Mortgage Strategy
5 April 2004

  • 'Distribution is about having competitive service and products'

    5 Apr 2004

    Are you looking at securing distribution post-N4 and if so, how do you intend to do this? Bill Cherry, SPML SPML's distribution strength has always been in its strong packager relationships and there is no reason to suppose that these will change significantly. However, post-N4 distribution is an unknown quantity and no lender can afford to be complacent. We are currently doing a strategic review of our origination/distribution. Dominic Toller, Bristol ...

  • £449m spent daily on homes last year

    6 Apr 2004

    Clear Cut Mortgages has revealed that people in England and Wales spent an average of £449m every day on new homes in 2003, with 2,890 houses changing hands daily. This equates to a total of £164bn spent on 1,054,936 new homes. The company says it expects spending levels in 2004 to be broadly similar to those of last year. It believes spending on thebuy-to-let market will remain level, if not grow a little this year, despite signs that the market is cooling in the ...

  • 9m household set to DIY, reveals The Marketplace

    6 Apr 2004

    The Marketplace at Bradford & Bingley has revealed that 9m households' are planning to do DIY or home improvements in the next couple of months. The traditional Spring-time DIY boom is clearly flourishing as much as ever, with increasing numbers of homeowners, 47%, opting to improve their current property rather than moving to a new one. Many are thinking about major building works such as an extension or loft conversion. Elliot Nathan, spokesman for ...

  • A chance to start with a clean sheet SBHD: Mortgage networks may be the new kids on the block in terms of regulatory experience but at least most will have long-term experience in the mortgage market,

    5 Apr 2004

    After the past two weeks looking at the merits or otherwise of joining a life company or an IFA network, I now turn to the arguments for and against joining a mortgage network as an appointed representative for mortgage and insurance sales. Mortgage networks are very much the new kids on the block in terms of regulatory experience although many have been in the mortgage market for a long time. For a list of the mortgage networks, refer to this column in Mortgage Strategy March ...

  • A view from the floor

    5 Apr 2004

    Professor Miles presented his report on the UK fixed rate mortgage market on March 12 this year. Just prior to Miles' announcement of his final recommendations, Cheshire followed up earlier research with YouGov to assess whether public opinion on longterm fixed rate mortgages had changed in the two months following Miles' interim report (in December 2003) and the further quarter point interest rate increase introduced by the Bank of England in February this year. This research ...

  • A&L wins mortgage gong for discount rates

    5 Apr 2004

    Alliance & Leicester has won Best Discounted Rate Mortgage Provider at the Moneyfacts Awards 2004. This is the second year running that the bank has scooped the award in this category.

  • Abbey for Intermediaries extends completion deadlines

    7 Apr 2004

    Abbey for Intermediaries has extended completion deadlines from three months to six months on all new variable rate tracker business as part of a drive to offer more flexibility to clients and to smooth the process for the intermediary. The new deadlines came into effect for applications made by intermediaries from March 15 2004. Intermediaries are also able to offer their clients a buffer of £750 on all Abbey mortgage applications below 90% LTV on all applications. The

  • Abbey should learn from the BM website

    5 Apr 2004

    During last week the upward trend in swap rates of the past month continued, making it unlikely that any lenders will price downwards unless their treasury departments are feeling brave and have deep pockets. • One-year money is up 0.07% to 4.71% • Two-year money is up 0.08% to 4.84% • Three-year money is up 0.08% to 4.92% • Five-year money is up 0.09% to 5.00% Abbey launched a 15-year fixed rate at 5.74% but it does have one year's worth ...

  • Alexander Hall offers telephone broking in Surrey

    5 Apr 2004

    Alexander Hall is offering telephone broking in Surrey as part of a pilot virtual estate agency scheme set up last week by parent company Foxtons. Three brokers based at the company's Chiswick office will take calls from customers looking to purchase properties from Foxtons' catalogue of properties in the Surrey area. Clients look on Foxtons' website or through the local press for homes and then contact a central call centre from which estate agents are dispatched ...

  • All your network questions answered by the industry's leading experts

    5 Apr 2004

    If I join a network, do I still have to pay for my own PI insurance? Andy Young is head of mortgage services at Sesame Yes, although the network is likely to have in place special arrangements to ensure its professional indemnity insurance cover is highly competitive. Chris May is director at Mortgage Times Network contracts vary so much that it is impossible to look at the network proposition as one thing. You will need to look into each of the ...

