Mortgage Strategy
4 November 2002

  • £4,000 pay weighting urged for London staff

    8 Nov 2002

    National pay scales for public workers should be replaced by regional rates to give essential staff in London a minimum weighting of £4,000 a year, according to a new report. A study by London First, a business-led partnership, designed to find solutions for the capital's growing shortage of affordable homes, also calls for people earning less than £35,000 annually to be eligible for social housing, and for private employers to provide rental guarantees for staff. ...

  • Abbey National looks to the landlord market

    4 Nov 2002

    Abbey National is launching a range of buy-to-let mortgages aimed at existing landlords looking to remortgage. The range will offer free valuation for mortgage purposes (up to £345) and a £250 contribution towards legal fees. The new mortgages include a 1.05% discount on a two-year deal up to 70% at 4.89% and a three-year discount deal at 4.79%, both with arrangement fees of £350. Two additional fixed-rate deals include a two-year fixed deal at 5.35% and a five-year ...

  • Abbey National relaunches mortgage range

    4 Nov 2002

    Abbey National has revised its mortgage range, to goes on sale from November 6 2002. New deals include a five-year capped rate at 4.94% and a flexible mortgage at 4.69%. Other existing deals include a five-year fixed rate at 4.75%, a one-year fixed rate flexible mortgage at 4.49%, followed by Bank of England base rate plus a differential, currently 0.75%, and finally two and five-year fixed rates available for buy-to-let re-mortgages at 5.29%. Customers can choose ...

  • American beauty

    4 Nov 2002

    Here's a good one. Which is easier: snagging tickets to a show on the current Rolling Stones tour (usually sold out) or getting an audience with an American loan officer to discuss refinancing [remortgaging] a home mortgage? If you answered the Stones tour then you probably know more about the US mortgage market than you really need to. Across the pond here in America, loan volumes are going through the roof as interest rates continue their plunge. Despite what the White House ...

  • APS adds the Derbyshire to direct panel

    5 Nov 2002

    The Derbyshire Building Society has joined the APS Europe lender panel. The Manchester-based mortgage club will offer intermediaries the full range of products from the Derbyshire on a direct submission basis. The Derbyshire, via its dedicated intermediary channel, has recently launched a new range of three and five year discounted rates to go with its current fixed, tracker, buy-to-let and light adverse mortgages. APS Europe introducers will benefit from the ...

  • APS offers proc fee rise across entire Amber range

    6 Nov 2002

    APS Europe mortgage club has increased the procuration fees it pays to introducers who submit business to Amber Home Loans. Intermediaries will now receive 0.35% for completed buy-to-let cases with Amber, which offers a LIBOR linked product (LIBOR plus 1%) with a current pay rate of 5%. There's a £195 arrangement fee and there is no tie-in period at any time. Amber's range also includes self-certification, where introducers receive 0.5%, 100% (0.35%) and ...

  • Bank of England holds rates at 4%

    7 Nov 2002

    The Bank of England's monetary policy committee has left UK interest rates on hold at 4%. Pundits say sluggish economic growth overseas and a weak UK manufacturing sector had supported the case for a rate reduction. But strong house price growth and consumer borrowing must have raised fears that a cut in interest rates would fuel inflationary pressures. A cut from 4% would have been the first since November 8 2001 when rates moved down from 4.5% and could ...

  • BBI and ABU launch new corporate social responsibility guidance

    6 Nov 2002

    The British Bankers Association and the Association of British Insurers have launched new corporate social responsibility (CSR) guidance. The two organisations believe that CSR is now less a choice and more of a necessity for businesses to flourish. With FTSE 4GOOD-type indices, the recent ABI Socially Responsible Investment guidelines, and ever increasing scrutiny of corporate activity, they say CSR has become a commercial imperative, a differentiator for the city and analysts ...

  • Big freeze lasts all year, but cut is imminent, says Charcol

    8 Nov 2002

    Ray Boulger of Charcol comments on yesterday's base rate freeze, which leaves the base rate on hold for a whole year at 4%. Boulger says: "Base rate was widely tipped to be cut yesterday, particularly with the Federal Reserve announcement on Wednesday, but the decision was always going to be a close one. Despite this month's 'no change' decision, a rate cut may still be on the agenda for the near future. "House price inflation is beginning to show signs ...

  • BMS reports 500% surge in sub-prime deals

    4 Nov 2002

    Birmingham Midshires Solutions has recorded a massive 500% increase in sub-prime business volumes over the last four months. Michael Bolton, director of mortgages at BMS, says the increase shows the decision to focus more on direct business - and limit packager business to 14 'approved' providers - is working. He told Mortgage Strategy: "Our current campaign is clearly working. Today in sub-prime, something like 80% of business is placed via packagers. But, unlike the rest ...

