Mortgage Strategy
31 May 2004

  • Yes, unclaimed money in accounts could end up helping the homeless

    31 May 2004

    The last edition of Mortgage Strategy carried a Letter of the Week as usual. This particular missive was a response to proposals to bring empty properties back into use as a way of tackling homelessness. The correspondent, Dave Rogers, made some interesting suggestions about freeing up Crown Land (not yet a BSA policy!) and ended up asking whether unused money in bank accounts could not also be sequestered for this cause. There is a debate raging within in the industry about just ...

  • £2bn wasted by borrowers per annum, claims mymortgagealert.com

    3 Jun 2004

    Mymortgagealert.com says UK mortgage borrowers waste over £2bn every year in unnecessary mortgage payments by continuing with uncompetitive interest rate products. It says advisers could reap handsome rewards by delivering these savings to their clients and that some £500m of procuration fees could be available. The company says it has recently released a 'build your own lender panel' facility. Advisers using the system already have a number ...

  • 1st Software joins AMI

    2 Jun 2004

    1st Software has become an affiliate member of the Association of Mortgage Intermediaries. From July 1, all users of 1st's Adviser Office system will be eligible to receive a 10% discount on AMI membership charges. This offer is open to both existing and new users of the Adviser Office system. Nick Berry, channel manager of mortgages at 1st, says: "The discount arrangement with AMI is just another example of 1st's commitment to providing our mortgage users with ...

  • 46% of home buyers looking to buy their home at auction

    3 Jun 2004

    Research carried out by The Property Investor Show North reveals that 46% of homebuyers are considering buying their next property at an auction. Over 30,000 properties are sold at auction in the UK every year, many at up to 40% below high street prices. In a market where high prices are keeping a lot of first time buyers off the property ladder, potential investors are catching on to the fact that despite auctions traditionally being the preserve of professional purchasers ...

  • A neat idea but a wrong conclusion

    31 May 2004

    We all want and need profitable customers but this extract highlights the fact that we must be focussed about how we achieve this. If your pricing structure is right, all your offerings should be profitable. If you have made a decision to run a promotion or special offer on a particular product or service the profit margin is likely to be lower but you will welcome the additional business at that price for a period of time that suits your objectives. The 80/20 rule applies to many organisations,

  • A packager that looks to put brokers first

    31 May 2004

    Knight Funding Located in Amesbury, Wiltshire (pictured above), Knight Funding has been a mortgage packaging business since 1990. It is owned and managed by chief executive Frances Scanlan. From being a one-woman business Knight Funding now has 30 staff packaging for all major niche and non-conforming lenders plus 17 high street lenders via its mortgage club. It is a member of the Professional Mortgage Packagers Associates and a founder member of the Professional Mortgage Partnership ...

  • A phone call is as good as a meeting

    31 May 2004

    I believe professionals such as solicitors, brokers and financial advisers can provide a high quality and efficient service to clients they may never meet. Yes, perhaps life was simpler when clients chose their advisers by proximity rather than any other criteria and indeed many still do because they want face-to-face contact. But for an increasing percentage of our clients modern methods of communication, notably the internet, afford them access to the best possible solutions ...

  • A View From The floor

    31 May 2004

    Are mortgage lenders are doing enough to encourage their mortgage customers to buy and renovate properties that have fallen into disrepair? Are they encouraging homebuyers to purchase houses that can be restored and turned from an eyesore into a credit to the community? Most building societies were founded in the 1800s to help groups of people save and to buy and/or build homes of their own. This is still their raison d'être. But perhaps mortgage lenders should ...

  • A&L told: ignore small brokers at your peril

    31 May 2004

    Ipswich has criticised Alliance & Leicester's decision to cherry-pick intermediaries who do large volumes of business with the lender. But the building society says A&L's move did not come as a surprise and warns that other large players will follow this lead. Ipswich sales and marketing director Paul Winter says A&L's decision is short-sighted. He says: "Mighty oaks from tiny acorns grow. Ignore a small intermediary today and you will find, some ...

  • A&L reveals 59% plan to improve their homes

    1 Jun 2004

    Over half of the people in the UK plan to carry out DIY this summer, the latest figures from Alliance & Leicester's movingimproving index reveal. The findings show that 59% plan to spend an average of £1,208 on improving their homes this quarter. This is slightly less than in the spring, at £1,240, but an increase on estimated DIY spend a year ago, when the figure stood at £1,178 per household. Decorating such as adding new carpets, furniture or ...

  • Abbey appoints Steve Andrew as south west BDM

    3 Jun 2004

    Abbey Business has appointed Steve Andrew as its regional business development manager for the South-West. He will be responsible for looking after Abbey's commercial mortgage customers in the region, taking over from Howard Smith who has been promoted to national sales manager. The company says it saw excellent growth in lending in 2003, and Andrew's appointment will further strengthen the already successful commercial mortgage team. His financial career ...

  • Abbey donates £100,000 to charities in Camden

    1 Jun 2004

    Charities in Camden are set to benefit from Abbey's new community programme.   Over the next three months, Abbey will be donating an additional £100,000 to charities in the Camden areas whose applications fit with Abbey's new charitable priorities.    Abbey is looking for applications for funding of £5,000 to £20,000, with the aim of making a positive impact on the local community. Charities will have until August 30 2004 to apply for funding. ...

  • Amity expands into new premises

    2 Jun 2004

    Amity Direct has expanded its operations in the North East moving into further premises close to their head office in Darlington, with a further 20 jobs as a result. Julie Hamilton, operations director at Amity, says: "With an increase of 87% on business levels received this year compared with the same period last year on top of the plans for the regulated market already taking shape, Amity continues to invest in protecting its enviable reputation for service to its introducers'   The ...

  • Bank of Ireland CE resigns over internet porn

    2 Jun 2004

    The Bank of Ireland's chief executive Mike Soden resigned at the weekend over allegations of viewing pornographic material on his office computer. The 57-year old quit his £1m a-year post after an internal check of the company's internet system found the breach of company regulation to have taken place. There is speculation that Soden accidentally accessed porn sites while browsing escort sites ahead of a trip to Las Vegas. Just two weeks ago he was ...

