Mortgage Strategy
29 April 2002

  • 2002 sees record mortgage market activity

    29 Apr 2002

    Data on personal lending collected by the Major British Banking Groups (MBBG) show why March produced a record seasonally adjusted rise in mortgages, of £4.0bn to £389.4bn, whilst unsecured borrowing slowed, with a net seasonally adjusted increase of £0.9bn to £80.7bn. March saw seasonally higher gross mortgage lending, totalling £10.9bn - 19% more than in February and 42% more than in March 2002. Re-mortgaging also led to higher levels of redemptions ...

  • Abbey National to buy French mortgage lender for €26m

    1 May 2002

    Abbey National PLC said that Abbey National France is to buy Royal St Georges Banque (RSGB), a specialist mortgage lender based in Nantes in a €26m deal. The transaction is subject to regulatory approval, with completion expected in May 2002.

  • Age no problem

    29 Apr 2002

    Your magazine is one of the few that caters for the professional mortgage broker and is certainly up to the minute. But how sorry I was to read 'Death of a salesman' (Mortgage Strategy, April 15 2002). It was such a shame to read that the writer was not aware of the forthcoming requirements and had only just taken his CeMAP exam, and failed. Where has he been hiding? I became aware of the need for this qualification in July 1998 from reading the relevant financial papers. I was ...

  • Amber extends niche product range

    30 Apr 2002

    Amber Homeloans launched four new products, two LIBOR-linked discount and two fixed rate mortgages. The LIBOR full status discount mortgage offers three-month LIBOR (currently 4.05%) plus 2%, a 0.75% discount until July 31 2004, with a current pay rate of 5.30%. The LIBOR self-certification discount mortgage offers three-month LIBOR plus 2.5%, a 0.75% discount until July 31 2004, with a current pay rate of 5.80%. The fixed rate full status mortgage offers a fixed ...

  • Bank pressured to increase interest rates

    2 May 2002

    The Bank of England is under increasing pressure to raise interest rates as signs emerge that the economy may be overheating. A key industry barometer shows the manufacturing recovery is gathering pace with export order growth at its highest level for five years. In marked contrast to forecasts that the consumer boom is cooling, the CBI showed retailers enjoyed another strong month of sales in April. The annual rate of growth recorded by the CBI was the biggest since ...

  • Bankers must learn to innovate, says Intelligent Finance

    3 May 2002

    Jim Spowart, chief executive of Intelligent Finance, yesterday accused banks of complacency. Spowart was speaking to the Marketing Society's Annual Conference at the EICC yesterday. He told delegates: "We undertook a research survey of marketing professionals across 15 world markets - including the UK, Europe, Australia, Japan and the US - on perceptions of banking and the pace of change in various industries. "Unsurprisingly the top industries for the ...

  • Basis point increase threat to stem levels

    29 Apr 2002

    Lenders could increase product rates by 50 basis points to stem the flow of new business that has been threatening service levels. Already GMAC-RFC has warned intermediaries to expect a three-day delay in the turnaround of mortgage applications and other lenders are also feeling the strain. Volume control via pricing was discussed last week at a Council of Mortgage Lenders seminar on changing market structure. One insider says: "Delegates came away with the view that it would ...

  • Beale Dobie calls for a fairer deal for endowment policyholders

    2 May 2002

    Traded endowment policy market maker Beale Dobie says endowment policyholders using the TEP market to dispose of their policy are already better off by around £65m per annum. Following a new Financial Services Authority rule, even more policyholders can benefit. From September 1 2002, anyone enquiring with a life office about the surrender value of a with-profits endowment policy is to be made aware they might instead sell the policy, often for a greater sum than the surrender ...

  • Birmingham Midshires offers 'Step-Up' for savers

    29 Apr 2002

    Birmingham Midshires launches two new fixed rate savings accounts this week. The Birmingham Midshires Fixed Rate Step-Up Account helps savers' money work harder as their nest-egg grows over the eighteen month term of the account. Interest is charged at 4.8% for the first six months, then 5.25% in the following twelve months, on a minimum investment of £1,000. A one year fixed account offers a guaranteed fixed rate of up to 4.65% GROSS AER for savers depositing ...

  • Bristol & West rewards loyal brokers

    30 Apr 2002

    Bristol & West Mortgages has launched an Advantage Club to reward loyal brokers. The club will offer exclusive benefits to its members. Membership places are limited, so brokers will be invited to join depending upon the level of business that they submit each month. Benefits of the Advantage Club will include priority application processing; dedicated service contacts; direct access to underwriters; exclusive products and enhanced procuration fees. Members are ...

