Mortgage Strategy
29 March 2004

  • 48 hours to apply for discounted FSA authorisation

    30 Mar 2004

    The FSA is reminding mortgage intermediaries that they have until midnight tomorrow to apply for direct authorisation to benefit from the discounted application fees. After March 31 intermediaries will be required to pay the standard application fees based on annual turnover. IFAs seeking a variation of permission to include mortgages and general insurance will be charged 50% of the fees listed for their fee band. Firms missing the March 31 deadline risk waking up at ...

  • A view from the floor

    29 Mar 2004

    Leeds & Holbeck launched its range of 15, 20 and 25-year mortgages in response to the challenge laid down by Gordon Brown in the 2003 budget. We also agree with him that the UK mortgage market needs better financial education which we believe will encourage more people to take out long-term fixed rate mortgages as opposed to riskier (from a budgeting and affordability perspective) short-term offers. Our long-term fixed rate is priced at only 5.99% which is the same as most ...

  • Abbey launches 15-year fixed deal at 5.74%

    1 Apr 2004

    Abbey has launched a 15-year fixed rate mortgage with a rate of 5.74%. Abbey says it supports the view that long-term fixed rate mortgages give people more choice. It believes the rate will appeal to people seeking the reassurance of knowing exactly what their mortgage payments will be over the long-term, regardless of any changes to the Bank of England base rate. The 15-year fixed rate mortgage is fully portable. This is the second initiative Abbey has undertaken in ...

  • Accord launches online AIPs through Trigold

    31 Mar 2004

    Accord Mortgages has launched an online connection for approvals in principal through Trigold. Intermediaries who utilise the sourcing system to select an Accord product will be able to proceed to an online AIP automatically and to a full application within the Accord system.

  • Aiming to let brokers express themselves

    29 Mar 2004

    Mortgage express Mortgage Express was formed in 1986 as a subsidiary of TSB Bank and purchased by the Bradford & Bingley Group in 1997. It is a specialist intermediary lender operating in all major product areas including buy-to-let, self-cert, equity release, flexible and 100% mortgages. It is the UK's biggest buy-to-let lender, a position it has held since 2001. Mortgage Express entered the equity release market in October 2003 with the launch of its Lifetime Mortgage. ...

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

    29 Mar 2004

    What are the options for changing my mind about my regulatory status in the future? Andy Young is head of mortgage services at Sesame There is nothing to prevent a firm from changing its status in the future, subject to the usual requirements of applying to the FSA or a network. Chris May is director at Mortgage Times If you choose to become an AR of a network, all contracts differ and some have notice periods of up to 12 months. The FSA says ...

  • Apply now and don't be an April Fool

    29 Mar 2004

    "To miss one deadline may be regarded as a misfortune. To miss both looks like carelessness." OK, that's not exactly how the quote goes but it does fit mortgage intermediaries' current FSA application position perfectly. From Wednesday, the FSA will no longer offer the early application discount thus far available to intermediaries seeking authorisation. While firms that miss out on the discount may curse their tardiness, those still planning to apply should approach April ...

  • Apply now while the going's not bad

    29 Mar 2004

    The FSA did a good job of making sure advisers knew that they should apply before the end of March if they wanted to be directly regulated. Well, it had to. After all it was in its interest as well as ours to make sure that applications were received in plenty of time. However, what brokers do not know is that if they want to join a network, time is already running out. It would be a brave broker who leaves their network application much beyond the end of May. The FSA has laid ...

  • B&W launches buy-to-let tracker

    29 Mar 2004

    Bristol & West Mortgages has launched a buy-to-let tracker mortgage available at Bank base rate plus 1.15% for the term of the loan, with no early repayment charges and LTV up to 75%. B&W says rising property prices, a volatile stock market and low interest rates have led to something of a mini-boom in buy-to-let in the UK over the past few years. Council of Mortgage Lenders figures show the demand for buy-to-let last year was higher than ever with the number ...

  • B&B launches student let service

    2 Apr 2004

    A dedicated student let service has been launched by Bradford & Bingley aimed at investor landlords looking for new buy-to-let avenues. VarsityLets is the brainchild of Bradford & Bingley Letting Agents providing a specialist letting and management service for those considering investing in student property. The company believes landlords can expect to secure rental yields on average of 2% higher than the traditional letting market and it also offers ...

  • B&W lowers rates on three-year self-cert fixes

    31 Mar 2004

    Bristol & West Mortgages has lowered the rates on two of its three-year self-cert fixed mortgages at 75% and 90% LTV. It is also providing a cashback facility on mortgages available at 85% and 90% LTV, to help brokers' clients with the extra costs involved in house buying. On its 75% LTV three-year fixed mortgage at 4.99% the rate has been reduced from 5.15% to 4.99%, reverting to Bank base rate plus 1.75%. On the 90% LTV three-year fixed mortgage the rate has been ...

  • B-A reveals details of network offer

    29 Mar 2004

    Burns-Anderson has revealed its network offering for mortgage advisers looking to become appointed representatives or go directly authorised. The network has no upfront fees but takes a 10% cut of all proc fees. For this brokers gain access to either whole of market mortgages or a lenders' panel, MCCB authorisation up to regulation, comprehensive PII cover, training and development support and the option to aggregate commissions with investment business. John Hayden, ...

  • Bankhall Point One adds Trigold to systems array

    29 Mar 2004

    Bankhall Point One has added Trigold's Prospector Plus system to the range of sourcing systems available for use by its members. Trigold joins rivals Mortgage Brain and M2000 as a system now available to members of Bankhall, Premier Mortgage Services and Paymentshield. Each member firm can receive one copy free and order additional copies through Bankhall Point One. They can also add the integrated Compliance Shield monitoring and auditing system to their package. Mike ...

  • Banking-Insurance Services launches AR scheme

    4 Apr 2004

    Banking-Insurance Services has launched its appointment representative scheme. The firm already has appointed representatives under MCCB regulation, and intends to offer a similar service under the new rules from the October 31 2004. Services include: ? Mortgage sourcing and packaging ? ASU scheme ? Life & critical illness insurance ? General insurance ? Mortgage, term & healthcare leads Benefits include: ? Free MCCB/FSA registration ? ...

