Mortgage Strategy
3 February 2003

  • 83% of advisers unhappy with lenders' servicing standards

    7 Feb 2003

    Specialist mortgage lenders have been urged to improve "deteriorating" service standards or face the prospect of large numbers of intermediaries deserting them in favour of more reliable lenders. In a survey of 200 mortgage brokers, Cardiff-based packager Next Generation Mortgages found that 83% of respondents are "very unhappy" with the speed and accuracy of lenders' underwriting teams once a mortgage application has been formally submitted. Some 53% say they are ...

  • A 'fee-free' mortgage from Britannia

    6 Feb 2003

    Britannia Building Society is set to launch a fee-free flexible remortgage product tomorrow. The Flexible Remortgage product will track the UK bank base rate + 0.85% for the whole term of the product and receives loyalty discounts after 5 and 10 years. Further benefits include no admin or arrangement fee, free first standard mortgage valuation, no high percentage advance fee, and free conveyancing (excluding disbursements) through Britannia Conveyancing Services Department. Alan

  • A helping hand for the unqualified

    3 Feb 2003

    Everyone knows they are out there somewhere. Brokers who have not yet passed their CeMAP (or equivalent) exam yet continue to provide mortgage advice. Estimates of numbers vary widely, ranging from 5,000 to 15,000 brokers or more. Since the beginning of the year, letters from qualified brokers have appeared in a number of trade magazines exhorting the MCCB to do something about this state of affairs. To quote John Holmes from last week's issue of Mortgage Strategy, this situation ...

  • Abbey passes £100m mark with Trigold

    3 Feb 2003

    Abbey National has now transacted over £100m of mortgage business via the Trigold trading platform. Ambrose McGinn, sales and marketing director of Abbey National for Intermediaries, says: "Our alliance with Trigold has made a win-win-win situation for all parties in the mortgage process. Intermediaries have benefited from improved service levels, using Trigold's pre-population of data and intuitive system combined with the quick turnaround of AIPs via Introducer Internet. "Clie

  • Adviser or salesman? It's time to make up your mind

    3 Feb 2003

    From Khaleel Mohammed Ronnie Bowe's letter in the January 20 issue of Mortgage Strategy 'Cover yourself when processing mortgages' is a little short-sighted, only stating a temporary solution to a long-term issue. It is easy for so-called mortgage advisers to say they are giving mortgage information only and not advice. Clients approach us to help them make an informed decision and guide them through the mortgage market, not just say: "Here, pick one that you like". I ...

  • Anti-regulation lobby appeals to MEPs

    3 Feb 2003

    The European Mortgage Federation is lobbying potential allies in a bid to block European Commission plans for regulating mortgages. The body, which counts the UK Council of Mortgage Lenders as a member, is seeking support from members of the European Parliament in the hope that mortgage loans will be removed from the proposed Consumer Credit Directive. The CML has warned that if implemented in its present form, the Directive could create a double regulation situation ...

  • Average house price to top £150,000

    6 Feb 2003

    The average cost of a house in the UK is likely to exceed £150,000 when the Land Registry announces quarterly figures next week. Housing market analyst Rightmove predicts the registry will report an average of £154,000 when it announces its figures next Monday - up 5.4% on the £146,150 figure reported for the third quarter of 2002, and 29.6% higher than quarter four in 2001. Unlike the Halifax and Nationwide's house prices, which have lower average ...

  • BANK OF ENGLAND CUTS INTEREST RATES BY 0.25%

    6 Feb 2003

    The Bank of England's Monetary Policy Committee today voted to reduce interest rates by 0.25% to 3.75%. The previous change in interest rates was a reduction of 0.50% to 4.0% on 8 November 2001. A Bank spokesman says: "The Committee reviewed monetary and economic developments in the light of its latest quarterly projections for output and inflation, to be published in the February Inflation Report. "RPIX inflation has, as expected, moved a little above target, ...

  • Banks back simpler selling process

    6 Feb 2003

    Basic savings and investments products should be sold through a simpler selling process to help close the huge gap in savings in the UK, says the British Bankers' Association. The Association says banks want to move away from the current lengthy and detailed sales process laid down by the FSA because it is time intensive and costly. It also claims that consumers viewed it with suspicion and as the basis for trying to sell them something they do not want. Instead, the ...

  • Barclays sounds alarm over consumer debt

    3 Feb 2003

    Barclays has urged consumers to be cautious after levels of unsecured borrowing rose by £1,9bn in December, up £0.5bn on November's figures. Although this is lower than the peak in August when £2bn was borrowed, the gap is still widening between the growth of unsecured credit balances and the growth of disposable income. Barclays says this could artificially fuel consumption and push some lenders and borrowers into a fragile situation in the next ...

  • BMS launches consumer guide to debt rehab

    5 Feb 2003

    Birmingham Midshires has launched a free guide for consumers designed to help them overcome money blues from 2002. Following news that almost three in four people (72%) had their fingers burnt in some way by a financial problem last year, the guide aims to help people get their finances back on track early this year. The guide - Financial Medi-Kit 2003 - addresses concerns highlighted by UK consumers at the end of 2002, offering advice on how to boost pension provisions ...