  • Britain is still best, say homeowners

    1 May 2002

    Britons are turning their backs on the dream of retiring to the sun, a new study has shown. Research commissioned by Norwich Union reveals that two-thirds of people say they would prefer to stay put and spend their retirement in the UK. Almost a third of people would like to live in the countryside, while 17% fancy retiring by the sea. Norwich Union's study also reveals that one in five people intend to retire close to their children and grandchildren. Julie ...

  • British are good neighbours say HSBC

    1 May 2002

    A home security survey by MCBC bank suggests the British are a nation of good neighbours. The survey reveals that 85% of Britons know their neighbours well enough to ask them to keep an eye on their home while on holiday. More than nine out of 10 people in Scotland know their neighbours, compared with 79% in south east England. Although 43% of homeowners worry about the safety of their home while they are away, only 16% of homeowners are burgled while on holiday ...

  • Brits scared to ask for financial help

    30 Apr 2002

    Nearly two-thirds of British people say they would be too embarrassed to admit they were in financial difficulties or to ask for help. Around 65% of people avoid getting help with money problems, while 24% of 18 to 25-year-olds regularly struggle to meet debt repayments. More than a quarter of this age group also claim they would feel too uncomfortable to ask their boss for a pay rise. Experts say this suggests people are also shying away from possible solutions to their ...

  • Broker stole granny's life savings

    2 May 2002

    A financial consultant has been jailed for 18 months for stealing his own grandmother's life savings and mortgaging the home she owned outright, the BBC reported yesterday. Mortgage broker Neil Williams, 31, from Caerphilly, stole more than £70,000 to finance a lifestyle he could not afford, completely emptying his 80-year-old grandmother Rachel Williams' bank accounts. Cardiff Crown Court heard Williams, a married father-of-four, then tricked the pensioner ...

  • CETA consolidates insurance offering

    29 Apr 2002

    CETA, the UK's largest general insurance network, announced three further signings to expand its presence in the non regulated insurance market yesterday. Friends Provident and Scottish Equitable have been added to the existing panel of insurers from which CETA's members can source life policies. CETA has also established an agreement with Premier Protection, one of the UK's leading protection networks, to sell life products on an indemnity basis. Intermediaries ...

  • Change should be for all, not the few

    29 Apr 2002

    Having worked in the financial services sector for over 20 years, I have seen many changes. However, there has always been the need for those changes. Probably the biggest changes in the financial services industry were those to the authorisation and regulation of the life, pensions and investments sector. This led to greater consumer confidence in the advice given and also resulted in many so-called advisers leaving the industry as the requirements of regulation proved too difficult or ...

  • Chaos on horizon for buy-to-let market

    29 Apr 2002

    Earlier this month Mortgage Strategy revealed how the Home Energy Conservation Bill could have serious ramifications for the residential investment market. But, as we report in our cover feature starting on page 18, falling rental yields, slow capital appreciation and a distinct lack of regulation could send the buy-to-let market out of control long before then. There's little doubt that, up until now, buy-to-let has been a success, buoyed by investors who have shunned stock markets ...

  • Charcol launches ethical two year fix

    2 May 2002

    Charcol is offering ethical borrowers a loan fixed at 4.85% for two years, until May 31 2004, with no early redemption penalties. Charcol has negotiated this exclusive with a lender which adopts an ethical approach to investing, refraining from investing in any regime or organisation which oppresses human rights, any company belonging to the arms trade or those organisations contributing to animal cruelty. Ray Boulger, senior technical manager at Charcol, says: "This ...

  • Chartwell offers endowment-selling service

    2 May 2002

    Chartwell Investment Management, in conjunction with the Newcastle Building Society, is offering a new service for those wishing to sell their existing endowment policies. With this new service - for endowments that are with-profits, have been running for at least five years, and have a surrender value of at least £2,000 - Chartwell claims to be able to secure a better sale price for many investors. The client's policy details will be circulated to the 17 market ...

  • Cheshire Building Society offers internet filtering

    3 May 2002

    SurfControl has linked up with Cheshire Building Society to offer CyberPatrol, its home Internet filtering solution. SurfControl, a web and email filtering company, has linked up with Cheshire Building Society to offer free trials of CyberPatrol. Free 90-day trials and price discounts of the software are being made available through Cheshire Building Society's website (www.thecheshire.co.uk) and members' newsletter. Russell Chadwick of SurfControl, says: "SurfControl ...

  • CII announces improvements to 2002 training programme

    30 Apr 2002

    The Chartered Insurance Institute has announced its programme of training courses for July to December 2002. The courses are now more accessible to CII customers both in the UK and worldwide, and two new courses have been added. Details are contained in the latest edition of the CII Training Directory. The CII is the leading provider of training and education services to the general insurance and financial services industry. Its face-to-face learning programme is particularly ...