  • Be sure to read up on life assurance

    29 Mar 2004

    The examination for CeMAP paper one is guaranteed to contain questions on life assurance. Whilst mortgage advisers will have some knowledge of the subject from their day-to-day work, e.g. arranging decreasing term assurance for borrowers with repayment mortgages, such experience will not be sufficient to gain the required marks in the exam. Therefore students must undertake a proper programme of study rather than rely on experience to be sure of a pass. A life assurance policy ...

  • Benchmark study again this year

    29 Mar 2004

    Marlborough Stirling is to repeat its mortgage benchmarking study that enables lenders to identify and analyse their competitive position within the industry. The study, to be launched in May, has again been developed in consultation with the Council of Mortgage Lenders. The study benchmarks the point of sale and application processing stages of the mortgage process to enable participating lenders to understand and compare their costs of processing, quality of service ...

  • BISL launches lead generation website

    30 Mar 2004

    Banking-Insurance Services Limited has launched a website providing mortgage-specific leadgeneration on a 'no sale no charge' basis. BISL is a website designed for surfers looking for help within financial services. It is aimed at a range of people with different needs, but primarily focussing on lead generation and associated products for mortgages. Brokers pay BISL £100 for every lead that results in business. BISL says when an enquiry is made via ...

  • Borrowers gambling on housing boom, say Lib Dems

    30 Mar 2004

    Liberal Democrat shadow chancellor Vince Cable has warned that homebuyers are gambling on the house price boom as lending to individuals increases further. Commenting on the Bank of England figures, which shows lending to individuals grew by £10.7bn or 1.1% in February, Cable says: "This rise in lending comes on the back of an unsustainable house price bubble. Large numbers of people are gambling on the house price boom - a gamble they may regret if house prices start to ...

  • BoS blushes over porn lending deal

    29 Mar 2004

    The Bank of Scotland has issued a public apology after it admitted to part-funding the purchase of 45 pornographic titles from publisher Richard Desmond, but is refusing to pull out of the deal. The bank has promised to review its lending policy after it confirmed it had extended more than £5m of debt financing to Remnant Media to buy the adult magazines from Desmond's portfolio. The titles include Asian Babes, Readers' Wives, and 60 Plus. In a press statement ...

  • Britannia completes securitisation deal worth £704m

    31 Mar 2004

    Britannia has completed a securitisation deal worth £704m. The securitisation, in the Leek programme Leek Finance Number Twelve PLC - LFL12, had total value of bonds standing at 389.1m The mortgages sold to LFL12 included mortgage loans originated by Platform, Britannia's non-conforming subsidiary lender.

  • Brits turn to cabbies to talk about money problems

    31 Mar 2004

    Fast living Brits are being forced to turn to cab drivers to let off steam about everyday pressures such as work, finance and family life, a poll by The One account reveals. Surveyed cabbies said the rising property market topped the list of financial topics of their fares followed by pensions and mortgages, while 5% of cabbies found passengers wanted to strike up a conversation about money issues. Only 1% said passengers wanted to talk about their love lives. A quarter ...

  • Calls for Halifax clarification

    29 Mar 2004

    Brokers have called on Halifax to clarify its lending criteria as these appear to have tightened over the past few weeks. The lender insists that nothing has formally changed but brokers say that Halifax criteria published on sourcing systems do not tally with how cases are being handled. Dave Rogers, a sole trader at Exmouth-based Intermortgage, says Halifax has either rejected or offered surprisingly tough terms on a number of recent clean cases. He says: "There ...

  • Capital Home Loans makes Midlands appointment

    31 Mar 2004

    Capital Home Loans has appointed Paul Gripton as its business development executive for the Midlands. Gripton joins CHL from Birmingham Midshires where he worked as a senior credit consultant. Prior to that he was employed as an independent financial adviser for a small company and a mortgage consultant for a large network. He replaces Chris Potts who left Capital Home Loans to set up on his own as a packager.

  • Complete Network warns advisers to keep up with MCCB compliance

    31 Mar 2004

    The Complete Network has warned adviser firms they must keep with up their MCCB compliance as FSA authorisations are being considered. Complete's network director and head of compliance Bill Warren says: "All mortgage intermediary firms, whether they are opting for directly authorised or appointed representative status, must be careful to remain MCCB compliant right up to October 31, in order qualify for due credit from their MCCB registration to the new FSA jurisdiction. "Having ...

  • Concern over low level of FSA applications

    29 Mar 2004

    Networks and the Mortgage Code Compliance Board are concerned about the low level of applications from brokers for FSA authorisation, despite the incentive of a discount for early online applications. This Wednesday sees the end of the early application discount but only 2,100 forms have been completed and returned to the FSA from mortgage and general insurance brokers. This has led to fears that networks and the regulator will be swamped with last-minute applications that may ...

  • Co-op launches 10-year fixed rate mortgage

    2 Apr 2004

    The Co-operative Bank has launched a 10-year fixed rate mortgage, with an interest rate of 5.69% until May 31 2014. The fixed rate mortgage is available for house purchase and for remortgaging, with a maximum advance of 95% of the property value. For remortgages, the bank will pay legal and valuation fees. Interest on the mortgage is calculated on a daily basis, rather than by the traditional annual method. The mortgage has been designed to provide repayment flexibility, ...

  • Coventry launches Flexx capped deal

    30 Mar 2004

    Coventry has launched a Flexx capped mortgage available to first-time buyers, house movers and remortgagers from March 31. The rate stands at 0.85% above Bank of England base rate until December 31 2009, with a current applied rate of 4.85%. The rate is capped at 5.99% until December 31 2009. Key features of the product include no early redemption charges; free valuation; free remortgage transfer service; daily interest; £125 arrangement fee and £199 booking ...