  • Business issues move centre stage for CBI conference

    7 Nov 2002

    This year's CBI National Conference, taking place from Sunday November 24 to Tuesday November 26 at the Manchester International Convention Centre, will cover issues including international economic prospects, the reputation of business, public services reform and 'added value'. Chancellor Gordon Brown and US Treasury Secretary Paul O'Neill will address the state of the economies on both sides of the Atlantic. Facing questions from delegates will be Trade ...

  • CBI sees healthy high-street sales follow summer lull

    6 Nov 2002

    The CBU says that growth in retail sales picked up in October, relative to the slower pace of the previous four months, but adds that growth was still slower than expected and remained well below the high rates reported in the first half of 2002. The CBI's monthly Distributive Trades Survey (DTS), says 44% of firms saw sales rise compared with a year a go, while 19% saw a fall. The balance of plus 25% is the best since May, but is still significantly lower than the average ...

  • Charcol report reveals the rise and rise of 'the singleton'

    6 Nov 2002

    Britain's home owners are becoming increasingly young, free and single, according to a new report issued by Charcol. The number of single homeowners has risen by 13% over the last 15 years and evidence suggests they have contributed more than their joint mortgage counterparts to the huge rise in property prices over this period. Barring a full scale economic downturn, this trend is set to increase, with Charcol predicting house-hungry singletons (Charcol's term ...

  • Complacent UK faces future with financial headache, says Scot Prov

    5 Nov 2002

    Research by life and health insurance specialist Scottish Provident, the protection brand of Abbey National, which was designed to take the financial pulse of the UK, has revealed a picture of far-reaching complacency through the country when it comes to people protecting their financial future. The research, carried out by MORI Financial Services on behalf of Scottish Provident, shows that the majority of British families are walking a financial tightrope, with nearly half the ...

  • Conference tackles the big issues

    4 Nov 2002

    Delegates learnt the best way to balance high demand with quality customer service at last week's Mortgage Strategy on Best Practice in Mortgage Processing conference. Some of the industry's best-known names gave their view on subjects as diverse as improving broker/lender communication and the role of technology. Opening the two-day event last Monday at London's SAS Radisson Hotel, Lynne Peacock, chief executive officer of The Woolwich, promised broker and lender delegates ...

  • Consumers must seek advice on "risky" income protection, says Charcol

    6 Nov 2002

    Today (November 6) is stress awareness day, and Charcol is highlighting some anomalies people may encounter when seeking income protection (PHI). Stress is the second most common cause of claims, yet professions considered among the lowest risk for PHI cover, such as legal and medical professionals, can be among the most stressful. The anomaly highlights that PHI cover can often involve more than just professional risk-factors alone. Women pay on average 50% more than ...

  • Coventry's new Flexx mortgage capped at 3.99%

    5 Nov 2002

    Coventry Building Society is adding a Flexx capped mortgage to its portfolio on Wednesday November 6. The new product combines flexible features with the guarantee that the interest rate will be capped at 3.99% until 31 March 2005. The product is at 0.95% above Bank of England Base Rate until March 31 2007. There is daily interest, no early redemption charges, free valuation, a free remortgage transfer service, a £295 arrangement fee (added on completion), up ...

  • Doshpoint develops IFA network

    4 Nov 2002

    Internet entrepreneur John Whitney is seeking IFAs with mortgage expertise to join a national network of advisers he is developing for Doshpoint, his latest internet venture providing expert mortgage advice to consumers. Witney, co-founder of Jobserve.com, is aiming to remove the headache for homebuyers searching through the thousands of mortgage products currently available. David Reaney, partner at Bespoke IFA, says: "We have experienced a number of approaches to ...

  • European directive could close down brokers' websites

    5 Nov 2002

    The new EU directive on e-commerce which became law in the UK on October 23 2002 could lead to brokers' and IFAs' websites being switched off by the Office of Fair Trading or local Trading Standards Departments if they do not conform to the new rules. The warning comes from CETA, the UK's largest general insurance network. The new directive, which was introduced to provide a common trading framework across Europe, applies to anyone who advertises or sells goods or services ...

  • Fed cuts rates 0.5%

    7 Nov 2002

    The Federal Reserve's rate-setting body slashed interest rates 50 basis points yesterday. The rate cut was expected, but most observers were betting on a quarter-point drop. The Federal Open Market Committee said yesterday: "The Committee continues to believe that an accommodative stance of monetary policy, coupled with still-robust underlying growth in productivity, is providing important ongoing support to economic activity. "However, incoming economic data ...