  • CII appoints new customer relationship manager

    30 Apr 2002

    The Chartered Insurance Institute (CII) has boosted its team of customer relationship managers (CRM) with the appointment of Joe Martin, who will look after organisations in the London and south east region. Martin started his career as a management trainee with Commercial Union before moving to GE Capital as client manager. He has most recently held marketing and sales development roles with Card Protection Plan and Unum. He is currently studying for the CII Associateship ...

  • CII chairs global institute

    30 Apr 2002

    Chartered Insurance Institute (CII) director-general Dr Sandy Scott has been elected as the new chairman of the Institute for Global Insurance Education (IGIE), a group of not-for-profit organisations concerned with education and training for insurance professionals worldwide. The CII was one of the founder members of the IGIE in 1997, together with the American Institute for Chartered Property Casualty Underwriters (AICPCU), the Insurance Institute of America (IIA) and the Insurance ...

  • Clear rules on endowments, says FSA

    30 Apr 2002

    Consumers who are considering surrendering an endowment policy or buying an annuity must now be given clear information about all the options available to them, under new rules announced today by the Financial Services Authority. This will include the fact that they are not restricted to buying an annuity from their existing product provider. It will also make clear that there are alternatives to surrendering an endowment policy. Under the new rules, which will come into ...

  • Come and join the programme

    29 Apr 2002

    Recent issues of this column have focussed upon three key points. The first of these is the recommendation that any mortgage advisers who have put off studying for a mortgage advice qualification should not do so any longer, given the imminence of the December 31 deadline and the repeated warning from the MCCB that this deadline will not be put back. The second key point is that experience alone is not sufficient to pass the exams. The third point is that a crucial early step in effective ...

  • Commission-hungry brokers caught in 'shark' attack

    29 Apr 2002

    Intermediaries who sell long-term non-transferable single-premium ASU policies to sub-prime clients are nothing more than "commission-hungry sharks" and should be ousted from the market. This is one of many issues raised in correspondence to Mortgage Strategy this week. Brian Humphreys, managing director of Somerset-based 1 to 1 Mortgages, says that a five-year ASU policy is inappropriate for sub-prime clients, who would in most cases move over to a prime lender after a few years. He ...

  • Credit-card spenders rediscover art of debt management

    29 Apr 2002

    An analysis of UK debt has shown that UK borrowers are staring to reduce overall levels of credit card debt. According to research by the Halifax, the UK's largest issuer of new credit cards, the UK has actually started to reduce its overall credit card debt during the first two months of 2002. In January and February 2002, UK credit card holders spent just £5m more than they actually paid off on cards. Figures from the Bank of England figures also reveal that ...

  • Des res shortage hits prices

    2 May 2002

    A shortage of properties coming on to the market could be helping to sustain the current high level of house price rises, says the National Association of Estate Agents (NAEA). The market shows no sign of slowing and NAEA members across the country are reporting that the numbers of new instructions are failing to match demand, with house prices continuing to rise well ahead of the rate of inflation. NAEA chief executive, Hugh Dunsmore-Hardy, says: "Our latest survey of ...

  • Direct Line to early retirement

    29 Apr 2002

    Over half of us (54%) would retire earlier if we could pay our mortgage off quicker, suggests a survey undertaken on behalf of Direct Line Financial Services. Data collected by ICM Research found that while 80% of respondents aspired to retiring at the age of 60, less than half of us (49%) believe they will be able to do so. The findings come as Direct Line Financial Services announce the launch of its current account mortgage, the Direct Line One account. Flexible repayment ...

  • Dunfermline sign lending agreement with Mortgages PLC

    1 May 2002

    Mortgages PLC has agreed an introducer arrangement with Dunfermline Building Society in a continued drive to expand its distribution network. Mortgages PLC has solidified this arrangement by offering exclusive products for Dunfermline to distribute. Through its regional sales force, the Society will actively promote these Mortgages PLC products. Trevor Pothecary, chief executive of Mortgages plc, explains the significance of the agreement. He says: ...

  • Finding a mutual role in a niche market

    29 Apr 2002

    Q: How is Market Harborough Building Society (MHBS) structured? A: Market Harborough Building Society was founded in 1870 and is the 33rd largest of the 66 remaining UK building societies. The society has assets of £325m and employs 100 staff through a network of nine branches. It is headed by chief executive Philip Dearing. Senior staff are deputy chief executive Michael Parrott, general manager of systems and compliance Paul Beardsmore, assistant general manger for IT Neil ...

