Mortgage Strategy
27 January 2003

  • 306% rise in house prices over last 20 years

    27 Jan 2003

    Research from the Halifax, the UK's largest mortgage lender, shows that house prices in the UK have increased by 306% over the last 20 years, the period covered by the Halifax House Price Index. The biggest increases in prices have been recorded in Greater London where prices have risen by 456%, whilst the smallest increases have been seen in Scotland (158%). The North/South divide has widened significantly over the past 20 years too. Prices in London are now 76% ...

  • Advantage Mortgages posts record figures for sub-prime business

    27 Jan 2003

    Advantage Mortgage Services has released record growth figures for its last financial year. The North-West-based mortgage packager and branded lender grew the business by 25% last year, with a proportionate increase in profits. The company is currently writing over £18m of sub-prime business per month and is predicting a doubling in business next year. Advantage is attributing the record returns to focussing on quality packaging and services for their customers. ...

  • ARLA dismisses buy-to-let fears

    31 Jan 2003

    The Association of Residential Letting Agents has dismissed fears the buy-to-let market is in danger of overheating. Speaking at ARLA's annual conference in London, chairman John Crossley said: "It represents only 10% of the total rental market. There is scope for more investment in the private rented sector for the foreseeable future." Crossley also said the government must introduce practical public protection in the private rented sector if it is to provide quality ...

  • Arrogant BMS gave us No time to react

    27 Jan 2003

    From Patrick Day In your January 6 issue you published an exclusive entitled 'BMS drops two packagers from list.' Below is the response we made to our network of members: Dear Exclusive Connections member, You have probably heard via Mortgage Strategy that BMSL have terminated their packaging agreement with us. I attach a copy of that letter for your information. I am deeply dismayed by this action. Lenders have the prerogative to deal with whom they wish. ...

  • BBA reports signs of housing market slowdown

    29 Jan 2003

    December's gross mortgage lending total of £13bn was weaker seasonally than previous months in the second half of 2002, but still some 40% more than a year earlier, the British Banker's Association has revealed. Net lending, taking redemptions and repayments into account, rose by £56.4bn in the year (46% more than in 2001), increasing the total level of mortgage debt outstanding to £426.9bn. Compared to December 2001, there were 4% fewer loans ...

  • BMS offers advice on healthy homes

    29 Jan 2003

    Homeowners should take advantage of this week's cold weather to give their home a winter MOT, says BM Solutions. Matthew Grayson, a spokesman for BM Solutions, says: "Every homeowner has a list of odd jobs which need doing around the house and the recent cold weather is likely to have added yet more to the list. If you didn't do it before winter set in, now is a good time to take stock of how the cold weather affects your home." The lender has drawn up a list of ...

  • Brand strategy pays off

    27 Jan 2003

    Branded lending helped Advantage Mortgage Services to grow business by 25% last year. The Chester-based packager is currently writing over £18m of sub-prime business a month. Advantage launched Advance Home Loans last year with the backing of Mortgages PLC and Platform Home Loans. A branded agreement with GMAC-RFC will go live in early spring this year, with a further deal with an as-yet unnamed lender following not long after that. Keith Dearling, director ...

  • Brokers anticipate sub-prime growth

    27 Jan 2003

    Mortgage intermediaries expect more growth in specialist mortgage lending, the latest research from BM Solutions reveals. Over half of all mortgage cases introduced by brokers are mainstream. Nearly a quarter are self-cert, 12% are buy-to-let and 10% are sub-prime. The BM Solutions SMART index of broker confidence shows that advisers expect to do 4.9% more sub-prime mortgages in the first quarter of 2003. Intermediaries expect to see a 4.3% increase in self-cert cases, ...

  • Brokers misusing MCCB numbers

    27 Jan 2003

    Best Advice Mortgage Centre has warned that up to 10,000 mortgage brokers are operating without MCCB numbers. Richard Hall, managing director of the Newcastle-upon-Tyne-based packager and network, says: "There is widespread misuse of MCCB numbers. We have had a number of brokers call up desperate to join a network because they don't have an MCCB number. Brokers leave networks and carry on using that network's number. But the MCCB says there's nothing it can do about it, ...

  • CA calls for national financial advice network

    31 Jan 2003

    The Consumers' Association has welcomed new proposals on consumer credit by the Department of Trade and Industry, but warns that consumers in the red will face further misery if the government does not prioritise debt advice. Mick McAteer, senior policy adviser, says: "With personal debt at record levels we are pleased to see proposals to improve credit laws. "The most pressing task for the government is to establish a system of affordable financial advice to help ...

  • Charcol online and call centre teams head north

    27 Jan 2003

    Charcol Online and the Charcol call centre are relocating from London's West End to Bingley, West Yorkshire, writes Helen McCormick. Siobhan Hotten, head of retail public relations as Bradford & Bingley, says: "A lease expired on one of our London properties. As a result we have decided that the call centre and the Charcol online mortgage processing team will relocate to Bingley - where all our other B&B operations are based. Charcol is consulting the 83 staff affected ...