  • Borrowers given debt warning following rate cut

    7 Feb 2003

    Borrowers have been warned to think twice before taking on even more personal debt following yesterday's rate cut. The Bank of England's decision to reduce the Base Rate to 3.75%, having been at 4% since November 2001, could be seen as an unhealthy temptation for highly-indebted borrowers. Stephen Jones, managing director of Manchester-based First Advice, says: "This is great news for homeowners who are on a variable or tracker rate. Providing lenders pass the 0.25% ...

  • Borrowers prefer personal mortgage advice, says CML

    5 Feb 2003

    Almost one in eight homebuyers prefer a face-to-face approach when receiving mortgage advice, with 83% of first-time buyers prefering personal financial advice. A poll commissioned by the CML this week confirms that borrowers like the personal touch, with 79% opting for a face-to-face interview when setting up a mortgage. Though the internet may be useful for borrower's research and comparing costs and features, only 1% of borrowers made their first approach to a lender online. ...

  • Borrowers unlikely to feel full benefit of rate cut says Charcol

    7 Feb 2003

    Charcol says the UK economy was in need of a boost and says cooling house price inflation reassured the Monetary Policy Committee that a quarter point cut could be a prudent means of providing it. Ray Boulger, senior technical manager for Charcol, says: "There has been an increasing recognition among economists that Base Rate had to fall - however, lenders will not automatically choose to pass on the full cut to borrowers. So savers may not lose out too much, as most banks ...

  • Bristol & West says base rate likely to stay at 4%

    5 Feb 2003

    Bristol & West says the Bank of England is likely to keep base rate on hold today - and for the first half of 2003. A spokesman says: "If, as we expect, UK economic recovery gathers momentum in the second half of the year, the next move in the base rate is likely to be up - but not until the autumn." B&W says that there remains a close correlation between longer term period rate movements and the equity market. The FTSE 100 recently touched a seven-year low and ...

  • Bristol & West to offer free legals to remortgagers in Scotland

    6 Feb 2003

    Bristol & West Mortgages will pay all legal fees for remortgage customers in Scotland taking out fees-assisted mortgages. Until now Bristol & West Mortgages hasn't been able to offer free legal fees on mortgages to any of their Scottish customers due to differences in Scottish law. The lender will offer intermediaries the service when they use Bristol & West's specified solicitors, LMS. Neena Kithoray, senior product manager for Bristol & West Mortgages, says: "We ...

  • Brokers change their Luddite ways

    3 Feb 2003

    Research from Paragon reveals a strong enthusiasm for technology among mortgage brokers. Paragon has been surveying intermediary attitudes on technology and their use of it for several years. Managing director John Heron says: "We've seen a significant year-on-year improvement in brokers' familiarity with technology and their willingness to use it. Whereas five years ago you would have seen a reflection of a fairly Luddite industry, I think the balance has shifted ...

  • Buy-to-let range to benefit limited companies

    3 Feb 2003

    Mortgage Express is launching a range of buy-to-let mortgages for limited companies. The products highlight the growing number of buy-to-let investors seeking reduced tax liability on rental income and capital gains when they sell. The products should prove particularly attractive to higher rate taxpayers, whose rental income profit is subject to the 40% tax band if they buy-to-let in their own name. Roger Hillier, product development manager at Mortgage Express, ...

  • C&G under fire for its £70 conversion charge

    3 Feb 2003

    Intermediaries have hit out at Cheltenham & Gloucester for charging customers £70 to convert their mortgage accounts to daily interest. C&G introduced daily interest calculations on all new house purchases and remortgages last week, free of charge. But existing borrowers will have to fork out to enjoy the new system, which can shave hundreds of pounds off repayments over the lifetime of a loan. Tim Stone, senior mortgage consultant at Bristol-based ...

  • Call for consumer guide

    3 Feb 2003

    Solent Mortgage Services says that a standardised and comprehensive consumer mortgage information booklet would simplify mortgage applications. Ian Balfour, director of sales and marketing at SMS, says the mortgage market could learn from the application processes used for second charge loans. The Finance Industry Standards Association, the voluntary self-regulatory body for the secured loans market, produces a booklet which must be included in every loan application. ...

  • Call for independent product database

    3 Feb 2003

    Solent Mortgage Services wants an independent central database of lender products to improve the accuracy of data on sourcing systems. Sales and marketing director Ian Balfour says: "One of the biggest issues in the mortgage industry is the accuracy of data on sourcing systems." Sourcing systems currently have no responsibility for the product data they carry and nor do the lenders who supply the information. If an inaccurate quote is supplied to a customer, it is the ...

  • CEBR predicts Iraq boom or gloom

    3 Feb 2003

    The unfolding of the Iraq crisis will have far reaching effects for consumer, investor and business confidence, research by the Centre for Economics and Business says. With the buoyant US consumer sector running out of steam, euro-zone economies stagnating, the CEBR says the prospect of increasing oil prices could make the problems worse. In its most optimistic scenario, the centre sees Saddam Hussein rapidly replace by a pro-Western regime that increases oil exports. ...