  • FSA chooses from AIFA menu

    4 Nov 2002

    The FSA's decision to drop its defined payment system should help "more than three quarters" of IFAs to remain independent, the Association of Independent Financial Advisers says. The FSA announced it is dropping the proposals outlined in CP121 for AIFA's "menu" approach to fee disclosure last week. It gives IFA clients the option of paying by fee, or paying the broker by commission. IFAs will have to disclose the commission alongside average market rates. Paul Smee, director-general ...

  • FSA clamps down on 'rogue' broker firms

    4 Nov 2002

    The Financial Services Authority has acted to stop three firms of financial advisers from carrying on any activities regulated by the FSA. The firms - County Down-based Gallagher & Company, Gwent-based Allan Austin Investment Services (AAIS), and Bradford-based Midgley's Insurance Mortgage & Pensions (MIMP) - have all been stripped of FSA authorisation after the financial regulator concluded that they were failing to satisfy the minimum industry standards. The action taken ...

  • Future looks healthy for mortgage lending in Scotland, says CML

    6 Nov 2002

    Affordability is much better in Scotland than in the UK as a whole, the CML claims. Despite this, Scotland has the lowest proportion of homeownership in the UK - although it is rising rapidly. These are some of the findings of a review of the Scottish housing market contained in the CML's National Markets Review 2002/2003. Scotland has more than 1.1 million mortgage borrowers, with mortgage lending of £47.5bn. 10% of all mortgages in the UK are in Scotland, ...

  • Guardian/PAA deal means Unlimited leads

    4 Nov 2002

    Professional Adviser Alliance members are now able to receive leads from 450,000 Guardian Unlimited visitors. Moneysupermarket.com has reached an agreement with The Guardian's website, Guardian Unlimited, to provide mortgage, credit card and loan channels exclusively on Money Unlimited, the dedicated money section of the site. Money Unlimited receives 450,000 visitors a month. These will be able to request, via the site, that a mortgage adviser call them. These leads will be ...

  • House prices expected to fall, says CEBR

    4 Nov 2002

    The Centre for Economic and Business Research has admitted it is nervous at the scale of continued house price inflation. Taking the latest views on economic prospects into account, the research body has said it is now more nervous about UK economic prospects and that house prices have risen so far even faster than they had originally predicted. The CEBR adds that it now expects UK interest rates tol be lower than at present for the next three years. Even with rate cuts ...

  • Housebuilding figures for September 2002

    8 Nov 2002

    In September 2002, it is estimated that 16,900 dwellings were started in Great Britain compared with 15,400 in September 2001. Completions of dwellings were estimated at 14,500 in September 2002 compared with 13,300 in September of the previous year. In the latest three months 49,300 dwellings were started, up 5% on the same three months a year ago, while total completions at 40,900 were up 1% on the same three months a year ago. Seasonally adjusted comparisons ...

  • Housing market starts to slow

    4 Nov 2002

    The housing market is showing "tentative" signs of slowing down, according to Nationwide. House prices have risen by their smallest monthly amount since March, and mortgage approvals appear to have peaked, the lender announced last week. The picture is far from conclusive, with the Nationwide figures also showing that the annual rate of house price growth is now running at 24%, the highest since spring 1989. House price to earnings ratio is almost back to its ...

  • IF's new 'one-stop-shop' service for advisers

    4 Nov 2002

    Intelligent Finance is rolling out a new service initiative for professional advisers less than two years after launching the bank. The Adviser Business Centre is currently being rolled out across the UK with all advisers having access to the new service before the end of the year. IF sales and marketing director Ian Jeffery says: "From the outset, we recognised the importance of advisers in the selling of financial services and made this a core focus of our strategy. We have been ...

  • Intelligent Finance launches new service

    4 Nov 2002

    Intelligent Finance has launched a new service initiative for professional advisers. The Adviser Business Centre (ABC) is currently being rolled out across the UK with all advisers having access to the new service before the end of the year. Intelligent Finance sales & marketing director, Ian Jeffery says: "From the outset we recognised the importance of advisers in the selling of financial services and made this a core focus of our strategy. We have been extremely successful ...

  • Interest rate climate change

    6 Nov 2002

    The interest rate climate has changed during the past two weeks, latest research from Bristol & West reveals. Bristol & West say that US economic growth in the third quarter proved to be weaker than expected,although the annual growth rate of 3.0%represents a sound recovery number. The consumer is the main driving force in both American and British economic recoveries. Financial markets therefore received a shock last week,when the October survey of US consumer ...

  • Intermediaries to receive leads from Guardian site

    4 Nov 2002

    Professional Adviser Alliance to receive potential leads from 450,000 Money Unlimited visitors - moneysupermarket.com has reached an agreement with The Guardian's website Guardian Unlimited to provide mortgage, credit card and loan channels on the site's money section, Money Unlimited. The Guardian's website receives 4,800,000 visits a month, with 450,000 visits a month to Money Unlimited, and visitors will be able to search for mortgages, credit cards and loans ...