  • CML names HSBC boss as new chairman

    31 Jan 2003

    The CML has confirmed Clive Wood, head of banking and mortgages at HSBC Bank, as its new chairman. Tony Ward, managing director of Britannic Money, continues as deputy chairman. Wood joined HSBC in 1977. He was seconded to IMRO in 1986, and on his return to HSBC worked in investment banking compliance. In 1991 he was appointed general manager of HSBC Bank Stockbrokers before joining HSBC's bancassurance business in 1994 to establish a new compliance function. He ...

  • Consumer Panel calls for review of law on financial advertising

    27 Jan 2003

    The Financial Services Consumer Panel has highlighted legal restrictions on the FSA which the panel says are harming more consumers than they help. Colin Brown, chairman of the panel, has written to FSA chairman Howard Davies, setting out the Panel's concerns. As the law stands, once the FSA has received a complaint about an advertisement or any other promotion it is not allowed to say anything about its opinion on that promotion until a full enforcement process ...

  • Consumers log on to CA website on endowment mis-selling

    27 Jan 2003

    Almost 400,000 consumers have gone on to the Consumers' Association's www.endowmentaction.co.uk since its launch four months ago. The website offers information on mortgage endowment mis-selling and how to get compensation, and 28,000 people have used the letter generator to draft a complaint. The CA has launched a new questionnaire on its website today to assess the quality of the complaints process. It will help to determine whether people have understood the ...

  • Consumers put home ownership first

    29 Jan 2003

    The number of housing transactions rose by 18% between 1992 and 2002, research from Mintel reveals. Although this conceals an 8% decrease to 1.4 million transactions in the past year, the Mintel 2003 British Lifestyles Survey shows that 81% of consumers who work full-time claim that owning their home is a priority. The survey of 2,000 UK consumers shows the amount of credit available for all purposes has now reached over £92bn, bringing effective consumer incomes ...

  • Cost of ARLA Bond scheme cut

    29 Jan 2003

    The cost of protection for landlords' rents and clients' deposits is set to fall by an average of 35% from the start of April for subscribers to the Association of Residential Letting Agents Bonding Scheme. The ARLA Bond provides cover of up to £2m, with no individual limits for either the public or member letting firms. Other schemes operated in the lettings industry limit the compensation available to individuals to only £10,000. The total cover for individual ...

  • Dodgy MPPI deals pushed on the high street too

    27 Jan 2003

    From David Rogers I was delighted to see much of last week's Mortgage Strategy devoted to single premium MPPI. It is not only unscrupulous brokers that promote this money-spinner though. High street banks and finance houses are also guilty of pushing the product in support of personal loans, without regard to the borrower's employment position, health or employment package. I have worked for one such bank and briefly for a brokerage where the sale of these products was ...

  • Don't feel sorry for yourself

    27 Jan 2003

    From Bob Stark I take exception to being classified as being in my dotage, Rod Williams, (Mortgage Strategy January 20). I took CeMAP and passed first time at age 65 and three years later I am in my prime. It's about time you young sprogs got to grips with reality. It's no harder to pass in later life than it is for a youngster. Just look at the number of OAPs studying through Open University and getting credits in subjects that are new to them, not in something they ...

  • Ensure you are heard on insurance

    27 Jan 2003

    In the November 11 issue of Mortgage Strategy, we had a quick look at the Treasury consultation paper on Regulating Insurance Mediation which had been released in October. Now we look in more detail at the 14 questions posed and, as we did for CP146, have prepared a model response for you to download and send to the Treasury by this Friday, January 31. The FSA's CP 160 consultation on the selling of insurance, with a response deadline of March 10, has of course crossed ...

  • Everyone wants a piece of the action

    27 Jan 2003

    Think of it what you will, sub-prime business is still booming. Just weeks after Datamonitor reports that the size of the non-standard market has decreased to one in five of the population, Mortgage Strategy can confirm that Lloyds TSB is to make its mark on the market through its retail branch network. We revealed back in July 2002 that Lloyds TSB was looking to tap into the sector. Now, the high street lender has confirmed that it will pilot a scheme in around 70 of its Lloyds ...

  • FMO and Trigold team up on compliance training

    28 Jan 2003

    First Mortgage Options has teamed up with Trigold to demonstrate compliance software at FMO's CeMAP training courses. Trigold staff will attend each course and demonstrate how the compliance aspects of the software relate to the CeMAP syllabus. David Espin, training and compliance officer at FMO, says: "We ran over 20 CeMAP training courses last year and from our experience we have seen that it is difficult for intermediaries to maintain their concentration over a ...

  • FSA garners support for review of listing rules

    31 Jan 2003

    The FSA has reported "generally supportive" feedback to its review of the rules governing company listing. Ken Rushton, director of listing at the FSA, says: "The feedback we have received so far has been supportive of the FSA's current approach and has highlighted the need to maintain UK standards of investor protection. "We have established theme teams in four key areas - corporate governance, continuing obligations (covering corporate communications and shareholders' ...