  • Curriculum Vitae - Martin Maynard

    29 Mar 2004

    Name: Martin Maynard Age: 45 Company: Mortgage Next Job Title: Managing director Where do you live? Snow Hill, West Sussex Describe your current job: I jointly set up the company with my business partner, Justine Tomlinson, in 1996. My main job priority is developing and implementing the company's distribution strategy in readiness for regulation. Mortgage Next will be providing a full ...

  • Dear Dippy

    29 Mar 2004

    Dear Dippy Mike Patton is 38 and is currently going through a divorce. He wishes to move out of the marital home and purchase a two-bedroom house for £175,000. He has a steady income of £45,000 and £9,000 in savings but will have to contribute between £500 to £750 to the family home each month for the next two to three years. Dippy says: This case highlights the increasing problem faced by clients of trying to juggle a mortgage with other financial ...

  • Debt threat could bring interest rate hike

    29 Mar 2004

    During last week swap rates rose slightly. • One-year money is up 0.05% to 4.64% • Two-year money is up 0.03% to 4.76% • Three-year money is up 0.01% to 4.84% • Five-year money is unchanged at 4.91%. Evidently nobody is keen on pricing up a low five-year fixed rate even though five-year money can still be bought below 5% notwithstanding the additional Treasury and procuration costs involved. Another quiet week for rate changes ...

  • Decide soon or have no option

    29 Mar 2004

    Mortgage Day fast approaches and if you are planning on going for direct authorisation and want to save a handsome £600, you'd better move fast. From Wednesday this week the cost of applying to the FSA for DA status goes up from £500 to £1,100 if you apply online and from £600 to £1,200 for paper-based applications. On or offline, either way it's a saving that adds up to enough to buy over 30 bottles of Laurent Perrier, something that might ...

  • Duty change won't help FTB's

    29 Mar 2004

    From Dave Rogers I am not convinced that increasing Stamp Duty thresholds will help first-time buyers much. If your income is high, there are lenders out there offering 100% plus mortgages to cover Stamp Duty and other costs. The increased threshold will help but the current level is not going to be a deal-breaker. If your income is low, you are probably so far away from being able to buy that the concession would be academic anyway. And if you fall into ...

  • Easy route to second homes

    29 Mar 2004

    Brokers with clients who want to buy a second home in the sun are being targeted by Ipswich's Sunshine Mortgage. The two-year, fee-free discount mortgage is offered to clients buying a second home either at home or abroad at a rate of 4.75%, tracking Ipswich's SVR minus a discount of 1.05%. Sunshine allows borrowers to remortgage their home to finance a second home or holiday property. A fee-free package is supplied with the deal. Legal fees are paid by ...

  • Exclusive: Fannie Mae may have to restate prior years' earnings, warns US regulator

    2 Apr 2004

    Fannie Mae may have to restate prior years' earnings, the US Office of Federal Housing Enterprise Oversight has revealed. Following a forensic accounting review by its regulator, the OFHEO also noted that a restatement of Fannie's capital calculations is a possibility as well. OFHEO made the disclosure in a release on fourth quarter capital calculations of Fannie and its chief competitor, Freddie Mac. The statement concerning the possibility of a Fannie restatement ...

  • Exclusive: MPLC to go direct to consumer through mortgageforce JV

    2 Apr 2004

    Mortgages PLC is to launch a joint venture with broker mortgageforce to offer sub-prime loans direct to the consumer. Full details are due to be revealed next week but Mortgage Strategy understands that under the terms of the deal most of the 128 mortgageforce franchisees will market sub-prime loans exclusively from MPLC under a separate trading name, Spring Mortgages & Loans. Although marketed under the Spring trading name this is the first time that mortgageforce will ...

  • February lending up on 2003

    29 Mar 2004

    Latest figures from the British Bankers' Association show that gross new mortgage lending totalled £13.5bn in February, up from £11.7bn in the same month last year. The figure is 5% less than January's total but the BBA says that was expected as February is typically the slowest month of the year. And with a higher level of redemptions - reflecting people switching between lenders - the resulting rise in net lending between January and February was £5.4bn, ...

  • First equity release trading platform goes live

    31 Mar 2004

    The industry's first electronic trading platform for equity release went live yesterday on The Exchange's Exweb portal. The service has been designed to enable intermediaries to research, quote and buy equity release products and offer advice in this area of financial planning. It will help them identify which products meet their clients' needs based on personal data, property details and financial criteria. David Child, chief operating officer at ...

  • Focus Solutions launches reporting software

    2 Apr 2004

    Focus Solutions has launched a product to help mortgage, insurance andinvestment firms comply with the Financial Services Authority's reporting requirements. In the FSA's new mandatory rules for regulated it stated that as of April 1 2005 all firms involved in mortgage, general insurance or retail investment activities must provide all data relating to regulatory returns electronically to the FSA. For the first time the FSA has defined a technical reporting language ...

  • FOS will take good care of us

    29 Mar 2004

    From Bill Warren The proposed FSA funding arrangements for the Financial Ombudsman Service covering mortgage firms and general insurance intermediaries should be welcomed by all. The proposed case fee of £550 is reasonable and there will be no general levy in the 2004/05 financial year. Firms who have never experienced the workings of the FOS may be apprehensive about yet another layer of scrutiny but the FOS has a reputation for handling complaints reasonably, taking ...

  • Freedom takes over Mortgage Next

    29 Mar 2004

    Freedom Finance has taken a majority stake in network Mortgage Next and shelved its plans to launch the Freedom Mortgage Network. This comes just two months after Stephen Atkins quit his role as Mortgage Next compliance director to join Freedom to head the planned network. He now becomes compliance director of the newly formed group. Freedom Mortgage Network had not applied for authorisation or signed up any members. The deal values Mortgage Next at £22m ...

  • Friends Provident reveals details of mortgage panels

    1 Apr 2004

    Friends Provident has announced details of its mortgage panels, which are available through its Friends Mortgage World mortgage proposition. The mortgage panels cover all sectors of the marketplace and all aspects of business associated with mortgages and follows extensive consultation, research and analysis of the marketplace. The FMW panel sectors will be divided into three categories including national and regional direct, packagers and commercial. Simon Clamp, ...