  • Intermediary response

    4 Nov 2002

    Tim Stone, senior mortgage consultant at Andrews Mortgage Services, says the couple needs to think carefully about the cost of keeping their current property while abroad.We have to consider a number of points regarding the clients' future funding requirements. The equity currently tied up in the property is some £100,000 and this will hopefully increase with the mortgage balance reducing and the property increasing in value. The ideal scenario ...

  • Is this the beginning of the end for mortgage clubs as we know them?

    4 Nov 2002

    Andrew Seymour is managing director of MPS The days of the mortgage club are numbered. The strength of high street lenders' own brands threatens to make clubs redundant. In effect, lenders are paying over the odds for business they would receive anyway. The club concept came about in the 1990s, as life companies developed the strategy of increasing their life policy business through non-tied mortgage brokers. The club delivered bigger procuration fees to members who agreed to ...

  • Jim White's Mortgage Solutions and mortgageforce join forces

    7 Nov 2002

    Jim White's Mortgage Solutions and mortgageforce have combined in a national distribution and fulfilment deal. As part of the new arrangement, mortgageforce mortgage advisers will visit Jim White's Mortgage Solutions clients who want a face-to-face meeting in their own homes, thereby complementing Jim White's telephone and Internet-based services. Both companies expect this personal service will increase the conversion rate of mortgage enquiries into completed applications. Bour

  • John Stewart elected as CIB president

    8 Nov 2002

    John Stewart FCIB, deputy group chief executive of Barclays, took over from Ian Harley as president of the Chartered Institute of Bankers (CIB) at the recent AGM. With 25-year's experience in the financial services industry at the Woolwich, Stewart has been a key driver in developing innovation within the bank. He was instrumental in developing the 'Open Plan' concept - an integrated personalized banking system, which can be customised to meet individual needs. The concept ...

  • Lender response

    4 Nov 2002

    James Mayne, head of strategic development at Britannic Money, says a fully flexible buy-to-let mortgage will allow the Smiths to raise the capital needed to set up house abroad.The first thing the Smiths should consider is a remortgage to a flexible or Current Account Mortgage. They have some savings but they obviously need more for their intended move abroad. A flexible or CAM is an ideal savings vehicle because its give the borrowers the chance ...

  • Lenders 'could be vulnerable'

    4 Nov 2002

    The Council of Mortgage Lenders has warned that FSA interpretation of regulations governing mortgage contracts could be costly and leave lenders vulnerable to Ombudsman complaints. The Unfair Terms in Consumer Contracts regulations were agreed in 1999. They were originally policed by the Office of Fair Trading. But now the FSA will issue guidance on the terms contained in mortgage contracts. The FSA intends to take a proactive role in interpreting contract terms relating to lending, ...

  • Making life a little easier for lenders

    4 Nov 2002

    Q: How is xit2 structured? A: xit2, owned by its three directors - Simon Henson, David Gillam and Paul Duckworth, is the main holding company and undertakes software design and development for the trading subsidiaries (The Repossession, Valuation and Conveyancing Exchanges). Each subsidiary has its own service centre support staff. All three systems are lenderand client-facing using web technology. The Valuation Exchange alone receives 50,000 hits per day. Q: What percentage of ...

  • Moneynet warns of overpriced MPPI policies

    7 Nov 2002

    Personal finance site moneynet has warned that many of the 2.5m homeowners that have mortgage payment protection insurance could be paying up to 33% more than they need to. Moneynet claims that mortgage lenders are taking advantage of borrowers on the basis that most are ignorant of the fact that they can shop around for their MPPI. Over 2,534,000 of UK homeowners now have MPPI (also known as ASU), a mortgage safety net in the event of a homeowner becoming redundant ...

  • More creativity from Genesis

    4 Nov 2002

    Genesis Home Loans continues to lead the way in correspondent lending, with the release of new rates and improved criteria for its self certification and buy-to-let products, Pathfinder and Prospector. Nigel Gardner, operations director at Genesis Home Loans, says: "We are continually striving to offer the best rates and products that we possibly can. Once again, we are certain that the extra choice of rates and overall product improvements on Pathfinder and Prospector will ensure ...

  • Mortgage Strategy launches CP146 response download

    4 Nov 2002

    Intermediaries are now able to give the FSA their thoughts on CP146 quickly and easily - thanks to a response "template" that went live on the Mortgage Strategy website today. The Mortgage Strategy response is the culmination of weeks of regulatory news and expert analysis. The template talks brokers through each of the 35 questions the FSA raises at the end of its consultation on mortgage regulation, and suggests a response to each. Brokers have already ...