  • CML drops 'obsolete' MPPI take-up target

    3 Feb 2003

    The Council of Mortgage Lenders has removed the 55% target for the take-up of mortgage payment protection insurance after it reassessed its sustainable home ownership initiative. The CML set the target in 1999, with support from the Association of British Insurers and the government. But it says the use of a wide range of alternatives to MPPI makes the target obsolete. Permanent health insurance and critical illness cover, low unemployment, and considerable growth in homeowners' ...

  • CML welcome £22bn plan for sustainable communities

    6 Feb 2003

    The Council of Mortgage Lenders has welcomed proposals from the Office of the Deputy Prime Minister to invest £22bn in plans for sustainable communities including more affordable housing. Plans include £5bn for more affordable housing including £1bn for homes for key workers; £300m to encourage modern build housing; £500m for derelict housing areas in the North and Midlands; £2.8bn to improve social housing; and £201m for improving the ...

  • Commercial First in strategic alliance with SMS

    3 Feb 2003

    Commercial First has formed a strategic alliance with Solent Mortgage Services. The packaging and commercial arms of SMS will start to distribute Commercial First's product range immediately via its network of supporting mortgage brokers. Stephen Johnson, sales and marketing director of Commercial First, says: "Solent Mortgage Services is a strong brand that is well respected within the mortgage industry. It's got an excellent management team and a clear idea about ...

  • Compliance burden could push 20% of intermediaries out of the industry

    5 Feb 2003

    Over 60% of mortgage introducers believe the future looks bleak for intermediaries due to compliance burdens. In Bankhall Point One's annual 'Points of You' survey, 20% say they have become more inclined to leave the industry while over two-thirds also felt that mortgage broker trade bodies have failed to organise or lobby effectively. 97% of the 102 mortgage professionals surveyed by Bankhall said they think regulation of the mortgage industry will increase, ...

  • Confidence sees slight recovery

    3 Feb 2003

    Consumer confidence remained negative in January, although it rose slightly after a dramatic six-point drop recorded in December, the European Commission reported last week. The Consumer Confidence Index rose one point in January and currently stands at -3, reflecting a bleak outlook for the year ahead. An increase at this time of year is common following the January sales. But Roger Wright, director of quality and efficiency at market research firm Martin Hamblin GfK, ...

  • Consumers' Association welcomes Sandler proposals

    6 Feb 2003

    The Consumers' Association has welcomed the stakeholder investment products consultation paper published by the Treasury yesterday. The CA is pleased at the concept of a range of good value, simplified, flexible products designed to meet the needs of consumers who have no option but to use the retail financial services industry. While the body says the industry has a role to play in meeting long-term pension needs, its analysis of the market has shown it needs to ...

  • Co-op merges mortgage operations

    3 Feb 2003

    Co-operative Financial Services is bringing together the mortgage operations of The Co-operative Bank and the Co-operative Insurance Society to create a single operation. The two existing CIS and Bank mortgage service centres are being combined, and CFS plans to develop a single product range which will be offered to customers across all CFS distribution channels. Mervyn Pedelty, CFS chief executive, says: "In recent years both the Bank and CIS have increased their respective ...

  • Dangers lurk in CP166 From James Mayne

    3 Feb 2003

    CP166, the FSA consultation on removing polarisation, could have far reaching effects for the mortgage industry. For instance, CP166 states that the FSA does not intend to permit white labelling for packaged products to the extent it conceals the identity of the product provider. While no reference is made to mortgage lending, this is an indication of how correspondent lending may be treated. While this is unlikely to be a barrier to growth, it gives some indication as ...

  • Eddie Smith named UK manager of PMI Europe

    6 Feb 2003

    PMI Europe has appointed Eddie Smith as UK manager of the lender's mortgage insurance provider. Smith, formerly director of business development at Britannia Building Society subsidiary Verso before its merger with Platform Home Loans in 2002, will be responsible for the delivery of insurance to financial institutions with significant residential mortgage portfolios. Tony Porter, managing director of PMI Europe, says: "Eddie brings to the role a wealth of experience ...

  • Endowment holders facing shortfall urged to convert half to repayment

    4 Feb 2003

    Savills Private Finance today reveals a way for customers to cover their mortgage shortfall without having to increase their monthly outlay. Most endowment policy holders now face the prospect of having to extend the term of their policy or increase contributions to enable them to pay off their mortgage. But by remortgaging to a better rate of interest, homeowners can use the savings made to top up their endowment or they can convert part of the mortgage to a repayment ...

  • Financial services for tomorrow's world

    3 Feb 2003

    Q: How is Personal Touch structured? A: Personal Touch is a private limited company with the original four founder members still on the board. The board has been recently strengthened to help ensure the business is a leading distributor, post-2004. Q: What's the annual turnover? A:Last year saw turnover in excess of £12m. This is the fourth consecutive year the business has doubled turnover and current trends indicate this is likely to be repeated in ...

