The Association of Mortgage Intermediaries has reminded brokers that they will be committing a criminal offence from Mortgage Day if they advise clients after this date without direct authorisation by the FSA or through a network. Firms seeking direct authorisation from the FSA have less than one week to submit their application before the regulator's April 30 deadline expires. It warns that firms who miss the deadline will forfeit the FSA's guarantee to review ...

  • Enable seems to be in conflict with Skipton over MPPI

    26 Apr 2004

    From Graham Boulger I was quite surprised to see Michael Ward's comments in his letter to Mortgage Strategy in the April 12 issue. It seems that the Enable Mortgage and Insurance Network is in conflict with its parent company Skipton over the value of MPPI (ASU). Over the past two years Skipton has worked hard to ensure that as many borrowers as possible are covered by the valuable benefits that MPPI offers. Skipton obviously doesn't realise that it has been ...

  • Flexible mortgages a catalyst for life changes, research reveals

    30 Apr 2004

    Customers are using flexible mortgages to change their futures, research from Standard Life Bank reveals. Standard Life Bank's Freestyle Finance Report shows that customers are increasingly using their freestyle cash reserve to realise long-held ambitions including starting businesses, paying for a child's education or investing for the future. David Macmillan, sales and marketing director at Standard Life Bank, describes the new wave of borrowing as a culture ...

  • FSA applications to peak this week

    26 Apr 2004

    The FSA says it is expecting another peak in applications before April 30 (this Friday) - the date by which completed applications have to be submitted for a firm to be certain that it will be processed by October 31. The regulator says it will make every effort to ensure that applications received after that date are processed in time for Mortgage Day but that this cannot be guaranteed. Under the Financial Services and Markets Act, the FSA has six months from the date ...

  • FSA points out common mistakes by brokers in application forms

    27 Apr 2004

    The FSA says it has identified a number of common mistakes firms are making when filling out their application form for direct authorisation. The regulator says the mistakes are causing delays in its processing of applications and it will be posting some practical tips on its website this week to help firms avoid these mistakes in future. The FSA says although it seems obvious, firms should read the forms carefully before they begin completing them, including the instructions ...

  • Funny money is a serious business

    26 Apr 2004

    Nearly nine out of 10 (89%) financial services compliance consultants surveyed recently by Huntswood Outsourcing believe that UK financial services providers are failing to comply fully with money laundering regulations. This is a pretty chilling figure but providers have it relatively easy compared with advisers. Money laundering regulation is extremely complex and identifying noncompliant activity is not only challenging but can also be a cause for confrontation with a client ...

  • Get to know your PIFs and SIPPs

    26 Apr 2004

    With consumers becoming aware that their pensions may not cover them in their old age, property investment is increasingly edging towards the forefront of people's retirement planning. While buy-to-let is the obvious solution, more schemes are being introduced into the market, spurring people to see property as a way of saving for pensions. As our cover story highlights, the government has come up with two schemes that should further encourage high net worth investors to use ...

  • GMAC-RFC unveils senior management appointments

    29 Apr 2004

    GMAC-RFC has appointed Mike Brakes to the recently created position of chief information officer and promoted Craig Beresford to head of asset sales. The creation of a CIO position is one of several proactive steps GMAC-RFC is making to deliver technology solutions that enable continued growth in the residential lending market. Brakes will be responsible for delivery of the IT strategy across all of GMAC-RFC's UK businesses. Brakes has an extensive background as an IT professional. ...

  • Here are some ideas to really speed up the mortgage chain

    26 Apr 2004

    From Rob Field With the government seemingly keen to speed up the mortgage process, it would have been advisable for it to have spoken to brokers, packagers and lenders to find out what really slows things down. It might then have got the necessary reality check - and some good ideas too. As all efforts in this area are intended to cut delays, here are two ideas that may help: • All lenders should be obliged to upload data relating to all live mortgage accounts ...

  • High earners favour bargains over bling, says Lloyds TSB

    26 Apr 2004

    Britain's high earners are indulging in a passion for second hand shopping and not simply embracing the 'bling bling' culture favoured by the likes of the Beckhams and Liz Hurley, research from Lloyds TSB Premier Banking has revealed. Many affluent Brits can be found rummaging at car boot sales and bric-a-brac shops as well as delving into the classifieds. The Premier People report, which examines the priorities, concerns and lifestyles of British high earners, ...