  • Barclays bashes mortgages written by competitor firms

    1 Jun 2004

    Barclays bank says it predicts that a lot of the mortgages being written by the firms competitors today will prove to be uneconomic in the long run, with the average life of a mortgage now just four years. It says that the average length of time a mortgage is with a lender is now four years, which contrasts with 1999 when it was seven years. And discount mortgages can be assumed to have an even shorter life. This means that the only way to make a profit from many of ...

  • BBA reveals lending April topped £16.1bn

    1 Jun 2004

    The British Bankers Assocation has revealed that gross new mortgage lending totalled £16.1bn in April. This was the strongest total since November and reflects the high approval volumes seen in March. After seasonal adjustment, there was a record rise in net lending of £6.4bn. By contrast, approvals in April were some 15% weaker than March, partly reflecting the fewer number of business days in the month. There were 227,700 loans approved, with a total ...

  • BDS launches D@shboard

    2 Jun 2004

    BDS Mortgage Group has now launched the case management system D@shboard to all of its broker contacts.Supplied by Nereus Infotek, D@shboard has over 5,500 licensed users nationwide, offering real-time case tracking and linking into third party software such as Trigold.BDS brokers will now be able to access the BDS system 24/seven to gain an update on any cases submitted with them. To promote this even more, BDS have developed a standardised glossary of D@shboard ...

  • Blue Sky

    31 May 2004

    "The buzzterm of the day is undeniably CRM - customer relationship management. We live in a customer-fixated world but loyal customers aren't necessarily good customers. It is no exaggeration to say that there are a lot of sceptics that point to a lack of bottom line results. Our research shows clear ambiguity and no positive correlation between the degree of loyalty and a company's ability to earn money. Just as we can list a number of intuitive considerations ...

  • BM Solutions launches 'Owl'

    2 Jun 2004

    BM Solutions has officially launched its 'Owl' compliance campaign, which aims to highlight the role of online services in answering the compliance burden The company says it is one of the few lenders in the market to have announced its plan to offer a fully compliant and guaranteed Key Facts Illustration. The compliance campaign, which includes advertising, direct mail and public relations, depicts an Owl in night vision goggles, emphasising the power and efficiency ...

  • BMS launches new product range

    1 Jun 2004

    BM Solutions has unveiled a new range of sub-prime, buy-to-let, and self-certification products for June. Highlights of the new range include a stepped sub-prime tracker and a five-year fixed buy-to-let product. The sub-prime range brings a mainstream level of choice to every customer. It features a stepped three-year tracker that graduates the cost, helping customers to get back on their feet. There is also a two-year fix at 6.85% with 90% LTV, providing payment ...

  • BMS, MEX and Paragon joins the NLA

    4 Jun 2004

    Buy-to-let lenders Birmingham Midshires, Mortgage Express and Paragon Mortgages, have joined the National Landlords Association as special corporate members. The NLA says this is a major step forward in achieving a more unified voice for the private rented sector. The new corporate members will participate in an organisation that represents and lobbies on behalf of the private rented sector at all levels of government. Their customers will have the opportunity to increase ...

  • Broadband great news for brokers, reveals BMS

    4 Jun 2004

    BM Solutions has today welcomed the news that the broadband market is growing at a phenomenal pace. According to the Office of Communications statistics, 4m connections are in place and around 40,000 new ones are being made each week. Consumers are rapidly realising the benefits of broadband technology and are not slow in moving forward towards online services. Likewise, more than 85% of BM Solutions' brokers submit business via BM Solutions Online. Carla ...

  • Brokers force Halifax to keep 10% paydown option

    31 May 2004

    Brokers have forced Halifax into a humiliating climb-down over plans to scrap its 10% penalty-free paydown facility from all its fixed and tracker products. Sources tell Mortgage Strategy that Halifax was going to remove the facility from June 7, but was forced to drop the plan after protests from brokers and Halifax's own sales managers. But Halifax denies this, saying the repayment facility will remain in place on all products except one tracker option. Halifax ...

  • Buildstore teams up with Drummond Miller for LegalLink

    4 Jun 2004

    Self build and renovation specialist Buildstore has teamed up with law firm Drummond Miller, to present LegalLink, a specialist service for self builders. LegalLink is made up of a dedicated team who specialise in the self build market. They can offer support throughout the self build process which can be more complex than buying a pre-built home. The service includes legal advice on land purchase, the planning application process and provides a steer on building ...

  • Buy, buy, buy! It's what your right foot's for...

    31 May 2004

    Platform is auctioning a replica Adidas football boot - the type David Beckham wore when he scored that penalty against Argentina in World Cup 2002 - signed by the player himself, to raise money for Cancer Research. The signed boot has been box-framed along with a semi-final ticket from the 2002 tournament and a signed image of Becks. Go to www.mortgagestrategy.co.uk to bid in the auction. All proceeds go to Cancer Research UK.

  • C&G reprices its fixed and capped range

    1 Jun 2004

    Cheltenham & Gloucester is repricing its range of fixed and capped-rate mortgages to replace its previous range launched on April 23 2003. The company says it continues to offer hassle-free remortgaging on an ongoing basis which includes the waiver of £299 administration charge for loans of £25,000 and over and free legals or £150 contribution toward legal costs, no valuation charge and no higher lending charge. Customers moving home can now fix their ...

  • CA appoints Vicary-Smith as chief executive

    1 Jun 2004

    The Consumers' Association has appointed Peter Vicary-Smith as its new chief executive. The appointment comes after the death in January of Sheila McKechnie who led the Consumers' Association for nine years. Vicary-Smith has been the commercial director at Cancer Research UK since 2002. Previously he was director of fundraising and communications at Imperial Cancer Research Fund from 1996. At Cancer Research UK he has been the board director with responsibility ...

