Mortgage Strategy
30 September 2002

  • "Cater for Muslim borrowers" call

    30 Sep 2002

    Financial services providers have been urged to show greater innovation to Islamic borrowers. The call comes one week after FSA chairman Howard Davies addressed a seminar on Islamic finance criticising the absence of suitable mortgage products. Some pundits estimate that the Islamic finance market has grown at up to 15% annually over the past decade and is currently worth between US$200 and $500 billion internationally. About 1.8m Muslims are resident in the UK, accouting for around ...

  • £20m for offshore wind technology opens up new build market

    3 Oct 2002

    Two new schemes which will provide renewable energy for over 100,000 homes were given the green light today, with the promise of £20 million of government support. Brian Wilson, minister for energy (and possibly ex-Beachboys), announced the funding would be equally split between offshore wind farms near coast of North Wales, operated by National Windpower, and Norfolk, operated by Powergen. The development by National Windpower will result in 30 wind turbines with ...

  • 10% of mortgages will be sold online by 2006, says Datamonitor

    3 Oct 2002

    Two new reports from independent market analyst Datamonitor find that gross advances in mortgage lending will continue to increase and that the online channel will account for 10% of UK mortgage market residential gross advances by 2006. Datamonitor says that gross advances increased by 40.6% between July 2001 and July 2002. Rapidly increasing house prices and low interest rates have been the principal market drivers although low unemployment, insufficient new housing supply and ...

  • 1st Software launches Ƈst Impressions' IFA poll

    4 Oct 2002

    1st Software, a supplier of integrated technology solutions for financial advisers and intermediaries, has launched the results of the first Ƈst Impressions' poll - designed to measure the opinions of adviser firms on a range of industry and technology issues. 1st Impressions was launched via 1st Software's website www.1stsoftware.co.uk and client extranet, giving its 7,500 financial adviser users and website visitors, the opportunity to vote. Every two weeks, a new ...

  • Bond-2-Let goes public in London

    30 Sep 2002

    Specialist buy-to-let lender Bond-2-Let set out its stall to the public for the first time earlier this month at London's Property Investor Show in a bid to raise product awareness and gather leads for brokers. Bond-to-let is the only investment product of its kind in the buy-to-let market that addresses common problems associated with the sector. Bond-to-let uses a two-page application form with an 80% LTV plus "the bond". The bond equates to six months' mortgage payments, ...

  • Bradford & Bingley lands £650m GMAC-RFC mortgage book

    1 Oct 2002

    Bradford & Bingley has acquired of a loan portfolio comprising around 6000 mortgages from GMAC-RFC (General Motors Acceptance Corporation). The value of the loans in the portfolio is £650m. The acquisition will be made by Bradford & BingleyÂ's wholly owned subsidiary, Mortgage Express. Bradford & Bingley will fund the purchase from existing resources. The acquisition will complement Bradford & BingleyÂ's growing selective lending business and improve return ...

  • Bristol & West launches B2L remortgage campaign

    30 Sep 2002

    Bristol & West Mortgages today launches a buy-to-let campaign aimed at residential investment mortgage holders who are looking to remortgage. The west country lender is offering its new 5.75% five-year fixed rate buy-to-let mortgage, which carries the lowest remortgage rental income requirements in the market up to 85% LTV. For buy-to-let borrowers who do not want to be tied to a fixed rate for five years, but who still want the benefits of remortgaging, Bristol & West ...

  • Britannia Building Society issues interim results

    30 Sep 2002

    Britannia Building Society has announced interim results revealing a 16% increase in lending, with group assets increasing by 12%. The Staffordshire-based mutual announced operating profits of £66m, with a strong contribution from subsidiaries The core society margin was just under one per cent, while the Britannia Group's net interest margin has been reduced to 1.11%. Strong lending performance for the Group, underpinned by keenly priced mortgages ...

  • Britannic Money launches two fixed rates from 4.49%

    3 Oct 2002

    Britannic Money has launched two new fixed rate fully flexible deals. New residential product details: Two-year fixed rate at 4.49% - up to 95% LTV (full status) Three-year fixed rate at 4.99% - up to 95% LTV (full status) No higher lending fee Full flexibility Daily interest calculations Current Account Mortgage option Banking facilities for instant access to overpayments No compulsory ...