  • House price inflation rises 2.1% in April, Nationwide index reveals

    30 Apr 2004

    House prices inflation jumped by 2.1% in April compared to March, the latest Nationwide index reveals. The index shows that the year-on-year rate of property price inflation, accelerated to 18.9%, the fastest rate of growth since June last year. Nationwide says recent data on mortgage approvals suggests that the pick-up in the market during the early part of this year is likely to be sustained for some months to come. Significantly, the fundamental drivers of ...

  • Housing boost for Birmingham

    28 Apr 2004

    More affordable homes are on the horizon for ethnic minority communities in Birmingham after a local housing association received a boost in the shape of a £15m loan from Lloyds TSB Corporate. Following the deal, the Ashram Housing Association, a subsidiary of the Accord Housing Group, is now set to increase its citywide portfolio of homes to more than 500. As well as financing the construction of new properties, the cash will also be used to help Ashram complete ...

  • HSBC launches online calculator for Islamic mortgage deals

    28 Apr 2004

    HSBC has launched an online calculator to help people work out how much its Islamic home finance scheme would cost them. Available at www.amanahfinance.hsbc.com, the calculator provides a guide on how much finance they could be eligible for and how much they would pay each month. They only need provide simple details such as their income, their proposed deposit and the value of the property. The bank is also making it easier for people to find their nearest branch selling ...

  • I should know but I don't

    26 Apr 2004

    Q: I arrange valuations on behalf of my clients. They make the cheques payable to me, not the valuer. Will this still be acceptable after regulation? A: AMI lobbied vigorously so the FSA's client money regulations would not fall on mortgage intermediaries. These regulations are onerous and should not be taken on lightly. If intermediaries accept payments in their own name for such services as valuations they will be deemed to be handling client money. Client ...

  • ICMG lender aims to fill the gaps

    26 Apr 2004

    Packager ICMG has launched ICMG Home Loans, a branded lender that promises to develop products to fill the gaps left by other lenders. Based in ICMG's Southend headquarters, ICMG Home Loans will do branded lending for Future Mortgages and Rooftop Mortgages, the almost virtual lender that also distributes through The Mortgage Distributors Co-operative of which ICMG is a member. Chris Gardner, managing director of ICMG, says: "We've been piloting ICMG Home Loans for ...

  • IMF says housing crash could hit UK

    26 Apr 2004

    The International Monetary Fund has warned that the UK may be heading for a housing market crash that could hit the entire economy. In its World Economic Outlook report published last week, the IMF warned that while the UK economy has performed better than most, a shortage of housing, booming prices and rising debt could lead to a sharp correction. The report says: "The dramatic rise in residential property prices in recent years, especially in Australia, Ireland, the ...

  • Industry figures voice concerns over HIPs

    28 Apr 2004

    Leading players in the housing industry voiced considerable concerns about aspects of the Housing Bill during a parliamentary briefing organised by the National Association of Estate Agents last week. The briefing brought together representatives of the property industry to brief members of both the House of Commons and House of Lords with regard to concerns over proposals for home information packs. The briefing, chaired by Lord Corbett, heard from the Council of Mortgage Lenders, ...

  • Internet Insite

    26 Apr 2004

    My round Britain tour of broker websites takes me down into Surrey this week. And the website for Mortgage Advice Centre of Surbiton shows just what can happen if you allow your designer to go over the top. It may have seemed a good idea at the time to have black screens with blue and red text but the harder you make it for the site visitor to read what you have to say and to extract the information they need, the more likely they are quickly to lose patience and go somewhere else. If ...

  • Knight Funding offers three-year discount from Platform

    28 Apr 2004

    Packager Knight Funding is offering a three-year non-conforming discount mortgage from Platform, with no redemption fees after the discount period. The discount is 2% in year one, 1.5% in year two and 0.25% in year three. Early repayment fees are restricted to the three-year discount period and are 6%;6%;5% of the amount paid in full or part payment. The discount deal, negotiated by the PMPA, can be applied to any product in the Platform non-conforming range. Frances ...