  • FSA publishes consultation on PII

    4 Feb 2003

    The FSA has today published a consultation paper aimed at formalising the short-term modification made to its rules in November 2002. CP169 - Professional indemnity insurance for personal investment firms has been released in response to difficulties experienced by some IFAs in obtaining compliant cover and was designed to increase availability in the PII market for this sector. In determining what changes could be made to policy requirements, the FSA has sought to ...

  • GE CONSUMER FINANCE TO ACQUIRE FIRST NATIONAL

    4 Feb 2003

    GE Consumer Finance, the consumer credit services business of the General Electric Company, today announced it has agreed to acquire First National's secured and unsecured lending business from Abbey National plc for a consideration of £848 million. Stuart Sinclair, UK group managing director of GE Consumer Finance, says: "We are excited by the opportunities this acquisition brings to our operations in terms of both an enhanced product range and new broker relationships. "Our ...

  • GISC responds to FSA plans for insurance regulation

    3 Feb 2003

    The General Insurance Standards Council has praised the government and FSA for taking a "proportionate and cost-effective approach" to general insurance regulation. In its response to FSA consultation on general insurance regulation, the GISC says that its own rules should be the starting point for a new regime. The council says: "We do not expect the past approach taken on general insurance regulation to be automatically mirrored due to the requirements of the Insurance ...

  • Global Home Loans appoints new chief financial officer

    5 Feb 2003

    Global Home Loans has appointed Chris Higgins as chief financial officer. Higgins brings 10 years of financial experience in the mortgage industry, having held senior financial positions at Britannic Money and Centex Mortgages UK. Kevin Meyers, chief executive of Global Home Loans, says: "I am delighted to welcome Chris to GHL. We have ambitious plans for the future and Chris has the right qualities to help us make our strategic goals a reality." Higgins, ...

  • Homeowners urged to consider home improvement cover

    4 Feb 2003

    Homeowners have been urged to factor in home improvements to home insurance policies. With new year sales drawing to a close, homeowners settling down in new or refurbished properties could find the value of their house exceeding the cover in their household contents insurance policies. Insurer Hiscox is warning that homeowners are likely to increase the amount by which they are underinsured even further following any home improvements. In a survey conducted ...

  • Homeowners warned of tax sting

    7 Feb 2003

    Borrowers have been warned that rocketing house prices could hide a major sting for homeowners, with hundreds of thousands now liable for a hefty inheritance tax bill. The warning comes from MORE THAN, the direct financial services arm of Royal & Sun Alliance. Since May 1997, house prices have increased four-fold yet the threshold for inheritance tax (IHT) liability has hardly changed at all from £215,000 in 1997 to £250,000 today. Only around 10,000 homes changed ...

  • Housing market slowdown allowed rate cut, says Rightmove

    7 Feb 2003

    Evidence of a slowdown in house price rises in the last three months was the main factor in the MPC's decision to cut rates by 0.25%, says Rightmove and RICS. Evidence of a marked slowdown in the last three months in surveys conducted by the organisations suggest 8% more houses coming onto the market than at the same time last year. They say the underlying drivers of the 2002 house price boom are giving way to more normal market conditions. The Bank of England's ...

  • Housing market still 'incredibly buoyant', says CML

    3 Feb 2003

    The CML's February market briefing says the housing market is still "incredibly buoyant", despite the economy only expanding by 1.7% over the whole of 2002 - the weakest pace of growth since 1992. The CML says: "According to Nationwide house prices grew by 1.7% in January or 26.5% on an annual basis, the fastest pace since 1989. So rather than signalling any substantial slowdown, house price inflation continues to rise. "Clearly growth rates of this magnitude are ...

  • Huntswood appoints financial services consultant

    6 Feb 2003

    Search and selection practice Huntswood Search and Selection has appointed Caroline Tarpey to manage its consultancy recruitment team. In her role as managing consultant, Tarpey will develop Huntswood's search and selection business in the areas of public sector, financial services, change management and consumer goods consultancy. Keith Mackenzie, head of operations at Huntswood Search and Selection, says: "Caroline's appointment represents a considerable strengthening ...

  • IFS launches general insurance test

    5 Feb 2003

    Doors open to over 150 driver test centres across the UK for general insurance professionals to gain new regulatory qualification. The Institute of Financial Services is launching the Certificate of Regulated General Insurance, a qualification aimed at people working in general insurance. Developed from a module which the Institute introduced in 2000, CeRGI will help individuals and employers meet regulatory requirements for training and competence. Students ...

  • igroup hit by BDM departures

    6 Feb 2003

    Sub prime mortgage lender igroup has lost three of its business development managers, with the trio leaving to establish a packaging operation. Martin Gilsenan, Danny Churchill and Craig Scott are leaving the Watford-based lender to set up their own national packager operation, Residential1 Ltd. Jonathan Sadler, igroup's director of sales and marketing, says: "It has been a great pleasure to work with Danny, Martin and Craig and of course it is a shame to have to lose ...