  • FSA makes enforcement a priority for 2003

    28 Jan 2003

    The FSA has put enforcement at the top of its agenda for 2003 and 2004, alongside a commitment to pick up potential mis-selling scandals faster. The regulator envisages a 3.1% increase in expenditure next year to fund developments, including an increase in the enforcement team and extra resources channelled to influencing European policy-making. Howard Davies, chairman of the FSA, says: "Our first 12 months of operation as the single statutory regulator coincided with ...

  • FSA talks big but delivers little, says CA

    27 Jan 2003

    The Consumers' Association has warned that the Financial Services Authority's latest proposals on with-profits will do little to protect the 10 million with-profit policyholders who are saving for a pension, or paying off their mortgage with an endowment policy. Today's proposals will not introduce real corporate governance oraccountability, and will not prevent directors being able to put shareholders interests before policyholders. Unlike a unit trust where ...

  • FSA warns consumer debt spiralling out of control

    27 Jan 2003

    One in five families are struggling to service their debts, the Financial Services Authority warned last week. In a gloomy report on financial risk, the FSA warns that consumer debt is growing at unsustainable rates. Average mortgage debt now stands at £39,669, the average second mortgage including buy-to-let is £47,583 and the average second charge is £11,504. Overall, UK consumers now owe £663bn to mortgage lenders and £155bn in other forms ...

  • FSA warns firms on "pension unlocking" advice

    29 Jan 2003

    The FSA has issued a warning to financial services firms advising on so-called "pension unlocking". The regulator is warning consumers of the dangers of cashing in their pension pot before they retire, and says it will take "relevant action" against firms producing misleading financial promotions or inappropriate advice. The FSA says that people releasing benefits from an occupational or personal pension before reaching retirement age face a "substantially reduced" ...

  • Furness in deal with First Advice for stepped mortgage

    31 Jan 2003

    Manchester-based broker First Advice has launched a new three-year discounted stepped mortgage with an opening interesting rate of 3.49%. The mortgage comes with free legals, valuation and no arrangement fee and is backed by Furness Building Society. The mortgage offers discounts off the standard variable rate of 2% in year one, giving an opening rate of 3.49%. Thereafter, borrowers receive a 0.5% discount in year two and 0.35% in year three. There are no tie-in penalties ...

  • Future does a U-turn on lending rules

    27 Jan 2003

    Future Mortgages has reversed changes to its second charge lending criteria after brokers and packagers began to query the new rules introduced by the sub-prime lender. A director of one packager told Mortgage Strategy: "Future is asking us for two years' proof of residency on second charge deals even if the customer is on the electoral roll. Criteria changes in the last two months are making it difficult to deal with." Future had brought in new measures requiring ...

  • Genesis polishes up Gemstones range

    27 Jan 2003

    The Gemstones sub-prime range from correspondent lender Genesis Home Loans has been revamped for the new year. Changes have been made across the range, with improvements to the loadings above SVR, increases in the level of CCJs and arrears, and shortened timescales in which these are allowed by the lender. In addition, the discount rate options - which vary from 0.50% to 1.25% - have had their end dates extended until June 30 2004. The Gemstones range itself offers 10 ...

  • Genesis relaunches Challenger

    27 Jan 2003

    After being withdrawn towards the end of last year, Genesis Challenger is back after being relaunched by Genesis Home Loans with a new rate and improved criteria. Genesis Challenger now offers a self certification facility for applicants looking for a 'no reference' purchase or remortgage up to 85% LTV. The low current pay rate of just 4.85% gives the security of a rate 0.85% above Bank base for the full term of the mortgage, unlike similar schemes that offer a low rate ...

  • GMAC Commercial Sets sights on UK

    27 Jan 2003

    GMAC Commercial Mortgage Europe has launched an assault on the UK buy-to-let market with the opening of a new office in London's West End. GMACCM Europe offers a range of services for the European commercial real estate industry including lending, equity co-investment and servicing. James Dalton, president of GMACCM Europe, says: "Our current pipeline is very strong and we are optimistic about 2003. Our London location will provide commercial real estate clients throughout ...

  • Government to make council tax benefits easier to claim

    28 Jan 2003

    The government is piloting a simpler system to claim housing and council tax benefits. Evidence for the benefits is collected and verified alongside income support, jobseekers allowance and incapacity benefit in three districts across the country. Currently, anyone applying for housing or council tax benefits has to present the required evidence to their local council. If they apply for jobseekers allowance, income support or incapacity benefit as well they have to ...

  • Great service? Beat this

    27 Jan 2003

    From Marc Turner Regarding Gary Booth's letter in your January 13 issue concerning Northern Rock's excellent turnaround time, I feel this may be the catalyst for a 'standards of service' competition. My compliments go to Abbey National for the following incredible example: appointment at the client's house on November 6, 2002, subsequently submitted online later that day. Property surveyed November 7 and a faxed copy of the offer received November 8. A turnaround ...

  • Halifax drops cost of fixed rates

    28 Jan 2003

    Halifax is cutting the price of fixed rate mortgages. A two-year fixed rate for homebuyers is falling from 4.4% to 4.3%, while a three-year fix drops from 5.15% to 4.99%. A five-year fix falls from 5.4% to 5.2%. For remortgages, Halifax is dropping the two-year rate to 4.59%, while a five-year fixed rate is available from 5.25%, down from 5.4%. The bank has also launched a three-year tracker capped at 5.25%. Available to all homebuyers at up to 97% LTV, the ...