  • Labour thinks the proposed funds could stop buy-to-let overheating

    26 Apr 2004

    Chris Cummings, director, AMI On the Treasury's website, alongside the Budget download, is an opportunity to glance through the PIF consultation paper. What is it, what should we do about it, and wherein lies opportunity? This consultation picks up on the main themes of the Miles and Barker reports. As Ruth Kelly, the financial secretary to the Treasury, remarks in her foreword to the consultation paper: "A healthy and stable property market is a key element in any successful ...

  • LIB Dems respond to Nationwide house price index

    30 Apr 2004

    The Liberal Democrats have reiterated their warning that many people are gambling on the house price boom following the release of figures showing house prices rose 2.1% in April. Responding to the Nationwide house price index, which shows house prices up 2.1% in April, Vince Cable MP, Liberal Democrat shadow chancellor, says: "Large numbers of people are gambling on the house price boom - a gamble they may regret if house prices start to fall or interest rates rise. "It ...

  • Lib Dems warn lenders over 255% increase in remortgaging

    26 Apr 2004

    Responding to a survey from Datamonitor showing the remortgage market to have grown by 255% since 2000, the Lib Dems have called on lenders to act responsibly. Malcolm Bruce MP, Liberal Democrat shadow secretary of state for trade and industry, says: "If interest rates rise further, borrowing against house valuations that may not be sustainable will result in catastrophe for thousands. "With lenders increasing the income multiples that form the basis for lending decisions ...

  • MAB to switch packagers

    26 Apr 2004

    Franchise chain Mortgage Advice Bureau is to part company with its current packager Custom Made Mortgages and take its business to Direct Financial Services. Peter Brodnicki, chief executive of MAB, says the move is amicable and the result of the changing directions of the companies. Custom Made Mortgages was formed in 1996 as a subsidiary of MAB, packaging for the company's franchisees. Then three years ago it started developing its business as a separate entity dealing ...

  • Majority of young people not planning for long-term financial future, says ABI

    27 Apr 2004

    Research published by the ABI shows that a majority of young people are not planning for their long-term financial future. The research shows that less then half of under 30s are saving for a pension. This compares with over 70% of people born in the 1960s who had some kind of pension provision by the time they reached 30. Joanne Segars, head of pensions and savings at the ABI, says: "It's understandable that with all the financial pressure young people face today, ...

  • Marketing Brief

    26 Apr 2004

    This week in my A to Z of lenders' intermediary marketing material I've been looking at Northern Rock and Norwich and Peterborough. N&P may not have the reach of the Rock but it still looks to the intermediary marketplace for a good chunk of its mortgage business and both have dedicated websites for mortgage brokers. If you're using the internet to support your distribution strategy you have to review the content, layout and even design of your site on a regular basis to make ...

  • MIAS launches its proposition to brokers

    28 Apr 2004

    The Mortgage Intermediary Alliance Scotland will launch its proposition to mortgage intermediaries in Scotland today at a presentation in Edinburgh to over 100 guests. The alliance, established to raise the profile of mortgage intermediaries in Scotland, aims to establish a Kite Mark, revealed in Mortgage Strategy magazine for the first time this week, which it is hoped will soon be associated with professional service giving consumers the assurance they seek. Colin McCallum, ...

  • Mortgage Choice to give away signed Irish National rugby shirt at Manchester Expo

    27 Apr 2004

    Mortgage Choice is offering the chance for someone to walk away with an signed Irish National Rugby Team shirt at the Manchester Mortgage Expo. The shirt is one of only two similar shirts, the first auctioned at the England-Ireland game in March successfully raised £700 for the benefit of Cancer Research. Manchester Expo 2004 runs on May 19 to 20 at the GMEX in Manchester and everyone who visits Mortgage Choice on Stand A26 and deposits their business card in the ...

  • Mortgage Excellence announces distribution deal with 50 Connect

    28 Apr 2004

    Independent mortgage provider Mortgage Excellence has announced a distribution deal with the over-50s lifestyle portal www.50connect.co.uk. Under the terms of the arrangement, Mortgage Excellence will provide site visitors with a free mortgage health check and offer a range of mortgage products. Robin Williams of Mortgage Excellence says: "We are delighted to be working with 50 Connect. The UK public consistently overpays for their mortgage lending and we hope our free ...