  • In the bag

    3 Feb 2003

    Priorities, priorities, priorities. In the general election of May 1997, New Labour was so certain of the injustice of gazumping and delays in the housebuying process that reforms to end the practice were stated in its manifesto. However, nearly six years and one controversial pilot later, only now has a timetable for introducing the seller's pack been established. The inclusion of plans to introduce compulsory seller's packs in the Queen's Speech last November was greeted ...

  • Industry reacts to FNMC sale

    5 Feb 2003

    Industry pundits have reacted to news of GE Capital's purchase of First National Bank. Abbey National announced the sale of First National Bank for £848m yesterday, with First National Bank managing director Phillip George expressing his satisfaction with the deal. George told Mortgage Strategy: "I am pleased at the sum on behalf of Abbey National but also for First National. It is a very good result for us to become part of the GE Group and be part of a company ...

  • INTERNATIONAL CALL UP FOR IFAS IN PRUDENTIAL FANTASY

    4 Feb 2003

    IFAs from Bath and Bridgend to Belfast and the Scottish Borders are set to enter a fantasy world of scrum downs, short line outs and sin bins as they pit their dream teams against each other in the Prudential Fantasy Six Nations Rugby League, launched this week. Advisers can get their international call up by logging on to the newly updated www.pruifa.co.uk extranet where as budding managers they can handpick a squad of 15 from the cream of all six nation teams using tactical ...

  • It's not a new idea, so why has loan portfolio acquisition become so popular in recent years?

    3 Feb 2003

    Paul Winter is sales and marketing director of the Ipswich Ipswich has found acquiring loan portfolios a particularly effective way of doing business. We started the process by acquiring the assets of Colchester Council some five years ago, mainly from the point of view of assisting local people. Once we had that experience and realised that buying portfolios was a useful way of acquiring business, we started to look into other areas. The foreign currency loans of San Paolo ...

  • Johnson announces credit licensing shake-up

    3 Feb 2003

    The rules governing the licensing of credit businesses are set for their biggest shake-up in nearly 30 years, with government proposals to increase the powers of the Office of Fair Trading. Proposals unveiled by minister for consumers Melanie Johnson today include more stringent tests for companies looking to set up as credit businesses, fines for companies who step out of line and targeted action on rogue traders to protect the public. The government also wants to ensure ...

  • Learning to live with the seller's pack

    3 Feb 2003

    With intermediaries adjusting to compulsory mortgage advice qualifications, imminent regulation of the advice process and depolarisation, more government involvement in the homebuying process is the last thing mortgage strategists would want. However, as we report in this week's cover story starting on page 25, mortgage intermediaries, lenders, estate agents, surveyors and solicitors all stand to see change in the current system as a result of plans to introduce compulsory home seller's ..

  • Lib Dems slam "embarrassed" Gordon Brown

    6 Feb 2003

    The Liberal Democrats today hit back at Government claims that all is well with the economy. Matthew Taylor, Liberal Democrat Shadow Chancellor, says: "This is an embarrassment for Gordon Brown who has been telling everyone that all is well in the British economy. "Clearly the Bank of England does not agree with him."

  • Lib Dems warn borrowing won't buoy economy much longer

    6 Feb 2003

    Liberal Democrat shadow chancellor Matthew Taylor, MP, has warned the Chancellor Gordon Brown that continued increases in the value of the housing market will not be able to sustain the faltering economy. Halifax revealed figures this week suggesting house prices increased by 1.5% in January, but Taylor warns the Chancellor that strong borrowing will not sustain the economy indefinitely. He says: "With the heat coming out of the housing market and manufacturing in deepening ...

  • LMS hails first year success of STARS II

    6 Feb 2003

    Legal Marketing Services has branded its STARS II case management software as a success after becoming he most highly integrated conveyancing system in the UK. Set up in February 2002, STARS II links LMS's clients, including major lenders, with its panel of 350 independent firms of solicitors which carry out the legal work. The system is now integrated with the15 most widely used off-the-shelf case management systems, with over 50% of cases from mortgage lenders now ...

  • Lower proc fees boost image of sub-prime

    3 Feb 2003

    Non-conforming lender Amber Homeloans says sensible procuration fees have improved the image of the adverse mortgage market. Sales and marketing manager Mike Perry says: "Intermediaries now realise that if they want competitive products for their customers in the adverse market, they can no longer expect to receive the 2% procuration fees that were common a few years ago. Someone had to pay for those hefty fees and it was always the customer." Perry believes that impending ...

  • Make the right move before buying abroad, warns Conti

    6 Feb 2003

    Purchasers looking to cash in on the boom in overseas property are been urged to investigate the nature of their investment before signing on the dotted line. With foreign property purchases at an all-time high, overseas mortgage specialist Conti Financial Services has warned potential investors to be sure of their investment. Simon Conn, senior partner of Conti, says investors are to eager to move for the property of their dreams unaware of the complex purchasing processes ...

  • MCCB urged to name and shame brokers

    3 Feb 2003

    The Mortgage Code Compliance Board was slammed last week for refusing to 'name and shame' the 78 brokers it struck off for failing to prove they have professional indemnity cover. Tim Eagles, senior mortgage adviser at Surrey-base Best Advice, says: "How are the public going to be protected if these companies aren't named? The MCCB should finish the job. It's expensive for PI cover but it's a necessity, and ever-increasing standards mean intermediaries have to be ...