  • Amber appoints Sutcliffe

    6 Apr 2004

    Amber Homeloans has appointed a new development manager for the north, Graham Sutcliffe. The company says this will enable the company to give regional support to mortgage packagers and panels in the north of England and Scotland. Sutcliffe graduated from Leeds Metropolitan University with a degree in Urban Development and Economics, before beginning his career in financial services as a mortgage underwriter for Abbey National in Bradford. In 1998, he moved to Cambridge, ...

  • AMI slams ADMA application claim

    5 Apr 2004

    The Association of Mortgage Intermediaries has rubbished claims made by the Association for Direct Mortgage Authorisation that applying for FSA authorisation is a quick process. ADMA says the time taken to complete an application is no more than 90 minutes, based on the experiences of brokers who have attended its workshops. But AMI director Chris Cummings says: "This is a foolish thing to say. The AMI helpline has been red-hot with members needing advice on completing ...

  • AMI suspicious about professor's motives

    5 Apr 2004

    The Association of Mortgage Intermediaries has accused Professor Miles of tailoring his report recommendations to the FSA's remit in the knowledge that he was soon to join the regulator's board. Miles joined the FSA board last week as a non-executive director but the appointment was made before his report was completed and delivered to the Treasury last month. AMI director Chris Cummings, speaking last week at a round table organised by Zurich Mortgage Network, ...

  • An issue that will interest the FSA

    5 Apr 2004

    Kevin Paterson, managing director, Park Row Independent Mortgages The higher procuration fees on sub-prime cases are not, as many in the industry believe, a reflection of the higher workload involved. If you are doing your job properly, a sub-prime mortgage should be no more onerous than a normal case. However, I do believe higher fees are justified because these types of mortgages are smaller than the average and in nearly all cases the adviser is not able to subsidise the cost ...

  • Arctic Angels prepare for Polar Challenge

    7 Apr 2004

    The eg Arctic Angels toasted their sponsor and supporters onboard the SS Great Britain as they prepared to set off for their Polar Challenge. The SS Great Britain in Bristol was the historic setting for a special send off for the eg Arctic Angels as they prepare to make history as the first team of women to take on one of the world's toughest challenges - the 290 mile Polar Challenge race to the magnetic North Pole. Sponsor eg solutions organised the reception for ...

  • Are the costs of regulation too high to make DA an option for smaller brokers?

    5 Apr 2004

    Shaun Godfrey is group sales director at Bankhall The FSA recently published estimates of the cost of regulation for brokers opting for direct authorisation. Before making a knee-jerk assumption that these are too high, I urge brokers to look at the bigger picture. There are direct and indirect costs to be considered here. Direct costs such as registration fees and FSA annual levies cannot be avoided regardless of which route is chosen. There is also a misconception that appointed ...

  • ARLA launches buy-to-let masterclasses for investors

    5 Apr 2004

    The Association of Residential Letting Agents has stepped in to fill the education gap for investors in the private rented sector following adverse reports of expensive buy-to-let teach-ins. The ARLA masterclasses for buy-to-let investors are being launched in the North-West. The first full day seminar is to be held at the Manchester Conference Centre on May 13. This will be followed by London on May 21, Brighton on May 26 and Bristol on June 15. The programme will be ...

  • Assertahome.com to power Yahoo! property channel

    5 Apr 2004

    Assertahome.com has signed a deal with Yahoo! UK & Ireland to supply the internet giant's property search capability on an exclusive basis. Users searching the property channel on Yahoo! will view UK listings of property for sale or rent, new build and second hand homes as powered by assertahome.com. It will also be able to find and get in touch with assertahome.com's member estate agents. The new Yahoo! property channel, yahoo.co.uk/property, will offer ...

  • AToM launches three-year stepped discount

    7 Apr 2004

    All Types of Mortgages has launched a three-year stepped discount on all non-conforming Platform products. Product details are a 2% discount in year one, a 1.5% discount in year two and a 0.25% in year three. This also includes a bonus discount of 0.25% for all cases received before March 30 2004. All products are based on Platform's non-conforming product matrix, client status and track LIBOR, available exclusively to PMPA members. The discounted rates offer a ...