  • Brits are penny-pinching and pound-wasting, says Abbey National

    1 Oct 2002

    Britain is a nation of penny-pinchers, employing a whole range of thrift tips to save the pennies, according to new research by Abbey National. But the majority of Brits are missing a trick by not switching their current account from the Big Four banks, which pay negligible rates of interest. Most of us seem to want to get a good deal where we can, with nine out of ten (90%) taking advantage of Buy One, Get One Free offers in shops. However, it seems that many will go ...

  • CA vows endowment revenge for millions

    30 Sep 2002

    The Consumers' Association is vowing to help up to five million endowment mortgage holders win compensation. So far, the CA estimates that only one in 15 consumers with grounds for compensation have formally complained of mis-selling. New research from the CA suggests that 61% of the UK's eight million endowment mortgage holders were told their investment "would definitely" or "was guaranteed" to pay off their mortgage. Sheila McKechnie, director of the CA, says: "This ...

  • Call for an 'FHS' service to secure UK consumers' future financial health

    3 Oct 2002

    The establishment of a 'Financial Health Service' (FHS) could be an important step in tackling the pensions crisis and 'savings gap', claims a report in Consumers' Association journal Consumer Policy Review (CPR). The new report, by Clerical Medical's David Shelton, echoes the message of Consumers' Association's 'Advice for Life' campaign which calls for fair and accessible financial advice to be made available to all consumers through a National ...

  • Clarification required

    30 Sep 2002

    From Russell Martin In your September 16 issue, your 'problem case' relates a client 'Jeff' who is looking to raise a further £5,000-£6,000 on his right-to-buy property in order to finance a trip to Australia. Andy Linnett replies that this is not normally a purpose sanctioned by local authorities but can be overcome by effecting title insurance. Am I to believe title insurance removes the need to obtain a deed of postponement from the freeholder. I was ...

  • CML Market Briefing - October 2002

    2 Oct 2002

    A commentary extract from CML's October Market Briefing was issued yesterday. Latest figures show that GDP rose by 0.6 per cent in the second quarter of 2002, this corresponds to a 1.3% year on year rise The two-tier economy is still evident. August saw retail sales bounce back, but signs that the manufacturing recovery is stalling September witnessed yet more turbulence in the equity market as the FTSE dipped to its lowest level for six years ...

  • Concern over US trends

    30 Sep 2002

    Lenders could see a downturn in the mortgage industry and an increase in mortgage arrears if the UK follows trends being seen in the US market, writes Ben Stafford. Meeting to discuss the problems, US federal mortgage bank Fannie Mae told delegates that data compiled by the Mortgage Bankers Association of America revealed an increase in delinquencies and foreclosure on mortgage payments. The 'National Delinquency Survey' found that the delinquency rate for fixed rate mortgages ...

  • Coventry launches new mortgage portfolio

    4 Oct 2002

    Coventry Building Society has launched its lowest ever five-year fixed rate at 4.6% until December 31 2007. There is a £295 arrangement fee added on completion, no overhanging early redemption charges and a maximum LTV of 75%. Other products within the portfolio have also been updated to include a three-year fixed rate and a new five-year Flexx capped mortgage, with no early redemption and daily interest.

  • DATAMONITOR FULL REPORT SUMMARY

    3 Oct 2002

    Two new reports from independent market analyst Datamonitor, 'UK Mortgages 2002: Going from strength to strength?' and, 'Online mortgage distribution: The way ahead?' find that gross advances in mortgage lending will continue to increase, and that the online channel will account for 10% of UK mortgage market residential gross advances by 2006. Gross advances increased by 40.6% between July 2001 and July 2002. Rapidly increasing house prices and low interest rates have ...

  • Entertainment in Business to sponsor Business Comedy Forum

    3 Oct 2002

    Entertainment in Business, the company that specialises in the delivery of business messages via the use of entertainment, is sponsoring a Business Comedy Forum on Thursday 28 November 2002 from 2pm until 4pm at London's Comedy Store. At an entrance cost of £65, Norman Pace (star of Hale & Pace) and Terry Morrison (script writer) will demonstrate the effect that humour has on an audience and the way this can translate into more business for the presenter. Terry ...

