Mortgage Strategy
26 August 2002

  • Access to electoral roll to face review

    26 Aug 2002

    Access to the electoral roll for credit checking purposes is under threat again - just weeks before the new roll is issued. Credit checks are a major underwriting tool, but a court ruling took the electoral roll out of commercial circulation at the end of last year. The ban was overturned this summer when Parliament ruled credit reference agencies should be allowed to buy the full register. Voters can opt out of an edited register that is on sale to any commercial ...

  • AIFA and NAMBA form alliance

    27 Aug 2002

    The Association of Independent Financial Advisers and the National Association of Mortgage Brokers & Advisers have agreed to form a strategic alliance. The objective is to build an effective trade body, which will represent mortgage intermediaries.  NAMBA asked AIFA to become involved because it wishes to draw on AIFA's direct experience of setting up a trade association which represents intermediaries.  As regulation of the mortgage sector draws ever nearer, ...

  • APR labelled "useless"

    26 Aug 2002

    Annual percentage rates - the FSA's preferred means of mortgage price comparison - have been slammed as a "useless" measure of mortgage costs. If CP146 proposals are agreed, APR will be a central element of financial promotions produced by intermediaries and lenders. But critics say APR cripples product transparency. Frank Chacko, associate at Hewitt Bacon & Woodrow, says: "Borrowers are given the relative costs of a 25-year mortgage as an APR, when in fact they ...

  • ARLA finalise new tenancy agreement

    28 Aug 2002

    The Association of Residential Letting Agents has finalised a new model tenancy agreement. The model Assured Shorthold Tenancy Agreement which has been submitted with standard pre-printed clauses, is believed to fall within the requirements of the unfair terms regulations. These regulations treat landlords and their letting agents as suppliers and their tenants as consumers. Although there are a number of terms that can be tested against the regulations for fairness, ...

  • Asylum blunder forces ICMG to change tactics

    26 Aug 2002

    ICMG has been forced to make amendments to its broker literature after its latest bulletin was sent out offering mortgages to adverse borrowers including asylum seekers. In the bulletin, sent out earlier this month, the Southend-based company offered igroup funded products suitable for borrowers including "refugees, asylum seekers, medical professionals on short contracts, Commonwealth applicants, Eastern-bloc applicants, [and] foreign workers." The document advertised rates starting ...

  • At home with Mortgage Strategy

    26 Aug 2002

    From Julian Wells Congratulations on your in-depth and informed coverage of the recent Treasury and FSA documents. Over the last two weeks you have demonstrated the true benefit to the market of having a specialist weekly mortgage title. At important times such as these for our industry the timely collation and distribution of the thoughts and reactions of the leading organisations and their key spokespeople is of great benefit to your readership. The breaking news ...

  • Bank of Ireland launches a new seven-year fixed rate

    26 Aug 2002

    Bank of Ireland's new seven-year fixed rate is at 4.99% fixed to October 1 2009. There is a £299 arrangement fee, and no overhang. Redemption charges are 7% in Years one and two, 6% in years three to seven. Product Code AJ1.

  • Brentchase branches out

    26 Aug 2002

    An IFA is setting up a one-stop shop to supply mortgages for people wanting to buy property in France, and put them in touch with English-speaking estate agents and solicitors. Brentchase International, part of Brentwood-based IFA Brentchase Financial Services, will arrange finance for properties in Normandy and Brittany. The company, which will launch later this year, will also help French buyers who wish to buy in Britain. Mortgages will be arranged in euro or sterling depending ...

  • Brits can save on car loans, says Virgin One

    27 Aug 2002

    Britons could be wasting nearly £4 billion a year by buying new cars via traditional loans, claims Virgin One. With new ཰' registrations set to be driven out of showrooms next month, the Virgin One account is urging would-be owners to check they are paying as little as possible in their bid to own a dream machine. By using current account mortgages to borrow cash at mortgage-style interest rates motorists could slash nearly £1,600 off the cost of ...

  • Brokers face cost hike to keep up

    26 Aug 2002

    Mortgage brokers may need thousands of pounds in capital backing to stay in business after regulation, under proposals the FSA will float in December. The setting of capital adequacy standards falls under the FSA's high level requirements for authorisation of mortgage intermediaries. The rules ensure that a firm has the financial muscle to control the "risk associated with its business profile". An FSA spokeswoman told Mortgage Strategy: "There is some sort of ...