  • MP set to fight landlords' corner

    4 Nov 2002

    Plans for the licensing of private rented accommodation have been revived by the government with lobbyists pushing for the licensing of houses of multiple occupancy (HMOs) in the next Parliament. Speaking at the October meeting of the Small Landlords Association, lobbyist Ron Bailey reaffirmed several MP's intention to pass a bill that could see local authority licensing of properties with five or more tenants. Labour MP Dr Des Turner saw the defeat of his own Home Energy Conservation ...

  • My mortgage week - Richard Hall

    4 Nov 2002

    Monday: I begin the week with a 7.30am meeting with Steve Holt, our recently-appointed operations director. We discuss the training of our new business development managers who are due to start work with us today. Steve is going to be co-ordinating the training, so we discuss the best way forward. Next on the agenda is a morning meeting with Curtis Crews, head of underwriting, to review our underwriting criteria and make sure we are continuing to maintain our high standards. At 7.30pm ...

  • MyHomeMove launches remortgage service for IFAs

    7 Nov 2002

    MyHomeMove Conveyancing has launched a remortgage service for IFAs and other mortgage advisers to offer their customers. Using streamlined processes for faster remortgage completions, the service enables IFAs to provide an enhanced level of customer service. The MyHomeMove Conveyancing re-mortgage service is £299 plus VAT and legal disbursements. Furthermore, IFAs will be paid £100 for each remortgage conveyance completed. The MyHomeMove Conveyancing ...

  • NatWest launches NatWest One microsite

    5 Nov 2002

    NatWest has launched a new 'microsite', www.natwest.com/one, which promotes NatWest One, its current account mortgage. Created by Zentropy partners in conjunction with NatWest, the site gives users access to calculators, which illustrate the savings that might be made by switching your mortgage to NatWest One, product details and information on how to apply for the mortgage. NatWest has also launched a series of overlays and banners which will appear on sites such ...

  • New CML review of the Northern Ireland housing market

    6 Nov 2002

    Northern Ireland continues to have the highest proportion of homeowners in the UK at over 72%, according to the 2002-2003 edition of the Council of Mortgage Lenders' National Markets Review. However, the overall size of the Northern Ireland market is small compared to the UK as a whole. Just 3% of all mortgages in the UK are in Northern Ireland, and they account for only 2% of the value of mortgages in the UK. Borrowers in Northern Ireland typically borrow more in ...

  • New CML review of Welsh housing market

    6 Nov 2002

    More than 72% of households in Wales are homeowners compared to a UK average of only 69%, according to an article outlining housing statistics and policy published in the CML's annual National Markets Review. Yet house prices remain more affordable than in many parts of the UK, with houses costing on average only around 70% of the UK figure. Around 5% of all mortgages in the UK are in Wales, but they account for only 4% of the total value of mortgage lending in the ...

  • New head of sales at Birmingham Midshires

    8 Nov 2002

    Alan Cleary has been promoted to the post of head of sales at Birmingham Midshires. In his new role, Cleary takes responsibility for the lender's mortgage consultants and intermediary sales team. Cleary says: "The sales team are essential to the continued success of our specialist lending function. We're concentrating on a market-led and sales-focused approach to boost our fantastic results even further." Cleary was previously head of the Mortgage Consultancy ...

  • New lender, Abacus says 'you can count on us'

    4 Nov 2002

    The mortgage industry will see the launch of its latest branded lender next week with the launch of the firm Abacus Permanent. Abacus, which will initially be funded by Bristol & West and Preferred Mortgages, will unveil a product range including full status, self-certification, buy-to-let, right-to-buy and adverse credit at the Mortgage Business Expo 2002, at London's Olympia centre. The lender has been established as an independent company by Mortgage 2000 chief executive Simon ...

  • New lending record for igroup

    7 Nov 2002

    October 2002 saw specialist lender igroup break through the £300 million new lending figure for the first time in its short but highly successful history. Jonathan Sadler, igroup's director of sales and marketing, says: "This is a fantastic result for the team. Since we launched igroup in April 2000, we have seen the business grow month-on-month - and especially since our acquisition by GE last year. "We continue to attract a satisfying mix of business from across ...

  • New management team at Britannia Building Society

    4 Nov 2002

    Britannia Building Society has confirmed Neville Richardson as its new group chief executive. Richardson succeeds Graham Stow, who becomes executive vice chairman pending his retirement in May 2003, following the completion of his year in office as chair of the national Building Societies Association. Richardson was formerly deputy chief executive, and joined the society as group finance director in 1998. Meanwhile former operations director John Suffolk becomes ...

  • No regulation without representation

    4 Nov 2002

    On we go with the final set of questions from CP146, this time Q23 to Q35. An extended version of this examination of CP146 is available on the Mortgage Strategy website, which you can access by visiting www.mortgagestrategy.co.uk. Qs 23 to 26 concern rules for the fair treatment of consumers, with Q23 concerning excessive fees and non-refund of fees. The good news is that the infamous section 155 of the Consumer Credit Act, with its maximum £5 fee, will be ignored under the FSA ...