  • Feedback is "positive"

    30 Sep 2002

    Feedback to CP146 has so far been positive, FSA chairman Howard Davies revealed last week, writes Harriet Williams. Speaking at a British Bankers' Association conference in London, Davies told delegates: "For the most part, the initial response to our proposals has been reasonably positive. Our overriding aim is a more straightforward market for mortgages. Where advice is given, it should be based on a good understanding of the consumer's position. But that will not always be ...

  • First Advice kick off remortgage challenge at Maine Road

    30 Sep 2002

    Financial and legal services company First Advice launched its remortgage challenge with Manchester City on Saturday at Maine Road. The new First Advice product is aimed primarily at Manchester City fans who will be invited to take the remortgage challenge where First Advice will give a mortgage quote free of charge. With the new mortgage, fans could save up to £1,700 over a three year period on the product, which carries a 3.99% discounted rate in the first year, ...

  • Fix with the Staffordshire at 4.25% for three years

    3 Oct 2002

    Staffordshire Building Society is launching a new 4.25% fixed rate mortgage product tomorrow (October 4). The product is available to all borrowers, whether first-time buyers, home movers or those just moving their mortgage. There's free accident, sickness and unemployment cover for six months (subject to status) and a £295 arrangement fee, which can be added to the mortgage. There's no extended tie-in but an early repayment charge of 5% of amount repaid ...

  • Flexibility works for Yorkshire BS employees

    30 Sep 2002

    Yorkshire Building Society says its flexible working scheme has had good results since its implementation 18 months ago. The society was granted £25,000 from the Department of Education and Employment's Challenge Fund to help set up the scheme, which now sees around 25% more new mothers return to work after maternity leave, reduced staff absenteeism and a significant reduction in stress-related absence. It is also considered that the flexible working opportunities help ...

  • Four new buy-to-let deals from Britannic Money

    30 Sep 2002

    Britannic Money has launched a new buy-to-let product range, with two discounted and two fixed rate products. The products have been launched to meet increasing demand for buy-to-let, with four products available up to 85% LTV. Deals include: Two-year discounted rate at 4.76% One-year discounted rate at 4.91% Two-year fixed rate at 4.99% until September 30 2005 Three-year fixed rate at 5.49% until September 30 2006 Britannic ...

  • FSA launches new approach to insurance regulation

    2 Oct 2002

    The Financial Services Authority has set out how the regulatory framework it inherited for the insurance industry is being completely overhauled. Over the past 12 months, the FSA claims to have re-organised its insurance regulatory activities, strengthened its team of supervisors with specialists recruited from the market and elsewhere within the FSA, and started implementing a new pro-active and challenging relationship with firms. In doing this, the FSA has laid down ...

  • Government took £2.7bn in stamp duty in 2001

    3 Oct 2002

    The government pocketed a record £2.7bn in stamp duty from homebuyers last year, official figures show. More than half of the tax was paid by homeowners in the London and South East of England, who handed over more than £1.5bn to the Treasury. The government has increased stamp duty four times since it took office in 1997. In the year before Labour came into power, revenue from stamp duty on residential property purchases was only £675m, with ...

  • Half-way there

    30 Sep 2002

    From Luke March MCCB News will continue regularly to report on progress towards full implementation of the MCCB fitness and competence requirements. This remains particularly important for firms, as the implementation deadline is now less than four months away. Any adviser providing mortgage advice and a recommendation under section 3.1(a) of the Code must have completed either the CeMAP, or be FPC or CeFA qualified and have passed either the CeMAP 'bridge' paper or the Mortgage ...

  • Halifax launches first intermediary further advance mortgage

    4 Oct 2002

    Halifax have launched the first-ever intermediary further advance product which is being piloted exclusively through Mortgage Intelligence. This breakthrough will mean the broker can offer their client the following, providing the client is currently with the Halifax for their main Mortgage: A further advance facility to be accessed and dealt with by the broker Access to the range of retention products available to existing customers, or standard variable ...

  • Help from on high

    30 Sep 2002

    From Nat Daniels I read with interest the article by Dave Edwards from Marlborough Stirling (Mortgage Strategy September 16, 2002). In this Ƈ% World', what is of the utmost importance to the mortgage intermediary is increasing market share and driving down the costs of business processing, i.e. the technology that is in place to process business quickly and efficiently. The diagram (workflow of the future) is excellent, but misses one factor - www.estateangels.co.uk ...