  • Mortgage regulation can be good news for customers and lenders

    26 Apr 2004

    The challenge of implementing mortgage regulation is upon us. With only six months until it kicks in, project teams up and down the country are busy putting in place the systems and processes that will allow their organisations to sell compliant mortgages. We are no different at Britannia. The challenges are immense, as they are for all direct lenders in the mortgage sector. Several processes in our branches, contact centre and our website are being reworked to comply with regulation. ...

  • Mortgage Talk gives its top mortgage deals for the week

    27 Apr 2004

    Mortgage Talk has unveiled its top mortgage deals for the week including The Chelsea's fixed rate until the April 1 2006 at 4.64%. The deal has an arrangement fee of £590, but no valuation fee. Mortgage Talk's top tip for long-term fixed rates is the Nottingham's fixed rate deal available until August 31 2009 at 5.15%. There is no valuation fee, but an arrangement fee of £295. For short-term discount deals, Mortgage Talk recommends ...

  • Mortgages PLC appoints area manager for South-East

    29 Apr 2004

    Mortgages PLC has appointed Julia Harmer as area manager for the South-East. Harmer is responsible for an area from south London down to Brighton and across to Canterbury. Her remit is to manage relationships with distributors, mortgage brokers and IFAs. Prior to joining Mortgages PLC, Harmer worked at the Royal Bank of Scotland as a business development manager and before that as an IFA with Charcol. Harmer started her financial services career with Alliance & Leicester. Pete

  • Mortgages PLC appoints new head of credit

    27 Apr 2004

    Mortgages PLC has announced the appointment of Jim McCallum as head of credit. McCallum has been with Mortgages PLC for two and a half years, where he has been acting head of credit for the last eight months. Prior to this he worked for 34 years at the Royal Bank of Scotland where, for 23 years, he had responsibility for various aspects of credit - ranging from personal and small to medium business credit through to large corporate relationships. He was also responsible ...

  • MPC will have to perform a balancing act

    26 Apr 2004

    Swap rates fell slightly last week but not enough to affect any lender rate decisions. • One-year money is down 0.04% to 4.75% • Two-year money is down 0.05% to 4.94% • Three-year money is down 0.02% to 5.06% • Five-year money is down 0.02% to 5.17% Last week's raft of fixed rate increases had been expected - Halifax, Cheltenham & Gloucester, West Brom, The Woolwich, Bank of Ireland and Nationwide all repriced. At times like ...

  • Multiplying regulatory complexity

    26 Apr 2004

    As the weeks roll by and both the March 31 and April 30 deadlines fade into history, thousands of brokers will be left with the decision of which network to join before October 31. Whether they have decided to become an appointed representative or have simply left it too late to apply for direct authorisation is immaterial - if they want to continue writing mortgage business after October 31 they will have to join a network. Since the beginning of the year we have seen ...

  • NAEA appoints Richard Hair as president

    30 Apr 2004

    Richard Hair will take over as president of the National Association of Estate Agents on May 14 when Melfyn Williams, the Association's youngest ever president, concludes his year in office. Richard Hair has been a member of the NAEA for over 25 years and is a joint senior partner of Hair and Son estate agents, which has been trading in the Southend area since 1922. Hair says: "The last year, during Melfyn's term in office, has been a pivotal one for the Association ...

  • NatWest in B2L criteria row

    26 Apr 2004

    Brokers have been infuriated by changes NatWest has made to its buy-to-let criteria without informing them. The lender, part of the Royal Bank of Scotland group, had previously calculated how much clients could borrow by yield ratio. If there was any fall in this it would look at a client's individual circumstances to work out whether they had sufficient funds to cover eventualities like being unable to find a tenant for a couple of months. But NatWest says that as ...

  • Networks might alter their fees

    26 Apr 2004

    Networks have dismissed broker concerns that the cost to appointed representatives of joining networks will be driven up if more brokers than expected opt to become directly authorised. But they are also refusing to guarantee their prices will not change. Last week the MCCB indicated that the number of brokers opting for direct authorisation will be almost double the FSA's original anticipated figure of 7,000 while the FSA says it is expecting another peak in application levels ...