  • Checking networks' finances

    31 May 2004

    From Nick Baxter I read with interest the Regulation article by Richard Griffiths on page 36 of your issue of May 24. Richard highlighted ཆ key features of a network'. Now, the FSA has a set of ཇ Principles for Business', so can I add one more to Richard's list? I would like to suggest the subject of 'Financial strength'. In the same issue, on page 6, John Lee of Genesis Home Loans suggests that prospective AR's should "ask to see ...

  • Community support lands Dunfermline CE top award

    4 Jun 2004

    A determined focus on supporting youth, health, education and communities has landed a top award for Dunfermline chief executive, Graeme Dalziel. Accepting the Scottish Business in the Community's HRH The Prince of Wales' Ambassador Award at a ceremony on yesterday, Dalziel pledged to do what he can to encourage other Scottish companies to turn words into action. He says: "I am very pleased indeed that the contribution made by Dunfermline to the wider community ...

  • Complete to use Home Buyer Systems IT solution

    31 May 2004

    The Complete Network has chosen Home Buyer Systems as the IT solution for its mortgage network sales process, product sourcing and compliance monitoring activities. The Home Buyer Systems software provides a comprehensive MCOBcompliant sales process with a full audit trail for compliance monitoring , the prompting of follow-up actions and ongoing revision of CeMAP-related topics. Product sourcing is provided by Defaqto, the organisation that supplies the FSA with mortgage ...

  • Datamoniter reveals life assurance market set to grow by £1.8bn

    3 Jun 2004

    A report from market analyst Datamonitor reveals that the life assurance market will grow by over £1.8 bn in the next four years to £5bn as stock markets recover and protection products remain popular. It says life insurance companies will have to world will have to work hard and make sure they have learnt their lessons from the last few years if they are to regain customer trust and interest, warns Liz Hartley, financial services analyst at Datamonitor and author ...

  • Dear Dippy

    31 May 2004

    Dear Dippy Mr Walsh is buying a flat and is supplying a 10% deposit from his own money. He is a first-time buyer and has already applied for a mortgage via a high street bank which declined his application. Unfortunately, he failed its credit score and also has an outstanding CCJ of £800 which was registered 18 months ago. Can you help? Dippy says: Being a first-time house purchaser with a credit default creates real difficulties for this client's chances. ...

  • Don't knock the networks until you've tried them

    31 May 2004

    From Roger Walker I feel I really must take issue with recent comments in the trade press and at recent seminar presentations which suggest that network membership can be bad news for intermediaries. Without naming names, certain companies have warned mortgage intermediaries to think twice about becoming a network appointed representative on the grounds that the networks will aim to influence the way they do business and even to take control of client files and records. Others ...

  • Don't take chances with buy-to-let

    31 May 2004

    Following the announcement of the statutory regulation of home reversion plans, how long will it be before a similar decision is made for commercial mortgages? We now learn the government will allow the inclusion of buy-to-let mortgages within self-invested personal pensions (SIPPs) but what we don't know is the stance the FSA will take in such circumstances. It is not clear whether the FSA's remit will cover the buy-to-let element. If it does, surely this will ultimately ...

  • Dunfermline looks to attract loyal customers

    2 Jun 2004

    Dunfermline is looking to attract loyal mortgage customers ahead of 'rate-chasers ' with the launch of the straightforward lifetime tracker mortgage. The lifetime tracker mortgage is open to purchasers, re-mortgagers and first-time buyers alike. It offers a tracked pay-rate of 0.74% above Bank of England's base rate for the life of the mortgage. It features the added incentive of a set capped rate until May 31 2007. The cap guarantees that a customers pay rate ...

  • Ensure you are covered on insurance What to ask the principals

    31 May 2004

    This week I take a look at the range of insurance products on offer from the networks, together with the questions you should be asking those you have on your short-list as a potential appointed representative. Under the FSA rules for the insurance market there is no limit to the number of networks you can join, even for the same products. For example, you could join CETA, Network Data and Personal Touch Insurance for term assurance. But each of these networks would have to explicitly ...

  • Equity release schemes are much fairer, these days

    31 May 2004

    From Nick Berry I have been following the equity release debate with keen interest and of late it certainly seems to be gathering pace. There are proponents of such lending schemes who correctly point out the advantages to those in retirement whose disposable income is restricted yet who are sitting on large amounts of untapped equity. On the other side of the coin there are those who believe equity release is a convenient method of fleecing an under-advised and vulnerable ...

  • Europeans tempted by US lenders - again

    31 May 2004

    Swap rates increased sharply at the start of last week then eased downwards slightly toward the end. • One-year money is up 0.06% to 5.16% • Two-year money is up 0.04% to 5.34% • Three-year money is up 0.03% to 5.43% • Five-year money is up 0.01% to 5.48% With swaps at these levels any two-year fixed rate that starts with a four looks incredible value. It was another manic week for rate rises with Bristol &West, Woolwich, Standard ...

  • Europeans tempted by US lenders - again

    31 May 2004

    Washington Mutual, Seattle, the largest servicer of home mortgages in the US is apparently on the auction block. Then again, maybe not. For now, nobody's talking on the record about what WaMu (pronounced Wham-Moo) is considering but one thing's for sure - the suitors being mentioned are once again foreign banks. And that's something which raises an interesting question on my side of the Atlantic. Why do European lenders like the US mortgage market so much? Among ...

  • Exclusive: Sesame promises accurate sourcing system KFIs

    4 Jun 2004

    Mortgage Strategy understands Sesame is to become the first network to take responsibility for ensuring key facts illustrations brokers obtain from its customised versions of Mortgage Brain and Trigold are accurate and comply with FSA rules. Although Network Data provides a guarantee that information from its own sourcing system, MortgageLink Enterprise Edition is correct, sources say Sesame will be the first to give such reassurance on data from third party systems. Sesame ...