  • HM Land Registry publishes annual report and accounts

    1 Oct 2002

    HM Land Registry has published its annual report and accounts for 2001-2002. The Report shows that during the past year: - For the first time in five years, all of the Land Registry's 15 Key Performance Targets were achieved or exceeded despite a 16% increase in workload - Over 98% of customers were either very satisfied or satisfied with the full range of services provided by the Registry - 97.93% of registers are now capable of electronic delivery - Output ...

  • Home Counties Credit becomes mortgagesandloansetc

    30 Sep 2002

    Home Counties Credit, the Watford-based sub-prime specialist has changed its corporate identity to become as mortgagesandloansetc. The move coincides with the installation of a major online case-tracking system, which has been developed specifically to meet the ongoing needs of mortgage brokers and IFAs, and is the centrepiece of the company's attempt to increase its distribution channel. mortgageandloansetc's facility enables users to receive real-time information ...

  • House prices up again

    30 Sep 2002

    August house price surveys from Halifax and Nationwide show the average price paid for a UK home is now over £110,000 - around 20% higher than only 12 months earlier, writes Harriet Williams. The Halifax numbers suggest house-price inflation may be beginning to ease - a view not supported by the Nationwide's results. Although the average household's debt has risen to £32,815, the value of their assets has grown too. Currently, outstanding debts represent 14.9% of average ...

  • IF mortgage customers barred from accounts

    4 Oct 2002

    Intelligent Finance online bank has suffered technical problems that means customers could not access their accounts earlier this week. A company spokeswoman told Reuters: "The situation is under investigation at the moment." She added there were no security issues behind the technical difficulties. Intelligent Finance, which offers services ranging from mortgages, personal loans and credit cards, has around 500,000 customers. Customers trying to access their ...

  • Insurance relief for those on high-risk flood plains

    30 Sep 2002

    Members of the ABI last week agreed to continue providing insurance to the 1.5 million flood-prone UK homes that already meet minimum government standards on flood risk. The government welcomed the ABI move. Flood minister Elliot Morley said: "It should be possible for flood insurance to be maintained [in] all but the most exceptional of cases." But Paul Banfield, partner in Surrey-based Best Advice, says: "If we exclude people at higher risk, the whole meaning of the word insurance ...

  • IPTC endowment criteria widens

    2 Oct 2002

    IPTC, The Insurance Policy Trading Company, is currently trading unit-linked, unitised and late-maturing with-profits endowments, in addition to those with-profits policies that fall within the normal criteria for selling into the second-hand market. IPTC's requirement for unit-linked, unitised policies and late-maturing with-profits policies is limited. Sales will therefore be effected on a first-come, first-serve basis. Policyholders who are interested in selling ...

  • IPTC reports increase in telephone enquiries

    2 Oct 2002

    IPTC (The Insurance Policy Trading Company) has reported an increase in the number of valuation enquiries being taken by telephone, as opposed to being submitted online. Elaine Bradburn, a director of IPTC, says: "Perhaps the biggest surprise of all is that Financial Advisers are suddenly showing a preference towards calling or faxing us with policy details rather than using the online trawler services that became so popular last year." The reasons for this unexpected ...

  • L&G relelases critical illness data

    2 Oct 2002

    Legal & General has released claims data showing that, since 1996, men account for 94% of all their critical illness cover (CIC) claims paid for heart attack while women account for only 6%. On the other hand for cancer claims the position is reversed. This time figures being much closer with women 58% and men 42%. During the last year, 92% of the critical illness claims paid by Legal & General arose from what are known under the ABI statement of best practice as 'core' ...

  • Law firm to start £3m expansion

    4 Oct 2002

    Barnetts Solicitors, a leading conveyancing and personal injury law firms, has announced today that work will begin on its new £3m purpose-built headquarters in Kew, Southport. The new UK head office is expected to be fully operational in October 2003, taking the firm's workforce to 300. The firm will be keeping its existing offices in Hoghton Street, which will be refurbished to accommodate their rapidly expanding personal injury department. Richard ...

  • Looking at mortgages, loans - and the rest

    30 Sep 2002

    Q: How is mortgagesandloansetc structured? A: Based in Watford, Hertfordshire, we are a packager operating in the sub-prime and non-conforming market, we also have a direct-to-consumer arm offering members of the public a wide range of mortgages from our panel of lenders. Our packaging and direct-to-consumer arm both have equal shares in mortgagesandloansetc, with a designated team for intermediaries and a team dedicated to dealing with members of the public. We offer our network ...