  • FSA establishes e-money monitoring regime

    29 Apr 2002

    The FSA today set out a new regime last week for the regulation of e-money issuers, following consultation with the finance industry. In addition to protecting consumers, the new regime is expected to boost innovation in e-commerce, and will take effect from 27 April 2002. David Strachan, director of Deposit Takers, says: "We have enjoyed an excellent dialogue with industry and other interested parties throughout this consultation. That has resulted in a regime that will ...

  • FSA hosts terrorist finance seminiar

    29 Apr 2002

    The Financial Services Authority hosted a seminar last week on the fight to combat terrorist finance. Delegates from the National Criminal Intelligence Service's (NCIS) Terrorist Finance Team, Special Branch, the Bank of England Financial Sanctions Unit, Treasury and financial services industry representatives were present at the event, in addition to senior compliance officers from major UK firms. Carol Sergeant, Managing Director of Regulatory Processes and Risk ...

  • FSA to widen range of unit trusts and OEICs

    1 May 2002

    The FSA has published a consultation paper on changes intended to improve consumer choice by widening the range of investments permitted in UK authorised collective investment schemes, such as unit trusts and investment companies with variable capital (formerly known as OEICs). The proposals will also allow for the introduction of "limited issue" and "guaranteed" funds to enable firms to offer new products which offer some protection against unit price falls. The main ...

  • FSA whistleblowing line goes live

    2 May 2002

    The FSA yesterday launched a dedicated whistleblowing telephone line and e-mail address. It is for use by those working in the financial services industry who have concerns about possible wrongdoing at their workplace and who have been unable to raise or resolve them internally. Guidance encouraging all FSA-authorised firms to bring in procedures that workers with concerns can use to blow the whistle internally is also available. FSA managing director Carol ...

  • Genesis experiences massive growth

    2 May 2002

    Genesis Home Loans, the correspondent lender, has experienced huge growth over the past 12 months, with the amount of mortgage business written in the first quarter of 2002 totalling 800% of the amount written in the same period last year. Having exceeded all its targets for the first quarter, the company now expects to write over £200m in mortgage business this year, rising to £320m in 2003. Nigel Gardner, Genesis's director of operations, says: "The ...

  • Girlfriend of convicted drug smuggler guilty of buying properties with drug money

    1 May 2002

    Jill Fuller, partner of convicted drug-gang leader Michael Tyrell, has been found guilty of knowingly laundering money and buying properties from the proceeds of drug-smuggling activities. Customs Law Enforcement officers arrested Fuller in October 2000 for her part in laundering the proceeds of her partner's illegal activities. Tyrell was also arrested in October 2000 for his part in a £90m cocaine-smuggling attempt and was sentenced to 26 years imprisonment on March ...

  • Going for gold

    29 Apr 2002

    I recite here an old adage, which goes something like this. It was said that during the gold rush of 1849 in America, the people who collectively made the most money were the providers of various services and the sellers of equipment, rather than the miners and others who dug for gold. So it is with the new regulation of the mortgage market. Those who stand to gain the most will be service providers such as the FSA, networks, compliance officers, PI insurers and so on. The ...

  • Homebuyer confidence at two-year low

    29 Apr 2002

    Homebuyer confidence has fallen to its lowest level since peaking in Winter 2000, with only 12% of the population now planning to move within the next two years. The decline is recorded in Alliance & Leicester's quarterly movingimproving index. Alliance & Leicester's quarterly study in Autumn 2001 was the first to report the impact of the events of September 11 and, despite optimistic predictions for the Spring, the latest survey shows that home buyer confidence has not ...

  • Hometrack survey reveals soaring London house prices

    30 Apr 2002

    Hometrack's April monthly survey of London properties reveals that house prices have risen by 1.7%. Following March's rise of 1.8% and February's rise of 1.7%, this gives an increase in London for the year to date of 5.4%. Evidence from hometrack's London Demand index shows that demand continues to exceed supply. House-price rises are reported in all boroughs, but those in more affordable, non-central boroughs significantly outpaced the more expensive central ...

  • Housing boom 'won't lead to rate rise'

    30 Apr 2002

    The Bank of England last night hinted that the current boom in house prices won't lead to an imminent rise in interest rates The Bank's Deputy Governor David Clementi says he is not convinced that there is a dangerous bubble in the housing market which would justify a rate rise. Interest rates have been held at 4% since November, and the City has been forecasting a rise to reign back both the booming house market and consumer spending. Clementi says: "On ...

  • igroup announces new appointments

    30 Apr 2002

    Igroup has announced three new senior executive appointments. Andrew Moore, previously responsible for the post-acquisition integration of igroup and Midland & General into GE Capital's Global Consumer Finance (GCF) business, takes on the role of quality director. Previously integration director, Moore will now develop the strategy for, and oversee the roll out of, the Six Sigma Quality programme for igroup. Simon Deane-Johns joins GE Capital GCF as Legal & Compliance ...