  • Experian reveals new mosaic of British society

    1 Jun 2004

    Research from credit checking agency Experian has revealed that British society has changed significantly over the last ten years with the emergence of several new, clearly identifiable social groups. The findings have been made possible following the updating of Experian's extensively used Mosaic UK consumer classification system with new data sources including the 2001 Census. Richard Holt, director of Experian's business strategies division, says: "Mosaic UK ...

  • Figuring out how to do calculations

    31 May 2004

    From time to time this column has looked at the issue of CeMAP examination questions that require candidates to undertake basic calculations. Examples of such calculations include those relating to establishing the amount of a loan that should be covered by a MIG and averaging, which applies in the case of underinsurance. However it is clear that questions involving calculations are still causing difficulties for some candidates. Therefore, this week's article considers a couple of ...

  • First National revamps range

    31 May 2004

    First National has revamped its core product range and launched two standalone websites - one for brokers and one for packagers - to encourage online case submission. Product changes include a range of tracker products linked to Barclays Bank base rate as well as a range of limited deals including new fixed and discounted products and loans of up to 95% LTV to all customers - including first-time buyers. The websites, First Nat Online for packagers and First Nat Direct ...

  • Focus Solutions row up Avon for Anthony Nolan Trust

    1 Jun 2004

    Staff at Focus Solutions were frantically rowing up the River Avon in Stratford on Sunday May 16 as they joined 26 other teams from the Midlands area to compete in the annual Dragon Boat Race in aid of the Anthony Nolan Trust. The Focus team, called 'Hong Kong Focus Phooey', consisted of 10 rowers and a drummer and raced against other organisations including Safeway, NFU Mutual and the Territorial Army in Hong Kong style 30ft dragon boats. Focus raised £724.00 ...

  • Freedom recieves first Pink member

    2 Jun 2004

    Freedom Finance has received its first mortgage case from a Pink Home Loans member. Peter Tait from Cameron-Hemley, based in Bournemouth, submitted the first acceptable case and received £250 gift vouchers, which were presented by Pink Home Loans' business development manager for the South West, Andy Keen. Tait says: "The Freedom Finance deal was very attractive, not only because of the very competitive rate but also because of the way Freedom Finance uses an ...

  • FSA adds two new directors to FSCS board

    2 Jun 2004

    The Financial Services Authority has appointed two new non-executive directors to the Board of the Financial Services Compensation Scheme. They are Richard Pratt, who writes and lectures on combating money laundering andon other regulatory issues. He conducts assessments of regulatory standards in different countries and provides advice to jurisdictions on regulatory issues. He was director general of the Jersey Financial Services Commission from 1999 to 2003 and before ...

  • FSA bans former Equitable Life chief executive

    4 Jun 2004

    The Financial Services Authority has banned Christopher Headdon, the former appointed actuary and then chief executive of Equitable Life, from holding a significant management role until May 2010. The prohibition is a result of Mr Headdon's failure to disclose a side letter to the FSA that raised questions about the true value of a reinsurance contract entered into by Equitable Life Assurance Society. Andrew Procter, director of enforcement at the FSA, says: "Headdon ...

  • FSA fines Leopold Joseph & Sons £85,000

    3 Jun 2004

    The Financial Services Authority has fined Leopold Joseph & Sons £85,000 for serious failings in its system for monitoring adherence to credit limits. The weakness was first identified in 1999. Andrew Procter, director of enforcement of the FSA, says: "A firm's senior management must ensure that appropriate systems and controls are in place to allow it to monitor the risks that the firm is exposed to. The ability to monitor credit exposures is a fundamental control ...

  • FSA starts issuing 'veriation of permission' notices

    1 Jun 2004

    The Financial Services Authority has begun the process of sending letters to already authorised firms who have applied to conduct mortgage or general insurance business in addition to their current regulated activities. Some 1,320 of these 'variation of permission' letters have been sent this week, 1,082 in respect of mortgages or mixed business and 238 in respect of insurance.    Firms receiving a VOP letter will be set to receive formal notification of their variation ...

  • FSA starts to send out VOP letters

    31 May 2004

    The FSA has started the process of sending letters to already authorised firms which have applied to conduct mortgage or general insurance business alongside their current regulated activities. Last week 1,320 of these variation of permission letters were issued - 1,082 for mortgages, or mixed business, and 238 for insurance. Firms receiving a VOP letter will receive formal notification of their variation of permission for the additional areas of business later this year ...

  • Genesis adds Nottingham to its panel

    1 Jun 2004

    Genesis Home Loans has added Nottingham to its direct panel of lenders.   The addition takes the Genesis lending panel to 54 and makes Nottingham's full range of mortgages available to Genesis intermediaries.   Nottingham offers a range of fixed and discounted rate schemes, free valuations on properties up to £500k, free legal costs on remortgages, and has tiered income multipliers offering up to 4times sole or 3.25 times joint income. Additionally, it ...

  • Guaranteed appointed to LighthouseLoan panel

    3 Jun 2004

    Guaranteed HomeLoans has been appointed to the LighthouseLoan panel, to service Lighthouse Group advisers operating in the mortgage sector. Guaranteed HomeLoans, are one of the leading distributors of non-conforming mortgages in the UK, offering many niche and exclusive schemes for the Lighthouse Group to benefit from. Lighthouse says its expertise in placing the more difficult cases will bring added value to its proposition. Advisers can source mortgage products ...

  • Halifax reveals Liverpool house prices strengthened by Euro award

    3 Jun 2004

    Halifax has published research revealing that Liverpool winning the title of European capital of culture 2008, has coincided with a strengthening in house prices in the city and also compared to the North-West region as a whole. In the nine months following the title nomination in June 2003, the average house price in Liverpool has increased by 21.2%, against an average increase in the North West of 12.9%. The average house price in Liverpool now stands at £125,077, ...

  • ICMG and Essex and Capital unveils £1m investment programme

    4 Jun 2004

    Branded lender ICMG and its retail broking arm, Essex and Capital Mortgage, has unveiled a £1m investment program designed to take the business into the forthcoming regulated market. The program of capital investment, which will include a new inter-active website, bespoke processing software, state of the art computer system, construction of 2000sq ft of office space, and the recruitment of 20 new staff to be split equally between the two distribution channels. Chris ...

