Mortgage Strategy
30 August 2004

  • A view from The floor

    30 Aug 2004

    With the effects of global warming, such as increased flooding, being seen increasingly frequently and affecting more and more homeowners, now is the time to do more to minimise the effects of housing on the environment. I'm sure the people in Cornwall and Scotland who had such a lucky escape from the flash floods this month will agree. Each year Norwich and Peterborough holds a competition to raise awareness of how homes can be built in a more environmentally-responsible ...

  • Abbey launches major ad campaign

    1 Sep 2004

    The £7m campaign will inlcude, TV posters, press and radio advertisments. TBWA/LONDON has created the campaign for Abbey which is due to run until the end of October. Most banks' advertising focusses on the relationship that customers have with their banks, but Abbey will focus on the relationship customers have with their money. Abbey's new advertising will feature two characters called Me and My Money.

  • Abbey mortgage club prepares for relaunch

    30 Aug 2004

    The relaunch will include a flexible compliance offering developed through a strategic alliance with support services firm 360. Advisers can choose from a menu of compliance tools - from file audits and risk assessments to technical advice on issues like tax - for a monthly charge starting at £250. Head of TMA Steve Atkins says: "Our services are for two groups: our 17 corporate partners and DA advisers. We have about 4,500 member firms with access to a panel of ...

  • Advantage Home Loans enhances procuration fees

    3 Sep 2004

    The announcement enhances all deals placed on its Branded S500 range - funded by Southern Pacific Mortgages - by a further £400 provided that the business is submitted on their new generic application form and that it completes by December 31 2004.

  • Aiming for the top in the lending market

    30 Aug 2004

    GMAC-RFC is part of one of the world's largest organisations - General Motors - and forms part of the GMAC Mortgage Group within the GMAC Financial Services group of companies, a household name in the US. It is also one of the largest financial services companies in the world and operates in over 40 countries. GMAC-RFC launched in the UK in 1998 providing mortgage services and products through packagers and intermediaries. The company's head office is based in Bracknell, Berkshire ...

  • Arab Banking Corporation and B&W lauch Islamic home finance facility

    3 Sep 2004

    Introduced under the brand name alburaq, this method of house finance follows the unique Islamic financing principles of diminshing musharaka, meaning co-ownership or partnership. Known as alburaq shariah compliant home finance two products are being introduced that offer competitive and flexible terms, with pricing comparable to an equivalent interest mortgage. The ABC and Bristol & West partnership is intended to provide the UK's Muslim communities with ...

  • ARLA guide on buy-to-let

    2 Sep 2004

    The third ARLA, CML buy-to-let guide covers areas as wide apart as money laundering, electrical safety and general insurance products as regulated by the Financial Services Authority. The guide carries up to date overviews of buy-to-let mortgages from the perspective of lenders specialising in different areas of the market as well as the independent mortgage broker's eye view and a look into the future. Other sections describe how mortgage lenders will view the borrowing ...

  • Bankhall proud of its PI deal

    30 Aug 2004

    The PI cover has been secured through NCG Professional Risks and Bankhall says that due to the quality of its compliance service, improved premium rates are being achieved as insurers recognise the strength of the group's offering. Shaun Godfrey, group sales director at Bankhall, is keen to stress the shift in emphasis from the quantity of business processed to the quality of the transactions and says underwriters should recognise the importance of this. He says: "The ...

  • Blue Sky

    30 Aug 2004

    During the internet bubble, it was argued that because the internet is important, it must be profitable. That does not follow. While IT has created many new business opportunities, from an economic perspective, IT in general and the internet in particular, is probably best thought of as profit enemy number one. Perhaps the net is just too perfect for profit. The internet will carry us into a new world in which information will be abundant and transaction costs low. Information ...

  • BM to roll out KFIs from early October

    30 Aug 2004

    But they will not carry the FSA logo until October 31. And parent group HBOS has confirmed that all five of its brands will disclose to consumers all payments made to brokers and associated third parties on its KFIs. The brands - Halifax, Bank of Scotland, The Mortgage Business, Intelligent Finance and Birmingham Midshires - will disclose the name and amount paid to all parties involved in the arrangement of the mortgage contract. This will include direct or indirect ...

  • Broker criticises Trigold over KFI printout problem

    30 Aug 2004

    He says: "I spoke to the technical people at Trigold who told me that they were aware of the problem. "But if it takes a week to correct a teething problem now, what are they going to do come Mortgage Day?" In response, Trigold says the problem related to the way it mapped the different fields of information and that this has now been dealt with. But Trigold adds that being able to sort out errors such as this is the reason it launched its FSA-compliant system 100 days ...

  • Brokers slam A&L valuations policy

    30 Aug 2004

    Some A&L products offer free basic valuations but if borrowers choose the more comprehensive homebuyer's report or full building survey they will be charged the full amount. Ray Boulger, senior technical manager at Charcol, says most lenders offering such discounts will only charge the difference between the more comprehensive report and the basic survey. Danny Lovey, sole trader at Basildon-based The Mortgage Practitioner, believes A&L's policy discourages ...

  • Building societies record strongest growth for seven years

    2 Sep 2004

    A 14.6% increase in assets took total building society sector holdings past the £200bn mark to £224.8bn. These figures are drawn from building society accounts for year ends between August 2003 and April 2004. The growth of the sector was again powered by the performance of Nationwide, which with assets of over £100bn at April 2004, represents 45% of the entire sector. Nationwide achieved asset growth of nearly 19% in 2003/04, up from 15% the previous year. The ...

  • BuildStore joins forces with PMN

    2 Sep 2004

    Under the terms of the relationship, which formally came into effect yesterday, PMN's membership will be able to offer access to BuildStore's range of market-leading BuildLoan self-build and renovation mortgage products. Members will receive a minimum payment of £250 for every successful case that completes with BuildStore. A maximum commission of 30% is available. PMN managing director, Dale Knight, says: "I am delighted to have teamed up with an innovator ...