  • Number of Brits with £25,000 increases by 30%

    6 Nov 2002

    The number of people in the UK with £25,000 or more in liquid assets has increased by a third over the last five years, as the two-year bear market was more than offset by the broad effects of the rise in property prices. These figures are from Inscape, Abbey National's wealth management service, and the Future Foundation, a leading think tank. They update the findings of their extensive joint study The Emergence of the Mass Affluent, published two years ago. According ...

  • NW Group reports success of mortgage web site

    5 Nov 2002

    Mortgage Finder, NW Group's mortgage web site, generates over £1m of business enquiries each day. When the site was first established by former building society manager, Ian Templeton, his objective was to complement his Aberdeen-based independent mortgage advice and financial services business with an internet presence. The site, www.mortgagefinder.co.uk has been systematically upgraded by NW over the two years since set up, and the visitor and business activity ...

  • OFT weighs into cold-calling row

    4 Nov 2002

    Mortgage intermediaries have been reminded by the Office of Fair Trading that cold-calling for leads for non-status customers is not permitted under its non-status guidelines. Proposals from the FSA to bring cold-calling under plans for mortgage regulation have left some brokers unaware of existing limits on cold-calling, in particular the OFT ban on cold-calling non-status clients without their prior consent. The FSA attracted some criticism for including near-final rules proposing ...

  • Online Services from Mortgage Express achieves over £1bn in DIPS

    7 Nov 2002

    Intermediaries using Online Services, the internet facility from Mortgage Express, have submitted decisions in principle with a value exceeding £1billion so far this year. Online Services, which launched to the market in February 2002, enables intermediaries to obtain fully credit scored decisions in principle in minutes. It also enables them to submit applications online and track the status of cases in real time. Charles Johnson, e-commerce relationship manager ...

  • Packager views on CP146 revealed by SPML survey

    8 Nov 2002

    Southern Pacific Mortgage Limited (SPML) recently polled its packager base on the regulatory issues raised by CP146. Results were analysed in two groups: packagers dealing both with advisers and public, and those who only deal with advisers (a roughly 50/50 split). Regarding the pending December 31 deadline for adviser qualifications, the survey found that, although only a quarter of respondents believed that 75 -100% of advisers had already passed the first paper of ...

  • Packagers, make your voice heard

    4 Nov 2002

    "In our book, there are only two things worse than a greedy packager. Being forced to use one. And being forced to pay their excessive and unregulated fees." These words taken from Birmingham Midshires Solutions' latest advert knocking mortgage packagers shows they sure know how to make friends and influence people. It's pretty damning stuff and BMS, through an integrated PR and advertising campaign, has deliberately set out to portray packagers in a poor light - except for some ...

  • Park Row Group fuels recruitment drive with lead generation schemes

    8 Nov 2002

    Park Row Group aims to recruit 50 advisers to support its rapidly expanding lead generation programme. The national financial advice group is developing new business opportunities through lead generation partnerships and is now generating around 5,000 leads every month which are fed directly to advisers at Park Row Associates and Park Row Independent Mortgages. In its latest partnership deal, Park Row has set up one of the largest lead generation schemes in financial ...

  • Process rethink plea

    4 Nov 2002

    Platform Home Loans says that lenders must reassess their procedures for marginal prime/sub-prime applications with service to brokers in mind, writes Helen McCormick. Jeremy Duncombe, Platform's head of sales, told delegates that lenders must see that delivering good service was as important as high productivity. Duncombe says: "Lenders must deliver a satisfactory message, not a conveyor belt. Lending is not just about price. Don't turn lenders into glorified call centres. ...

  • Promise of 'seamless' mortgage processing

    4 Nov 2002

    Software company Exigen has developed a technology solution that aims to achieve cost savings and seamless processing across all mortgage operations. The model allows the different systems used by lenders, packagers, brokers and all other parties in the mortgage processing chain to link up. It is already established in some parts of the Australian mortgage market. The company says it can identify the best processes within the mortgage value chain for outsourcing and the creation ...

  • Property tops poll as wealth status symbol

    6 Nov 2002

    More than one in three Britons (38%) believe owning a home is the best indication of personal wealth, demonstrating the significance of the home as a symbol of wealth in modern society, finds Birmingham Midshires 'Saving Britain 2002' campaign. People now see property as the best way to achieve personal wealth, rather than stockmarket investment or bank savings. Home ownership is key to achieving wealth for the young, as 43% of 16 to 19 year olds and 39% of those in their ...