  • FSA announces final reporting requirements

    1 Apr 2004

    The FSA has announced the final reporting requirements that mortgage and general insurance firms will have to adhere to when regulation comes into effect. Following consultation, the FSA has introduced several amendments to its reporting requirements, which it says will help firms meet the regulator's rules. Smaller firms that had an annual income in the previous financial year of £60,000 or less have now been excluded from the requirement to report mid-year ...

  • FSA begins issuing minded to authorise letters

    4 Apr 2004

    The Financial Service Authority has started issuing letters to firms indicating that it is minded to authorise them to carry on mortgage or general insurance business. The first MTA dispatch consisted of more than 1,000 letters.   The firms receiving MTA letters will be set to receive formal authorisation later this year unless the FSA reconsiders following significant change in their circumstances or new information emerging in the interim.   Formal authorisation notification ...

  • FSA confirms framework for electronic reporting

    1 Apr 2004

    The Financial Services Authority has confirmed the framework for integrated regulatoryreturns and that mandatory electronic reporting will be introduced for most regulated firms. David Kenmir, FSA managing director, regulatory services business unit, says: "The new system is an important development in the FSA's aim to be an organisation which is more effective and easier to do business with. "The integrated regulatory return will be based on the type of business ...

  • FSA to be kept under scrutiny

    29 Mar 2004

    Industry body The Financial Services Practitioner Panel says it will monitor how the FSA is coping with the extension of its remit to cover mortgage and general insurance firms from October. In its annual report for 2003 published last week, the FSPP, which tracks the activities of the regulator, says the final arrangements appear to be broadly workable for the sectors in question but not without qualification. It states: "Time will tell whether the sometimes prescriptive ...

  • FSA's proposals for fee structure are grossly unfair

    29 Mar 2004

    From Michael Norwood I wonder when the industry will wake up to a gross unfairness in the FSA's fee proposals. The FSA has embarked on a process of fee structuring that I think will force many smaller brokers to seriously reconsider going for direct authorisation. The fee blocks are currently split into A.18 and A.19 - one for general insurance and the other for mortgages. For the average broker this means that even using the FSA's yearly minimum fee tariffs, a firm ...

  • GISC is accused of profiteering

    29 Mar 2004

    In an unprecedented attack, the General Insurance Standards Council has been accused of ignoring excessive charges levied by payment protection providers to keep the commissions it receives from members. Simon Burgess, lawyer and managing director of Burgesses which brokers PPI from the UK's largest insurance firms, says the GISC is ignoring overcharging by firms for the sale of PPI as it rakes off exceptional profits from the sale of the policies. Research by one ...

  • Goldsmith Williams opens Liverpool HQ

    2 Apr 2004

    Goldsmith Williams marked the official opening of its new Liverpool-based headquarters with a specially arranged celebration on Friday March 29. The event, attended by the company's business partners, employees and their families and city dignitaries including the attorney general, was hosted at Goldsmith Williams' new offices in the Mersey Chambers. Goldsmith Williams' partner Eddie Goldsmith is delighted with the new headquarters. He says: "This move ...

  • Half of all brokers say they intend to take direct route

    29 Mar 2004

    Half of all mortgage brokers say they still intend to go for direct authorisation despite the deadline for the FSA guaranteeing that applications will be processed being just one month away and only 2,100 completed applications having been submitted. Research among 4,000 mortgage brokers by Whitechurch Mortgage Network, commissioned by Mortgage Strategy, reveals 51% want to go for direct authorisation. Some 32% say they are going to join a network while 17% remain undecided. The ...

  • Halifax launches cashback mortgage to help FTBs

    2 Apr 2004

    Halifax has launched a 1% cashback mortgage designed to alleviate the burden of Stamp Duty for first-time-buyers. The product comes on the back of the government's failure to reclassify Stamp Duty bands in last months' budget. With the average cost of property in the UK now over £100,000 it means the majority of first-time-buyers are now paying over £1,000 in Stamp Duty. The 1% cashback mortgage is fixed at 5.99% for five years, 97% LTV, with a refunded ...

  • Home insurance market makes five-fold turnaround into profit

    31 Mar 2004

    The UK home insurance market has made a remarkable five-fold turnaround into profit, a report by Datamonitor reveals. The report shows providers of household insurance made an estimated £778m profit in 2003 compared to a loss of £174m in 2002. Datamonitor says the sharp turnaround came from a huge drop in storm and flood-related claims. However, Andrew Birkett, Datamonitor financial services analyst and author of the report, says insurers' wariness of ...

  • House prices rise 0.7% in March

    29 Mar 2004

    House prices rose 0.7% in March, Hometrack's monthly survey reveals. The survey shows average house prices now stand at £149,800 compared to £148,500 last month. Hometrack has now upgraded its house price forecast to 8% from 4%. Strong price rises were spread across the whole country. All 52 county areas reported price rises, the highest increases being in the North with Teeside house prices rising 1.5%, Northumberland at 1.2%, Tyne and Wear ...

  • House prices rise 1.4% in March, says Nationwide

    31 Mar 2004

    Average house prices rose by 1.4% in March, Nationwide's quarterly house price report reveals. The report shows that the average house price now stands at £142,584 - 16.7% higher than a year ago. The report also reveals that the strength of house price growth over the first quarter has been widespread with most regions experiencing a pick up in growth compared to the fourth quarter of last year. London, which was worst affected by the fall in confidence at the ...

  • IFA Promotion upgrades website

    30 Mar 2004

    IFA Promotion has upgraded its www.unbiased.co.uk website to provide better service for consumers and businesses seeking local independent financial advisers. The front page of the new-look website offers visitors product-specific searches to channel them quickly through to local IFAs focusing on particular product areas. Consumers can also download product specific guides and factsheets, as well as a range of consumer-friendly information, including useful hints and tips on increasing ...