  • Healthy boost for insurance sales

    30 Jan 2003

    IFAs claim that the January health boom is doing wonders for insurance business. Manchester-based IFA Hacker Young says attention to health has focussed people's attention on insurance such as critical illness, life insurance and income protection cover. Harvey Rosenfield, an IFA at Hacker Young, says: "There is certainly more interest in health insurance and life insurance at this time of year as more people check their financial health as well as their physical ...

  • House prices have risen by 306% in 20 years

    27 Jan 2003

    House prices in the UK have increased by 306% over the last 20 years, research from the Halifax reveals. The biggest increases in prices have been recorded in Greater London where prices have risen by 456%, while the smallest increases have been seen in Scotland (158%). The north/south divide has widened significantly over the past 20 years too. Prices in London are now 76% above the national average compared with 28% higher in early 1983. At the other end of the spectrum, ...

  • House prices rise 1.7% in January

    31 Jan 2003

    House prices rose 1.7% in January, taking the annual increase to 26.5%, the latest Nationwide house price index reveals. The average price for January stands at £117,905. Nationwide expects "very stable and strong" growth to continue, keeping the annual inflation rate around 25% for the next couple of months. However, it predicts that the annual rate of inflation will start declining significantly in the spring, and says a similar pattern is likely to be followed ...

  • House prices rise just 0.1% in January

    28 Jan 2003

    The housing market slowdown is continuing with no evidence of a new year revival, the latest hometrack survey reveals. House prices rose only 0.1% in January, the same as the previous month. This follows an eight-month steady decline in house price inflation since May's peak of 2%. The slowdown has been mostly due to prices of higher value homes falling in London and the south-eastern counties. Areas with the highest price falls are central London and the ...

  • Housing benefits process under scrutiny

    30 Jan 2003

    Councils are to be made more accountable to the public as the Department for Work and Pensions publishes, for the first time, figures for how quickly they process housing benefit and council tax benefit. Malcolm Wicks, housing benefit minister, says: "Publishing these statistics is part of our strategy for reforming housing benefit. It is right and proper that the public see how well or how badly their council is doing. "It is unacceptable that the worst performing councils ...

  • Indulging the unqualified is not fair on the rest

    27 Jan 2003

    From John Holmes First of all, congratulations on an informative and relevant publication - it is a great help Now to the main point. Given that everybody in the industry has known since forever about the examination requirements and the need to qualify by December 31, is it possible to elicit from the Mortgage Code Compliance Board just how long those who did not qualify will be allowed to continue giving advice in a supervised environment? Is this to be an open-ended arrangement, ...

  • Insurance discount helps quality builders

    30 Jan 2003

    Builders approved under the government Quality Mark will in future enjoy a 20% discount on liability insurance premiums. Insurance costs for all construction firms employing staff have risen sharply in recent years due to factors including the post-September 11 effect and a poor accident record. The industry has made repeated calls for the government to take action and come to the aid of firms paying high premiums. The discount is available through the Quality Mark provider ...

  • Intelligent Finance joins APS Europe panel

    27 Jan 2003

    Intelligent Finance, the offset bank from the Halifax, has signed up APS Europe mortgage club to promote the bank's products. APS Europe is a direct submission mortgage club whose membership over the last 12 months has increased by around 200% to 350 brokers nationwide ranging from one-man bands to specialist mortgage brokers to IFAs. APS has seen its panel of lenders grow from 30 when it launched last year to 38 with the appointment of Intelligent Finance. Based ...

  • Intermediaries' confidence in industry grows

    27 Jan 2003

    The One account's Mortgage Outlook Index shows that intermediary confidence is improving in three key areas: lenders' service levels, mortgage regulation and business prospects for the year ahead, writes Helen McCormick. The research was carried out by NOP in December 2002 and covers from September to November 2002. It found that 74% of mortgage intermediaries believe service from lenders was good over the past quarter, an improvement of 11% on the previous quarter. An ...

  • Investors tip property over equities

    28 Jan 2003

    More than half of investors tip property to outperform equities in 2003, with only 9% expecting the opposite result, research from the Association of Investment Trust Companies reveals. Half of the investors surveyed currently think that investing in property is a better way of saving over the long-term compared to traditional savings and investment accounts. Of this 52%, one-third believe that the housing market is a far safer place to withstand an economic downturn, ...

  • Kensington beats expectations

    27 Jan 2003

    Kensington Groups has released figures for 2002 showing strong growth. New business originations up 48% to £1.02bn, compared to £0.69bn in 2001, with record lending of £603m in the second half of the year. Its average loan to value is 78% and less than 1% of new loans were above 90% LTV. The number of new borrowers with County Court Judgements reduced to less than 38% against 41% for the same period last year. Product margins reduced slightly to 3.86%, compared ...