  • NGM unveils offering for principals

    28 Apr 2004

    Next Generation Mortgages is to cater for intermediaries seeking direct authorisation under the Financial Services Authority. As of yesterday, Cardiff-based NGM is rolling out its added value proposition which features 18 components to brokers and IFAs throughout the UK who have declared an intention to become principals. There will be no formal upfront charges to those intermediaries keen to sign up to the NGM service, but principals will need to submit two specialist ...

  • Nine out of 10 mortgage advisers now using multi-lender organisations

    30 Apr 2004

    Nearly nine out of 10 mortgage advisers now use multi-lender organisations, research by Paragon Mortgages shows. Paragon's first quarter 2004 survey of mortgage advisers reflects brokers' changing habits in terms of use of MLOs. However, the research also shows that the overall proportion of mortgages arranged via such organisations has declined gradually over the past year and a half, falling from 44% in the third quarter of 2002 to the present figure of 39%. John ...

  • Now A&L turns brokers away too

    26 Apr 2004

    Alliance & Leicester has come under fire from brokers stunned by the lender's unwillingness to do business with them. Following on from a story in last week's Mortgage Strategy over Newcastle restricting its business to a small panel of introducers, sole broker Julie Tanner got in touch to complain of a similar practice at A&L. Having registered online with the firm she was sent an email stating that the lender was unable to place her on its intermediary ...

  • NUMC to join Premier brand

    26 Apr 2004

    The Norwich Union Mortgage Club will be integrated under Bankhall's Premier brand over the next 12 months. As Mortgage Strategy exclusively revealed last week the club has been purchased by Bankhall for an undisclosed sum joining Premier Mortgage Services, purchased from Prudential. Shaun Godfrey, Bankhall group sales director, says NU Mortgage Club and Bankhall's mortgage club, Point One, will be merged under the Premier Mortgage Services brand. Norwich ...

  • OFT conducts 267 licensing actions in first quarter of 2004

    28 Apr 2004

    The Office of Fair Trading has conducted 267 licensing actions in the first quarter of 2004. The OFT refused six consumer credit licences applications, revoked six existing licences and granted one consumer credit licence application in different terms between January 1 and March 31. A further 23 minded to revoke or refuse notices were issued in the period in addition to 59 warning and advisory letters. A further 172 applications were withdrawn. Financial service providers ...

  • Opus and Adventi form an alliance with MIAS

    26 Apr 2004

    The Mortgage Intermediary Alliance Scotland launches in Glasgow this Wednesday in a bid to bolster the profile and representation of intermediaries working north of the border. MIAS has been set up by Colin McCallum, a broker and a regional chairman of the Association of Mortgage Intermediaries in Scotland, with the help of former general manager for The Mortgage Operation Scotland Kevin Friend. Adventi, the awardwinning Scottish IT support company, is offering an exclusive ...

  • Over one in 10 people intend to take out or increase mortgage in next six months

    29 Apr 2004

    Just over one in 10 of the UK population are intending to take out or increase a mortgage in the coming six months, research reveals. Despite the negative publicity received in recent months by the financial services industry, consumer demand for financial services products is fairly upbeat, highlighted in the latest quarterly survey of savings, investment and borrowing intentions carried out by Martin Hamblin GfK and John Gilbert Associates during March. Th research ...

  • PIFs could bring stability to the commercial and rental markets

    26 Apr 2004

    Kevin Paterson, managing director, Park Row Independent Mortgages The UK is the only member of the G7 that does not have some sort of property-based investment trust and it looks like the chancellor has finally woken up to the benefits of this form of investment vehicle. An increasing number of small investors have sought to diversify their portfolios by investing in property, usually in the form of buy-to-let. Investor diversification has been creeping up on us over the past ...

  • Pink announces details of 2004 awards

    26 Apr 2004

    Pink Home Loans has once again teamed up with Mortgage Strategy to host the second Pink Home Loans Service Awards which are exclusively dedicated to the recognition of service excellence in the mortgage industry. These annual awards capture the views of the whole of the market and an independent company will collate the voting results from a cross-section of the intermediary sector. The industry will be given the opportunity to vote for lenders and brokers in a total ...