  • Pundits divided over applications

    4 Nov 2002

    Last week's Best Practice in Mortgage Processing conference revealed that most industry pundits do not believe that mortgage lenders will ever have standard application forms. Speaking at the conference, Elliott Stoneham, IT director at Pink Home Loans, said: "I think the industry will consolidate, which will lead to a small number of generic application forms - maybe eventually evolving into one. It will depend on the major banks." Stoneham pointed out that two-thirds of the ...

  • Roy Nicolson takes over as chairman at IFAP

    6 Nov 2002

    IFA Promotion, the organisation promoting the benefits of independent financial advice, has announced that its chairman, Kevin McBrien, will be stepping down at the November IFAP board meeting due to other pressures on his time. Roy Nicolson, chairman of Advice First, will take over on an interim basis and will co-ordinate the appointment of a permanent replacement. David Elms, chief executive of IFA Promotion, says: "We'd like to thank Kevin for his sterling effort ...

  • Savills Private Finance offers exclusive two-year discount mortgage

    8 Nov 2002

    Savills Private Finance has launched an exclusive discounted mortgage. The two-year discount will be offered at an initial pay rate of 3.55%, a discount of 2.4% on the lender's standard variable rate (SVR), which is currently 5.95%. There are no redemption penalties at the end of the two-year period. The minimum loan amount is £100,000 and a maximum amount of £1.5m is available. A £499 arrangement fee is payable. Mark Harris, director at ...

  • Shop around, says the FSA

    4 Nov 2002

    Consumers could save more than £700 a year by comparing prices on financial products such as current accounts, mortgages, credit cards and personal loans, the Financial Services Authority says. Research shows that four in 10 consumers think there is little difference between the costs and charges of different companies. But an FSA report titled Losing Interest? How much consumers can save by shopping around, which launched last week, shows consumers could save as much as £26 ...

  • Skipton Guernsey moves into mortgage market

    5 Nov 2002

    Skipton Guernsey Limited, Skipton Building Society's international banking subsidiary, has entered the mortgage market in Guernsey. In addition, the company has established itself as an independent operation, having previously been administered, since its launch in 1995, by Royal Bank of Canada (Channel Islands). For the past seven years, Skipton Guernsey has provided a range of accounts for both UK resident and non-resident customers wishing to take advantage of ...

  • Specialist financial consultancy celebrates first year anniversary

    7 Nov 2002

    Mitchell Moneypenny Ltd (MML), a growing financial services marketing & PR consultancy, has appointed a new account director, Gina Courtis, after a year in business. This coincides with two new client wins, for leading online quotes provider, Webline and one of Europe's top financial technology specialists, Spektra. Gina Courtis is an award-winning PR practitioner, formerly at Energy Public Relations and Gravitas PR, managing projects for Marlborough Stirling plc. ...

  • SPML hits £100m of completions in October

    6 Nov 2002

    At the end of October, Southern Pacific Mortgage Limited (SPML) achieved £107m in a single month for the first time. This figure sees SPML on target to reach a 12 month total of £1bn of completions by year end. John Prust, sales and marketing director, says: "This magnificent achievement would not have been possible without the hard work and dedication of both the whole SPML workforce, and of our packager partners. There is no doubt that the non-conforming/ ...

  • Study hard to avoid confusion

    4 Nov 2002

    Two weeks ago I highlighted some of the topics and terms in the syllabuses of the mortgage advice qualifications where there is potential for confusion in the minds of candidates. The same theme is continued in this week's column, with a focus on equity share mortgages, shared ownership mortgages, redemption fees and redemption interest. The equity share mortgage was developed in the 1980s and enables a borrower to trade a lower repayment on a mortgage in return for the lender taking ...

  • Sun pumps up volume

    4 Nov 2002

    Sun Bank's service was pushed to breaking point this summer after a 300% surge in applications in under three weeks, Paul Howard, director of sales and development, confessed last week, writes Harriet Williams. Howard told delegates: "To say our service was stretched would be an understatement. The costs of managing loss leaders are very significant. Over the summer we incurred quite phenomenal additional costs in terms of extra staff to deal with the volume." Howard told the ...

  • Survival of the fittest is no bad thing

    4 Nov 2002

    Poor old Michael! Reading the last few issues of Mortgage Strategy, you could be forgiven for thinking that it was the Glorious Twelfth every Monday, with Michael Bolton on the receiving end of both barrels. I do not recall such pointed remarks made about one individual since George W made that infamous speech about Saddam Hussein at the United Nations. But I have to admit, I am not surprised by the reaction. I have received numerous letters, phone calls and emails during the past ...