  • Cars a popular choice for lifetime mortgage customers

    30 Aug 2004

    More than £1.1bn was released from older people's homes in 2003. With new car registrations due on September 1, figures from Norwich Union Equity Release show that more than a quarter (28%) of people releasing equity from their home plan to spend at least some of the money on a car. With 20% of the UK population aged over 60, more older people are driving. There are two million drivers in the UK aged over 70 and over the last 30 years, the largest increase in active ...

  • Clients need to be sold cover

    30 Aug 2004

    It is all too easy to miss out on additional strands of business when organising a mortgage for a client. Whether through reluctance on the part of the client to spend more money or on the part of the broker to spend more time trying to encourage a client to buy something they don't think they really want, business opportunities are missed. And if you want to be moralistic, clients are left exposed to financial hardship. The trick is to attempt to sell at least something. Obviously ...

  • CML publishes top lenders

    1 Sep 2004

    The list shows the top 30 lenders, both by size of their total mortgage assets and by size of their gross mortgage lending in 2003. HBOS was again the top lender by far, with a total of £171.7bn mortgage balances outstanding at the end of the year and an estimated 22.5% of the market share. Its gross mortgage lending in the year has been £70.3bn and is estimated to have 26% of market share. The top five lenders included Abbey, Nationwide, Llyods ...

  • CML report on equity withdrawal

    3 Sep 2004

    In an article in the latest issue of the CML's economics journal Housing Finance, the CML analyses data from the Survey of English Housing to show that of all equity withdrawn between 1998 and 2003, just under two-thirds was attributable to last-time sales and trading down. Nearly a quarter was attributable to remortgaging and further advances, with the remainder (13%) attributable to people moving house and borrowing more than they needed to finance the move. Remortgagers ...

  • Code compliance officer for Banking-Insurance Services appointed

    3 Sep 2004

    McKenna brings a wealth of regulatory knowledge to the company, holding FPC and CeMap. Jim has an insurance company background, working in direct sales before becoming an IFA. In December 2003 he decided to concentrate on mortgages and joined BISL as an appointed representative. The role will involve the random checking of adviser files, and the supervision of our registered mortgage advisers, to ensure adherence to the Mortgage Code Compliance Board rules and regulations. ...

  • Commonhold to be introduced in England and Wales

    1 Sep 2004

    With commonhold, owners band together to form an association that will draw up rules for how interdependent properties, like blocks of flats, will be managed. Unlike leasehold, there is no role for landlords, says the Council of Mortgage Lenders. The CML, in its news and views newsletter, says: "The biggest advantage of commonhold, for both owners and lenders, is that the value of a property will not fall because of the uncertainties created by a shortening lease. Although the ...

  • Contrary to recent press speculation, is the future of sourcing systems secure?

    30 Aug 2004

    Frank Thurlby is head of compliance at Genesis Sourcing systems have a potentially pivotal role to play in the intermediary mortgage market. But the big question is - will they realise that potential or will they miss the opportunity and, as a result, have a shaky future in store? The problem sourcing systems face is that they are no longer simply sourcing systems, they also have an important compliance role to play. Brokers want to be able to source a product, produce ...

  • Curriculum Vitae - Peter Richardson

    30 Aug 2004

    Name: Peter Richardson Age: 51 Company: The Derbyshire Job title: Chief executive Where do you live? Mugginton Lane End, near Ashbourne, Derbyshire describe your Current Job: As chief executive of The Derbyshire, I head an ambitious organisation which is aspiring to be the leading retail financial services provider in its heartland. Energy and enthusiasm combined with a relentless pursuit of results ...

  • Days to regulation: Non-regulated brokers are doomed Life outside FSA regulation

    30 Aug 2004

    It is becoming increasingly obvious that a large number of mortgage brokers will be outside the FSA regulatory framework when they return to work on Monday, November 1. The reasons for this are no doubt many and varied, though my fellow industry commentator, Chris Fleetwood of Paradigm Consulting, has laid the blame firmly at the door of the Mortgage Code Compliance Board. CeMAP became compulsory in January 2003 and much was made about the fact that without it brokers ...

  • Dear Delia

    30 Aug 2004

    want to remortgage to release £15,000 for home improvements but want to pay the mortgage off as soon as possible as they plan to eventually sell the property and retire to the coast. Delia says: The Haddocks would benefit from a flexible mortgage to help them manage their finances efficiently and allow them to make regular overpayments. To advise them we have Ramona Leavers from All Types of Mortgages and Brian Ewing of Intelligent Finance. Have you got a problem for Delia? Email ...

  • Destini comes to the rescue, buying Lifeboat

    30 Aug 2004

    Bill Wynn, CEO of Lifeboat, will join Destini's operating board. For Destini, the deal will add £10m to turnover, taking the group size to £30m. David Collett, managing director of Destini Group, says: "The opportunity of bringing the Lifeboat team to Destini is timely as it dovetails with our plan to include a multi-tie proposition within the group to complement our core activity of acquiring IFAs." Lifeboat called in the administrators earlier this month. ...

  • Do you have the will to make it happen?

    1 Sep 2004

    Due to behavioural changes in modern society, many couples live together without getting married as they perhaps once would have done, or live with members of the same sex.

  • Dramatic decline in mortgage enquiries as consumer confidence plunges

    3 Sep 2004

    The figures reveal a significant decline, almost 50%, in the numbers of buyers looking to take out new mortgages between March 2004 and the end of August. Moneynet data shows that 37,000 people made mortgage enquiries through the service at the beginning of March, a period of intense activity in the housing market. But by the end of last month those enquiry levels had plummeted to just 20,000, as the impact of five successive base rate rises began to impact on buyer's ...

  • Ease your way into FSA regulation

    30 Aug 2004

    This week I am concentrating on the grey area of transitional provision between non-statutory and statutory mortgage regulation. I recommend that whichever way you choose to approach the transition from Mortgage Code to FSA regulation, you do so in accordance with MCOB 2.2.6R and communicate information to your customers in a way that is clear, fair and not misleading. Adopting this approach should see you through a potential minefield. The official Financial Services Authority ...