  • Interlink network goes bust

    29 Mar 2004

    Interlink Premier Network has called in administrators and is going into immediate liquidation after failing to secure a capital injection. This is being seen by some as a warning to mortgage brokers considering joining a network to check the capital adequacy of any firm before they sign up. The Cardiff-based IFA network with around 200 members ceased trading on March 19 and has contacted the FSA to cancel its network permissions. The FSA has confirmed the firm is in ...

  • Internet Insite

    29 Mar 2004

    Having been in Derby last week on my round Britain tour of mortgage broker websites, I thought I'd stay in the East Midlands with a visit to Nottingham, and three sites each with their own approach to content. Premier has gone for a two-site solution with topline information in the main site and the detail in a sister site which works well. UK Mortgage Helpline keeps to the headlines but stays in touch with its customer proposition. Money-file has inserted content from Moneysupermarket ...

  • L&G adds to senior insurance team

    2 Apr 2004

    Legal & General has appointed two members to its general insurance operations senior management team. Peter Richmond is appointed business development director. His role will encompass direct responsibility for all general insurance distribution channels, marketing and business systems. He was formerly operations and business systems director. Andrew Dawson will join Legal & General at the end of March 2004 to take on the new role of operations director for general insurance. ...

  • Lenders are net laggards

    29 Mar 2004

    BM SOLUTIONS says some lenders are up to 10 'internet years' behind with technology and that come Mortgage Day brokers will miss out due to restricted choice. It says an internet year is defined as three months in standard time due to the rapid rate of innovation in the information technology sector. That makes the prediction of 10 internet years by the HBOS subsidiary equivalent to 30 real months - around two and a half standard years. Michael Bolton, director ...

  • London focus is criticised

    29 Mar 2004

    The government's £690m plan to help key workers in London and the South-East get started in the property market has been criticised by Halifax for not tackling the problem in other parts of the UK. The aim of the programme is to keep skills needed in key frontline services, such as teachers, nurses and the police in London and the South-East where there is a shortage, partly due to lack of housing affordability. But the UK's biggest lender says this move by ...

  • Lost your data? Don't lose your cool

    29 Mar 2004

    One of the less discussed implications of regulation is that mortgage brokers will be required to demonstrate that their documents are being backed up and stored securely. If you are using a computer, laptop or electronic handheld device for business, a secure and reliable data back-up solution is a must. Failure to comply will mean serious penalties. If you find backing up onto CDs and those trips to store them off premises inconvenient the easiest and safest option is online ...

  • Marketing Brief

    29 Mar 2004

    So far in these columns I've managed to avoid the subject of regulation. There is, after all, plenty of coverage in this magazine and others, some of it not as unequivocal as it might be, without me wittering on about it. But I'm afraid it's unavoidable this week only because Kensington Mortgages has decided to provide a series of monthly guides called Business Fitness aimed at helping brokers to get their business into shape for Mortgage Day. It is because of these, as well as ...

  • MCCB reminds firms of deadline for registration renewals

    1 Apr 2004

    The Mortgage Code Compliance Board has reminded registered firms who have yet to renew their registration for the final period of non-statutory regulation that the normal renewal registration period ended yesterday. The MCCB says that renewal requests received after March 31 and up to April 30 2004 will continue to be processed, but firms may not be included on the disks issued to lenders until June. This will mean that firms risk delays in the processing of their mortgage business ...

  • MEX joins Exweb equity release trading platform

    30 Mar 2004

    Mortgage Express has joined the industry's first equity release trading platform on The Exchange's Exweb. The portal enables IFAs to research, quote and buy products for customers who would like to release the equity in their homes. The system also has the capability to limit searches to safe home income plans member products, which Exweb says will provide greater protection and peace of mind for equity release customers. Tim Sturley, head of business development ...

  • Mortgage 2000 d&p appoints general manager

    31 Mar 2004

    Mortgage 2000 Design & Processing, the packaging arm of Mortgage 2000, has appointed Vanessa Blount as its general manager. Blount will be responsible for sales and marketing and will manage all the operational responsibilities of Mortgage 2000's intermediary businesses. Blount joined Mortgage 2000 in 2001 as an underwriting manager. She joined from The Mortgage Business and has over 10 years experience in the lending industry.

  • Mortgage Intelligence to hold summer roadshows

    1 Apr 2004

    Mortgage Intelligence has announced a series of network roadshows in late June and early July 2004. MI says the scheduling of the roadshows will ensure that brokers wanting more advice about becoming an appointed representative still have time to make an informed decision and complete the necessary application procedures before October 31. MI will also be providing advice on how networks can provide compliance and other support services to directly authorised brokers. Sally ...

  • Mortgages Direct says FSA application process could take 'hundreds of hours'

    30 Mar 2004

    Mortgages Direct has challenged claims made by the Association for Direct Mortgage Authorisation that applying for FSA authorisation is a quick process. Peter Gladdy, compliance director at Mortgages Direct has questioned remarks made by the ADMA that it takes no more than 90 minutes to complete the FSA application. Gladdy says: "Our application runs to some 450 pages, and has taken us hundreds of hours with the involvement of the entire management team and, even at the ...

  • NAEA calls for more agents to join up

    2 Apr 2004

    The National Association of Estate Agents has encouraged more agents to join up and adopt its strict codes at this years' national conference. It is also launching a national advertising campaign to encourage members of the public to use only NAEA-accredited estate agents. Speaking at the conference, Michael Portillo MP acknowledged the negative imagesof businesses such as estate agency that many people have. In relation to the OFT enquiry he emphasised the similar ...

  • Network Data adds to lender panels

    29 Mar 2004

    Network Data has announced further additions to its lender panels. Scarborough and Harpenden have joined Network Data's direct to lender panel, London Mortgage Company has joined its packaged panel, Buildloan has joined its commercial panel and Barclays has joined its offshore panel. George Fleming, lender relationship manager at Network Data, says: "The development of our packaged, direct to lender, commercial and offshore panels is an essential part of our overall ...