  • Brokers hang tough

    26 Aug 2002

    Intermediaries meeting the December 31 exam deadline will have built up so much determination they will not let mortgage regulation get the better of them, writes Harriet Williams. Although December's qualification deadline will force some intermediaries to stop trading, lenders expect those that pass to be ready for the FSA regime in 2004. Jason Clarke, spokesman for Halifax, says: "Overall numbers of brokers are unlikely to change. Whilst some brokers may not be ...

  • Cashback incentive added to no-ties five-year fixed rate loan

    27 Aug 2002

    A £200 cashback is being offered to borrowers applying for Leeds & Holbeck's no-ties five-year fixed rate mortgage by the end of September. Applicants will receive the payment on completion of the loan. The mortgage is available at 5.49% for loans up to 90% of property value or 5.89% up to 95%. Key product details are: * No early repayment charges at any time * No completion fee * No mortgage indemnity fee up to 95% loan-to-value * Unlimited ...

  • Cirencester Friendly Society to relocate

    27 Aug 2002

    The recent tremendous growth of Cirencester Friendly Society means that they are having to uproot and move to a larger site in the Cotswold town of Cirencester - their first move in over 90 years. This is due to the success of Cirencester's income protection product, Income Assured, launched in October 1999. API Sales in 2000 were £662,800 and in 2001 they more than doubled to £1,322,000. Cirencester Friendly Society Limited is a single product provider ...

  • CML promotes training initiative for lenders

    26 Aug 2002

    The Council of Mortgage Lenders is developing a training package to help lenders get staff and their intermediaries up to speed with mortgage regulation, Mortgage Strategy can reveal. Although the initial package will be aimed at lenders, the CML is considering a similar programme for intermediaries. The package will be modular in form to allow different companies select the training most relevant to them. The CML has commissioned business training experts Absolutely ...

  • Common sense approach will boost confidence

    26 Aug 2002

    From Scott Mowbray The FSA has followed the Treasury's lead and adopted a largely common-sense approach. Regulation of advice should help boost consumer confidence. No longer will anyone be able to say that mortgage brokers are ex-IFAs who couldn't pass exams! The cost to a client of buying an inappropriate mortgage can be high and good quality advice is essential for the mortgage market to operate with the interest of the customer in mind. But there is one area where ...

  • Company car tax confusion, says Halifax

    29 Aug 2002

    According to a survey by the NOP on behalf of the Halifax, just over half of all adults either do not realise that company car tax is now based on emissions rather than the number of miles clocked up or they are surprised at the rules. The survey also includes a warning for the taxman with a suggestion that existing company car drivers might give up their perk if taxes continue to rise. The Inland Revenue has said in the past that it expects the emissions based tax system ...

  • Confisa to provide IFAs support during change

    26 Aug 2002

    National IFA brand Consifa is targeting IFAs concerned about their future under the new regulatory regime. Consifa intends to provide a framework for IFAs to continue to service clients' needs while removing compliance, regulatory and administration burdens. It will establish regional centres throughout the UK, from where successful IFA firms will be targeted to provide additional revenue, resources and service lines. Charcol co-founder Colin Studd, currently an executive ...

  • Countrywide in £250m protection deal with Friends Provident

    26 Aug 2002

    Countrywide Assured has snapped up the Friends Provident estate agency network in a £250m deal to sell the life company's mortgage-related protection products for 15 years. Countrywide, Britain's biggest estate agency, now has 842 outlets in the UK but will cease to manufacture mortgage protection products. Countrywide chairman Christopher Sporborg says: "With the new polarisation arrangements it is better to be a distributor than a manufacturer." Countrywide ...

  • Court case caused unnecessary work

    26 Aug 2002

    From Bob Young I write with reference to the court case brought by Chris Herbert against Capital Home Loans and Chancery Asset Management Group that was heard at Bristol County Court on August 19 2002 (Mortgage Strategy August 5 2002). The judge dismissed the case and found that there was no case to answer against Capital Home Loans. His case was naive and completely baseless. The whole thing has caused everyone involved unnecessary work - for all parties involved. The ...

  • Customers could face 'info overload'

    26 Aug 2002

    From Jonathan Cornell CP146 represents the FSA's current stance towards mortgage regulation. The mortgage industry seems to be the last major industry within financial services that is not officially regulated. Until now it has slipped through the grasp of the FSA and the mortgage industry has sought to regulate itself through the Mortgage Code. While I welcome any legislation that helps ensure that consumers are protected, it is hard to see how the 353 pages of this document ...