  • Intermediary Response

    29 Apr 2002

    An increasing number of homeowners facing a move are now looking to let their existing property rather than sell it. This turns an existing home into an investment opportunity, rather than capital, which becomes the deposit for a new home. Unfortunately for Sasha, a bankruptcy discharged two years ago and an unsatisfied CCJ for £1,800 means that high-street lenders are unlikely to be prepared to help. National Guarantee would look towards the specialist non-conforming lenders ...

  • Judgement day for B2L

    29 Apr 2002

    The buy-to-let market has enjoyed a boom over the last seven years. Since the first buy-to-let scheme was launched in 1995, the market has grown to a massive £14.7bn. Over the last two years that growth has accelerated in terms of value, increasing by a staggering 126% and outpacing the mortgage market as a whole. Indeed, statistics released by the Council of Mortgage Lenders show that more than 41,000 buy-to-let loans were completed in the second ...

  • Leads for sale from Mortgage 2000

    29 Apr 2002

    Mortgage 2000 is creating an alliance of small and medium-sized mortgage professionals to take leads generated off consumer-facing websites powered by its subsidiary moneysupermarket.com. Stuart Glendinning, director of moneysupermarket.com, says: "We are dividing the whole of the UK into postcoded territories of around 70,000 households." Intermediaries can apply to have an exclusive territory, so that any leads generated by websites can be directed to them. Mortgage 2000 ...

  • Leeds & Holbeck launches first-time buyer mortgage

    2 May 2002

    Leeds & Holbeck Building Society has launched a new first-time buyer loan. The product offers a 1.5% discount for two years, with a pay rate of 4.25%. There is no arrangement fee, £500 cashback, no higher lending fee (MIG) up to 95% of property value, and refunded valuation fees up to £250 on completion. Borrowers redeeming the mortgage in the first five years will pay four months interest at standard variable rate (currently 5.75%) in the first year; then ...

  • Legal & General launches housebuyer protection

    30 Apr 2002

    Legal & General has launched Buyer's Protection with SmoothMove, which provides cover against problems during the house-buying transaction. The product offers protection against factors that cause the transaction to fail and against things going wrong on the actual day of the move. Scenarios covered included: being gazumped by someone with a higher offer; the withdrawal of the vendor for reasons other than unreasonable conduct or delay on the part of the buyer; losing ...

  • Lender Response

    29 Apr 2002

    The key points about this case are obviously the bankruptcy and the CCJ. Although both would create difficulties for a lender using a 'factory' tick-box process, lenders like Future Mortgages, who use individual underwriting assessment, can view these items quite happily within the context of the overall case. The next criteria issue comes with the requirement for a buy-to-let mortgage on the current property. Although the buy-to-let market has flourished, there is still a great ...

  • Lenders move to review product ranges

    29 Apr 2002

    The Mortgage Business, Mortgages PLC, UCB Home Loans and Royal Bank of Scotland have launched new product ranges or reviewed their existing offerings. Mortgages PLC kicked off the week with a new product range covering light, medium and heavy adverse, as well as right-to-buy and buy-to-let. Meanwhile, UCB Home Loans changes its range from today, replacing discount deals with tracker mortgages and adjusting fixed rates. The Mortgage Business and Royal Bank of Scotland have also ...

  • Market Harborough invests in new CRM solution

    2 May 2002

    Rubicon Software has won the contract to implement customer relationship management (CRM) at Market Harborough Building Society. Philip Dearing, chief executive of Market Harborough, believes CRM can be used as a cost-effective business system in a small society. He says: "We went through a long and thorough process of selection from a shortlist of ten suppliers before making this decision. "This project represents a significant investment for us. Rubicon Software's ...

  • Mixed signals for ARLA survey

    29 Apr 2002

    Buy-to-let property values have increased by an average of 9.5% since November 2001, research from the Association of Residential Letting Agents reveals. Residential properties have increased in value from £143,000 to £156,000 since November, with 64% of respondents saying the average buy-to-let property in their area was worth over £100,000. The value for the South East was £185,300 compared to £99,300 for other regions, with a higher price growth rate ...

  • Mortgage man moves mountain for client

    29 Apr 2002

    A mortgage broker on an Army training exercise in the Scottish highlands had to surrender his arms and then climb a mountain so he could complete an urgent deal for a client. Nick McEntee, managing director of Kent-based NPM Financial Management (pictured), is also a captain in the Territorial Army. While training in a remote part of the highlands he was called by a client who needed their mortgage sorting out there and then. McEntee told Mortgage Strategy: "There was hardly any ...