  • Financial health matters

    30 Aug 2004

    In July 2004, 83% of Britons expressed no concern over meeting their financial commitments in the next three months - up 9% since the beginning of the year. Perhaps this level of consumer optimism is not unfounded despite likely increases in interest rates, reviews of council tax payments and signs of a slowdown in the housing market. The Department of Trade and Industry's latest report, Tackling Over-Indebtedness, claims that one in five people are experiencing financial difficulties ...

  • Forrester Research to hold Financial Services forum

    2 Sep 2004

    The main theme of the event will be keeping customers happy without breaking the bank. While business and marketing executives are struggling to understand, serve and satisfy their ever more demanding and fickle customers, IT executives are faced with outdated technology platforms and limited budgets. At this Forum, Forrester Research will mix strategic and tactical research with advice and best practices from European financial services leaders. During strategic keynotes ...

  • FSA fines Bank of Ireland £375,000

    3 Sep 2004

    The transactions, which were undertaken in breach of BoI's own policies and procedures, appear to be suspicious and are currently being investigated by law enforcement. Philip Robinson, financial crime sector leader at the FSA, says: "Adequate systems and controls are fundamental to the UK anti-money laundering regime's effectiveness and firms must identify the money laundering risks in their business and take appropriate action to reduce these. "These transactions ...

  • FSA takes action against firms falling short of the mark

    1 Sep 2004

    The regulator's threshold conditions team deals mainly with small regulated firms that are not meeting the FSA's minimum requirements or threshold conditions. The TCT generally takes action against such firms when co-operation has not been forthcoming. In the year to June 30, 2004, approximately 50 firms addressed breaches of the threshold conditions when presented by supervisors with the prospect of a referral to the TCT. 59 other firms who were referred to the TCT took ...

  • Genesis tempts ARs with Mini draw

    30 Aug 2004

    It is giving one lucky intermediary the chance to win a Mini Cooper in the run-up to regulation. The Mini will be given to an intermediary whose name will be drawn from a list of all those who have attended either a Genesis presentation or workshop, or who have spoken to a Genesis representative about the company's network proposition for appointed representatives. Genesis head of sales and marketing John Lee says: "This special draw has been designed to give brokers ...

  • GMAC-RFC becomes 12th largest lender

    2 Sep 2004

    This rise through the rankings marks yet another fantastic 12 months for GMAC-RFC, the lender that provides mortgages for everyone from mainstream through niche to non-conforming. During 2003 alone, the company advanced £4.8 bn in mortgage loans - a staggering increase of 45% on the previous year, in a market that only grew by 27%. Stephen Knight, executive chairman of GMAC-RFC, says: "We're delighted to have top 10 lender status in our sights.  Our mortgages ...

  • Good company - but what does it really stand for?

    30 Aug 2004

    Jeff Knight betrayed a hint of pedantry in responding to assumed inaccuracies regarding an article about GMAC. Sorry Jeff, that should read 'GMAC-RFC' (Mortgage Strategy, August 23). I have recently placed several hefty remortgages through 'GMAC' and found it to be helpful and responsive - if a little pedantic here and there. But one thing that escapes me - and apparently all the members of its staff to whom I have spoken - is exactly what GMAC-RFC stands ...

  • Goodbye to final salary pensions

    30 Aug 2004

    This week's column follows on from the overview of occupational pensions published in the August 16 issue of Mortgage Strategy and outlines the operation of the two main types of occupational pension schemes - the final salary scheme and the money purchase scheme. The final salary scheme is also referred to as a defined benefit scheme as members are able to calculate their benefits under the scheme by reference to the length of their pensionable service and their pensionable ...

  • Halifax won't be getting my next remortgage case

    30 Aug 2004

    I have just heard that from September 1 Halifax will not accept further advances from brokers. We get paid a minimum of £135 per further advance. In view of costly regulation, isn't it a bit unfair that all further advance work now goes to the branch and not us? Thank you Halifax, I'll bear you in mind when completing my next remortgage - not. Christopher Nicholson Managing director Bath Mortgage Search By email

  • HBOS will win Abbey bid, says Deutsche Bank

    1 Sep 2004

    In a comprehensive research note entitled 'HBOS, best dressed for the Abbey ball', Deutsche analyst Nick Lord says that HBOS is the only UK bank likely to counter the agreed offer tabled by Spain's Santander Central Hispano. Lord claimed HBOS could be willing to pay as much as 650p per share to land Abbey, trumping Santander's offer by around £1.5bn. Despite the regulatory hurdles facing a deal, Lord said there was a 50/50 chance an HBOS bid would ...

  • Helping clients buy homes in Spain

    30 Aug 2004

    With sun, sea and sangria, the lure of buying a property in Spain is strong for many Brits. However, buyers must be aware of what can go wrong and must take precautions to prevent getting their fingers burned. This article is a guide to some of the potential pitfalls of buying property in Spain but is by no means definitive. As a rule of thumb anyone seeking to purchase should seek professional advice at every stage of the process. Firstly, buyers can be tempted by weekend inspection ...

  • Hidden bank charges clobber customers, says Cable

    3 Sep 2004

    Liberal Democrat Shadow Chancellor, Vince Cable, says: "The Which? report and Liberal Democrat research clearly shows that the penalties for small errors are becoming penal. For those close to their overdraft limit a little mistake can prove more expensive than a speeding fine. "For a simple mistake you could find yourself facing over £70 worth of charges. To make matters worse banks tend to put charging information in the small print so many aren't aware of ...

  • Homefast joins PTI Mortgage Club panel

    2 Sep 2004

    PTI members will be able to recommend the fast, efficient service provided by homefast to their clients and in return will receive a referral fee. PTI Mortgage Club members will benefit from faster completions, fixed fees, no completion no legal fee, secure online case tracking and extended opening hours. John Brian, partner in homefast property lawyers, says: "We are delighted to be joining PTI's panel. Partnerships of this sort benefit all the parties involved ...