  • Internet Insite

    31 May 2004

    Each week I look at several websites before deciding on the three to include in the review, which some weeks doesn't say much for the sites I discard. But one thing stands out as I tour broker sites and that's the element of uniqueness - or rather the absence of it. Most sites trumpet service and advice but we all offer that. Brokers ought to ask themselves what they want to do that's different from other brokers. Finding uniqueness is not easy but how else will your website stand ...

  • INV market grows despite bad press

    31 May 2004

    Self-certification and fast-track loans outstanding amounted to £147bn or 19.2% of total mortgage balances at the end of 2003, a survey by the Council of Mortgage Lenders reveals. The survey of income non-verified lending shows about 6% of balances outstanding were self-cert deals, while the remaining 13% of INV balances comprised fast-track mortgages. New INV loans in the second half of 2003 amounted to £42.5bn or 28.3% of total gross advances. Of this 12% ...

  • Lending grew by £11.1bn in April, reveals Bank of England

    3 Jun 2004

    The Bank of England has revealed that total lending to individuals grew by £11.1bn or 1.1% in April. Seasonally adjusted, it was £0.3bn higher than the increase in March. The three-month growth rate fell to 14.7% from 14.9% in March but the twelve-month growth rate was unchanged at 14.7%. Secured lending grew by £9.8bn or 1.2% in April, seasonally adjusted, £0.6bn higher than the increase in March. The three-month growth rate rose to 15.4% from ...

  • Lib Dems label financial services of reckless

    3 Jun 2004

    The Liberal Democrats have accused rising lending by banks and building societies as recklessly fuelling the housing boom. Commenting on figures on lending to individuals out today, Vince Cable MP, Liberal Democrat Shadow Chancellor, says Britain's personal debt will top £1tn in the next ten days - and isincreasing at £1m every four minutes. He says: "If oil prices stay high, inflation and interest rates could rise, causing serious difficulties for many ...

  • Lighthouse adds Guaranteed to its panel

    1 Jun 2004

    Lighthouse Group has revealed that Guaranteed HomeLoans has been appointed to the LighthouseLoan panel, to service its advisers operating in the mortgage sector. Guaranteed HomeLoans, is one of the leading distributors of non-conforming mortgages in the UK, offering many niche and exclusive schemes for the Lighthouse Group to benefit from. Its expertise in placing the more difficult cases will undoubtedly add value. LighthouseLoan provides Lighthouse Group advisers, within ...

  • Living in fear of mortgage default

    31 May 2004

    Over a third of 25 to 34-year-olds say they will not be able to meet their mortgage payments over the next three months because they are overloading on debt. Consumer services firm CPP Group asked 2,000 people what they most feared not being able to pay in the next three months. Of young people, 38% said their mortgage is their greatest concern, while 31% of people of all age groups worry about meeting their mortgage repayments. Nearly half the Midlands sample ...

  • M2000 holds charity ball in July

    4 Jun 2004

    Mortgage 2000, in conjunction with the other parts of the Moneysupermarket Financial Group, is holding a Venetian summer ball in aid of the children's charity NCH.   The ball takes place on July 2 at Northop Hall County House Hotel, Flintshire in North Wales. Set in nine acres of woodland and tranquil gardens, Northop Hall Country House Hotel provides the perfect backdrop to the evening.  Fire-eaters, jugglers, a three-piece band and a casino will provide entertainment.   NCH,

  • Marketing Brief

    31 May 2004

    As I've wandered through the alphabet on this A to Z of lenders' intermediary market material, I've been keen to include the minor lenders as well as the big guys. Many of the smaller lenders source a high percentage of their mortgage business through intermediaries and take the production of their support material very seriously. In some cases, they put bigger lenders to shame. For this week's column, I've reviewed Royal Bank of Scotland alongside Scarborough. The RBS material ..

  • Martyn is the winner

    31 May 2004

    Congratulations to Martyn Smith, product marketing manager at the L&G Mortgage Club - overall winner of the Mortgage Strategy and Mortgage Express 100% Football competition. Martyn received his prize, an autographed Brazilian team shirt signed by Pele, from Mortgage Express business development manager Tim Sturley (right) and MS deputy editor Rosie Gallagher last Wednesday at Mortgage Express headquarters in New Barnet. The 2003/2004 season of this online predictions ...

  • MEX acquires GMAC-RFC portfolio

    2 Jun 2004

    Mortgage Express has completed the purchase of a mortgage loan portfolio from GMAC-RFC for around £114m. The purchase is the second arising from an agreement announced in December 2003 to acquire from GMAC-RFC a minimum of £400 million, and up to £1.4bn, of loans in 2004 in four tranches. The total amount acquired by Mortgage Express so far in 2004 is £594m. All lending in the portfolio is secured on UK residential property and has a ...

  • Millionaire sells Swift for £100m

    31 May 2004

    The millionaire owner of UK mortgage and consumer credit lender Swift Advances, ranked number 470 on The Sunday Times' Rich List, has sold the company to private equity firm Alchemy for an estimated £100m. Dennis Myers, listed as having an £85m fortune, founded Swift Advances in 1984. It made a pre-tax profit of £23m in the year to March 2004 on a turnover of £47.3m, compared with pre-tax profits of £17.8m in 2003 on a turnover of £32.7m. ...

  • Monty Burn is just chucking mud and hoping it sticks

    31 May 2004

    From Robert Clayton In his article last week (Mortgage Strategy May 24), Monty Burn took up some of the least palatable weapons in the journalist's armoury. His statement about multi-level marketing: "what some would call a form of pyramid selling" , is pure John Humphries - make a blatantly wrong statement in the form of an unattributed quotation and then hope some mud sticks. As any well-informed observer of consumer matters knows, so-called pyramid selling ...