  • Modest January sales growth for retailers

    4 Feb 2003

    Retailers saw a modest growth in trade during the January sales, a CBI survey published yesterday reveals. The rate of growth confirms reports that activity in the January sales period picked up from that recorded in the run-up to Christmas but was well down on that seen through most of last year, despite evidence of widespread price cutting. The CBI's monthly distributive trades survey shows that sales from January 2 to 22 were better than a year ago, with 38 % of ...

  • Mortgage Brain announces training seminars

    3 Feb 2003

    Mortgage Brain has announced a number of training seminars designed to promote improvements to the products it offers users. The sessions will take place across the country during February and March. They will give users the opportunity to learn how to get the most out of the software, ask questions and sign up to a 30-day free trial. Further workshops and roadshows will follow throughout the year. Mark Lofthouse, CEO of Mortgage Brain , says: "Over the past few months ...

  • Mortgage Express launches buy-to-let for limited companies

    4 Feb 2003

    Mortgage Express has launched a new buy-to-let mortgage for limited companies. The limited company buy-to-let mortgage enables investors purchasing property through a limited company to take advantage of the new range of buy-to-let mortgages offered by Mortgage Express. Roger Hillier, product development manager at Mortgage Express, says: "We are aiming to consolidate our position as market leader by extending our range of buy to let products to accommodate customers ...

  • Mortgage Express passes on interest rates to borrowers

    7 Feb 2003

    Mortgage Express has passed on yesterday's Bank of England rate cut to borrowers in full. The Bank of England has announced a cut in its base rate to 3.75% - the lowest it has been since 1954. Current rates on offer include buy-to-let lending to limited companies at 5.50%, a 4.99% three-year discount for individuals buy-to-let investors, and a two year discount on its 100% product at 4.20%. Mortgage Express's self-cert three-years 1.01% discount consequently ...

  • My mortgage week - Mark Hollands

    3 Feb 2003

    Monday: Carry out review meetings with firms of surveyors who use the Valuation Ex-change, an internet-based platform for instructing mortgage valuations. Today, we are launching a new comparables section, an improved job search facility for lenders and a site notes pack for surveyors. These are the results of regular review meetings. I spend the evening the same way I spend every Monday evening - as a couch potato. Tuesday: Although V. Ex receives most of its valuation instructions ...

  • NAMBA makes a fresh start as AMI

    3 Feb 2003

    The National Association of Mortgage Brokers and Advisers will change its name to the Association of Mortgage Intermediaries this week. Controversy over the business dealings of NAMBA founder Julian Jennings has dogged the association's steering committee, even after his relationship with NAMBA was ended by "mutual agreement" in 2002. Ray Boulger, senior technical manager at Charcol and a recent addition to the NAMBA steering committee, says: "NAMBA had a chequered ...

  • New beginning for genesis products

    4 Feb 2003

    Genesis Home Loans has amended several of its schemes to offer even more benefits to intermediaries and their clients. Genesis Prospector - a prime buy to let product - now offers a choice of both fixed and tracker rates with a facility to borrow up to £2 million on an unlimited number of properties. The fixed options are 4.99% up to 75% LTV and 5.39% up to 85% LTV both until 1 April 2005. The tracker options are for the full term of the loan, and are 0.85% ...

  • Newcastle Building Society launches five-year fixed deal

    7 Feb 2003

    New mortgage product offers market-leading rate of 4.35% for 5 years with no extended tie-in Newcastle Building Society has strengthened its mortgage range by launching a market-leading fixed-rate product. The five-year fixed rate of 4.35% (until May 31 2008) is available to a maximum LTV of 90%, with daily interest calculations, and no extended tie in beyond the five-year fixed term. Mortgage indemnity guarantee is only applicable in cases requiring LTV of more than ...

  • No government time for "Fat Cat" reform

    3 Feb 2003

    MPs have accused the government of bottling out over plans to reform the 'golden handshake' system that sees failed executives walk away from failing banks, energy suppliers and other companies with big payouts. The so-called Fat Cats Bill, introduced by Archie Norman MP has been refused time by the Labour government. Vince Cable MP, Liberal Democrat shadow DTI Secretary, says: "It is outrageous that Labour is blocking an attempt to address the worst abuses in ...

  • Pink adds to self-cert range with new five-year fixed rates

    5 Feb 2003

    Pink Home Loans has launched a new product in association with specialist intermediary lender Amber Homeloans. The mortgage deal, exclusive to Pink Home Loans, fixes a rate of 5.49% until April 4 2008 and is available up to a maximum loan of £500,000 (up to 75% LTV) and maximum LTV 90% up to £300,000. The product carries an arrangement fee of £395 and redemption fees of 5% (year one), 4% (year two), 3% (year three), 2% (year four), 1% (year five). Tony ...