  • Mortgage Talk helps estate agencies achieve Mortgage Code compliance

    30 Apr 2002

    Mortgage Talk, the largest independent mortgage broker in the north of England within the Legal & General network, has devised a scheme aimed at helping estate agents acheive the impending Mortgage Code compliance regulations. Proposed regulations due to be implemented by the Institute of Financial Services (IFS) require that anyone providing unsupervised mortgage advice must complete their Certificate in Mortgage Advice and Planning (CeMAP) prior to the end of 2002. Unless they ...

  • MP calls for cheaper homes

    29 Apr 2002

    An MP is calling for more affordable housing to be made available to public-sector workers in areas of high house prices. Adrian Sanders, Lib-Dem MP for Torbay, has so far collected 26 signatures of support from other MPs. He says: "There has been extra money put into public services, but unless the severe lack of affordable housing in large parts of the country is addressed, it will remain difficult to recruit staff and achieve many of the government's Budget targets. "This ...

  • N&P'S green mortgages go flexible

    30 Apr 2002

    Norwich and Peterborough Building Society is adding flexible features to its deals for environmentally conscious home-buyers. For every green mortgage sold, N&P plants 40 trees which off-set the equivalent of one property's harmful greenhouse emissions for five years. N&P launched its first green mortgage in 1998. Just two years later in July 2000, N&P became the first mortgage lender to offer a Carbon Neutral mortgage - an off-shoot developed in association with ...

  • NAEA lobbies government for fairer stamp duty

    2 May 2002

    The National Association of Estate Agents (NAEA) will keep lobbying the government for changes in the stamp duty system. Hugh Dunsmore-Hardy, chief executive of the NAEA, says: "With house prices rising rapidly Stamp Duty is becoming an increasing burden for more and more homebuyers. "The government's latest changes give relief in only a few areas of the country. The reform we advocate would create a much fairer system and we will continue to press for substantial ...

  • Network next move for mortgage distributor

    29 Apr 2002

    Mortgage Next is considering becoming a mortgage network. Last week, the south London-based 'independent mortgage distributor' added Nationwide, Britannic Money and SPML to its lender panel and is currently considering the network option. Martin Maynard, managing director, told Mortgage Strategy that a network service including full compliance was "a very real prospect" but added that no definite steps would be taken until plans for depolarisation and regulatory reform become ...

  • New face for savings and investment marketing team at Birmingham Midshires

    3 May 2002

    Alex McDougall has joined the Birmingham Midshires marketing team as planning and analysis manager. He moves to Birmingham Midshires after 10 years with Bristol and West. In his newly created role, McDougall takes responsibility for strategic and tactical planning. He says: "Financial services is a fast moving and competitive market. It's important that Birmingham Midshires is flexible to respond to these demands - particularly the changing needs of our ...

  • New MD at Legal & General Property

    3 May 2002

    Legal & General Property has appointed Mark Creedy as managing director, and he will take up his new post in September. Creedy joins Legal & General Property from Chartwell Land plc, the property company subsidiary of Kingfisher Group where he has been managing director since 1994. Legal & General Property has a property portfolio of around £5bnb of UK real estate. It is headquartered in the City and is owned by Legal & General Investment Management. Mark ...

  • Norwich Union offers special Northern Rock Together deals

    1 May 2002

    Norwich Union is to offer two exclusive Northern Rock mortgage products. All applicants who apply through Norwich Union for one of the Together or Together Connections flexible mortgage products available from Northern Rock will not be charged the normal administration fee of £125. This offer is only applicable for a limited period. This offer comes as a result of Northern Rock joining the Norwich Union IFA Mortgage Club Panel of lenders on the April 1 2002. Jon ...

  • Openplan reveals a new prudent but reckless generation

    1 May 2002

    A report commissioned by Openplan from Barclays, in association with the Henley Centre, suggests that Britain has become a nation of 'changeoholics' who believe in spending, saving and borrowing simultaneously. The report, which is issued to coincide with the start of the Queen's Golden Jubilee celebrations in May, compares life today with the way lived 25 years ago when we were celebrating the Silver Jubilee. The 'changeoholic' is constantly striving to improve ...

  • Origo to become sponsor of adviser.tech

    2 May 2002

    Origo Services is to take a major sponsorship at all four adviser.tech events in 2002, beginning in June with the launch event at the G-Mex centre in Manchester. Origo will use the opportunity to promote its OSIS initiative, aimed at improving security standards for the industry, with a presentation on this from its chief executive, Sandy Neilson. Since the launch of the adviser.tech initiative in March this year, 26 exhibitors have now confirmed their attendance of ...