  • Pointing out the benefits of a one-stop shop

    26 Apr 2004

    Bankhall Point One Bankhall Point One launched in October 2001 and is a subsidiary of intermediary support services company Bankhall Investment Associates. Point One is designed to be a single port of call for all an intermediary's mortgage, non-regulated assurance and general insurance needs. Bankhall Point One has a compliance team of over 130 and over 10 years' experience providing regulatory support to IFAs as well as mortgage brokers. It is based in Altrincham, ...

  • PPA cuts cost of term assurance leads

    26 Apr 2004

    The Professional Adviser Alliance, the UK-wide alliance of intermediaries that provides independent mortgage advice to moneysupermarket.com customers, is cutting the price of its term assurance leads by 30% from £50 each to £35. The move comes after independent research confirmed that term assurance leads generated by the PAA were of good quality with a conversion rate of 24%. The research, carried out by Mintel, also examined how ready potential customers ...

  • Preferred Mortgages launches two fixed deals on adverse range

    27 Apr 2004

    Preferred Mortgages has launched two fixed rates on a range of adverse products. Customers can benefit from rates starting at 5.19% until July 1 2005 and 5.99% until July 1 2006. Other features available on the fixed rates include mortgages up to £1m, up to 90% LTV for purchases and remortgage; up to 90% LTV for self-certification; Right to Buy available up to 80% and buy-to-let available up to 85%. John Webster, business development director at Preferred, says: ...

  • Remortgages to account for half of UK mortgage market by 2008

    26 Apr 2004

    Despite the recent rises in the Bank of England rate, a report from independent market analyst Datamonitor reveals that remortgaging is catching up fast with loans for house purchase, and will account for almost half of the whole mortgage market by 2008.  Remortaging is forecast to increase by a further 27% in the next four years to just under £170bn.  The stunning growth in remortgaging has been mainly driven by homeowners looking for a better rate of interest.  Karina ...

  • Research slams trade bodies

    26 Apr 2004

    Industry trade bodies have been accused of a lack of effectiveness with research stating that a quarter of them are no more than old boys' clubs. The research from public relations consultancy Citigate Dewe Rogerson says 90% of members think associations could be more proactive, with almost a quarter of those polled identifying bringing about change as a fundamental role of trade bodies. However, the survey says financial trade associations have an excellent reputation ...

  • Safe as houses

    26 Apr 2004

    With house prices still rising strongly, more people than ever are turning their backs on traditional pension funds in favour of property. Many are already using their buy-to-let properties as part of their retirement plans. Now the government has come up with two schemes that should further encourage high net worth investors to see property as a way of saving for a pension. Residential property can now be included in self-invested personal pensions (SIPPs) for the first time. ...

  • Saffron Walden Herts & Essex launches first-time buyer deal

    30 Apr 2004

    A first-time buyer mortgage has been launched by the Saffron Walden Herts & Essex to reflect the needs of homeowners in Hertfordshire and Essex. The two-year capped discount mortgage has been launched following a survey which revealed more than nine out of 10 people do not believe first-time buyers can afford a house in the Hertfordshire and Essex region. Richard Bolton, chief executive of the society, says: "This survey, combined with the fact the average cost of home ...

  • Scottish Widows launches IFA roadshows

    27 Apr 2004

    Scottish Widows is to embark on a series of IFA roadshows during May and June 2004 designed to provide positive contributions to the development of an IFA's business. The Investing With Confidence roadshows will look at developments within the investment market and provide IFAs with the opportunity to interact with key specialists from Scottish Widows, Scottish Widows Investment Partnership and investment partners from Jupiter and New Star. Peter Jordan, marketing ...

  • Select & Protect appoints marketing assistant

    29 Apr 2004

    Select & Protect has appointed Gavin Dobson as marketing assistant. Dobson was previously at Solutions Ltd where he was undertaking a similar role. Simon Hood, chief executive of Select & Protect, says: "I am delighted that Gavin has joined us. Whilst new to the financial services sector, he has a number of years experience in business-to-business environments gained since graduating from University College London. "He has a wide knowledge of the intricacies ...