  • DTI ends Rule of 78

    27 Aug 2002

    Rules that often penalise consumers who settle loans early are to be scrapped through new proposals announced today by Consumer Minister Melanie Johnson. Johnson will outline plans to change the 'Rule of 78' (Consumer Credit Act 1974) - a formula which lenders use to calculate how much consumers have to pay when they settle a loan early. Around 70% of all personal loans are settled early, with the trend increasing. Consumer credit regulations permit lenders to ...

  • Energy Bill scrapped

    26 Aug 2002

    Buy-to-let landlords with properties holding five or more tenants have been freed from the prospect of paying license fees after the Home Energy Conservation Bill was scrapped. But the MP behind the proposals says legislation may still be in the pipeline. Despite the Bill being aimed primarily at reducing energy usage in houses of multiple occupancy (HMOs), plans for local authorities to register landlords and administer annual license fees were attached. Labour ...

  • E-rules could harm UK

    26 Aug 2002

    Intermediaries and lenders that offer mortgage products online have been left on tenterhooks as they wait to see what the full impact of the Electronic Commerce Regulations 2002 will be. New rules came into force last week and incorporate the Electronic Commerce Directive 2000 into UK law, covering the provision of services offered at a distance by electronic means. Information Society Services will be regulated on a 'country of origin' principle. A top-level ...

  • Exam to weed out less dedicated

    26 Aug 2002

    Mortgage intermediaries believe that proposed exams for advisers who want to offer equity release products will make the mortgage market more specialised and weed out less dedicated players. Mike Fitzgerald, sales director at Brentchase Financial Services, says: "Many brokers are very worried at the prospect of doing more exams, and say they will no longer do equity release products in the future if these exams are enforced. Many of them haven't even got CeMAP yet, so they ...

  • Exclusive Connections launch three self-certs

    29 Aug 2002

    Exclusive Connections, the mortgage packaging network, has launched three self-certs in association with The Mortgage Business. The first mortgage has a payable rate of 4.89% BBR + 0.89% until September 1 2003 reverting to BBR + 1.49% for remaining term maximum 85% LTV and is available for remortgages only and includes £500 cashback. The second mortgage has a payable rate of 5% BBR + 1% for term and is available for purchase and remortgage up to 85% LTV. Flexi schemes ...

  • Figure it out

    26 Aug 2002

    From Clare Hyland I have today received my August copy of Mortgage Strategy and as I have just taken my MAQ exam I always turn first to your Mortgage Master or Mortgage Moron questions, just to ensure that I do know what I am doing! This issue's questions and answers do not appear to be correct, in particular question 2 and I should be interested to know which lender would pay a cashback of £33,000 on a loan of £60,000. A 5% cash back would amount to £3,000, ...

  • Finances: Nine out of ten people influenced by parents

    28 Aug 2002

    Birmingham Midshire's 'Saving Britain 2002' campaign says that almost nine out of ten Britons (88%) claim their financial habits and decisions as adults are influenced by what they learnt from their parents as children. At a time when financial exclusion, personal finance education and money management skills are hot topics on the Government's agenda, the findings are likely to increase calls for greater personal finance education in schools and for more educational ...

  • Financial firms miss over 50 niche

    29 Aug 2002

    Financial services providers are not catering to the growing number of consumers over the age of 50 in the UK, research from Datamonitor reveals. Marketing Financial Services to the Over-50s finds that while the majority of over 50s are unlikely to be classified as mass affluent, they are typically wealthier than their younger counterparts and as such are an attractive target. They found that even though the UK population is getting older with fewer births and longer ...

  • First time buyer deposit to hit £32,000 by 2011, says Egg

    26 Aug 2002

    A new report by digital bank Egg finds that deposits will equal 85% of first time buyer's income by 2011. Saving for a first home will reach crisis level in the in South East and London, with average deposits hitting £74,000 in a decade. Britons saving for their first home likely to reach age 36 before they can afford to buy. Andy Deller, head of banking and insurance at Egg, says: "Today's first time buyers may be struggling to buy their new home, but the ...

  • Fitness programme remains on course

    26 Aug 2002

    From Luke March Following Ruth Kelly's pivotal announcement in December 2001 on the future of mortgage regulation, we have been asked by the Treasury and the industry to ensure that the Mortgage Code and our Rules remain fully effective in protecting the consumer during the transition to statutory regulation. With that in mind, together with strong industry industry support for us to maintain the momentum to raise standards, we are committed to completing the introduction ...