  • Platform Home Loans expands business development team

    1 May 2002

    Platform Home Loans has appointed two new business development managers to its sales force. Ross Deacon has been promoted internally to business development manager for the South Coast region. Ross has worked for PHL's sales department for four years, most recently as a telesales team leader where among his duties he was responsible for supervising the telesales team. Ross has 10 years experience in the mortgage market, having previously worked for Trafalgar ...

  • Product threat for churning intermediaries

    29 Apr 2002

    Lenders could crack down on intermediaries who churn mortgage books and who file incomplete applications by limiting access to their products in a bid to cope with high business volumes. The idea of imposing limits was touted at a Council of Mortgage Lenders seminar on Tuesday last week. Speakers at the seminar - The changing structure of the UK mortgage market - included Stephen Knight, chairman of GMAC-RFC, John O'Brien, group co-ordination manager at PMPA, Gary Brebner, a ...

  • Purple 3 man takes job with National Guarantee

    29 Apr 2002

    Uresh Patel has joined Birmingham-based National Guarantee PLC's intermediary sales team as a senior sales consultant. Patel, who used to work at packager Purple 3, will be responsible for meeting the short, medium and long-term needs of National Guarantee's army of mortgage intermediaries. He will also look to build new relationships with mortgage brokers and IFAs as the company - a leading correspondent lender and packager - grows the size of its national ...

  • Record increase in house prices

    30 Apr 2002

    Nationwide Building Society says house prices rose by 3.4% during April - their highest monthly increase since records began. Nationwide says the increase was probably only matched by a few isolated months in the late 70's and 80's. The jump pushed annual house price inflation to 16.5%, while the average price of a house is now £100,473. Alex Bannister, Nationwide's group economist, says: "This means that UK house prices have risen by just over ...

  • Regulation must be "clear, proportionate and cost-effective" says CML

    1 May 2002

    The Council of Mortgage Lenders yesterday called on the Treasury to ensure that its proposals for mortgage regulation are appropriate to the needs of consumers and do not burden the industry and its 11 million customers with unnecessary costs. In its response to the Treasury consultation document Regulating Mortgages, the CML welcomed the commitment of the government and its proposed regulator, the Financial Services Authority, to take a proportionate and cost-effective approach ...

  • Regulation-busting scheme launched

    29 Apr 2002

    A web-based sub-prime mortgage broker is offering a scheme that may allow unregulated brokers to remain in business after the December 31 training deadline, Mortgage Strategy can reveal. Maurice Edgington, chief executive of Oxfordshire-based e-mortgage-uk.com, will accept client leads from brokers who have not qualified to provide mortgage advice. His company will offer advice to these clients, based on information provided by the failed brokers, who will then produce information ...

  • Scottish Widows offers CeMAP help

    2 May 2002

    Scottish Widows Bank has enhanced its ongoing commitment to support advisers seeking to obtain the necessary mortgage qualification by providing a help facility to offer advice on areas of the Cemap syllabus. Intermediaries studying for their Cemap papers can receive answers to their queries by e-mailing cemap.help@scottishwidows.co.uk. Scottish Widows Bank's team of specialist mortgage advisers will then provide specific guidance to help with any problematic areas. As ...

  • Sources of influence

    29 Apr 2002

    I write in response to your comment concerning the CML's draft response to the Treasury on the role of packagers (Mortgage Strategy, April 15 2002). Firstly, let us separate those packagers who also deal directly with the client - it goes without saying that these organisations should be regulated. It is my belief that other packagers who deal purely on a business-to-business basis should not be regulated. Your argument for including packagers centres on the fact that packagers ...

  • Specialist mortgages to increase over next five years

    2 May 2002

    Preferred Mortgages' latest Sub-Prime Mortgage Report reveals that traditional mortgage lenders are too cautious Nearly two thirds of IFAs and mortgage brokers believe traditional lenders are too cautious with their lending criteria and 61% predict there will be dramatic growth in the sub-prime mortgage market over the next five years. These are some of the findings from the Sub-Prime Mortgage Report, commissioned by Preferred Mortgages, and conducted amongst more ...

  • Staffordshire Building Society launches Budget Beater mortgage

    1 May 2002

    Staffordshire Building Society is launching a mortgage product that helps pay for the cost of stamp duty when homebuyers move house. The Budget Beater mortgage is a discount mortgage that gives borrowers lower payments in the first three years. The product offers a 1.25% discount off the Staffordshire's SVR (currently 5.74%) for three years or, if the society's building and contents insurance is not taken out, a 1% discount for three years. Stamp duty, ...