  • House prices have risen 155% every 10 years since 1952

    30 Aug 2004

    The firm reveals exclusively in Mortgage Strategy that even in the depths of the 1990s recession house prices increased by 12% and the peak came between 1960 and 1970 when prices increased by a staggering 424%. John Wriglesworth, housing economist for Hometrack, says: "This proves that property has historically been a good investment in the medium to long-term. Despite the recent slowdown, I think house prices will grow over the next 10 years." Wriglesworth is also optimistic ...

  • igroup enhances first mortgage range

    2 Sep 2004

    With immediate effect, employed customers selecting products from igroup's GEM 0 and GEM 1 range will be able to borrow up to 95% of the property value subject to status. Other key features include: * No higher lending fee payable by the customer. * Available on tracker, fixed and discounted products. * Satisfied CCJs ignored. Sean Webb, chief commercial officer at GECF Home Lending, says: "Following its re-launch in April 2004, igroup's GEM range has ...

  • Infinity says FSA will be tough on promotions

    30 Aug 2004

    The sub-prime lender has launched a summer promotion that rewards brokers with a Marks & Spencer voucher for every application that fits Infinity's lending criteria. The deal runs runs until September but it is thought that such promotions will be frowned on by the FSA. Chris MacMahon, sales director of Infinity Mortgages, says: "While this scheme is a token gesture, we will re-evaluate such deals if we offer them in future. Everyone has to be more careful under regulation." Vane

  • Interest-only could be next mis-selling scandal

    30 Aug 2004

    Concern over the propensity of people to buy consumer items with the money they could be paying towards their mortgages was clear at a recent discussion forum run by Mortgage Strategy and Platform. Platform managing director David Tweedy says: "The interest-only issue is likely to be a major scandal in around 20 years. This market used to be 95% interest-only and even now it is around 50%. It is regulation that will fix it." The lender believes that while there is a place ...

  • Internet Insite

    30 Aug 2004

    My round-Britain tour of mortgage broker websites this week finds me in Scotland. Glasgow to be precise. And I've found three quite different websites for you to have a look at. Millbrae's site highlights a common problem, and not just with broker websites. Internet users who are searching for mortgage information are no different from any other internet users. Because so much information is available they get bored very quickly. It's essential therefore that your web pages download ...

  • It's time the average homebuyer got to know about inheritance tax

    30 Aug 2004

    It's not the most likely of silly season stories but Inheritance Tax has been big news recently, even making it onto the BBC schedules. The Institute for Public Policy Research, a think tank closely connected to Labour, called on the government to rethink the way the tax is applied. This was quickly translated into government policy with one paper screeching: "Inheritance tax set to rise to 50%". The reality is different. Currently, IHT kicks in at 40% on any estate worth over ...

  • Kensington offers fixed rate range

    1 Sep 2004

    It is also increasing its three-year stepped discount by 0.50% to 2.25% over three years.   Alastair Pate, director of marketing and strategy, says: "The addition of our longer fixed rate options mean there is even more variety in our portfolio, giving you and your clients more flexibility. By increasing the discount on our three-year stepped discount product, your clients potential saving could make a real difference to their monthly outgoings. This is vital as people budget with ...

  • KRS says regulation will make its life easier

    30 Aug 2004

    The firm says regulation will make its life easier and be quite straightforward, as it specialises in lifetime mortgages unlike most brokers and IFAs who are generalists. Dean Mirfin, business development director of Key Retirement Solutions, says: "We are lucky. Regulation is going to make life easier for us and we have already done a lot to prepare. The FSA is strict about what a lender has to submit. It's all to do with the suitability report - what it doesn't want is ...

  • Landlords plan to remortgage in 12 months

    2 Sep 2004

    Almost two-thirds (63%) of existing landlords, responding to a major property investor show survey of property investors, have declared their intentions to remortgage within the next 12 months. In contrast, The Council of Mortgage Lenders says only 15% of all residential mortgage holders over the past year have remortgaged. This implies that investor landlords are much more prone to take advantage of the latest cut-price mortgage offers. If investor landlords carry out their ...

  • Lenders must shape up when it comes to paying proc fees

    30 Aug 2004

    Regulation will bring significant changes in the proc fee channels for brokers. Lenders will have to change their IT systems to reflect who gets paid what, by who and when. I was interested to read of the problems Hamptons has suffered with Legal & General's mortgage club (Mortgage Strategy August 23). The fact that it has paid the wrong fees shows the difficulties the industry will face. In my experience, not even larger lenders can ensure 100% that the right broker or ...

  • Lending industry should not forget its primary role

    30 Aug 2004

    After sourcing a case on August 19 on Mortgage Encore 2000 and visiting the clients to complete a mortgage application form so that I could submit an AIP to Abbey, I was surprised to get the decision that the case was outside of its lending criteria. I contacted the lender's business development unit which reviewed the computer input only to be informed that it failed on income multiples, which it had altered in June. It appears that the industry is so focussed on ...

  • London lettings market continues to strengthen, says Knight Frank

    30 Aug 2004

    On a monthly basis, rental growth was 0.7% in July, matching June's figure. This strengthening in the market has been largely driven by the recovery of London's corporate sector, with the CBI and PricewaterhouseCoopers reporting that financial services firms were hiring staff at the fastest rate for 15 years in the second quarter of 2004. The UK tenants' share of market has increased by three percentage points between June and July to its highest level since the Knight ...

  • Low valuations are often eventually seen as accurate

    30 Aug 2004

    I have noted recent comment in the media criticising the valuation industry for down valuations and would like to provide another perspective. Firstly, I would like to respectfully suggest that most commentators accept there are some areas in the country that are experiencing negative price movements and each day brings further evidence of a gentle cooling. Valuers would be negligent not to report on these trends and brokers can minimise their own unproductive case levels by keeping ...