  • Pink appoints operations team manager

    3 Feb 2003

    Pink Home Loans has appointed Sarah Anderton in a newly created position of operations team manager. Anderton, an experienced underwriter, will head up one of three teams in the operations department under the management of Dev Malle, recently appointed as head of operations. Before joining Pink Home Loans, Anderton worked as an underwriter at Bristol & West Mortgages and previously in the mortgage unit at Alliance and Leicester. Dev Malle, head of operations ...

  • Platform launch as one stop shop

    3 Feb 2003

    Platform, the lender created from the merger of Platform Home Loans and Verso, has launched a full range of prime, niche and non-conforming products including self-certification and buy-to-let. Platform has branded itself the "One Stop Shop" intermediary mortgage lender from Britannia Building Society, offering brokers one product range, one point of contact and one application process. Platform has also developed a unique cascade underwriting process which means that ...

  • Platform unveils product range

    3 Feb 2003

    Platform rolls out its first products today, marking the end of its rebranding exercise following the merger between Platform Home Loans and Verso. Mortgage Strategy exclusively revealed that Britannia was to merge Verso and Platform Home Loans in July 2002. Platform has doubled its staff to 181 and intermediaries will be serviced by an 18-strong UK sales team with nine team leaders, seven mobile underwriters, and seven bespoke underwriters at Platform's headquarters in London's ...

  • Portman launches two-year fixed rate

    6 Feb 2003

    Portman is aiming to top mortgage tables with a two-year fixed rate mortgage at 1.99%. The low rate is coupled with the Society's Easy Remortgage Service which offers free valuation and no legal fees. The deal, fixed until May 1 2005, is available up to 95% LTV, with a £399 acceptance fee, a fee-free capital repayment option up to 5% of the original loan amount. Redemption charges stand at 7% of capital repaid from completion until May 1 2006 before reducing ...

  • Portman lending rises by 46%

    3 Feb 2003

    Portman, the UK's fourth largest building society, achieved a gross new mortgage lending total of £2.9bn in 2002, 46% higher than 2001. The society attributes its "substantial asset growth" to attractively priced products and the impressive performance of its subsidiary, Sun Bank. Pre-tax profits rose 9% to £64.1m. Sun Bank delivered £12m pre-tax profit. Portman's total assets rose 15% to £10.4bn and have more than doubled in five years. ...

  • Record results for Chelsea Building Society

    6 Feb 2003

    Chelsea, the UK's sixth largest building society, has announced record financial results for 2002. The Cheltenham-based mutual now has assets of £6.7bn and saw gross mortgage lending up 36% to £1.71bn. The quality of Chelsea's mortgage loan book also seems sound with arrears at the end of 2002 less than half the industry average. The lender has also achieved captal ratios amongst the lowest in the building society sector, with further improvements in ...

  • Savers could have done without surprise rate cut

    7 Feb 2003

    With many experts expecting rates to remain on hold today for the 15th month in a row, the Bank of England's decision to cut Base Rate to 3.75% is a surprise that savers could have done without. In recent years, banks and building societies have wasted no time in passing on these rate cuts to savers, so what can consumers do to ensure good returns in uncertain times? IFA Promotion has produced a guide explaining the various investment vehicles available to investors keen to ...

  • Scot Life Mortgages to distribute Platform range

    4 Feb 2003

    Scottish Life Mortgages is just one of an army of packagers that will be distributing the new range from all status lender Platform. Steve Scholes, director of Scottish Life Mortgages, says: "SLM are delighted to distribute & package Platform's new products. "The product range is extremely competitive and will no doubt attract business that would have otherwise gone to lenders who have not supported the broker/packager distribution channel. "From feedback ...

  • Scottish Provident strikes partnership with St. James Place group

    4 Feb 2003

    Scottish Provident has forged a partnership with St. James's Place Group that will see Scottish Provident's protection products offered to the wealth management group's customers. The move represents early preparations for depolarisation on the part of the Abbey National subsidiary. After eight months of negotiations St. James's Place says it selected Scottish Provident for its panel on the strength of its self-assurance product range and the package of support ...

  • Staffordshire launches new discounted and fixed rates

    6 Feb 2003

    Staffordshire Building Society has launched a limited issue range of discounted and fixed rate mortgage products from tomorrow. Discount rates start at 3.99%, with a five-year fixed rates from 4.89%. Any applicant taking out one of the new discount rates will get the lower rate for at least 30 months as well as daily interest and a free mortgage valuation. A selection of the discount rate products also offer a £250 cashback feature or the Society's fast-track ...

  • Sub-prime will die another day

    3 Feb 2003

    Some pundits are predicting the death of sub-prime lenders. Well, to be more precise, one unnamed chief exec believes that without a balance sheet specialist lenders operating in the sub-prime sector will not be able to compete against their big brothers, who have the ability to dominate this market within five years (Mortgage Strategy November 25, 2002). The 'man with no name' has been quoted in this publication as saying: "What we are seeing is a market beginning to emerge ...