  • Shareholder fury at Abbey

    26 Apr 2004

    Abbey was faced with furious shareholders last week after it admitted at its annual general meeting that its rebranding had cost over £11m. Shareholders at the AGM in London last Thursday expressed their anger over Abbey's financial losses and said the name change was a total waste of money. One shareholder told the executives present at the meeting that they were "not worth a cup of cold water between them". Abbey, which is undergoing a major restructuring programme, ...

  • SHIP predicts an equity release boom after N4

    26 Apr 2004

    Safe Home Income Plans chairman Jon King is predicting that many more IFAs will enter the lifetime mortgage market from October when it falls under the FSA regime. Speaking at a Prudential round table discussion on equity release last Wednesday, King said IFAs will feel more confident in getting involved in what is seen a complex area once they have the comfort of regulation. Prudential says it is likely to expand the number of IFAs it distributes its equity release product ...

  • Should the Treasury give in to industry pressure and regulate home reversion schemes?

    26 Apr 2004

    Ali Crossley is head of equity release at Prudential Home reversions will not be regulated as these products are seen by the Treasury as sale and leaseback arrangements rather than mortgages. We, along with other industry players, have been lobbying the Treasury to bring these schemes under the FSA. The Treasury is reviewing the decision and a pronouncement is expected any time now. We believe that if these schemes remain unregulated it will allow unscrupulous operators ...

  • Six in 10 homeowners have insurance to protect mortgage

    28 Apr 2004

    Figures published by lenders and insurers shows that six in 10 of homebuyers have some form of insurance to provide help if they were unable to keep paying their mortgage. One of the most common types of cover is mortgage payment protection insurance where the figures show that almost one million MPPI policies were sold or provided free in 2003. In total, 36% of all new loans advanced last year were protected by MPPI. Although some borrowers who take out MPPI eventually ...

  • Snatch fast-commission service grabs brokers

    26 Apr 2004

    Optoma has launched an accelerated commission service called Snatch available to selected brokers, including MGM members. Under Snatch Optoma hands the entired proc fee it receives from lenders to brokers on exchange, rather than skimming a share for itself as most clubs do. It says it has negotiated top fees with a number of lenders such as 0.7% with The One account. Optoma managing director Matthew Bright says: "We have had a great response to Snatch and have ...

  • Solving problems after insolvency

    26 Apr 2004

    This week's article completes my look at the subject of complaints and compensation that has been running in this column over the past two weeks. In the first week, consideration was given to the Financial Ombudsman Service while last week's article focussed on the Mortgage Code Arbitration Scheme and complaints relating to pensions. This week the focus is on compensation arrangements for customers who have lost money through the insolvency of an authorised firm. Since December 1 ...

  • SWB to revamp execution deal

    26 Apr 2004

    Scottish Widows Bank is being forced to revamp the execution-only equity release mortgage product it distributes with Saga, the service provider for elderly people. The product was launched last summer but from October 31, when the FSA starts regulating lifetime mortgages, this type of delivery will be outlawed and people must receive advice. Scottish Widows Bank business development director Gordon Bowden says: "We realise the product will have to change and are in discussions ...

  • Thanks for the car but you can keep Big Ron

    26 Apr 2004

    West Brom is this week launching its Brum Brum product with the added inventive of a free car, a Rover 25. But it has decided to drop the idea of unveiling the product with the support of controversial football pundit Ron Atkinson. Anyone who follows the beautiful game will understand the following footie-speak. And for those who don't follow football - get a life! Unless you've been on Mars for the past few days you will undoubtedly know of the controversy surrounding ...

  • The Exchange appoints managing director

    28 Apr 2004

    The Exchange has appointed David Child as managing director with effect from May 1. The appointment is part of an internal reorganisation of parent company Marlborough Stirling which will provide greater clarity of responsibility for operational and financial performance of its individual business units. The internal organisation of Marlborough Stirling is to be realigned as three business units; Life andd Pensions Division, Mortgages Division and The Exchange. David ...