  • M2-D&P double offer

    3 Sep 2004

    They are offering a refund of valuation up to the value of £270 on mortgages from, Kensington, London Mortgage Company; Mortgages plc; Preferred Mortgages; and, SPML.   They are also offering a free mortgage lead for any case that goes to valuation for any of their lender partners.   The leads are sourced through the leading personal finance website moneysupermarket.com.   Vanessa Blount, general manager of m2-d&p, says:"Normally offers from packagers just benefit ...

  • M2-D&P offers deals from Bristol and West

    2 Sep 2004

    All of the products are available to first-time buyers. Standard mortgage, 5.49% fixed for 12 months, then 1.75% discount below SVR for 24 months then reverting to SVR for term (currently 6.54%) with no extended tie in.   Available to 95% LTV (with security fee for LTVs over 85%).   Customer cashback of £300 and procuration fee of 0.4%. Self-cert mortgage, 5.69% fixed for 12 months, then stepped to 1.79% below SVR for 24 months then reverting to SVR for term (currently ...

  • Market Watch

    30 Aug 2004

    • One-year money is up 0.02% at 5.24% • Two-year money is unchanged at 5.25% • Three-year money is down 0.01% at 5.29% • Five-year money is down 0.02% to 5.33% Last week was busy with many lenders cutting their fixed rates following the recent falls in swaps. Halifax says its rates are changing but I have not seen the new portfolio. Bank of Ireland has reduced its residential and buy-to-let three year fixed rates to 5.39% and 5.99% respectively. F

  • Marketing Brief

    30 Aug 2004

    Having looked at commercial mortgage and business finance lenders for the last three weeks, I thought that it was time to delve into the world of short-term funding, better known as bridging finance. You've only got to wander through the ads at the back of Mortgage Strategy to see that there are not only specialist companies in this sector of the market but also quite a choice of lenders. To quote from specialist lender Cheval's own material: "Bridging finance is probably the most ...

  • Marlborough Stirling's Interim results for six months ended June 30

    3 Sep 2004

    Some of the financial highlights include, adjusted pre-tax profit of £1.7m, a reported pre-tax loss of £4.8m, adjusted diluted earnings per share of 0.5p, and a reported diluted loss per share of 2.3p. During the period, Marlborough Stirling secured major mortgage software contracts for Bradford & Bingley and CIBC as well as life and pensions outsourcing new business wins with Royal Liver and Chesnara. Additional outsourced review work was secured with Sun Life Financial ...

  • Moneyfacts mortgage hub - a solution for compliant KFIs

    2 Sep 2004

    Moneyfacts says its reputation for the accuracy of its data is already recognised throughout the industry. Every leading bank, building society and mortgage lender as well as most of the national press and tens of thousands of financial advisers rely on Moneyfacts data every day. As well as its own websites, online systems and publications, Moneyfacts mortgage data also powers systems used by Which?, HSBC, Alliance & Leicester, Abbey and Royal Bank of Scotland. Moneyfacts has ...

  • moneysupermarket.com plans second building

    30 Aug 2004

    The company moved from its Chester-based offices to St David's Park, Ewloe just over a year ago and is already planning an expansion to a second building which will be ready next year. Architects are currently designing the look of the new 12,000 square foot office.   The expansion is planned in conjunction with an extensive recruitment drive as the company is gearing up to hire 200 more staff by 2006, predominantly in the IT sector. This is a result of increased investment ...

  • Monthly house price growth slows to two and a half year low

    2 Sep 2004

    Nationwide also thinks that the interest rate cycle could be close to a peak, but energy price rises could equate to a further quarter percentage point on mortgage rates for households with £100,000 mortgage. The forecast for house price inflation in year to December 2004 remains at 15%. Alex Bannister, Nationwide's group economist, says: "Price growth declined sharpley in August with the price of the average house rising just 0.1% during the month. Consequently, ...

  • Mortgage holders will struggle to cope with a 2% interest rate rise

    1 Sep 2004

    A report from Mintel, highlights that over a quarter (26%) of mortgage holders, or some 4.3 million adults, would struggle to cope with a 2% increase in interest rate. This rises to over a third (36%) amongst 25-34 year olds, a depressing prospect for these adults, many of whom will have only recently bought their first home. But what is of real concern is that one in every 25 borrowers admit that such an interest rate rise could prove catastrophic to their financial situation. ...

  • Mortgage Trust and Mortgage Intelligence launch B2L product

    1 Sep 2004

    Austin Jelfs, head of sales and marketing at Mortgage Trust, says: "This exceptional deal is the first product targeted towards those investors who prefer not to take advantage of our flexible features. We have recognised that not all of our customers require the flexibility previously common to all Mortgage Trust products and in response have extended our range to offer this non-flexible mortgage option. Landlords who choose this product will still have the benefits of low arrangements ...

  • Mortgage Trust and Savills Private Finance join forces

    3 Sep 2004

    The deal boasts the low initial rate of 5.69% fixed until 31/10/05, followed by a year two rate of 5.99% fixed until 31/10/06. Not only is this stepped fixed rate very competitive, but the rental income calculation is based on the initial fixed rate of 5.69%. Mortgage Trust also offer up to 85% LTV, no MIG and full flexibility on this product giving investors the opportunity to save for further property purchases or budget for rental voids or maintenance costs. Austin ...

  • MS Awards move to bigger London venue

    30 Aug 2004

    The Mortgage Strategy Awards, the industry equivalent to the Oscars and the first in the industry to recognise excellence in both lenders and intermediaries, will be held in the Nine Kings Suite at the Royal Lancaster Hotel on the evening of Thursday April 14 2005. The Awards have been moved to the Royal Lancaster to accommodate the huge demand to attend. The black tie event will commence at 6.30pm with a pre-dinner champagne reception. Sponsors, which include ...

  • Nationwide launches guide to make homes energy efficient

    2 Sep 2004

    It has launched a free guide which will help its members save money by making their homes more energy efficient. Packed full of handy hints and information the new guide sets out where to start with energy efficiency and other environmental improvements to the home. It provides illustrations of a range of home improvements depending upon budget and house type. If every member who owns their own home undertook one single low cost energy efficiency improvement, collectively ...