  • Switching bank accounts 'could save consumers millions'

    3 May 2002

    Customers of the UK's four biggest banks pay too much for poor services and could save half a billion pounds by switching their accounts, consumer rights campaigners claim. Of the 35 million people with current accounts in the UK, 25 million of them bank with the big four - Barclays, HSBC, Lloyds TSB and NatWest. If all 25 million switched to rival Internet and high street banks offering better interest and overdraft rates, they could save about £500 million, ...

  • The Derbyshire launches New Horizon

    2 May 2002

    Derbyshire Building Society has launched a new mortgage aimed at customers who wish to overcome previous financial difficulties. The New Horizon mortgage opens up borrowing opportunities to people with previous occasional arrears or minor county court judgements. The product has a rate of 0.25% above the SVR for three years. It reverts to the SVR after three years. There is a booking fee of £75 and a further £320 is payable on completion or may be added to ...

  • The hunting of the Shark

    29 Apr 2002

    During the last two weeks I have interviewed two lots of clients who have encountered 'commission-hungry sharks' and been given the following appalling advice in order to maximise broker commission. Case one surrounds the old mis-selling scandal. My now clients, a 50-year old lorry driver and his wife, approached Mr Shark with a view to raising some cash to save the business and avoid the lorry being repossessed. They were advised on a GMAC-RFC adverse remortgage with an endowment. ...

  • The Marketplace launches discount cap deal for remortgages

    2 May 2002

    The MarketPlace at Bradford & Bingley has launched a discounted, capped rate mortgage, funded by the Portman Building Society, specifically for the remortgage market. There is an initial rate of 4.15% (APR 5.5%) which is guaranteed not to rise above 6.49% before June 2005. There is a 1.5% discount off the SVR until April 1 2005. The deal is available for loans up to 75%. There are free valuation, free legal fees and arrangement fee that can be added to the loan. Redemption ...

  • The Mortgage Partnership widen distribution channel

    2 May 2002

    Packager The Mortgage Partnership is to increase the size of its intermediary distribution channel. TMP is looking to sign-up at least 50 intermediary organisations to market niche mortgage products to the public. This represents a 20% increase in the company's current distribution structure. John Mawdsley, director of TMP, says: "The decision to widen the company's distribution channel comes hot on the heels of the success generated by New Start, a TMP mortgage ...

  • This week's problem case

    29 Apr 2002

    Sasha is a web page designer who suffered difficulties five years ago when a bankruptcy order was registered against her. This was discharged in full two years ago. Sasha had a CCJ for £1,800 18 months ago. She wishes to buy a new residential property for £100,000, borrowing £63,000, raising the £37,000 deposit by remortgaging her current flat on a buy-to- let basis. The value is £90,000 with an existing mortgage of £20,000, taking ...

  • Use of technology to increase as a result of CP121 says new research

    2 May 2002

    The financial services industry is likely to see an increase in the use of technology if the current proposals in CP121 go ahead. The findings are the result of a survey of 40 providers, actuaries and consultants at a depolarisation industry briefing hosted by Marlborough Stirling. Some 77% of respondents thought the use of technology would increase, with 20% saying it will stay the same and just 3% saying it will decrease. Around 69% quoted technology services as ...

  • VirginOne sets Hare running

    30 Apr 2002

    VirginOne has appointed Rudi Hare as a business partnership manager for the south west of England. Hare has been with the VirginOne account in a number of sales roles since April 1998. He will be responsible for developing the VirginOne account business in the south west of England and will be based in Bristol. Anthony Richardson, national partnership manager at VirginOne, says: "Rudi will extend our reach across England and make sure intermediaries in the area get an ...

  • Wag the dog

    29 Apr 2002

    I am writing in response to the article in your April 2 edition entitled 'Broker's virtual estate agency seeks franchisees'. I would like to reply to Mr Alan Snowball of Countrywide Assured Franchising's comments within the aforementioned article. Sorry it has taken me so long to reply, but I have only just stopped laughing. Mr Snowball says: "If mortgage brokers are prepared to work until 8pm doing viewings then they will be successful as estate agents". Does he ...

  • Wesleyan signs new partnership agreement with Mortgage Next

    30 Apr 2002

    Wesleyan Home Loans, a subsidiary of Wesleyan Assurance Society, has signed a new agreement with mortgage network Mortgage Next. After the formation of this partnership Wesleyan Home Loans will trade for new business as Wesleyan Mortgage Services. From May 1 2002, a specialist Mortgage Advice Desk will be set up by Wesleyan Mortgage Services to handle all new mortgage and re-mortgage enquiries. This will provide advice and access to a range of home loans from a panel ...

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