  • Flexible friends?

    26 Aug 2002

    From Simon Biddle We welcome the clarification and direction that the FSA have given in both documents. Regarding the feedback on CP98, we welcome the change that firms or persons that do not give advice (that is introduce customers to authorised firms) will now be outside regulation. This is particularly important for intermediaries where mortgage business is peripheral. Of cardinal importance to Preferred Mortgages is the treatment of packagers, mortgage clubs and correspondent ...

  • FSA fine R&SA £1.35m

    29 Aug 2002

    The Financial Services Authority (FSA) has fined certain life insurance companies in the Royal & Sun Alliance group (R&SA) £1.35 million. This comes as a result of systemic weaknesses in their internal controls arising across significant areas of the pensions review during the period up to August 2000. The FSA's investigation and remedial action undertaken by R&SA has identified up to 13,500 consumers whose cases had, in error, not previously been identified ...

  • Getting sick of exam questions...

    26 Aug 2002

    Lenders and intermediaries, with encouragement from the government, are keen to ensure that borrowers fully understand that sickness can have adverse financial consequences in respect of mortgage payments. Indeed, section 3.2 of the Mortgage Code requires subscribers to ensure that this point, amongst others, is made to applicants when providing advice or information on mortgage products. Not surprisingly, the subject is included in the syllabuses of the mortgage advice qualifications ...

  • Has buy-to-let really left the building? The buy-to-let boom

    26 Aug 2002

    The buy-to-let market has become the topic of the moment. The CML estimates that £14.7 billion has been invested in buy-to-let in the past six years and outstanding balances were estimated to have reached £600 billion by the end of 2001. Headlines everywhere shout of the 'Buy-to-let boom coming to an end', 'Buy-to-let reaching saturation point' and talks of the bottom dropping out of the buy-to-let market. Just last week the Sunday Times' influential ...

  • HM Land Registry publish new consultation

    28 Aug 2002

    This week the Land Registry published a major consultation paper on new land registration rules. The new rules will support the Land Registration Act 2002, received Royal Assent on 26 February this year. Both the Act and the new rules are expected to come into force on October 13 2003. The land registration system underpins the property market in England and Wales and guarantees title to over £2000 billion worth of property. More than 80% of property titles ...

  • House price inflation falls, says Hometrack

    28 Aug 2002

    Hometrack's monthly national survey for August 2002 has revealed that house price inflation has fallen to 0.7%, the lowest rate since January this year. But this still represents 8 times the current monthly retail price inflation rate. The survey has also revealed that house price rises are averaging 0.7%. Following a 2.6% rise in May, the fastest monthly rise so far this year, price increases have been slowing down overthe last three months. One key reason ...

  • House sales slow say NAEA

    30 Aug 2002

    The latest monthly housing market survey by the National Association of Estate Agents (NAEA) shows a reduction in activity levels. This had led some to believe that a slowdown in the market has begun while others blame the traditional summer break. The NAEA's housing market survey for July shows that the number of new applicant enquiries, and the number of viewings, have both fallen and that the total number of new sales is 18% lower than in June. NAEA chief ...

  • How come solicitors get out of being regulated?

    26 Aug 2002

    From Ian Griffiths Helen McCormick's' article on FSA regulation (Mortgage Strategy August 19, News, page 5) spelled out the categories of individuals who would be excluded from FSA regulation. I cannot think of any good reason why a solicitor or accountant who sees fit to arrange a mortgage for a client should escape regulation. In the past, I lost a client to a solicitor who was told, once the offer letter had been produced, that he could get a better deal. It materialised ...

  • Increased pressure on property market leads to fear for homeowners

    26 Aug 2002

    A new survey shows that more than one in three people have serious concerns about their ability to meet their mortgage repayments over the next four months. These fears are most prevalent in the South East, the area that has led the house price charge in recent months. With speculation over potential interest rate movement, the findings reveal that mortgage repayments continue to be the biggest worry for people in the UK. In the third of a series of quarterly reports, ...

  • Intermediary response

    26 Aug 2002

    Keith Robinson, managing director, National Guarantee says that the nature of Mr Thompson's business will be an important factor in choosing the best lender Traditional lenders still tend to view clients who have previously had a CCJ registered against them with suspicion, normally limiting the amount of the CCJ to £250 and insisting that it is satisfied. Even at a relatively low loan to value of 70%, many high street lenders are still likely to shy away from ...