  • Network will not take fees from proven brokers

    29 Mar 2004

    The Professional Mortgage Network has launched its propositions both for brokers going for appointed representative status and for those looking to become principals. The Leicester-based network is aiming to recruit 400 members - both ARs and principals - in the next 12 months. The proposition will not take ongoing fees from brokers with a proven record and will offer a compliance service and access to a selection of lenders and general insurance product providers. It ...

  • Newcastle launches two-year discount deal

    30 Mar 2004

    Newcastle has launched a two-year discount product. The discount rate is 2.24% below Newcastle's SVR until May 31 2006 with a maximum LTV of 90%. The deal offers a current rate of 3.80%.

  • Northern Rock reduces rates on flexible fixed deal

    30 Mar 2004

    Northern Rock has reduced the rates on its two-year flexible fixed product to 4.49% for loans up to 85% LTV. For loans up to 95% LTV, the rate is 4.99% and is free of any higher lending fee. These products are available to both purchase and remortgage customers and are fully flexible,allowing underpayments, overpayments, redraws and payment holidays. Northern Rock is also continuing to offer the 'help with costs' option of £1,000 on all products, excluding ...

  • OFT: Agents pushing services

    29 Mar 2004

    The Office of Fair Trading has found that around one in 10 estate agents are suggesting buyers would be more successful in getting the house they want if they use the financial services offered by the agent. In its report on the estate agency market in England and Wales the OFT reveals 8% of respondents to its consumer survey said their agent had implied their offer would receive favourable treatment if they obtained a mortgage through them, and unfavourable if not. The ...

  • Our new friends are a risky option

    29 Mar 2004

    Following on from last week's look at becoming a tied agent of a life company I now turn to the arguments for and against joining an IFA network as an appointed representative for mortgage and insurance sales. Over 60% of all IFAs belong to an IFA network and are technically appointed representatives of that network for the sale of investments. That's what it says on their business cards - for example: 'an appointed representative of Sesame'. So why are they ...

  • Over 4,000 delegates attend Paymentshield roadshows

    30 Mar 2004

    Paymentshield has attracted a record 4,000 delegates in the first three weeks of its series of roadshows. Graham Boulger, group managing director of Paymentshield, says: "The roadshows, which are being held throughout March and April, are designed to provide an overview of the different options available under FSA regulation. Our recent announcement of a strategic alliance with Bankhall to provide agents with a one-stop shop under the regulatory regime has proved a real boost ...

  • Pink to focus on flexible deals for self-employed

    31 Mar 2004

    Pink Home Loans has announced it is to focus on negotiating and promoting flexible deals for self-employed borrowers as the numbers of these types of workers continues to rise. Industry figures show higher levels of self-employment whilst the number of employees continues to fall. Pink says this now means that there is a greater need within the industry to provide competitive products that meet the needs of the self-employed. Pink is seeing the trend for self-employed ...

  • Platform appoints BDM for West Midlands

    29 Mar 2004

    Platform has appointed Darrell Walker as business development manager for the West Midlands. Walker joins Platform from Barclays Bank where he was corporate business manager in the West Midlands area, working with mortgage and commercial lending introducers. Walker also has experience of providing advice to customers in previous roles at the Coventry, Alliance & Leicester and NatWest.

  • Please release me

    29 Mar 2004

    Equity release is a rapidly expanding market and advisers who are failing to offer advice on these products are not only limiting their client base and services, they are missing out on a rich stream of revenue. As more pensioners find it difficult to make ends meet because of rising council tax and fuel bills and income usually only rising with inflation, the obvious decision is to release money from their home. House price rises in the past five years have been significant. ...

  • Poor policy decisions now could harm, not help, first-time buyers

    29 Mar 2004

    The last ever Sex and the City has been screened, causing much dismay in the BSA press office and much reminiscing about the antics of Carrie et al. Although we love the clothes and the apartments, it is of course pure escapism - just when did they go to work and how, on a single income, could they afford it all? And this last question is one many in the real world are asking too. Life for first-time buyers is increasingly difficult. Never mind Manhattan apartments or stylish ...

  • PR manager quits Alexander Hall

    30 Mar 2004

    Laura MacKendrick has left Alexander Hall as PR manager after spending just under two months in the newly created role. Alexamder Hall, London's largest no-fee mortgage broker, appointed MacKendrick earlier this year to support its expanding business. MacKendrick joined the broker from a charity where she was marketing communications manager having previously held the position of PR officer for Bristol & West Mortgages. She left this week with immediate effect ...

  • Preferred to launch near-prime range of deals

    29 Mar 2004

    Preferred Mortgages is planning to launch a near-prime range of mortgage products within the next two to three months. Preferred, which was acquired by financial giant Lehman Brothers last year, says the range has been designed to accommodate the growing number of borrowers that fall just short of traditional high street lending criteria but are too clean for its more traditional specialist lending products. The Haywards Heath-based lender launched its extra light range ...

  • Professional Mortgage Network unveils offering to ARs

    30 Mar 2004

    The Professional Mortgage Network has unveiled its network offering to appointed representatives. Leicester-based PMN is initially targeting a membership of 400 ARs and principals within 12 months. Its network proposition has been in development since the beginning of 2003. Among the benefits available to members are no ongoing costs to members who are active within the mortgage market and can demonstrate a commitment to setting and maintaining best practice and compliance ...

  • Questionable questions

    29 Mar 2004

    From Barry Cash You really need to sort out the source for the Mortgage Master or Mortgage Moron questions in your training section. Normally these prove useful but on two occasions I have noticed you are supplying the wrong answers. While I can spot the mistakes, others may not and this could mean the difference between pass and fail in the examinations. Can you please get the Financial Services Training College to double-check the answers it supplies to you? In ...

  • RAMP adds Commercial First to lender panel

    30 Mar 2004

    The Regulatory Alliance of Mortgage Packagers has added Commercial First to its lender panel in a bid to build its stake in the fast-growing business mortgage market. The deal with Commercial First, finalised this week, will see RAMP members target status, semi-status and non-conforming businesses with a range of commercial mortgages offering advances from £50,000 to £2m, with a maximum 80% LTV. Commercial First is the first commercial mortgage provider to ...