  • Nationwide payment protection changes

    2 Sep 2004

    The new premiums, which will come into effect from today, include the following. Twelve months' cover: accident, sickness and unemployment £5.39; unemployment £3.66; accident and sickness £2.79. Twenty-four months' cover: accident, sickness and unemployment £6.47; unemployment £4.54; accident and sickness £3.57. Nationwide's mortgage payment protection insurance can cover consumers' mortgage and other household ...

  • NatWest becomes latest lender to pull out of self-cert

    30 Aug 2004

    The lender emailed brokers saying it was withdrawing its selfcert products with effect from August 13, only giving them until close of business on August 17 to submit new cases. Bob Riach, proprietor at Riach Independent Financial Advisers, says: "More lenders will drop out of the market following bad media coverage on self-certification deals. "Last year's BBC documentary highlighted the risks involved in these mortgages and now a lot of people are running scared. ...

  • Near prime off to a flying start at Preferred

    1 Sep 2004

    Preferred Mortgages has already added enhancements to the product - defaults are now ignored, the LTV has been increased to 90% for self-cert, employed, purchase and remortgage. Preferred Mortgages has seen great interest in the new product since its launch in May, with business far exceeding expectations. John Webster, managing director, says: "We are extremely pleased with the level of response and interest around this product. We did our homework, found a gap in ...

  • Networks divided over AR independence

    30 Aug 2004

    Financial Services Authority rules state that from October 31 one of the conditions for a firm to describe itself as independent is for clients to be offered a purely fee-based payment option. If the client goes for this option, networks say they will lose a valuable source of income as they have to rebate the share of the proc fee they skim off the broker back to the client. The client will also get the broker's proc fee. Some in the market, such as Genesis Approved ...

  • Networks should choose their packagers with great care

    30 Aug 2004

    It is apparent that many networks are finalising or have indeed finalised the offerings that will secure existing appointed representatives and attract new ones. Thousands of man-hours have been invested in a process to ensure they can continue to trade after Mortgage Day. Having decided on the make-up of the mortgage lender panel they will offer they come to what they see as the least important and most uncontroversial appointments - the mortgage packagers. Recent IMLA ...

  • Next Generation Mortgages revises commercial offering

    1 Sep 2004

    Cardiff-based NGM rolled out an expanded range of products yesterday that cater for the needs of small and medium-sized businesses to its existing national base of 2,000 intermediary partners. Some additions to NGM's enhanced portfolio include distress funding. NGM is now able to offer finance to businesses that have short-term capital requirements. Market-leading products feature attractive interest rates and minimal security requirements. Bridging finance, a key ...

  • North house prices stand still, says Rightmove

    1 Sep 2004

    Yorkshire, the Northwest and North are starting to feel the pinch with asking prices grinding to a standstill. National asking prices fell by 0.6% in the last two weeks. Compiled from asking prices of actual proprties put on sale by estate agents who advertise on Rightmove.co.uk from August 14, 2004, a sample of half the market. Miles Shipside, commercial director of property website Rightmove, says: "The southerly chill has finally spread north, as asking prices ...

  • Number of new mortgages rising

    1 Sep 2004

    Some 74% of mortgage intermediaries say they will be arranging more mortgages 12 months from now, says research from TNS. This compares to just 65% of intermediaries surveyed at the same time last year. Confidence was highest among mortgage advisers in the South with 76% of respondents saying they will be arranging more mortgages compared to 72% in Scotland, 64% in the North and 59% in Wales. The findings show there has been a small decrease in the proportion of mortgages ...

  • On the beat

    30 Aug 2004

    Marketing to your existing customers can mean years of repeat business without the expense of major lead acquisition campaigns. Lead generation campaigns can be heavy in the use of both financial and human resources. The Financial Services Authority has laid down a series of strict rules that control communications with existing clients and new prospects. Regulation will categorise a sales call as either a solicited or unsolicited contact. An unsolicited contact will be one where ...

  • One in two Britons believe property investment leads to wealth

    1 Sep 2004

    One in every two Britons (50%) believes that investing in property is the best way of getting rich quickly, yet nearly half (49%) say that they do not feel in control of their long-term finances, says ICM research commissioned by Interactive Investor. The independent personal finance portal, launched its website yesterday, enabling people to solve all their financial needs throughout their lives.   Four in five lose sleep over money yet spend less than one hour a week, ...

  • Optoma network to rebrand

    30 Aug 2004

    Managing director Matthew Bright says it does not want the likes of Sesame and St James's Place - which deal with Optoma Broker Solutions, a business to business processing operation - to think its network is in competition with them. Bright says: "We want to distance our network from the Optoma brand and will be doing so over the next few months. We will create clear blue sky between the processing business and the network. Interpartners will run as a standalone business." Compliance

  • People prefer to deal with people

    30 Aug 2004

    The web provides companies with opportunities as a distribution channel and an advertising medium. It can also be a threat because, as the extract points out, it helps the consumer compare one product with another at the push of a button. This can lead to a price-driven strategy which is not in the interests of maximising profit. The options are either to accept that we are living in a nearperfect market and adopt a price-driven strategy or to innovate, creating something new or different. Tho

  • Peter Timberlake quits L&G to join Standard Life

    2 Sep 2004

    Angela Robertshaw, a spokesperson for Legal & General, says: "It is a great opportunity for Peter and we wish him well in his new role, which he will start in mid-November."

  • Pinnacle launches bond

    2 Sep 2004

    To mark the launch, Pinnacle has a special offer paying up to 4.68% net monthly income for a three-year term. This is equivalent of up to 6.24% gross for higher rate taxpayers. The minimum investment is £25,000. Both capital and income payments are guaranteed providing the bond is kept for the full investment period.   Kathy Byrne, managing director of investments, says: "Our launch offer beats any other monthly guaranteed income bond product on the market. For ...