  • BANK HOLDS RATES AT 4%

    8 Apr 2004

    The Bank of England's Monetary Policy Committee today voted to maintain the Bank's repo rate at 4%. Jonathan Cornell, technichal director at Hamptons International Mortgages, says: "The Monetary Policy Committee has resisted the pressure to put up the base rate, so expect an increase in May. The MPC faced a tough decision, trying to keep a hand on consumer debt and the housing market whilst trying to support beleaguered manufacturers and exporters, who have been hit by the ...

  • BDS launches three-year Platform discount

    6 Apr 2004

    BDS Mortgage Group has launched a non-conforming three-year discount from Platform Home Loans with a bonus discount available on all cases received until the end of May 2004. The product is available exclusively to members of PMPA with a 1% procuration fee to the intermediary. The minimum loan size is £25,001 and Platform's usual underwriting criteria apply, with no extended tie-in or early repayment charge.

  • BDS strengthens management team

    6 Apr 2004

    BDS Mortgage Group has made further appointments to its management team. Tracy Dixon, formerly account executive at Intelligent Finance, joins as network manager and will take direct responsibility for developing the services BDS offers to its appointed representatives and directly authorised firms. Claire Kennedy, formerly head of marketing for Mortgage Brain, joins in the same position and will take responsibility for leading all marketing and activities within BDS ...

  • Beacon to light RAMP's fire

    5 Apr 2004

    Former Future Mortgages boss Mark Abbot and former sales and marketing director Brian Pitt have thrown their weight behind the Regulatory Alliance of Mortgage Packagers. Abbot and Pitt, who took a near 50% stake in The Beacon Group last year, are launching packager Beacon Mortgages which is to join RAMP as its 10th board member. Although Beacon Mortgages will have no real record in terms of the volume it can produce, Abbot and Pitt are likely be a formidable force on ...

  • Brokers say they feel HBOS pinch

    5 Apr 2004

    Brokers claim they are starting to feel the pinch in dealing with HBOS as the group attempts to reduce its market share from 26% to 23%. They say the biggest lender in the group, Halifax, has been verbally confirming that it has changed its strategy on procuration fees and that unless intermediaries and distributors are doing certain volumes of business, payments could tumble. Andy Wilgoss, managing director at Square Mile Mortgages, says while his firm will not be unaffected, ...

  • Building societies will always give the banks a run for their money

    5 Apr 2004

    The decision by Standard Life to press on with demutualisation has prompted the inevitable question - who next? The mutual sector has been through this all before with the demutualisations of the 1990s. All 63 building societies are committed to their mutual status so the question is pretty easy to answer. Sandy Crombie, the relatively new chief executive of Standard Life, says demutualisation was inevitable given the pressures the group is facing and its need to raise funds. ...

  • Bust network had turned corner

    5 Apr 2004

    The report and financial statements for year ending April 30 2003 show Interlink Premier Network turned a pretax loss of £210,086 in 2002 into a pre-tax profit of £401,375, less than a year before going into liquidation on March 19 2004. The report filed at Companies House also discloses that despite heading into financial difficulty, dividends on shares in the IFA network rose from £30,993 to £114,619 between 2002 and 2003. It shows that Interlink directors ...

  • Chase de Vere to play Arsenal team for charity

    8 Apr 2004

    Chase de Vere Mortgage Management is playing an Arsenal 'celebrity' team to raise money for Shelter, the charity that helps the homeless and people in poor housing. They will be playing for the inaugural Shelter Challenge Trophy, a new annual event created by Chase de Vere Mortgage Management. The Arsenal team includes numerous ex-Arsenal players aswell as celebrities such as Ronnie O'Sullivan - world snooker champion, Ralf Little - Royle Family, Tony Hadley ...

  • Curriculum Vitae - John Rice

    5 Apr 2004

    Name: John Rice Age: 45 Company: Regulatory Alliance of Mortgage Packagers Job Title: Managing director Where do you live? Emsworth, Hampshire Describe your current job: Working with RAMP members and lenders on regulatory issues and building relationships with lenders for the alliance. A normal week will see me meeting some of the 10 packagers that form the board of RAMP and also negotiating with ...

  • DA applications surge despite glitches

    5 Apr 2004

    The Financial Services Authority has revealed that the number of brokers applying for direct authorisation shot up to 4,229 by the end of the discount deadline on March 31. As expected many brokers left it to the last minute but the onslaught was accompanied by technical problems. A glitch in the online application software for DA meant that some brokers had to falsely claim they had already been regulated by the FSA. The error came on form HSF2 where brokers are asked: ...