  • Lending figures up 1.1% in December

    31 Jan 2003

    Total lending to individuals grew by £9.4bn (1.1%) in December - £0.6bn higher than November's rise, figures from the Bank of England reveal. The three-month annualised growth rate rose to 14.7% from 14.6% in November. Secured lending outstanding grew by some £7.5bn or 1.1% in December, £0.1bn higher than the rise in November. Gross advances were £0.6bn higher at £20.9bn. The number of loans approved for house purchase ...

  • Little change in small business banking

    30 Jan 2003

    Competition Commission recommendations on banking for small businesses have made very little difference to small business owners, says Moneyfacts. In October 2002 Business Moneyfacts devised three "hypothetical businesses" in order to demonstrate the probably levels of charges for different kinds of business. The experiment was repeated this month to see if the expected sweeping reductions in bank charges had materialised. The results of the most recent research reveal ...

  • Lords help us, please

    27 Jan 2003

    Advisers are being urged to air their grievances about mortgage regulation to the House of Lords. The House of Lords' Constitutional Committee is currently reviewing the constitutional implications of the government's regulatory activities, including that of the FSA. Though the Committee is seeking responses from the public on questions of accountability, legal foundation and transparency of regulators in general, it is also seeking responses to specific issues. ...

  • MCCB strikes off 78 firms for PI failure

    28 Jan 2003

    The MCCB has struck 78 mortgage intermediary firms from its register for failing to prove they have professional indemnity cover in place. The Mortgage Board requires firms to have appropriate PI cover as a condition of registration. Removal from the register effectively removes the 78 offenders from the mortgage industry. The MCCB has conducted a largescale review of its registered firms asking for evidence - by way of copy certificates - that the required cover is ...

  • MCCB too soft on unqualified advisers

    27 Jan 2003

    Seven out of 10 mortgage advisers believe the MCCB is not doing enough to clamp down on unqualified brokers, a straw poll conducted by Mortgage Strategy reveals. Some 51,000 individuals were qualified to give mortgage advice after the MCCB's December 2002 deadline. But many of those who invested their time and money in preparing themselves appropriately are unimpressed at leniency shown to those who did not. Qualified brokers are incensed by allegations that some brokers ...

  • Mortgage Promotions launch Standard Life Bank exclusive

    28 Jan 2003

    Mortgage Promotions has launched an exclusive online mortgage deal with Standard Life Bank. Network members who arrange a Standard Life Bank Freestyle mortgage with offsetting discount online will save their customers the normal Standard Life Bank offsetting fee of £150. The offer is available from January 27 to March 15 and is subject to demand. The introducer procuration fee for Standard Life Bank business introduced by Mortgage Promotions members will ...

  • My mortgage week

    27 Jan 2003

    Monday: First day back in the office after the Christmas break. Feeling fully refreshed notwithstanding the fact that I had to stand on the train for the 50-minute journey. A new year and fresh targets to discuss in my first week with the six members of my team, so an early start is the order of the day. In addition to looking after the team, I have my own portfolio of clients to keep happy and I already have two client meetings booked in today. The first is in my office premises in the ...

  • National launch for Portman equity release mortgage

    30 Jan 2003

    Portman Building Society has decided to launch its equity release mortgage nationally, following a successful regional pilot. The product will now be available at over 100 Portman branches, as well as through the society's Direct Mortgage call centre. Lynsey Hallam, spokeswoman for Portman, says: "We are offering the best fixed rate equity release mortgage on the market. The rate is a market-leading 7.09% and we have coupled this with low up-front fees. Add this to the no negative ...

  • NatWest launches new range of fixed rates

    28 Jan 2003

    NatWest has launched a new range of fixed rate mortgages, including a two-year rate at 4.59%, and a five-year rate of 5.05%. There are no tie-ins beyond the fixed rate period, and neither of the deals carry legal or valuation fees. A new range of first-time buyer fixed rate mortgages has also been launched starting from 4.99% for 18 months with no reservation fee. On a capital and interest mortgage of £71,000 on a property value of £95,000, the monthly repayment ...

  • New BDM at Commercial First

    27 Jan 2003

    Commercial First, the latest entrant to join the ranks of specialist lenders in the UK, has appointed Stephen Kisby as its business development manager in the North and the Midlands. Kisby joins Commercial First's sales team from Mortgageforce, where he was one of the company's most respected and successful regional development managers. He spent almost two years building the Mortgageforce brand. In his new role he will be responsible for mobilising the broker community ...

  • New fixed rates from Ipswich

    30 Jan 2003

    Ipswich Building Society has unveiled four new fixed rate mortgages designed to build on the large sales gains it made during 2002. The Suffolk-based mutual - which saw lending rise by more than a third last year - expects the products to fuel additional sales through intermediaries, who now account for more than 60% of the Society's lending. The new mortgages consist of: ? A fixed-rate of 4.05% until April 30 2005, available up to 80% LTV (4.80% for loans 80% ...

  • New fixed rates from Scarborough

    30 Jan 2003

    Scarborough Building Society has launched two new fixed rate products. First up is a flexible two-year fix at 4.59%, up to a maximum 95% LTV. There is no MIG up to 90% LTV, and a flexible option allowing overpayments, underpayments and payment holidays. Up to 10% capital repayments are allowed in the first two years without penalty. There is an arrangement fee of £295 and two year early repayment penalty of 5%,then 4% of the sum repaid. Scarborough has ...