  • Platform named best intermediary lender

    2 Sep 2004

    The award, in recognition of Platform's consistently excellent service to the intermediary market, was voted for independently by a panel of respected industry figures on behalf of the consumer magazine, Mortgage Advisor & Home Buyer magazine. Platform was acquired by the Britannia Group in 2001 and was launched in February 2003 as the Group's dedicated intermediary lender. Through its comprehensive 'one' product range, Platform caters specifically for the intermediary ...

  • Portman appoints non-executive director

    2 Sep 2004

    Majaro joined PricewaterhouseCoopers in 1978 on graduation from Oxford University. Appointed a partner in 1990, she left the firm in 2003 having worked in the Banking and Capital Markets Group and Transform, a PwC advisory service which helps business get the best out of their people. Majaro is currently a member of the Philharmonic Orchestra Finance Committee and the development board of Somerville College.

  • Principality on track to deliver commitments to members

    1 Sep 2004

    Gross Lending for 2004 was £549.5m, compared to £388.2m in 2003, other income increased to £8.2m, from £7m in 2003. Profit before tax £8.2 million, compared to £9.9m in 2003, total assets were £3,836m up from, £3,248m on 2003.   Peter Griffiths, chief executive of Principality, says: "After the first half of 2004 we are on course to deliver our commitments to all our stakeholders. The group interim results are strong and ...

  • Property still the favoured investment, says GMAC-RFC

    3 Sep 2004

    It is clear from the research that the public still have much more confidence in property than other forms of investment methods. Nearly half of those questioned (46%) consider property to be the best form of investment in the current financial climate, compared with just 14% who plumped for the security of a building society and a mere 6% who opted for stocks and shares. Looking at the future, a staggering 68% of British people believe that property will provide the best return ...

  • Protection money Protection money

    30 Aug 2004

    With downward pressure on mortgage procuration fees, brokers should be looking to cross-sell other products as an additional source of income. Protection products would seem to be an obvious choice but across the board the sale of these has been low, creating what the industry is calling a protection gap. This means there is a worrying situation developing whereby vast numbers of people do not have enough - or in some cases any - back-up if they or their family suddenly ...

  • Reading the signs in the buy-to-let market

    1 Sep 2004

    Last week's residential lettings survey by RICS (Royal Institution of Chartered Surveyors) shows 10% of landlords put properties up for sale in the last quarter rather than renew their rental agreements. That's 2.5% higher than October last year.

  • Rising rates and humid weather slow retail sales in August

    1 Sep 2004

    Retailers cited successive interest rate rises and August's unpredictably humid weather for the slowest sales performance since March 2003, reported in the CBI's latest quarterly distributive trades survey, published yesterday. The survey shows that July's unexpected slowdown in sales continued throughout August despite expectations of a pick-up. 34% of firms say sales were up on a year ago while 32% say they were down. The balance of plus 2% compares with plus ...

  • Scottish Widows boosts its IFA sales division

    3 Sep 2004

    In his current role as sales director, Peter Hendry has sales responsibility for IFA and direct channels. This role has been expanded to encompass IFA strategy development, IFA major account management and partnership development - roles previously carried out by Robert Wyllie who has been appointed market director of corporate pensions. Richard Anderson has been appointed project director with full responsibility for depolarisation strategy implementation. Anderson will report ...

  • Select & Protect announces partnership with Professional Mortgage Network

    2 Sep 2004

    Professional Mortgage Network's ARs and directly authorised brokers will have access to the full range of Select & Protect's general insurance offering. Simon Hood, Select & Protect chief executive, says: "Our reach into the mortgage adviser market continues to widen and the appointment of Select & Protect to Professional Mortgage Network's GI panel is another milestone in our development as we move closer to regulation. Whilst this is a new relationship for both of us, ...

  • Selling insurance is easier than you think

    30 Aug 2004

    These headline figures appear to contradict the real state of the mortgage market. There is clear evidence that the Bank of England's five successive interest rate hikes have cooled the market. This impression is reinforced by the BBA's mortgage lending figure of £5.7bn in July, compared with £6.4bn in June. For those super-optimists who need further evidence that the market is cooling, I can point to Hometrack's statement that house prices fell last month for ...

  • Shrewd buy-to-let investors turning to commercial property

    30 Aug 2004

    Research from one of the show's exhibitors, Mortgages for Business, shows that 89% of investors who currently do not invest in commercial property have plans to widen their portfolio to include commercial properties. The benefits of investing in commercial property are confirmed in a survey commissioned in a survey commissioned by the Property Investor Show which showed that over three-quarters (76%) of property experts felt that commercial property had been the best performing asset ...

  • Skipton appoints intermediary sales manager

    2 Sep 2004

    Lucy moves from Newcastle, where she worked for the past seven years as a branch manager and, more recently, a regional account manager. Her main responsibility will be to develop business in her area, promoting the products of Skipton, and that of its subsidiary company, Amber Homeloans.

  • Slowdown in UK housing market

    1 Sep 2004

    Official figures released yesterday show that the number of new mortgage approvals fell sharply for a second month running in July in response to a significant rise in interest rates this year, and attempts by the Bank of England to cool the market. Mortgage approvals were just £97,000 in July, down 26% since last December. This is official confirmation of a slowdown in the housing market. Approvals were last this low last March when there was heightened uncertainty around ...

  • Small error gave misleading impression of cover needs

    30 Aug 2004

    I am writing with regard to the response on the issue of professional indemnity insurance in the August 9 issue of Mortgage Strategy on the Viewpoint page. The answer given to the question about required PII cover was correct in every respect except that the e sign was replaced by £. Although in itself a minor error, this does give a misleading impression of the cover firms are required to have, under our new rules. David Whitely Press officer Financial Services ...

  • SP Mortgage Administration adds GMAC to lender panel

    2 Sep 2004

    The existing lender panel includes SPML, Platform Home Loans, Amber Home Loans, Bristol & West and BMS. Nigel Woolhouse, operations director of SP Mortgage Administration, says: "We are delighted to add GMAC to our lender panel, offering brokers an even wider range of choice especially within the non-conforming sector. We are confident that this is the start of a long and fruitful business relationship with GMAC." The LifeLink Group consists of LifeLink Services Limited ...