  • Millionaires put liquid assets into property

    1 Oct 2002

    Tulip Financial Research, the wealth research specialist, has published the first in its 2002/2003 report series: Britain's Millionaires - The Powerhouse of Private Investment. This is based on a new Tulip survey of British millionaires, and reports in depth on their current and planned investments in today's turbulent financial markets and on how millionaires are changing their investment habits. Liquid assets are unequally distributed in Britain. The wealthiest ...

  • Mortgage split fears

    30 Sep 2002

    Uneven growth in UK house prices could eventually split the mortgage market in two with different products for North and South. Average house prices of £168,003 for the South East and £195,391 are now a good £100,000 ahead of those in the lowest-priced Northern regions. Martin Ellis, group economist at Halifax, says: "Different markets in different regions could possibly lead to lenders having to design distinctively different products. "If trends continue, it ...

  • Mortgageforce announces southern expansion

    2 Oct 2002

    Mortgageforce, in conjunction with Andrews Estate Agents Limited (AEA), has increased its branch-based distribution throughout the London and the South, and claims that the franchisor will now have more high street presence than many well known building societies. As a result of the new distribution deal from tomorrow, mortgageforce will offer its complete independent mortgage advisory service available from branches in:; Kingsbury Road, NW9; Putney High Street, Putney; High Street, ...

  • My mortgage week

    30 Sep 2002

    Monday: My working week started on Saturday this week. At long last we are moving to the City. Personally I much prefer the City to the West End - whilst the constant crowds of tourists outside Harrods can be tedious, the City has a certain buzz that cannot be matched - and it helps that the office is only a 15-minute walk away from my home. The move has gone quite well. Inevitably there are IT problems, but, incredibly, BT has turned up and done the job it was supposed to. The telephones ...

  • N&P goes commercial

    30 Sep 2002

    Norwich and Peterborough Building Society is launching a flexible commercial mortgage for owners of small to medium-sized businesses. N&P's Flexible Commercial Mortgage combines a commercial mortgage and an overdraft, enabling the business to use any spare cash to make additional repayments to the mortgage to reduce the interest cost. If the business needs extra cash it can be drawn immediately, without applying for an additional loan. Robert Lankey, head of commercial lending ...

  • New appointment at Olympian Financial

    2 Oct 2002

    Sub-prime mortgage packager Olympian Financial has appointed Brian Hayes as the company's sales and marketing director. Hayes has been promoted to the position from general manager. Prior to joining Olympian, Hayes was an independent financial adviser, running his own company, Corbetts Tay Financial Management. Mel Fordham, managing director of Olympian Financial, says: "It has been an excellent year for the company with business volumes more than doubling. Brian's ...

  • New appointment at The Finance Centre

    1 Oct 2002

    Sub-prime packager The Finance Centre (TFC) has created a new position within its senior management team. Dawn Paget joins TFC as its operations manager with immediate effect. Her responsibilities will include running the day-to-day affairs of the business, creating a series of initiatives designed to improve internal efficiencies and controls - and devising a series of specific training programmes that are tailored to the needs of all members of staff. Over the next ...

  • New legal battle could force up CRA costs

    30 Sep 2002

    Credit reference agencies are seeking financial backing from the CML in the event of another legal battle over access to the electoral roll. Electoral information at CRAs is out of date after a court ruling took the voter roll out of commercial circulation at the end of 2001. Lenders thought their credit-checking worries were over this summer, when Parliament ruled that CRAs should be allowed to buy the full electoral register. But access to the 2002 canvass - taking place ...

  • New offer and lower rates from UCB Home Loans

    3 Oct 2002

    UCB Home Loans, Nationwide's specialist self-certification lender, has launched a new offer on its FlexiPlus variable rate tracker mortgage. The new offer is for advances over £200,000 and, at 4.89% (APR 6.0%), it is the lowest rate within the new UCB Home Loans self-certification mortgage range. The FlexiPlus product also includes a full range of flexible features and drawdown facility. The product is available for an unspecified limited period. UCB Home Loans' ...