  • More lenders offer offsets

    31 May 2004

    Royal Bank of Scotland has informed branch customers that an offset mortgage is due to be launched by the firm in July 2004, yet a spokesman is refusing to comment on what he claims is speculation. The offset would be offered alongside the current account mortgages the bank currently provides under its NatWest, RBS and The One account brands. This news comes hard on the heels of Lloyds TSB and Cheltenham & Gloucester joining the offset market. The Lloyds ...

  • Mortgage Choice reveals rugby top winner

    1 Jun 2004

    Mortgage Choice has revealed that the lucky winner of its competition for a signed Irish national rugby team shirt was Ray McHugh of Robert Sterling. The firm invited visitors to its stand at the Manchester Expo to drop a business card into a bucket for a chance to win the shirt, signed by the triple crown winning squad. The packager was at the Expo, explaining its regulatory decision not to form a network but to support its members whatever route to regulation they take. ...

  • Mortgage Talk recruites new estate agency to its franchise

    4 Jun 2004

    Mortgage Talk has recruited a brand new estate agency to its network of mortgage services franchisees. The newly established Freckleton Brown practice is based in Eastwood, Nottingham, and has been formed by Paul Freckleton and Gordon Brown who have, between them, twenty five years' experience in estate agency. Formerly with several other prominent estate agents in the Nottingham area, Paul Freckleton takes on the responsibility of sales director at the new agency, ...

  • Mortgage Trust transformed

    31 May 2004

    Paragon has helped transform Mortgage Trust into a profitable lender since it bought the loss-making Britannic Money last July, rebranded it in September, and switched its focus to buy-to-let from current account mortgages. Austin Jelfs, head of sales and marketing at Mortgage Trust, says the profits come at a time when the company has only just recruited its full complement of sales staff. He says: "There is still work to do to get everything in place but to be where ...

  • Nationwide in online application form row

    31 May 2004

    Nationwide has been slammed for not providing mortgage clients with the facility to state if they have received advice from an intermediary on its online application form. Ralph Patterson, advising consultant at SG Holding and Partners, says Nationwide refused to accept him as the introducer in a recent mortgage case he put through to the society as its website failed to provide a facility for his client to flag him up as the adviser. As a result, he has received no proc fee. He ...

  • Nationwide reveals details of its fixed rate range

    2 Jun 2004

    Nationwide has revealed details of its new fixed rate mortgages, available from June 3. The company will reduce the number of loan to value bands from three to two on all fixed rate and tracker products. New borrowers with an LTV of between 75%-90% will now pay the same rate as borrowers in the 0% to 75% LTV band. The move is aimed at simplifying the product range so that there are only two LTV tiers for new borrowers as well as improving Nationwide's competitive ...

  • New-look Abbey is still getting the basics wrong

    31 May 2004

    From Jonathan Buchanan Abbey National changed its name to Abbey and spent a lot of money in the process - but it is still getting the basics wrong. Mortgage applications that were received before a set date in May are only being looked at during overtime. I currently have a case whereby the completion of a house purchase has to be completed as soon as possible. Abbey, during the processing of the application over the weekend on overtime decided that it needed a budget ...

  • No gender battle when it comes to DIY, reveals Abbey

    2 Jun 2004

    Research from Abbey has revealed that when it comes to our ultimate home improvements, one in ten of us would like a bomb shelter, with both men and women showing equal interest in this ultimate security system.   It's the younger generation who are the most keen, with 12% of people aged between 16 -34 adding this to their wish list for home improvements. Standard home improvements such as double-glazing, new kitchens and new bathrooms, are still popular, but many ...

  • No need to air grievances through the press

    31 May 2004

    From Bill Safran It is very unfortunate that I am compelled to write this letter. I have huge respect for Mortgage Strategy and the issues it regularly exposes and discusses in a mature and informative manner. However, I think it is inappropriate and even childish for companies to air grievances through the media. I am writing with regard to the letter from Mark Lofthouse in last week's issue. I am at a loss to understand what his concerns are. We have a healthy rivalry ...

  • Northern Rock launches new product range

    4 Jun 2004

    Northern Rock has introduced new rates on its two and three year flexible fixed rate products. Available with no extended early repayment charge, they now start from 5.19% and 5.89%. A two year flexible fixed rate is also available with a one year extended ERC and rates starting at 4.99%. The new range will be available from close of business on Friday June 4. The products are fully flexible, allowing underpayments, overpayments, redraws and payment holidays. ...

  • One third of home buyers down sizing, reveals Asserta

    4 Jun 2004

    A new survey from property website assertahome.com has found that although two thirds of househunters on the site are buying homes more expensive than the ones they're selling, one third are releasing cash from their property by moving to a cheaper home. On average, these househunters are releasing £112,000 of equity as they move down the ladder. Among those trading down, assertahome.com identified four key groups of people. Downshifters made up 54% of respondents. ...

  • Packagers opt to take the safe route

    31 May 2004

    It seems the majority of packagers are not taking any risks in a bid to hold on to their share of business come Mortgage Day. As we reveal on page 4, six in 10 packagers have applied for direct authorisation. And in the long run, provided they meet the FSA's requirements, that could turn out to be the least onerous route for packagers to take. If packagers remain non-regulated they might not have the FSA looking over their shoulder but lenders will be watching, checking ...

  • Politically correct mortgages will benefit only the sharks

    31 May 2004

    From Brian Humphreys Following the FSA's ridiculous decision to ban cold calling for mortgages (how many firms will suffer from that decision?), I can hardly believe reports that it now has the audacity to tell building society chiefs - at their own annual conference - that they have six months to develop systems that calculate the propensity to repay based on current and historic data, and use this to predict future ability to repay. Haven't lenders been doing this ...

  • Preferred enhances its product range

    4 Jun 2004

    Preferred Mortgages has revealed enhancements to its 2004 product range. The new benefits include a range of discounts available - up to 1.50% until October 1 2005 or a two year stepped discount up to 1.75% until October 1 2006. An additional discount of 0.25% for all loans above £200,000 is extended until October 1 2005. Other key improvements within the range include the fact that defaults are now ignored. LTV and completion fees can now be added up to 95% ...