  • Lender response

    26 Aug 2002

    Bob Perks, business development manager, Britannic Money recommends the couple consider a flexible mortgage so they can make overpayments at peak times Surprisingly, 25% of us would be viewed as 'non-standard' by a traditional high street lender and could be refused a loan for one reason or another. Many use a 'standard' automated credit-scoring system to underwrite mortgages, however Mr Thompson's credit record could pose some problems as he has had ...

  • Lenders are not buying buy-to-let downturn

    26 Aug 2002

    Mortgage Express has doubled the size of its maximum buy-to-let loans to £2m - a clear sign that lenders believe fears of a buy-to-let downturn are unfounded. The increase acknowledges the rising cost of property, particularly in the south east. Mortgage Express is confident about the future of buy-to-let after its own research found nearly two-thirds of landlords are planning to increase their portfolios over the next two years. Roger Hillier, product development ...

  • Mainstream offers web calculators

    30 Aug 2002

    Melbourne-based Mainstream Computing's FinanZtools calculators and simulators are now available as server side web applications (servlets) in addition to client side applets and offline applications. These products, tailored and developed for UK lenders, render pure HTML pages and are accessible instantly by all browsers without requiring any downloads, plug-ins or any other special software. Dr Mark Blakey, Mainstream Computing's, managing director, says: "Our ...

  • MarketPlace launch 2 year discount

    29 Aug 2002

    The MarketPlace at Bradford & Bingley, has launched a 2 year stepped discount mortgage funded by Bristol & West. The product has an initial pay rate of 2.95%. Key features include: o 3.00% discount until 31/10/03 o Followed by 0.75% discount until 31/10/04 o £300 cashback o Maximum Loan to Value of 95% o Free valuation o No extended tie-ins beyond discount period David Bitner, mortgage technical manager for the ...

  • MCCB must act

    26 Aug 2002

    An open letter to the MCCB I joined an operation on a franchise basis in 2001 but in June of this year the business was put into administration. As a consequence of this order, I am owed, along with a large number of others, monies for completed procuration fees, insurance fees and a proportionate loss of franchise fees. Prior to the order being granted, the company sent refund valuation cheques to clients that were later returned by the banks on a refer-to-drawer basis. I ...

  • MIG-charging lenders come under pressure

    26 Aug 2002

    Lenders have been criticised for profiting from borrowers by continuing to charge high mortgage indemnity guarantee insurance fees. MIG, High Lending Fees or Mortgage Indemnity Payments provide lenders with an insurance if the customer defaults on the loan, but unlike other insurance policies the customer paying does not receive any additional benefit. David Bitner, technical spokesman for The Marketplace at Bradford & Bingley, says: "The cost of MIG insurance at ...

  • Misys launches new desktop software

    30 Aug 2002

    Misys has launched its IFA desktop software, mi-solution to a pilot group of 95 network members and 25 administrators. It is intended that mi-solution will provide business and compliance support throughout the IFA's advice process. The key features of mi-solution are: o Smart compliance - mi-solution delivers improved advice process management and record keeping, leading to significant improvements in the production of suitability reports o Smart ...

  • Moneyfacts launch Mortgage SearchScreen 4

    29 Aug 2002

    Moneyfacts Group has announced the imminent launch of a fully interactive message board on Mortgage SearchScreen 4 called the Forum. Through the message board it will be possible to air and share comments, questions and ideas on all financial topics. Users will be able to read individual messages and post their own messages. Any questions for the Moneyfacts Helpdesk team can also be posted. Ray Chick, customer services manager at Moneyfacts Group plc, says: ...

  • Moneynet offers tax free cushion

    30 Aug 2002

    Personal finance web site moneynet.co.uk has launched a scheme which offers all UK workers a tax free financial cushion of up to £60,000 if they lose their job as a result of redundancy, as well as an exclusive 'back-to-work' assistance package. The policy provides cover for all lifestyle expenses such as socialising, and clothing together with the more mundane items such as cost of travel to interviews, rent or a mortgage payment. In addition, all claimants ...