  • RBOS repossesses the wrong flat

    29 Mar 2004

    A woman whose property was wrongly repossessed and put up for sale by Royal Bank of Scotland is demanding compensation for the trauma she went through. Sara Hussain, 33, lives in London and owns a flat in Dennistoun in Glasgow as an investment. The problem came to a head when bailiffs were given the wrong address, 1L, rather than the correct address 1R, and repossessed Hussain's flat instead of her neighbour's. All the furniture in the flat was removed ...

  • RCH Communications to open offices in Hong Kong, Tokyo and New York

    1 Apr 2004

    RCH Communications, the marketing and PR consultancy set up by Richard Hurst last year, is looking to open offices in three major foreign financial centres. The group, which will remain under the direct control of Hurst, will be able to better serve international brands and will also provide opportunities for UK clients wishing to move into lucrative foreign markets. Richard Hurst, global chief executive at RCH Communications, says: "The phrase 'world domination' ...

  • Regulation could increase costs

    29 Mar 2004

    The equity release market is booming but smaller lenders could suffer after regulation because of rising distribution costs. Competition is steadily increasing as new players enter the market, causing margins to tighten, though equity release still offers higher margins than traditional mortgage markets. But Ged Hosty, chief executive of Equity Release Services, warns that regulation could increase distribution costs, making it more difficult for the many low-volume equity ...

  • Savills urges investors to springclean buy-to-let portfolio

    31 Mar 2004

    Savills Private Finance is urging property investors to review their property portfolios to ensure they are not paying over the odds for uncompetitive mortgage products. Savills says many property investors are currently on pay rates which are much steeper than some of the best deals currently on offer and should be remortgaging now to lower their monthly mortgage payments. Simon Jones, director at Savills, says: "Many investors come off the initial interest rate they ...

  • Scottish Widows enhances graduate mortgage

    29 Mar 2004

    Scottish Widows Bank has enhanced its graduate mortgage by extending the range of interest rate options available to include stepped discount over three years and a two-year fixed rate. The stepped discount offers a 1% discount in year one, 0.5% in year two and 0.25% in the final year off the bank's SVR which currently stands at 5.24%. The two-year fixed rate is 4.98% for loans up to 90% of the property's value and 5.28% for loans over 90%. Gordon Bowden, ...

  • Sesame and IF deny payment dispute

    29 Mar 2004

    Sesame and Intelligent Finance deny they are in dispute over money paid by the lender to join the mortgage panel of the network. An industry source claims Intelligent Finance is demanding back the amount of at least £50,000 it handed over, saying Sesame has failed to deliver the volume of business it had guaranteed. But Sesame says the money is a marketing fee and that it would never take payment in return for a certain level of business, realising this would be ...

  • Sesame announces agreements with Paymentshield and CETA

    29 Mar 2004

    Sesame has announced agreements with general insurance networks Paymentshield and CETA which will enable its members to place business with a wider range of insurers. Sesame will be delivering further efficiency gains for advisers by linking the quotation applications of Paymentshield and CETA into its adviser desktop, along with a number of mortgage sourcing tools. Martin Davis, commercial director at Sesame, says: "Paymentshield and CETA have developedefficient ...

  • Standard Life unveils proposal to demutualise

    1 Apr 2004

    Standard Life has announced it is to propose demutualisation. A proposal will be put to its 2 million members by 2006. The insurer, currently in the middle of a review of the company, has also announced it is to cut 1,000 jobs by the end of 2004. The announcement comes weeks after it was announced that about 360 of its sales team staff were to lose their jobs across the UK. Group chief executive Sandy Crombie says Standard Life will now be assessing the requirements for ...

  • Steer clear of home reversion schemes

    29 Mar 2004

    Kevin Paterson, managing director, Park Row Independent Mortgages I can think of only one reason why home reversion would be advised over equity release and even then I would struggle to be convinced. This would be where the client wants to release the maximum cash possible with no regard for the ownership of the property. But despite this the government stubbornly refuses to embrace home reversion schemes within the equity release remit, thus creating a potential loophole for ...

  • Take care when advising on this risky product

    29 Mar 2004

    Mark Mountney, managing director, Premier Mortgage Management With over £1bn advanced in 2003, is equity release now a market for all? The Treasury and the FSA should have been able to sort out the regulatory status of these deals between them and should not have created the black hole of confusion in which many advisers now find themselves. So where are we now and what should advisers do when confronted with an enquiry? It is true to say that most advisers have a certain ...

  • Taking the waiting game to the limit

    29 Mar 2004

    The Association for Direct Mortgage Authorisation says it takes no more than 90 minutes to complete an FSA application form. Even so, the FSA says that it has received just 2,100 applications for direct authorisation. The cost of applying for direct authorisation online before March 31 is £500, rising to £1,100 thereafter. For written applications, the cost before March 31 is £600 - after that £1,200. With just one week left until the discount ...

  • Tenet unveils network details

    29 Mar 2004

    The Tenet Group has unveiled details of its mortgage network, Lime - an acronym for Lifetime Insurance Mortgage Experts, with plans to sign up 3,000 members over the next 18 months to two years. It says it has a proven record in mortgages and general insurance having run its mortgage service since 2000 and already has 700 members, most of whom are also part of one of its IFA networks. The monthly charge is £95 per firm plus £45 for each adviser but Lime will ...

  • TEP provider Shepherds plans £3m spending spree

    31 Mar 2004

    Traded endowment specialist Shepherds has announced it has set aside over £3m to buy TEPs this spring. Shepherds says it is growing its fund as traded policies are offering good value, with the majority having a guaranteed maturity value that is more than the purchase cost, and more than the policyholder would receive if they surrendered their policy. Steve Abraham, managing director at Shepherds, says: "TEPs look set for quite a dramatic comeback in 2004 as there ...