  • New life assurance policy from Britannic

    29 Jan 2003

    Britannic Assurance has launched a new life assurance policy that provides a cash sum if the life assured dies before the end of the policy, but also gives a proportion of the premium as cashback if they survive. The policy can be taken out by customers aged between 18 and 49 and lasts for 15 years. On the death of the policyholder during the fixed term, the sum assured will be paid. However, on survival to end of the term, 50% of the premiums paid will be refunded. David ...

  • New sponsor for Financial Services Forum

    30 Jan 2003

    Marketing expert Intygra PPL has announced a major sponsorship programme with the Financial Services Forum, worth up to £25,000 a year. The Financial Services Forum and Intygra begin their partnership on February 26 when Intygra's funds will be used to support the Forum's third Annual Members Conference in London. Some 200 executive directors and senior marketing directors - representing the breadth of the UK's financial services industry - will share ...

  • New two-year fix for the Marketplace

    31 Jan 2003

    The Marketplace at Bradford & Bingley has launched an exclusive, market -leading two-year stepped fixed mortgage, which is funded by the Portman Building Society. The loan has an initial rate of 3.49% and is aimed at first-time buyers who have a 10% deposit and want an initial low fixed rate. The 3.49% rate reverts to 4.49% in 2004, until 2005. Thereafter, the rate reverts to bank base rate plus 0.95% for term. The maximum LTV is 95%, and up to 10% of the loan can ...

  • Northern Rock profits climb 18%

    30 Jan 2003

    Northern Rock has reported record pre-tax profits of £326m for 2002, an 18% increase on 2001. Gross lending reached £14.1bn, an increase of 60% over 2001. Net lending was a record £8.2bn - an increase of 61%. Northern Rock's total share of UK net mortgage lending came to 9.2%. The mortgage lender forecasts a quieter housing market for 2003, but does not expect any major downturn. It says: "The economic fundamentals of low interest ...

  • Oh dear, you must put a stop to all this drivel

    27 Jan 2003

    From Richard Griffiths Further to the lead letter in last week's issue, I can categorically reassure Bill Aspinall and all other readers that there is less chance of me appearing in these pages dressed only in my Y-fronts than there is of Kylie suddenly sprouting a pair of 42" Hooters. Which reminds me of an old joke, "How do you get from Bristol to Bristol? InterTitty". Oh dear, Editor, you must put an immediate stop to all this drivel. Richard Griffiths Managing ...

  • One in five Brits suffer financial phobia

    28 Jan 2003

    'Financial phobia' is a genuine psychological condition for one-fifth of Britons who struggle to manage their finances, internet bank Egg says. Academics at Cambridge University identify several symptoms of an ailment they say affects over 9 million Britons. These include not opening bank statements; never checking bank balances; and, in the most extreme cases, throwing away or filing unopened statements to avoid dealing with their personal finances altogether. Financialphobes ...

  • One way through the lead generation minefield

    27 Jan 2003

    From Nat Daniels I am writing in response to the issues raised by Robert Clifford in last week's magazine regarding lead generation, Alice in Wonderland-style. The question is, should advisers buy leads or do a revenue share? A hot lead is too expensive a gamble yet does the adviser have enough incentive to do business on a revenue share? If he has paid for a lead he will value it more. But I think we have found the solution. We deal in homebuyer leads through ...

  • Pink launches 'Good as Gold' AIP scheme

    30 Jan 2003

    Pink Home Loans has launched a pilot "Good as Gold" application in principle scheme in conjunction with Bristol & West Mortgages. The pilot service is currently being offered to Pink Home Loans' Premier members. Working with Bristol & West Mortgages, Pink Home Loans has developed a shortened AIP form of one page. Once a request for an AIP has been received, Bristol & West Mortgages guarantee to inform Pink Home Loans of the decision, including referrals, within four ...

  • Pink launches new Bristol & West fixed rate deal

    28 Jan 2003

    Pink Home Loans has joined forces with Bristol & West Mortgages to launch an exclusive five-year fixed rate. The product offers a rate of 4.59%, fixed for five years, and is available up to 95% LTV, with the MIG paid by Bristol & West. Tony Jones, managing director at Pink Home Loans, says: "This product is ideal for borrowers who require the certainty of a fixed rate and set monthly payments, such as first-time buyers. Another key benefit of the product is that it allows ...

  • Plan to link council tax to transport links slammed

    27 Jan 2003

    Brokers have slammed government proposals for increased council tax in areas where house prices are boosted by new transport links. The Office of the Deputy Prime Minister is investigating links between land value and transport links. But Ilhami Agca, proprietor of east-London-based City Mortgage Centre, says: "This would deter people from buying property here, meaning that prices will go down rather than up. People look at the short-term, they will think about the extra ...

  • Portman accepts member's nomination for board election

    27 Jan 2003

    Portman Building Society has announced that carpetbagger Tim Tanner has gained the required support to stand as a candidate for election to the board in its forthcoming AGM elections. However, three resolutions submitted by Tanner will not be put to members as they have no legal effect. For the third time in as many years, Tanner has put resolutions to the society which do not meet the requirements of building society legislation and the society's rules. John Roques, ...