  • Monitoring the situation

    26 Aug 2002

    Critical illness cover has swept all forms of mortgage protection before it in recent years. Barely 15 years old, this relatively new kid on the health-protection block has soared ahead of old timers such as income protection. Simple to understand, popular in practice, its success has been well merited. And, with intermediaries' income squeezed on other fronts, it is playing an increasingly important role in their portfolio of products. However, many in the industry ...

  • Mortgage Master receives Mortgage Express award for excellence

    27 Aug 2002

    Birmingham-based packager Mortgage Master's underwriting department has been presented with a case of champagne in recognition of the quality and consistency of packaged mortgage applications submitted to Mortgage Express this year. This has allowed Mortgage Express to issue mortgage offers upon receipt of packaged applications immediately, without any further processing required by Mortgage Express' own staff. Nikki Smith, mortgage operations manager at Mortgage ...

  • MX in Mortgage Alliance deal

    28 Aug 2002

    The Mortgage Alliance - the Scottish Mutual and Scottish Provident mortgage club - has launched a self certification discount product from Mortgage Express, one of the three new lenders to be added to its panel in the last month. The deal applies to minimum loans of £50,000 and offers 1.05% discount for two years with no overhang and a pay rate of 4.95%. A £325 arrangement fee may be added on completion and an early redemption charge of six month's interest at ...

  • My Mortgage week - Jeff sutherland-kay

    26 Aug 2002

    Monday: One of the wonderful things about having left Alliance & Leicester after nearly 24 years is that I don't have to get up early. Why then, am I up at 6.30? Still, I suppose that's later than when I was on the treadmill so that's some consolation. Manage to shave without slicing bits off my face so clearly it's going to be a good week. Head for the gym to work off last week's lack of exercise due to helping to play host to two German teenage girl exchange ...

  • NAB in $2.3bn deal with WAMU

    30 Aug 2002

    National Australia Bank has sold its US mortgage operation, HomeSide, to Washington Mutual Inc for AU$2.3 billion. The latest sale includes the unit's mortgage servicing rights and follows the sale in 2001 of HomeSide's mortgage origination business, also to Washington Mutual. NAB chief executive officer Frank Cicutto said: "This represents a complete exit from our mortgage banking business in the US." The sale expected to be completed in October 2002 will ...

  • NatWest shows confidence in brokers

    26 Aug 2002

    NatWest's decision to roll out its current account mortgage to intermediaries has been welcomed as a "vote of confidence" in the broker sector. NatWest One combines the home loan with a bank account, overdraft and savings in one account. It was launched solely at branch level earlier this year, and the first phase of the roll-out will make it available to Prudential Mortgage Services, Norwich Union IFA Club, Your Move, Connells, AXA, Farrell Heyworth and Burchell Edwards. The ...

  • New adverse credit fixed products from Genesis

    26 Aug 2002

    Correspondent lender Genesis Home Loans has released four new, low cost, fixed rate products as part of its Planets & Moons adverse credit range. The rates - which are all fixed until 1 October 2003 - are dependent on the LTV of the mortgage required and start at 4.99% up to 65% LTV. At 75% LTV the rate is 5.49% with 5.99% being offered up to 85% LTV and finally 6.99% the rate available up to the maximum 95% LTV. All these rate options can be used across the range for ...

  • New banking data highlights mortgage trends

    30 Aug 2002

    Following last week's MBBG lending figures released by the BBA, further information now available helps explain July's rise in net mortgage lending of £4.7bn to £405.9bn and the net increase of £0.9bn in other consumer lending to £85.2bn. o July's gross mortgage lending reached a record £14.5bn, following the lower Jubilee-affected total in June. However, repayments were also at a record level, so that net lending was below May's record ...

  • Norwich Union endowment shortfall scandal

    28 Aug 2002

    Homebuyers who at first believed that they were protected from the endowment failure scandal are now facing a shortfall after all. Many people's homes and retirement prospects are in danger as millions of policies have been sold on the basis that they would raise enough cash to pay off the borrower's mortgage. Two years ago Norwich Union gave its customers reassurance that it would make up the shortfalls but now due to such a bad investment record the money allocated ...

  • Norwich Union launch 4.49% discount

    29 Aug 2002

    Norwich Union, in conjunction with Norwich and Peterborough Building Society, has launched a new mortgage offering an exclusive 4.49% discounted rate for three years. The deal also offers a number of other benefits such as: o 1.2 per cent discount for three years - initial pay rate for 4.49% o No arrangement fee or booking fee o Free valuation o £250 cashback for house purchase available up to 95% loan to value o Free ...