  • The Money Centre announces success of property investment fair

    27 Apr 2004

    The Money Centre was again on hand to provide guidance to buy-to-let investors at the Southern Property Investors' Fair at the Great Hall, Hove Town Hall. The event was a one-stop shop for those interested in residential investment. In addition to over 70 exhibitors which included a range of professional services, suppliers, brokers, and organisations there was over 20 free seminars run by respected industry professionals. The SPLA exhibition acted as the ...

  • The Mortgage Mole

    26 Apr 2004

    Running battle Hats off to Heritable Bank's head of treasury Kevin Smyth who completed this month's London Marathon - dressed as Elvis Presley! Kevin ran as Elvis to boost sponsorship for the sight disorder charity Nystagmus Network, and achieved a finish time of three hours, 49 minutes. "Running as Elvis earned me lots of attention, including an interview on BBC 1," Kevin told Mole. Meanwhile, Mole can reveal that Hamptons' supremo Kevin Duffy has laid down ...

  • Timely information for potential ARs

    26 Apr 2004

    If you're planning to go down the AR route, choice of network is going to be crucial to your success in the post-regulatory environment. This important factor was one of the reasons why we launched the Network Strategy feature in your favourite weekly publication. So popular has this proven that Mortgage Strategy is now proud to announce the launch of Network Strategy - the magazine. This 56page special bumper supplement to Mortgage Strategy will be published on May 4 and distributed ...

  • TMB to launch online mortgage processing service

    29 Apr 2004

    The Mortgage Business is launching an online mortgage processing service for intermediaries - TMB Interactive.  TMB says the system will speed up the whole mortgage process.  It will help intermediaries and packagers process cases more quickly and, in most cases, will give an instant online decision with an immediate agreement in principle.   The fast-track system is being rolled out to all intermediaries and packagers in May.  It will give intermediaries the facility ...

  • Tories to analyse UK debt crisis

    26 Apr 2004

    The Conservative party has commissioned a study into the personal debt crisis after reports that household debt will top £1trillion this autumn. Shadow chancellor Oliver Letwin has asked economist Lord Griffiths of Forestfach to chair the study and seek ways to help families deal with debt and re-adopt the savings culture. The initiative comes as Westminster last week hosted a one-day summit where representatives of the credit industry, lenders and debt advisers ...

  • West Brom offers car with Brum Brum mortgage

    28 Apr 2004

    The West Bromwich and MG Rover launched their unique offer yesterday - a new Rover 25 when borrowers take out a Brum Brum mortgage with the society. The offer is open to first-time buyers and borrowers who remortgage to the West Bromwich. On top of a new car, the Brum Brum Mortgage also comes with free loan protection insurance for six months, no higher lending charge up to 90% LTV and refund of valuation up to.£350. The Brum Brum mortgage is only available ...

  • When splitting up is for the best

    26 Apr 2004

    Despite the decision to freeze interest rates at 4%, many lenders have pulled their rates or repriced them upwards. Lenders seem increasingly nervous about offering attractive long-term fixed rates - understandably, given all the speculation about the size of possible base rate increases. This uncertainty leaves the adviser in a quandary over product recommendation. What do you say when your customer asks for an opinion on future interest rates? When it comes to product recommendation ...

  • Winners at Mortgage Strategy Awards 2004

    30 Apr 2004

    Sally Laker, managing director of Mortgage Intelligence, picked up the prestigious Mortgage Strategist of the Year award at last night's Mortgage Strategy Awards 2004 - the mortgage industry's equivalent of the Oscars. Laker is the first female to win the accolade and faced stiff competition from the likes of John Malone at Premier Mortgage Services, Richard Coulson at Zurich Mortgage Network and Kevin Paterson of Park Row Independent Mortgages. Laker says: "I'm ...

  • Yorkshire launches £50,000 prize draw

    26 Apr 2004

    The Yorkshire has launched a special prize draw for all new applicants for one of its mortgages to win £50,000. Anybody who applies for a new Yorkshire mortgage before August 31 2004 will not only be able to enter the draw, they are guaranteed to get a great value deal as well. Existing Yorkshire borrowers, who are eligible to enter the prize draw, which could see their outstanding debt shrink overnight. The society has recently been shouting loudly about its great ...

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