  • Steve Wright wins Trigold's Prospector AAA launch competition

    1 Sep 2004

    The competition was run to mark the launch of Trigold's Prospector AAA software, which was launched on July 30, to provide intermediaries with the tools they need to approach regulation with confidence. The prize is a unique collection of framed memorabilia autographed by Sir Geoff Hurst at a closed signing session. Housed in an attractive glass frame the collection includes a signed shirt, signed photos and a certificate of authenticity. Steve Wright, sales and marketing ...

  • Systems strike back at BMS

    30 Aug 2004

    In an open letter to sourcing systems, Bolton claimed that as an industry, sourcing system providers had failed to deliver a solution to guaranteeing the accuracy of lender KFIs. However, the head of one sourcing firm says that BMS itself has been the main stumbling block to getting accurate KFIs. George Dodds is managing director of Homebank which also operates its own sourcing system, Mortgage Pro. His firm got in touch with every lender to obtain the information ...

  • The Mortgage Mole

    30 Aug 2004

    BOOK EARLY For those of you who like lots of spare paper about the office, help is at hand. Mole can reveal that AMI's A Practical Guide to the FSA's Regulation of Mortgages is for sale on auction website eBay. "The book has been aimed as a guide to all mortgage brokers shaking in their pin stripe suits at the thought of being regulated by the FSA," the mystery vendor gushes. Mole thinks that at a starting price of £1 the mighty tome would make ...

  • The Mortgage Works announces buy-to-let changes

    2 Sep 2004

    The ratio will be based on a nominal rate of 5.99% or the actual pay rate if higher up to 80% LTV. Paul Howard, associate director at Portman Group Intermediary Sales, says: "I feel we are near the top end of the interest rate cycle and, whilst the Bank of England base rate has gone up several times in recent months, I believe we have covered this in our current calculation. There is an inherent strength in the buy-to-let market and this will continue. We have readdressed the ...

  • TMB relaunches back into the market

    2 Sep 2004

    As of tomorrow, Friday 3 September, the company will launch a reduced range of three core products. The Prestige mortgage will be for loans over £500,000, bank base rate plus 0.99% for the life of loan. House 2 House will be a buy-to-let based on income and not rental yield and is a level tracker of bank base rate plus 1.79% The final product is called Ten to Let, and is a buy-to-let based on rental yield at 125%, a level tracker at bank base rate plus 1.99%. All ...

  • UCB Home Loans increases variable mortgage rates

    30 Aug 2004

    The variable rates are now 7.04% (7.5% APR) on the flexiplus variable rate, 7.04% (7.5% APR) on the investment flexible variable rate and a self-certification variable rate of 7.64% (8.1% APR).

  • Universal launches offset deal

    1 Sep 2004

    An initial rate of 5% and daily interest means this competitive mortgage is a flexible way to save money. This initial rate is discounted by 1.79% from Universal's standard variable rate, which is guaranteed for the first year. This will be followed by a 1% discount from the society's standard variable rate for the life of the loan. The Universal offset mortgage account also offers daily interest, up to 90% LTV and use of Universal's new fast-track remortgage transfer ...

  • Vesta recieves minded to approve letter

    3 Sep 2004

    Vesta Money and its sister company, the recently-launched Vesta Packaging Ltd, are based at Poole in Dorset. Vesta is a member of the packager's alliance RAMP.   Mark Leaper, managing director of Vesta Money, says: "This is recognition of the time and effort we have put into ensuring that our compliance is spot on. Our customers now know that we have in place all the compliance infrastructure that we need."  

  • We're on a long and winding road

    30 Aug 2004

    It is sad but perhaps inevitable that the Mortgages Conduct of Business rule book has crept onto some people's holiday reading lists recently. For the two AMI members who called the AMI helpdesk from Brittany and a holiday home in Cornwall I hope all is clear now and please, do try to relax. However, with engagement with MCOB well under way, news that the Financial Services Authority plans to change some sections could cause alarm. But if this has prompted a sudden explosion ...

  • Weaker mortgage approvals in July

    2 Sep 2004

    This was the highest in the series, £0.1bn higher than in June and 7.0% more than in July 2003. However, after seasonal adjustment, the rise in net lending of £5.4bn (revised) was lower than the average of £5.8bn for the previous six months. There were 210,500 loans approved in July, with a total value of £16.4bn. Approval numbers were 9.9% weaker than June and 19.5% weaker than July 2003. In particular, the number of loans approved for house purchase was ...

  • What will the MPC do with the base rate?

    30 Aug 2004

    Figures released by the Royal Institute of Chartered Surveyors this month show that property prices froze for the first time this year across most of the country during the three months to July. RICS believes that back-to-back interest rate rises are responsible for a significant drop in the number of people looking to buy. So, Mortgage Strategy asks: "What will the Bank of England's Monetary Policy Committee do with the base rate next month - keep it as it is, increase ...

  • Women call the shots with estate agents

    2 Sep 2004

    A survey carried out by propertyfinder.com, says sellers considered an estate agent's responsiveness as most essential of all, and were most likely to choose agents who were readily available when they needed help or advice. By contrast, agents who turned up unannounced with potential purchasers wanting to view the property were likely to lose business. Vendors expect agents to have an intimate knowledge of their home and the local area and expect the agents to be able to answer questions .

  • Working together to solve the KFI problem

    30 Aug 2004

    The publication of a letter from BM Solutions' director of mortgages Michael Bolton criticising the accuracy and reliability of sourcing systems has provoked a surprisingly muted reaction. Normally outspoken pundits from the big three firms, Trigold, M2000 and Mortgage Brain, have on this occasion chose to maintain a reserved silence rather than leap in feet first. And perhaps you can understand why. As Mortgage Day edges closer, the question of exactly how networks ...

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