  • RAMP joins AMI

    1 Jun 2004

    The Regulatory Alliance of Mortgage Packagers has become the first packagers' alliance to join the Association of Mortgage Intermediaries.   It officially became a member of AMI this week in a move designed to ensure RAMP has representation within what remains the sole professional body for mortgage intermediaries.   John Rice, managing director of RAMP, says: "RAMP is now the largest single force in sub-prime distribution and we felt that we needed to have a voice within ...

  • Regency invests £1m in CRM system

    3 Jun 2004

    Regency Mortgage Corporation has committed a £1m investment to further develop its proprietary CRM system for automated intelligence. The substantial investment will ensure that the company can continue to cope with its record levels of activity. Last month, the direct-to-consumer mortgage broker reported an80 per cent rise in loan advances in 2003. SAMI 1 was developed by Regency's highly skilled in-house IT team to cope with its front-end sales operation. ...

  • Retails sales growing at fastest rate for two years in May, reveals CBI

    2 Jun 2004

    Retail sales grew in May at their fastest rate for two years and are expected to be almost as strong this month the CBI's latest quarterly distributive trades survey, reveals. The survey suggests that consumers' appetite for spending is undiminished.Some 65% of respondents said sales were up compared with a year ago while 14% said they were down. The balance of plus 51% compares with plus 30% last month and indicates the highest sales growth since April 2002. ...

  • Savills launches exclusive tracker product

    4 Jun 2004

    Savills Private Finance has launched a new exclusive tracker product funded by Halifax with a current pay rate of 4.14%. Available to those purchasing a new home and also first time buyers, the product tracks the Bank of England base rate plus 0.11%, until October 31 2006. It has no early redemption penalties at any time, a £549 arrangement fee, available for loans up to 75% of property value, maximum loan size £2,000,000, with interest calculated daily. Simon ...

  • Sherrards rebrands volume conveyancing division

    2 Jun 2004

    Sherrards Solicitors, a Hertfordshire based legal firm has re-branded its volume conveyancing and remortgaging division as 'homefast property lawyers'. homefast is currently handling some 2000 transactions a month nationwide and provides services to three of the top five estate agency chains in the UK and five out of the top 10 lenders. It also acts for large brokers and packagers. It combines the latest technology with a high level of personal service. The business ...

  • Should intermediary lenders be more open about distribution plans after Mortgage Day?

    31 May 2004

    Bill Warren is network director of The Complete Network Distribution - and safeguarding it - is the single biggest issue facing packagers as regulation nears. Mortgage brokers as well as packagers need greater clarity about how mortgage distribution is likely to change as intermediaries are currently making choices for the future and have to base decisions on facts, not speculation. Normally in business, change happens gradually but in the case of the intermediary ...

  • Six in 10 packagers apply for DA status

    31 May 2004

    Six in 10 packagers have applied for direct authorisation with the FSA, research by Platform Home Loans has revealed. As a snapshot of the industry, Platform claims this shows how committed packagers are to clearing up any ambiguity over their status post-Mortgage Day, and to encouraging lenders to continue doing business with them. Many lenders plan to use compliance teams or set up audits to check that pure packagers, which will remain non-regulated, are not giving ...

  • Skipiton says 5.59% SVR lowest in market

    3 Jun 2004

    Skipton says that its 5.59% standard variable rate makes it one of the lowest on the market. The new rate will be created when the society's existing concessionary mortgage discount scheme is incorporated into the residential SVR on July 1 2004.   John Goodfellow, chief executive, says: "When Skipton launched the mortgage discount scheme in 2001, it was a fair response to calls to reduce the growing gap in the industry between interest rates on offer to new borrowers ...

  • Slapped wrists for MS staffers

    31 May 2004

    From Peter Motson I write to advise you that there are errors in the Mortgage Master or Mortgage Moron pages in Mortgage Strategy, May 24: Question 2: The level of debt on an interest-only mortgage does not reduce during the term, so should be protected by level term assurance, not decreasing term. So in this instance the answer should be 'B', not 'A'. And question 4: The conveyancer only holds the deeds to a property during the buying process, after ...

  • Societies accused of bias

    31 May 2004

    Steve Royal, director of Ethical Mortgage Solutions, claims building societies are blacklisting new networks until they have secured distribution. Royal, who also founded Mortgage Intelligence, says major high street building societies are holding off taking cases from members of his sub-prime network. He says: "These lenders seem to be waiting to see how things go and how many members the new networks get. Our attitude is that October 31 is still a long way off, we have ...

  • Surrenda Link makes 48% gain on commercial property

    2 Jun 2004

    Surrenda Link Investment Fund, the £28m property and TEP fund, is to realise a gain of 48.2% over the initial purchase price of a Derby-based commercial property in its portfolio. The remaining properties in the portfolio continue to deliver strong capital growth, as well as a rental yield of 8.4% per annum, resulting in an unrealised gain to date of £2.483m. Ernie Hayes, investment adviser at Surrenda-link, says: "This last week has seen another period of ...

  • Tenants get chance to buy

    31 May 2004

    All Types of Mortgages is to launch a 'rent to purchase' product, designed to help tenants make their first property purchase, through soon-to-be-launched division, The Branded Lender. The R2P product is designed specifically for those in rented accommodation who, on paper, do not have sufficient income to match most lenders' mortgage criteria to purchase their first home. The product works on the basis that as long as there is proof of mortgage payments to an ...

  • The Mortgage Mole

    31 May 2004

    HOT MATCH Humiliation for BM Solutions St Michael last week as he faced the might of 22 brokers for a charity football match at Molyneux. Fielding a team of fit brokers was never going to be easy but thanks to the efforts of team sponsor Mortgage Express player-manager James Rodea of Hamptons fame, team captain Sean Hornsby from Mortgage 2000 and coach Tony Salantino from Complete Mortgage & Loan Services, the broker team carried the day 5-4 on penalties, helping to raise ...