  • The MarketPlace announces new VirginOne account with cashback

    8 Nov 2002

    The MarketPlace at Bradford & Bingley has launched the Virgin One Account with the added incentive of £500 cashback, which is exclusive to the UK's largest mortgage broker. The rates are tiered depending on a borrower's loan-to-value, but a 90% LTV deal is available at 5.55% (5.7% APR). Key features include: £500 Cashback Fully flexible Maximum LTV of 95% No MIG No Arrangement ...

  • The mortgage mole

    4 Nov 2002

    Of pots and peacocks It's a brave pot as calls the kettle black - especially one who urges the mortgage industry to higher service standards while her own back office lies in tatters. But such was the lot of Lynne Peacock, chief executive of The Woolwich, as she took the helm of the Mortgage Strategy Mortgage Processing 2002 conference in London last week. With a mauling in The Sunday Times behind her, Peacock's speech as chair on the first day was cut short by more tardy service ...

  • There's still a way to respond to the FSA

    4 Nov 2002

    The November 11 deadline for responding to CP146 is fast approaching. You have just seven days left to take stock of this mammoth document and reply to the 35 questions that the FSA want answered. Last year, just 0.15% of mortgage brokers responded to CP98. That document attracted just 19 responses from from a possible 12,500 plus brokers. We know many of you have had to deal with unprecedented volumes of business and that some of you will have been unable to go through the 353 ...

  • This week's problem case

    4 Nov 2002

    Mr and Mrs Smith have a residential mortgage of £75,750 (property value £180,000). Mr Smith has always dreamt about spending time in a warmer climate and would like to do so in a couple of years. They have a small amount of savings but not the level of capital they need to set up overseas. Mr Smith knows that one way of realising his dream is to sell his property, but he would ideally like to keep his current home for when they want to return.

  • Tiny cabin sold for nearly £60,000

    6 Nov 2002

    One of the UK's smallest homes - a wood and brick hut which has been converted into a tiny dwelling - has been sold. The 15ft by 10ft home in Sidford, east Devon, went on the market for £59,950. Colin Moorhouse, of Redferns estate agents, said the former fish and grocery shop had sold for close to the asking price. The property - named The Cabin - has one main room with a kitchenette and shower extension, while upstairs there is a mezzanine bedroom just ...

  • Traded endowment policy (TEP) enquiries rocket by over 50%

    6 Nov 2002

    The Financial Services Authority (FSA) ruling PS106 came into effect on September 1 2002 to ensure policyholders seeking information on surrendering an endowment policy are advised by their life company of the option to sell it. This has had a marked impact upon enquiry levels to the UK's leading TEP Company, Surrenda-link, with over 50% rise between August and September. Surrenda-link believes this growth in awareness could benefit investors, with more policies ...

  • Treat outsourced staff as if they were your own

    4 Nov 2002

    Kensington Mortgage Company attributes much of its success to its outsourcing arrangement with Homeloan Management. Speaking at the Mortgage Strategy Best Practice in Mortgage Processing conference last week, KMC chief executive John Maltby said the result of this successful seven-year relationship had been 50% or more annual growth for the past five years. But he added: "While outsourcing does work, it requires work." Kensington has over 100 dedicated staff at HML. And Maltby ...

  • UK insurers call for smarter regulation as EU market grows in importance

    7 Nov 2002

    Smarter regulation to reduce the obstacles to doing business in Europe should be the key priority for the European Union, according to research by the Association of British Insurers. The European Issues Index is the first survey of its kind of the views of chief executives of UK insurance and savings companies. It shows a strong desire to expand across the EU, but significant regulatory and other hurdles in the way of making this a reality. The Issues Index reflects the views ...

  • Widespread insurance complacency opens door of opportunity for intermediaries

    4 Nov 2002

    More than two-fifths of the population in the UK does not have adequate cover or savings if the main wage earner lost their job according to a major new research report by leading life and health insurance specialist Scottish Provident, the protection brand of Abbey National. The survey of families, carried out by MORI Financial Services on behalf of Scottish Provident, shows that 41% of respondents would not have adequate protection insurance, savings or assets to draw upon if ...

  • Woolwich accused of fee delays

    4 Nov 2002

    Brokers are experiencing serious delays in the payment of procuration fees from The Woolwich. In the worst cases, brokers have still not received payment for cases that completed in May. At least two national broker organisations - who do not want to be named - have complained to The Woolwich. In a memo to The Woolwich last week, one said its members were still awaiting payments for mortgages completed in September and describes the delay as "unacceptable". And a source at another ...

  • World Cup finally brings some English cheer

    4 Nov 2002

    Mortgage Express has extensively revised its product design in response to intermediary feedback, says David Connolly, the lender's product development manager. Outlining the merits of ongoing product development, Connolly told the conference both self-cert and sub-prime product criteria had been changed by broker demand. He told delegates: "In sub-prime we amended pricing to compete, upped the procuration fee and simplified the criteria for speedier processing. In self-cert we ...

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