  • Taking self-cert to the next level

    3 Feb 2003

    NatWest's decision to enter the self-certification mortgage market, where until now there have been relatively few high street banks, was taken after identifying self-certification as another way to help our intermediary network solve more mortgage cases. The forecast for this market is encouraging. All the research seems to suggest that it is growing strongly and will continue to do so. As a key player in the mortgage market, we wanted to ensure that our product portfolio ...

  • Taking the menu approach to sub-prime product rating

    3 Feb 2003

    From Peter Stimson There was only one thing wrong in your otherwise excellent sub-prime article 'Taking the strain' (Mortgage Strategy, January 27) and that was the illustrative tables. These purported to show the top ten products in the categories of light, medium and heavy adverse. Unfortunately, they did nothing of the sort and the reason they didn't is an issue that's worth highlighting. The vast majority of sub-prime lenders offer just a handful of ...

  • The mortgage mole

    3 Feb 2003

    Fuel-ish Dunfermline's Harry McCeough showed the sort of motoring nouse normally associated with Michael Schumacher's nightmares while en route to a meeting with Mole regular and Prudential mortgage club manager John Malone in December. Mole hears that, after driving his diesel VW Passat into a local petrol station, 'Mr Potato Head' absent-mindedly filled his tank with unleaded and was thus late for the meeting. Despite testing the old wives' tale of ...

  • THE ONE ACCOUNT CUTS RATES IN FULL FOR ALL BORROWERS

    6 Feb 2003

    The One account was quick to react to the base rate drop - reducing its variable mortgage rates by the full 0.25% with immediate effect. The new headline mortgage rate for the One account will be lower than it has ever been at 4.95% and will be available to both new and existing customers from February 7 2003. The new rate for the One account Flexible Mortgage Option will be 2.95% reverting to 4.70%. Scott Mowbray, marketing manager at The One account, says: ...

  • This week's problem case

    3 Feb 2003

    Sarah and Michael Cooke want to buy a property in the South-East for £635,000. Sarah earns £70,000 a year as a recruitment consultant. Michael is working in the US and will return after two years to work for the UK arm of his firm. His salary in the US is £100,000 and will stay the same when he returns. They owned a consultancy business which collapsed and are classed as discharged bankrupts with CCJs of £25,000. They have a £180,000 deposit. Intermediary ...

  • UCB Home Loans reduces interest rates on fixed rate deals

    4 Feb 2003

    UCB Home Loans will reduce the interest rate on its fixed rate mortgages to its lowest ever level tomorrow. UCB, Nationwide's specialist self-certification lender, will include a 0.2% reduction across all fixed rate products, taking the two-year fixed rate down from 4.99% to 4.79%. The three-year fixed rate will move to 4.99%, whilst the five-year rate will move down to 5.19%. Buy-to-let fixed rates will also move downwards by 0.2%, to 4.79% on the two-year product, ...

  • UK leads Europe in financial advice

    3 Feb 2003

    The UK financial advice market is the most mature in Europe, market analyst Datamonitor says. The markets in France and Spain are fledgling, although they are expected to grow rapidly. European financial advisers focus on wealthy middle-aged customers and their most popular products are mutual funds and equities. The report also reveals that financial advisers choose product providers firstly by their investment performance and secondly by their reputation, with commission ...

  • Where there's a will, there's a way

    3 Feb 2003

    The topic of succession and the distribution of a deceased's estate is part of the CeMAP paper one syllabus. In the UK, approximately 70% of people die intestate (without leaving a will). There are a number of good reasons for writing a will. First, the individual's estate can be distributed in accordance with their wishes. In addition, the process of administering the deceased's estate is usually shorter if a valid will has been written. Furthermore, a will can be used to minimise ...

  • Woolwich drops Openplan rates

    3 Feb 2003

    The Woolwich has dropped the rate of a new two-year Openplan flexible fixed rate mortgage from 4.49% to 4.19%. The five-year fixed rate term has been reduced from 4.79% to 4.59%. Andy Gray, head of mortgages at The Woolwich, says: "Fixed rate mortgages are increasingly competitive and this deal is one of the best in the market. It offers customers an alternative to a discount mortgage, especially those wanting to budget in the early years of a mortgage."

  • Woolwich launches flexible fixed rate deals

    5 Feb 2003

    Woolwich today launches two new flexible fixed rate products as part of its Openplan range. Woolwich, the fourth largest mortgage lender, has launched a new competitive two-year Openplan flexible fixed rate mortgage of 4.19%. Alongside the two-year fixed rate is a five-year fixed rate of 4.59%. The deals include a two-year fixed rate until April 30 2005, which has been reduced from 4.49% to 4.19%, and a five-year fixed rate until April 30 2008 at 4.59%, down from 4.79%. Andy ...

  • Yorkshire subsidiary to launch at end of March

    3 Feb 2003

    Accord Mortgages, the new intermediary-only subsidiary of Yorkshire Building Society, has confirmed a launch date of March 31. All introduced business will be referred to Accord, which will take over the society's 36-strong intermediary sales team. The subsidiary has its own board, with Yorkshire chief executive David Anderson as non-executive chairman. Initially, the Accord product range will be similar to that of the parent society with the exception of exclusives ...

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