  • Possessions hit 20-year low

    30 Jan 2003

    Arrears and possessions have fallen to their lowest levels for 20 years, CML figures reveal. Nearly 12,000 properties were repossessed by mortgage lenders during 2002 - 0.11% of all mortgages. This compares with 18,280, or 0.16% of mortgages, in 2001. Over 50,000 mortgages - fewer than one in 200 - were in arrears of more than six months. The figures are the most positive since 1982. Low rates of arrears and possessions reflect the benign state of the housing ...

  • Record lending for KMC in second half of 2002

    27 Jan 2003

    Kensington Mortgage Company lent a record £603m in the six months ending November 2002, taking new business origination to £1.02bn for the year - 48% more than 2001, writes Harriet Williams. Pre-tax profits rose by 21% to £30.2m, while earnings per share increased 31% to 40p. Investment in sales force and distribution paid off with the number of intermediary sourced loans up by 20%, and business through packagers up by one-third. Maximising distribution channels ...

  • Record year for Universal

    31 Jan 2003

    Universal Building Society increased its assets by 8% to £467m in 2002, reflecting a year of record levels of new business both in terms of mortgages and investments. Net profits increased 35% and mortgage arrears levels declined by 53%. Universal Direct - the telephone and postal arm of Universal - performed particularly well thanks to a range of highly competitive products released throughout 2002. Kevin Robinson, Universal's chief executive, says: ...

  • Regional lender with 'no bull' aspirations

    27 Jan 2003

    Staffordshire Building Society Staffordshire celebrated its centenary last year by launching a number of new mortgage products and introducing daily interest calculations and an online conveyancing service. From headquarters close to its flagship branch in Wolverhampton (pictured above) the society has masterminded the formation of two new subsidiaries - one to acquire sub-prime mortgage books and the other to deal with branch business. Q: How is Staffordshire structured? A: ...

  • Retail savings market sees growth

    29 Jan 2003

    The European retail savings and investments market has grown 8.1% over the period 1997-2001, a report from Datamonitor reveals. The UK accounts for the largest market share, followed by Germany. Retail deposits is the largest sector, driven by households increasing savings due to the slowdown of the global economy. The UK holds the largest retail savings and investments market in Europe, with a share of 23.1% in 2001. However, the UK share has been declining in 2001. Ireland ...

  • Rhino says borrowers being ripped off on MPPI

    27 Jan 2003

    Mortgage borrowers are still being ripped off by over-the-odds insurance policy charges, despite rising sales of mortgage payment protection insurance. Data released by the Council of Mortgage Lenders last week shows nearly 700,000 borrowers have signed up for MPPI since the CML/ABI sustainable home-ownership initiative began in 1999. Nearly 428,000 policies were sold or provided free in the first half of 2002, with 36% of mortgages advanced including either free or paid-for ...

  • Savings habits run in the family

    31 Jan 2003

    Despite the complexity and choice available from today's personal finance providers, 70% of adults rely on their partners or parents for savings advice. Abbey National research reveals that learning to save early in life influences whether or not you save as an adult, for the sake of it or towards specific projects like a mortgage deposit. Nearly half of regular savers learnt the habit early in life. But it is never too late to learn - 29% of savers only started ...

  • Sharks, lightning and firearms

    27 Jan 2003

    The Clipper 2002 race route takes a course around the globe that makes it the longest circumnavigation race at some 34,000 miles. It passes through a wide variety of weather systems which require the full range of sailing skills, from the patience to steer through calms to flying downwind under spinnaker before a gusty tradewind to beating through the Southern Ocean around the Cape of Good Hope. The tactics are fascinating; this is real "chess with press-ups" sailing. Nature, as always, ...

  • Show them what you're made of

    27 Jan 2003

    Seminars and exhibitions enable financial advisers to make personal contact with large numbers of potential customers and deliver their sales messages in a relatively controlled environment. Success or failure depends on careful planning and attention to detail. Seminars help build business by enhancing your image and bringing you face-to-face with potential new customers and business contacts. Following a few simple principles can make organising a seminar straightforward and ...

  • Skipton increase lending 8.6%

    28 Jan 2003

    Skipton Building Society's year-end results show lending increased 8.6% in 2002 to £5.2bn. Group assets rose 7.9% to £6.7bn and group pre-tax profits rose £213,000 to £53.4m. The group interest rate margin is reported at 1.21% and the society rate margin at 0.91%, down from 1.07% in 2001. Key parts of Skipton's 2002 strategy included a major restructure of its branch offering, resulting in the end of its tied relationship with ...

  • Spain stays at the top of foreign hotspots

    28 Jan 2003

    Spain remains the most popular destination for people wanting to buy a property abroad for the second quarter running. One-third of all enquiries made through moneynetinternational's Global Mortgage Service for the period September to December 2002 were for the purchase of a property based in mainland Spain. Richard Brown, chief executive of moneynetinternational.com, says: "Cheap flights, easy access and good weather almost guaranteed - as well as a good quality ...