  • Oh I do like to be beside the seaside

    28 Aug 2002

    It is well known that Brits love to be beside the seaside, and it also appears to pay off financially according to the latest research from Halifax. Out of 100 seaside towns surveyed in England and Wales, 71 have enjoyed average yearly increases in property prices that top 10% over the last seven years. Property prices in almost 50 per cent of the seaside towns surveyed have doubled over the same period whilst house prices in Padstow, the home of leading chef Rick Stein, ...

  • Principality restructure executive

    29 Aug 2002

    The executive team at the Principality Building Society has been restructured by its chief executive, Peter Griffiths. Bill Mayne has been appointed director of sales & marketing, Micheal McGuire, director, business development and brought in Chris McVeigh who is managing director of Peter Alan ltd. Commenting on his new look team, Peter Griffiths says: "Tomorrow's customers will require a range of products more closely tailored to their lifestyle circumstances and ...

  • Processing forum will put the back office in the spotlight

    26 Aug 2002

    As lenders enjoy record business volumes, back office operations are in the spotlight like never before. Improving broker to lender technology channels and ensuring operations and marketing work together are among the subjects of a two-day Mortgage Strategy conference taking place in London on October 28-29. The Best Practice in Mortgage Processing Conference will help delegates strike the right balance between cost control, efficiency and customer service. Panel of speakers includes ...

  • Property assets cushion negative wealth effect

    27 Aug 2002

    Property assets, mainly housing, have provided a significant offset to the loss of wealth due to the decline in the equity market in the last few years, according to research by Standard Life Investments. In the latest edition of 'Global Insight', its monthly investment review, Standard Life Investments examines the impact of falling equity markets upon household wealth and the potential effect on consumer spending. Andrew Milligan, head of global strategy at Standard ...

  • Regulators must keep an open mind

    26 Aug 2002

    It's been barely two weeks since the publication of CP146 The FSA's approach to regulating mortgage sales and already the knives are out for Howard Davies and his mob. Nothing intoxicates some people like a sip of authority and it seems that the FSA has had plenty of it. Chief regulator Davies is reported to have made a recent comment that, according to the Independent "severely undermines the FSA's impartiality" in considering responses to consultation papers. Sounding ...

  • Retail sales to cool still further after the bank holiday, says cebr

    27 Aug 2002

    Yesterday's figures for the volume of retail sales in July showed an annual growth rate of 4.5%, the lowest since January 2001, the cebr says. This seems to be further evidence that the consumer boom, which has been largely sustaining economic growth, may be finally starting to cool off, but at least this weekend looks good for retailers, as people look to make the most of the last UK public holiday before Christmas. The cebr predicted back in March that growth in ...

  • Rising prices hinder first time buyers

    29 Aug 2002

    Rising house prices are making it harder than ever for first time buyers to get a foot onto the property ladder. And lenders are not doing enough to help according to Andy Frankish, director or Mortgage Talk Direct, the national direct department of Mortgage Talk. He says: "Many prospective buyers, especially in the London and South East hotspots, are finding it impossible to save enough deposit to get them into their first home. This means that they are continuing to ...

  • Savills Private Finance to launch 3 year discount

    30 Aug 2002

    Savills Private Finance will launch a discounted mortgage on September 2 2002. The three-year discount will be offered at an initial pay rate of 3.89%, a discount of 1.2% on the lender's standard variable rate (SVR), which is currently at a low level of 5.09%. Flexible features include the option to make overpayments of up to 10% of the balance each year without any penalties and the ability to switch into any fixed rates available from the lender at any time, subject ...

  • Scottish economy continues to underperform, says cebr

    26 Aug 2002

    Official data now shows that the Scottish economy is in recession, the cebr has warned. There are some explanatory factors. First, the consumer boom which has boosted the UK economy has been much weaker in Scotland than the rest of the UK. Second, agriculture has been hit by last years foot and mouth outbreak. Third, the terrorist attacks of September 11 have dissuaded tourists. Fourth, the global technologies slowdown has impacted on 'Silicon Glen'. Weak economic ...

  • Skipton launch new two year fixed rate

    28 Aug 2002

    The Skipton Building Society has launched a new 2-year fixed rate mortgage, offering borrowers an interest rate fixed at 3.99% until November 30 2004. Key features of the mortgage are: o Concessionary mortgage discount scheme 0.30% discount off variable rate (currently 5.70%) in years 3 and 4 and 0.50% discount off variable rate (currently 5.70%) from year 5 onwards o Up to 95% LTV o Free MIG up to 90% LTV% o Free legal fees for remortgages ...