  • New protection against fraudulent mortgage applications

    4 Oct 2002

    SPSS has launched a data-mining solution that alerts mortgage lenders to potentially fraudulent mortgage applications. With SPSS' Datatracker, mortgage lenders can review an applicant's credit history and cross-reference this with predefined models of suspicious profiles. Using these parameters, it can then compare that profile to an application that is most likely to be fraudulent. With this capability, mortgage lenders can identify any anomalies. Once these are ...

  • New three-year fixed rate from Leeds & Holbeck

    4 Oct 2002

    Leeds & Holbeck has launched a new three-year loan fixed at 4.39% until January 1 2006. Available up to 95% of property value, the loan enables borrowers to repay up to 10% of capital each year. There are no extended lock-ins and no mortgage indemnity guarantee up to 90% loan-to-value. The completion fee is £399. Early repayment charges start at six months interest at standard variable rate (currently 5.75%), tapering to four months' interest at SVR in the third ...

  • New trade alliance takes broader view

    30 Sep 2002

    The National Association of Mortgage Brokers and Advisers says the addition of a packager and a training provider to its steering committee "completes the skills set" to move the AIFA/NAMBA alliance forward. Simon Nicholson, sales and marketing director of Chester-based broker-packager Creative Mortgage Solutions, was appointed to the steering committee last week. He is joined by Jayne Owen, chief executive of Towcester-based Corporate Training Partnerships, taking membership of ...

  • Nine in 10 say sound money advice now pays later

    2 Oct 2002

    Recent research by Birmingham Midshires found that nine out of 10 Britons (88%) claim that the money advice that they received from their parents as children has influenced their financial habits and decisions in later life. The research findings suggested that many people felt that they had not learnt about the value of money as a child. Just four in 10 Britons (41%) claimed their parents had taught them to save money before buying an expensive item. In response to this, ...

  • Ombudsman keeps N&P waiting on TESSA decision

    30 Sep 2002

    Judgment has been reserved in the judicial review of the Financial Ombudsman Service's decision regarding interest paid on Norwich & Peterborough Building Society's TESSA Select Account. No date was given for the judgment. Before commencing legal action, N&P pledged that, if unsuccessful, it would pay extra interest to members with qualifying TESSA accounts. This payment would amount to an estimated £1.3m and the society estimates that around 50,000 of its 500,000 ...

  • One in five Britons 'in the dark' over money management

    1 Oct 2002

    One in five Britons (19%) admit they lack the 'know how' to manage their money. Surprisingly, less than one in twenty people (4%) claim they would consult a financial adviser for help with their finances, increasing fears that many Britons could be losing money each month and are missing the chance to make their cash work harder for them. The latest research from Birmingham Midshires' 'Saving Britain 2002' campaign shows that consumers recognise they could ...

  • PAA to offer leads from BSkyB Digital satellite customers

    2 Oct 2002

    The Professional Adviser Alliance is to receive potential leads from 15 million Sky Active users. Moneysupermarket.com has reached an agreement with BSkyB to provide mortgage and loan channels on Sky Active, its interactive service. 15 million digital satellite viewers will now be able to search for mortgages and loans from the comfort of their own armchair. These same viewers will be able to request that an adviser call them to give them advise on mortgages via their ...

  • Pink builds new relationship

    3 Oct 2002

    Pink Home Loans is extending its specialist product offering by joining forces with an expert in the self-build mortgage market. BuildStore, a provider of mortgage products and related services to the self-build and renovation market, is the latest addition to Pink Home Loans' extensive range of facilities. Its addition means that BuildLoan, a mortgage product designed for the self-build sector is now available through Pink Home Loans. BuildLoan is the only self-build ...

  • Preferred finalises £200m securitisation

    30 Sep 2002

    Preferred Mortgages has completed a £200m securitisation of non-conforming mortgage assets. This is the fifth and largest transaction for Preferred Mortgages, bringing its total securitised assets to £0.5bn since the company formed in 1996. The securitisation was arranged by Credit Suisse First Boston. The three major rating agencies - Moody's, Standard & Poor's and Fitch - have all awarded the securitisation a 'AAA' rating, which is attributable to the high ...

  • Prescott to curb Right to Buy

    1 Oct 2002

    John Prescott has been accused of secretly plotting to put an end to the Right to Buy scheme in a bid to solve the housing crisis in the South. Tens of thousands of council tenants will lose the Right to Buy their homes at a discount in housing hot spots under sweeping reforms announced at the Labour Party Conference yesterday. The Deputy PM - dubbed two Jags for the use of his two Jaguar cars - said new laws would soon be introduced allowing councils to suspend ...