  • Staffordshire appoints key account development manager

    28 Jan 2003

    Staffordshire Building Society has appointed Paula Mackelworth to the new role of key account development manager. Mackelworth has been with the Staffordshire for four years, running the Staffordshire Direct lending operation in Wolverhampton. Before the Staffordshire, she worked for BM Solutions and Lloyds TSB. The Staffordshire has created this role as part of its strategy to increase its business through certain key networks. Mackelworth says: "Introduced ...

  • Taking the strain

    27 Jan 2003

    The number of people re-fused credit by mainstream lenders continued to fall in 2002, with the non-standard lending market shrinking by 100,000 to 7.8 million. Yet the value of business in that market grew rapidly from £11bn in 2001 to more than £15bn just 12 months later, a rise of 36%. The non-standard population has steadily fallen from 8.2 million in 1998, but that still leaves 21% of the UK adult population unable to get credit from mainstream lenders, the 2003 ...

  • Tell their Lordships what you think of regulation

    27 Jan 2003

    From Brian Lentz I am writing to urge brokers and IFAs to express their views on forthcoming regulation of mortgages and other financial services to the House of Lords. The Lord's Constitutional Committee is currently reviewing the constitutional implications of all proposed legislation, as well as that which underpins government bodies such as the FSA. The consultation provides an opportunity to convince decision-makers that the FSA's proposals, particularly regulation ...

  • The mortgage mole

    27 Jan 2003

    Feel the burns Just over Christmas, Mole gamely stuck with the spirit of alcohol to celebrate Burns' night in London's Boisdale eatery. Described as being "dedicated to preserving traditional Scottish fare," Mole must confess to being slightly put off by the "Mini-roast MacSween Haggis". But the prospect of sampling the 150 wines and 165 single malt whiskies on offer - and that Mortgages PLC's Trevor Pothecary was footing the bill - kept me from scampering back to the hole. ...

  • The One Account says broker confidence is up

    27 Jan 2003

    The One account's Mortgage Outlook Index shows that intermediary confidence is improving in three key areas: lenders' service levels, mortgage regulation and business prospects for the year ahead. The research was carried out by NOP in December 2002 and covers the period September to November 2002. It found that 74% of mortgage intermediaries believe service from lenders has been good over the past quarter, an improvement of 11% on the previous quarter. An encouraging ...

  • The property hotspots for cash-poor first-time buyers

    29 Jan 2003

    Belfast, Stourbridge and Inverness are among the best places to go for cash-strapped first-time buyers, Abbey National research reveals. With a deposit of £4,000, buyers would be able to get a £36,000 mortgage on a £10,000 salary - enough to buy a two-bed flat in Belfast, a one-bed flat in Stourbridge or a 0.64 acre building plot in Inverness. Terraced houses in Birmingham and Torquay come into reach for borrowers earning £25,000 - but the first ...

  • This week's problem case

    27 Jan 2003

    Brian Jennings is an investment broker who was recently made redundant. He received a redundancy payment of £65,000 and has accepted a job with a rival firm but his contract means he can't start for six months. Brian is selling his London flat and buying a home in the suburbs and needs a mortgage to finance this. His previous salary was £75,000, his new one is £82,000 and his new property will cost £530,000. What are his options? Intermediary response Sohan ...

  • Time for Labour to consider regulating mortgage credit

    27 Jan 2003

    There is a real danger that, for the third time in a generation, the housing market will complete a full cycle of boom and bust. Little appears to have been learnt from the past. As in the bubble of the 1980s, the orthodox view is that there is little the government can or should do to intervene. But inaction now threatens to undermine the government's hard-won reputation for maintaining economic stability. Mervyn King, governor-designate of the Bank of England, acknowledges ...

  • Trigold to power Inter-Alliance mortgage club

    28 Jan 2003

    Inter-Alliance has chosen Trigold to power its new mortgage club. Inter-Alliance will provide over 400 mortgage members with Trigold's market leading mortgage trading software free of charge. The solution provides entire mortgage product sourcing, integrated electronic applications, real-time acceptance in principle, conveyancing and a comprehensive range of competitive cross-sale products. Bill Safran, joint managing director of Trigold, says: "We are very ...

  • TSB confirms sub-prime entry

    27 Jan 2003

    Lloyds TSB is to take its first steps into non-standard mortgage lending next month after agreeing a pilot referral deal with Kensington Mortgage Company and Preferred Mortgages. Lloyds TSB is one of the few high street names with no presence in the non-standard mortgage market but the pilot, set to run from the end of February until August, will involve around 70 Lloyds TSB and Cheltenham & Gloucester branches in the SouthEast, North-West and East Midlands. It is understood ...

  • When is a contract not a contract?

    27 Jan 2003

    CeMAP paper one requires candidates to have knowledge and understanding of contract law. This article considers some general principles of contract law before moving on to look at some basic issues relating to agency. Contracts can be made in a number of ways - principally in writing and by deed. Some contracts can be made orally, although not all contracts can be made in this way. For example, agreements for the sale of land must be in writing, while conveyances of land must be by deed. ...

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