  • Spreading confusion in the name of clarity

    26 Aug 2002

    An open letter to the Life Insurance Association from Ray Curwell I am in receipt of your email about mortgage regulation and CP146, thank you. Up until now I have never written an open letter to either the LIA or anyone else. But I feel that the time has come. This industry is a bit like the hotel and catering industry I used to work in 10 years ago. All it had to do was to provide customers with what they wanted at a fair price, not to poison them in their restaurants, nor burn ...

  • Stop moaning about the new exams

    26 Aug 2002

    From Kevin Rees I write in response to the "long in the tooth" mortgage advisor (Letters, Mortgage Strategy August 19). I'm afraid I have no sympathy either for him, or for any of the elder statesmen who are constantly complaining about sitting the CeMap exams. He may well have been in the industry for 26 years and I'm sure that he has many satisfied clients. However, I'm afraid he has to sit the exams, just like the rest of us. I cannot understand why he ...

  • The Mortgage Alliance launches exclusive product from Mortgage Express

    27 Aug 2002

    The Mortgage Alliance - the Scottish Mutual and Scottish Provident mortgage club - has launched an exclusive self certification discount product from Mortgage Express, one of three new lenders to be added to its panel in the last month. The deal, which is exclusive to The Mortgage Alliance, applies to minimum loans of £50,000 and offers 1.05% discount for two years with no overhang and a pay rate of 4.95%. A £325 arrangement fee may be added on completion and ...

  • The mortgage business gets street-wise

    26 Aug 2002

    Q: What is g2m? A: g2m offers a new concept in mortgage advice. Shops are located on the high street and provide customers with independent guidance through the range of mortgages available, helping them to find the best deal for them. Franchisees guide the customer through all aspects of the house buying process, in addition to informing on other related financial products such as life cover, income and mortgage protection and household insurance. The emphasis is on ...

  • The Mortgage Mole

    26 Aug 2002

    JAW, JAW NOT WAR, WAR Further to last week's Mole story in which he voiced his fear of John Malone, Mole was proud to have seen off the man from the Pru with a stunning blow last week. The Glaswegian/Cockney Celtic fan retreated - minus a tooth - following a brief encounter over lunch with Mole. Mole a thug?! How dare you suggest such a thing. It was the prawn sandwich what dunnit! No really - it was. Poor fellow's still suffering from that tooth-loosening difference of opinion ...

  • This weeks problem case

    26 Aug 2002

    Mr Thomson, 35, has been a self-employed hotelier for eight years. He's had credit problems, (two now-satisfied CCJs and mortgage arrears) but that was over six months ago. His home is worth £150,000 and his outstanding mortgage is £65,000. He is about to marry and wants a larger, £250,000 property. The deposit is £75,000 (he is retaining £10,000 as working capital) and his income is about £35,000. His fiancé earns £30,000 ...

  • Underpinning growth

    26 Aug 2002

    The buy-to-let market is securely underpinned by an expanding private rented sector, writes Harriet Williams. Research from the Office of the Deputy Prime Minister shows there are 12% more households in the private rented sector in 2002 compared to ten years ago. Now, two million of England's 20.6m households rent privately. There are 14.5m households in owner occupation, while 4.1m households rent in the social sector. The survey also shows four out of ten ...

  • Virtual PR a reality for financial firms

    29 Aug 2002

    Virtual PR is now a reality for the financial services industry, thanks to a new system launched this week. Called 'Media Centre' it enables financial companies to provide a wide range of information to journalists, via an online press office. This comes as a Nielson study into the usefulness to journalists of company websites revealed that they only achieved a 60% success rate in finding the specific information they were seeking. As well as giving journalists ...

  • Yorkshire BS launch 10 year fixed rate

    30 Aug 2002

    The Yorkshire Building Society is launching the first fully flexible 10-year fixed rate mortgage with the cheapest ever 10-year rate on August 30 2002. The fixed rate is 5.44% and is fully flexible allowing unlimited overpayments without any penalty charges. Underpayments and paymentholidays are also permitted without charge and, as with all Yorkshire'smortgages, interest will be calculated on a daily basis ensuring borrowers get the benefit of every payment from the day it ...

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