  • Remortgage campaign

    30 Sep 2002

    Bristol & West Mortgages today launches a buy-to-let remortgage campaign offering free legal and valuation fees. At 5.75%, Bristol & West Mortgages claims its five-year fixed rate buy-to-let mortgage has one of the lowest remortgage rental income requirements in the market up to 85% LTV. A three-year base rate tracker is also available at 5.29%. Bristol & West Mortgage's nominal rate has also dropped from 7.75% to 6.5%. Both of these remortgage deals come with free ...

  • Right-to-buy has a right to be

    30 Sep 2002

    Right-to-buy is coming under fire, with accusations that it contributes to a lack of affordable housing, especially in the South East. As we report on page 4, housing charity Shelter has described right-to-buy as a "catastrophic waste of taxpayers' money". These comments were prompted by media rumours that the government is considering reforms to right-to-buy. Shelter wants the government to temporarily withdraw the discounts available under the scheme in areas of severe housing ...

  • Risk of world recession says CEBR

    30 Sep 2002

    Economic forecasts suggesting a sluggish international and UK economic outlook, with a heavily increased risk of recession have been published by the Centre for Economic and Business Research (CEBR). In its latest quarterly business forecast the CEBR paints a bleak scenario for world growth, which it predicts will rise slightly from 2.1% in 2002 to 2.6% in 2003 and 2004. The body suggests a 35% probability of growth declining so much in 2003-4 that the world will be trapped in ...

  • Rumours circulate over First National's future

    30 Sep 2002

    Rumours in the City are rife that Abbey National has put subsidiary First National, which includes sub-prime division First National Mortgage Company, up for sale for about £800m. An Abbey spokesman dismissed the suggestion as speculation, saying: "We said in our half-year results that we would be looking to make non-core asset disposals, but we have taken that no further. No decisions have been reached." Abbey bought First National in 1995 for £285m. If the company was ...

  • Search for the Holy Grail - continued

    30 Sep 2002

    There is one factor that has been, and always will be, the Holy Grail for mortgage lenders. It's not profitability or product innovation or even funding costs. It's far more important than all of these factors put together. It's distribution. Why? Because without secure distribution, everything else pales into insignificance. It doesn't matter if you have the world's greatest products, cheapest prices and widest margins; if you don't have the ability to distribute ...

  • Should your revision fall into arrears...

    30 Sep 2002

    One area of the syllabus with which the majority of students have little day-to-day experience is that relating to arrears. It is, however, a key area as far as the mortgage advice qualifications are concerned, and a good starting point is to know and understand the contents of the Mortgage Code. Most students would know that one of the key commitments under the Code is that subscribers should consider cases of financial difficulty and mortgage arrears sympathetically and positively. ...

  • Snowdon takes top new job at Freedom

    3 Oct 2002

    Freedom Finance, the Wilmslow based mortgage and loans broker, is planning to launch a major assault on the UK mortgage market. with Colin Snowdon as head of its mortgage subsiduary. The company, which brokered secured and unsecured loans worth more than £250 million last year, has completed a major restructuring and made a number of high profile senior level appointments, in preparation for a major marketing push during 2003. Colin Snowdon, who was behind the launch ...

  • So why was it such a good idea for Mortgage Brain and Mortgage 2000 to join forces?

    30 Sep 2002

    The initial contact with Mortgage 2000 was made approximately 12 months ago and then we started to progress in more detail from this June, following a full review of Mortgage Brain's strategy. One of the key factors in the deal was making sure that the Mortgage Trading Exchange became available to the majority of introducers. With Mortgage 2000 having the second-largest user base after our own, it was the obvious first port of call. Informal discussions were conducted at a ...

  • Sourcing systems accused of ignoring packager

    30 Sep 2002

    A small packager has lashed out at several sourcing systems for refusing to carry its exclusive product. Glasgow-based Capital Mortgage Connections launched a Mortgage Express 100% product in August, with a minimum loan of £40,000 rather than the usual £50,000, targeted at the lower-priced Scottish market. It has so far approached a number of systems, but only Mortgage Brain and Trigold have agreed to carry the product, while Mortgage 2000, Mortgage Link and TMOS have so ...