  • The Mortgage Times launches roadshow

    4 Jun 2004

    The Mortgage Times has launched a series of national roadshows aimed at appointed representatives and directly authorised intermediaries. The Roadshows will focus on the upcoming regulatory changes, and will unveil The Mortgage Times Group's range of one-stop solutions. Delegates will be meeting senior managers from the group, who will advise them of the choices they have available to them to minimise the impact of regulation day. Payam Azadi, head of marketing ...

  • The nursery option will bring comfort to some

    31 May 2004

    With a new network popping up every five minutes it is becoming increasingly difficult for brokers to choose which of the propositions is best for them. Rather than being like kids in a candy store, spoilt for choice, the important and daunting task of deciding what network will suit the broker's business best is fast becoming a headache. Not only is there a plethora of networks offering different lender panels, compliance and PI cover propositions, but brokers now ...

  • Time to start thinking of training

    31 May 2004

    Without casting aspersions on the moral calibre (not to mention financial acumen) of pole dancers, their absence from stands at the Mortgage Business Expo earlier this month was a telling sign of the industry shifting focus as regulation approaches. Much was made of their appearance at last year's event and one can only assume that firms' minds are now focussed on higher things - such as Mortgage Day. Those visiting the AMI stand fell largely into two camps: direct authorisation ...

  • TMA gives members 20% discount to members joining AMI

    2 Jun 2004

    The 6,000 members of The Mortgage Alliance, Scottish Provident's mortgage club, can now take advantage of a 20% discount on fees worth up to £600 when they join the Association of Mortgage Intermediaries. TMA members who want to take advantage of the AMI membership discount should contact AMI direct, either by phone or internet. TMA members have access to a wide range of lenders, including a number of competitive and exclusive deals with market leaders.

  • TMB teams up with SDS to support packagers

    2 Jun 2004

    SDS Applications is to install the SDS MAPS mortgage system at Chester based The Mortgage Business. The SDS software package will be specifically configured to allow TMB to communicate electronically with their packager partners via a standardised interface. This will help avoid the need for re-keying and reduce errors by enabling TMB to collect mortgage applications that are ready for offer electronically. Bill Dudgeon, managing director for TMB, says: "TMB selected ...

  • TMW sparks soccer frenzy

    31 May 2004

    The Mortgage Works has thrown down the gauntlet and challenged eight top London brokerages and Mortgage Strategy to a charity five-a-side football tournament at Wapping's John Orwell Sports Centre on June 21 - just hours before England face Croatia in Euro 2004. The tournament has been arranged to coincide with TMW's underwriting team moving to London's Portman Square and has already raised £500 - with more set to come. A signed 2004 England shirt, modelled ...

  • UK singles face financial shock if things turn bad

    31 May 2004

    Single homeowners could find their finances stretched to breaking point as many do not have enough protection to fall back on in the event of serious illness or loss of income, says Zurich. Of single homeowners it surveyed, more than half (54%) have not taken out any mortgage payment protection and three-quarters (74%) have no income protection. Simon Foster, Zurich product management and development director, says: "There have been huge social changes over the past 30 ...

  • Unemployment safety net product launches

    4 Jun 2004

    New unemployment safety net insurance product launched Insurance product WorkProtect has been launched aiming to protect workers and their spouse or partner in the unfortunate event they are made unemployed. Offering a comprehensive package of tools and services, its aimed at helping people get back into work as quickly as possible. Designed as an alternative to traditional loan and mortgage protection policies. WorkProtect has been developed as a result ...

  • Veritape relaunches logo and slogan

    2 Jun 2004

    Veritape, a provider of digital call recording services is changing its corporate logo and slogan to 'Veritape - call recording made simple'. Cameron Ross, director of sales and marketing at Veritape says: "This reflects our new ethos that from the initial enquiry through to installation and customer support, your experience with Veritape is easy and simple." Veritape says customers old and new can channel their firm's focus back on delivering their service or ...

  • What will rates be at the end of 2005?

    31 May 2004

    The Council of Mortgage Lenders sparked a media frenzy last week after The Sunday Telegraph reported that the lender body was expecting interest rates to double to stop the property market spiralling out of control. But the prediction sparked fears that such a move could have the opposite effect - forcing thousands of homeowners to sell their homes or face having them repossessed. The trade body quickly clarified its stance, saying that in fact it expected rates to peak at 5.5% ...

  • Which? accuses financial services industry of poor advice

    3 Jun 2004

    Which? has accused the financial services industry of being rife with poor advice and questionable sales tactics, following a year-long undercover investigation. Researchers posing as first-time home-buyers visited banks, building societies and estate agents to test the advice given on insurance products sold with a mortgage. Overall, the advice was misleading and lacking in care. It would have resulted in people being under or over insured, or buying unnecessary products ...

  • Women top dogs at understanding remortgages

    1 Jun 2004

    Research has revealed that when it comes to understanding the remortgaging process, women are the undisputed champions. Conducted by NOP on behalf of The MarketPlace at Bradford & Bingley, the study reveals that almost half of venusians, some 48%, think the remortgaging process is straightforward.  The martians on the other hand are not so convinced, with only 39% of men believing the process to be easy. Almost half of all men in the UK, 47%, think the remortgaging process ...

  • xit2 expands its offices

    1 Jun 2004

    xit2, has expanded its head office in Oxfordshire to meet the requirements of new customers, new contracts and support a rapid increase in business volumes. It has invested in the additional premises in the custom designed business centre in Charbury near Oxford as a result of a significant increase in overall business volumes and a raft of new contracts. Instructions on its valuation exchange are growing month on month as firms embrace new technology and recognise the ...

  • Zurich Mortgage Network launches appointment generation team

    2 Jun 2004

    Zurich Mortgage Network has launched a new appointment service which could help advisers to maximise their most valuable asset, their clients. The Zurich appointment generation team will be on hand to provide vital support to help advisers manage existing relationships and build new. And from July, leads will also be available via various new web links. The new service offers a variety of options, depending on how much or how little assistance is required. At ...

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