  • The Exchange integrates with Quay

    2 Apr 2004

    The Exchange says it has reached an agreement with Quay Software to integrate its quotation and new business services with quay business suite, Quay Software's front and back-office administration system for financial intermediaries. The 3,000 intermediaries using quay business suite will be able to transfer client data electronically from their back-office into Exweb's quote services and then into electronic application forms, removing the need to re-enter data and greatly ...

  • The Mortgage Mole

    29 Mar 2004

    Porn to run Pity the poor souls at Bank of Scotland who were forced to apologise to HBOS shareholders last week after it emerged the lender had part-funded the purchase of 45 smutty titles from publisher Richard Desmond. You'd think the boys from BoS would have more to worry about after last year's self-cert shenanigans but they've promised to review lending policy after the bank extended a whopping £5m of debt financing to Remnant Media to purchase mortgage favourites ...

  • These deals will seem poor value to clients if interest rates rise

    29 Mar 2004

    Ged Hosty, chief executive, Equity Release Services Growing pressure on the incomes of retired homeowners, rising property prices and increased longevity have fuelled massive growth in the equity release market, now valued at £1.1bn. So what is the future of the equity release industry as it braces itself for further expansion and the onset of regulation? In recent years the majority of equity release growth has been achieved through the wider distribution of similar equity ...

  • TMA promotes two to replace Evans

    29 Mar 2004

    Abbey's mortgage club The Mortgage Alliance has internally promoted two staff, John Gibbons and Steve Atkins, to replace former boss Mark Evans who left earlier this year to join IFA Lighthouse. Gibbons becomes head of development to handle strategy including expanding the club's lender base and developing its services, while Atkins takes up the role of head of TMA with responsibility for sales including developing intermediary relationships and negotiating exclusive deals. Gibbons

  • Total lending figures rise in February

    30 Mar 2004

    Total lending to individuals grew by £10.7bn or 1.1% in February - £0.2bn higher than the rise in January, latest figures from the Bank of England reveal. The three-month annualised growth rate rose to 13.9% from 13.8% in January and the 12-month growth rate rose to 14.1% from 14.0% (14.1%) in January. The figures also show that secured lending outstanding grew by £9.0bn or 1.2% in February - £0.5bn higher than the rise in January. The three-month ...

  • Two-thirds of over-50s confused about equity release

    31 Mar 2004

    Almost two-thirds of people over the age of 50 could not correctly identify a description of home equity release, research by Norwich Union reveals. This confusion comes despite growing publicity around the product and significant growth in the market. The research shows more than a third of those people who would be eligible for an equity release plan are not aware that the product exists. Mark Kelly, director of Norwich Union Personal Finance, says: "Equity ...

  • Universal expands board of directors

    29 Mar 2004

    Universal has expanded its board of directors with two non-executive appointments. Geoff Hodgson, chief executive of Federation Brewery, and Peter Rutherford, chief executive officer of Rutherford Wilkinson, have joined the board of the North-East mutual society. As non-executive directors they will attend board meetings and sub-committees with a view to helping the society develop a strategy for secure growth. They will also act as a sounding board and counterbalance ...

  • Urgent review needed in payment protection market

    31 Mar 2004

    An urgent review into the sale of payment protection insurance is being urged by Liberal Democrat shadow chancellor Vince Cable. It follows claims that industry regulator, the General Insurance Standards Council is failing in its duty to protect policyholders by ignoring excessive commissions charged by brokers and other intermediaries selling these products. Cable tells Mortgage Strategy: "There is clearly a serious consumer scam operating in the payments protection ...

  • We are seeing the first signs of competition from the big boys

    29 Mar 2004

    Dean Mirfin, business development director, Key Retirement Solutions With the continued growth of the equity release market, we are seeing the first signs of competition from the main product providers. Norwich Union recently reduced the fixed rate on its Lifetime mortgage and then Mortgage Express stole its thunder by announcing a reduction to its own lifetime product, just undercutting the NU rate. So why do the providers now appear to be emerging as fighters for this ...

  • West Bromwich general manager wins top business award

    30 Mar 2004

    West Bromwich general manager Paul Turner has been named Best International Human Resources Executive at the first worldwide International Business Awards ceremony in New York. The awards recognise leadership, innovation, perseverance, creativity, teamwork and integrity through more than 40 categories. Turner was up against nominees from 66 other countries including Australia, India, South Korea, Russia, Singapore, South Africa, Spain, Sweden and the USA. Tuner ...

  • What to say to potential equity release clients

    29 Mar 2004

    David Hollingworth, mortgage specialist, London & Country As well as providing an advice checklist for brokers, discussing the following key points with potential equity release clients allows you to put yourself in their shoes and ensure they get the best product.

  • Will Miles encourage lenders to offer more long-term fixes and will clients want them?

    29 Mar 2004

    David Holmes is corporate affairs manager of the Yorkshire The main reason given for borrowers not taking longer term fixed rate mortgages is that they cost too much compared with the rates on short-term products. This was true for most of last year. The cheapest two-year deal was 3.29% and a typical 10-year product was around 5%. But one factor to consider alongside the Miles review is the change in the yield curve over recent months. Currently the cost of short-term money ...

  • Will regulation reduce sub-prime proc fees?

    29 Mar 2004

    Regulation will make the sub-prime sector more respectable than ever before. The last decade has seen a sea-change for this specialist sector and the days of sub-prime and those that work in the field being branded 'slime' are long gone. But the high level of procuration fees remains a bone of contention. The claim that a sub-prime case deserves a higher fee due to the extra work involved no longer stands given advances in credit scoring. So, Mortgage Strategy ...

  • Zurich wins IT award

    31 Mar 2004

    Zurich has won the 'Best Use of IT in Insurance' gong at this year's Financial Sector Technology Awards. Zurich's electronic submission platform, ETi, underpins online transactions from both the Zurich Advice Network and Zurich Mortgage Network. Zurich says ETi is an easy to use, integrated system which enables advisers to complete mortgage, protection and general insurance sales using one electronic sales process.

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