  • Standard Life bonus cuts hit endowments

    1 Oct 2002

    Thousands of homeowners with a Standard Life endowment mortgage potentially face a shortfall after the life insurer cut terminal bonuses by an average of 10%. The cuts mean the payout on a £50-per-month 25-year endowment falls to £89,537 from £99,747. Standard Life will also charge a 10% exit penalty to anyone that cashes their policy in early. Some 20,000 life policies will mature between now and Standard Life's next bonus declaration in ...

  • Sub-prime packager HCC rebrands

    30 Sep 2002

    Sub-prime packager Home Counties Credit relaunches today as mortgagesandloansetc. Watford-based HCC is one of the UK's oldest sub-prime packaging companies and is hoping to increase its distribution channel by 30% with the launch of an £150,000 online case-tracking system. The system, which has been developed "to meet the needs of mortgage brokers and IFAs" is the centrepiece of the company's assault on the intermediary market. The mortgagesandloansetc facility enables ...

  • Survey: brokers offer best MPPI deals

    30 Sep 2002

    Intermediaries are offering mortgage payment protection insurance at far more reasonable rates than lenders. A survey by MPPI provider DMS suggests that the average mortgage borrower can save over £2,300 during the lifetime of their mortgage if they switch their MPPI away from their lender. DMS compared the policies of top lenders and found the average MPPI rate on a £75,000 mortgage to be £5.84 per £100 of monthly cover. Over 25 years this represents a cost ...

  • The Mortgage Mole

    30 Sep 2002

    Mole hole The weeks go by and still no word of the whereabouts of FHM girl Laura Barnden. BM's Michael Bolton, in need of new friends after uncharacteristically caustic remarks about the packaging industry, is still offering a £1,000 reward to anyone who can provide information on the elusive FHM honey. Maybe she's a packager? This is all starting to become a bit disappointing for Mole, who is beginning to wonder whether this is all not just a (not so) ugly charade. However, ...

  • There's still money in property

    30 Sep 2002

    I has been a summer of growing discontent for the army of buy-to-let investors, as well as the burgeoning array of lenders, brokers, property agents and other players who have helped fuel the boom in this niche market over recent years. More and more investors are reporting difficulties in letting their properties, or are seeing their rental income tumble. Even where vacant periods and soft rents are not a problem, new investors are seeing the relative attractions of moving into this ...

  • This week's problem case

    30 Sep 2002

    Mr Downey is relocating to Scotland with his job. He has sold his studio flat in London for £115,000 and has found a property priced at £100,000. But, 18 months ago, his own company went bankrupt and he has numerous CCJs outstanding, totalling in excess of £15,000, a number of which were incurred in the last six months. He also has over six months' arrears on his previous mortgage. His current salary is £21,000 and he has a deposit of £30,000. Intermediary ...

  • TMB targets a wider range of customers with launch of Autumn Campaign

    3 Oct 2002

    TMB, the specialist lender and HBOS Group company, has launched its Autumn Campaign, introducing larger loan sizes and higher loan to values on its self-certification range, opening up its products to more potential customers. Key changes to its range of mortgages include: Maximum loan size increased from £500,000 to £1m Salary-certification mortgages now available up to 90% loan-to-value Self-certification mortgages for those with one ...

  • WARD RALLIES INDUSTRY AT IMLA GALA DINNER

    3 Oct 2002

    IMLA chairman Tony Ward last night praised the performance of intermediaries in the mortgage market, after predicting they will bring in more than £100bn of mortgage lending in 2002. At the eighth Intermediary Mortgage Lenders' Association annual dinner, Ward told over 400 guests including the FSA's Sarah Wilson, Michael Coogan and Kate Main of the CML and Paul Smee of AIFA that whilst manufacturing and industry appears to be bouncing along the bottom of the economy ...

  • Watch out for portable mortgages' prohibitive small print, warns Savills

    2 Oct 2002

    Savills Private Finance (SPF) is urging buyers to look out for hidden pitfalls when considering a so-called 'portable' mortgage, particularly those looking to fix the rate for the longer-term. To attract borrowers, many lenders are now claiming to allow people to carry over their mortgage at the same fixed rate when moving property apparently without penalty. But should the borrower's circumstances change when looking to move, for instance they become self-employed, ...

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