  • Dear Dippy

    5 Apr 2004

    Dear Dippy Stephen and Julie are starting a family and want to remortgage as they near the end of a four-year fixed deal. Stephen's income varies - a basic £25,000 with bonuses taking this up to £32,000. Julie earns £16,000 but may take leave once the baby is born. The house is valued at £150,000 with an outstanding mortgage of £112,500. They have no savings. Any suggestions? Dippy says: The difficulty here is deciphering how much income is ...

  • Don't be fooled by £82,400 price tag, warns Financity

    7 Apr 2004

    Personal finance website Financity has warned UK borrowers not to be fooled by recent research out from IBM that the average UK adult is worth £82,400. This research takes into account net wealth, including value of your home, savings and contribution schemes. The reason that so many people in the UK are 'well off' is in line with the fact that house prices are going stratospheric. But FinanCity says that as attractive a statistic as this might sound, it's ...

  • e.surv updates Promise Finance's valuation service

    8 Apr 2004

    Chartered surveyors e.surv has recently provided Promise Finance with an electronic instruction and valuation report generation system. e.surv is one of the leading survey panel managers in the UK with access to over 3,000 valuers, in addition to the 250 inhouse e.surv valuers. The company says that because it continues to lead the field in its use of technology in the surveying business, clients see it as much more than simply a supplier. Richard Sexton, ...

  • Enterprise expands development team

    7 Apr 2004

    Enterprise Homeloans has significantly increased its development team with the recruitment of a regional manager for Scotland and Northern Ireland, two new business development managers and the appointment of a new southern regional manager. Michael Clapper, CEO of Enterprise, says: "In line with Enterprise's planned growth, it is pleased to announce the appointment of four highly-qualified industry professionals, to grow and develop new and existing relationships with Zurich's ...

  • Equifax appoints head of marketing

    6 Apr 2004

    Equifax has appointed Kirk Dobie as head of marketing services. Dobie moves from Experian and will be the driving force behind Equifax's direct marketing expansion. He began his sales and marketing career with AC Nielsen before moving to Experian in 1989. He performed a number of sales and marketing roles in the micromarketing division at Experian, before becoming a director in 1995 and finally being promoted to sales andmarketing director in 2000. Michael ...

  • Fees and fairness

    5 Apr 2004

    Procuration fees for sub-prime business have traditionally been higher than for prime business, reflecting the heavier workload for the broker and the greater likelihood that the cases will not complete. But as sub-prime mortgage rates move closer to the mainstream and technological advances speed up applications, could proc fees be heading for a fall? Sub-prime lenders typically pay brokers fees of between 0.5% and 1%, depending on the level of adverse, and some pay ...

  • Fees greed could kill off sub-prime

    5 Apr 2004

    For a long time sub-prime lending had a heavy cloud hanging over it - would-be brokers in sharp suits offering a sharper practice that combined high costs and high rates in return for even higher procuration fees plus, given enough volume, the chance of an override payment. Of course, all of this was justified due to the extra mountain of paperwork involved. However, high rates mean even higher margins and over recent years this once rag-tag sector has been dragged, in some cases ...

  • Flat fees for GMAC partners

    5 Apr 2004

    GMAC-RFC has designed a flat fee payment structure for its Platinum Partners packagers. This comes amid market speculation that business levels at the Bracknell-based specialist lender have suffered a drop in volume in packaged business since it announced it was stopping all override payments. The decision in January to limit the fees GMAC-RFC paid its Platinum Partners met with widespread disapproval in the packaging sector. One packager, who asked not to be named, says: ...

  • FSA appoints head of media and web communication

    6 Apr 2004

    The Financial Services Authority has appointed Rob McIvor as head of media and web communications. McIvor has been a senior member of the FSA press team covering retail financial services since 2000. He joined from The Woolwich where, as corporate public relations manager, he worked on its flotation and managed its communications with private shareholders as well as handling its media relations. Before that, he held communications posts at the Institute of Directors, ...

  • FSA moves, but not much

    5 Apr 2004

    The FSA last week announced the final regulatory reporting requirements for mortgage and general insurance firms including several amendments designed to help smaller firms, following consultation. But the Association of Mortgage Intermediaries is concerned these changes do not go far enough. Smaller firms that had an annual income in the previous financial year of £60,000 or less have now been excluded from the requirement to report mid-year financial information ...

  • FSA must crack whip after N4

    5 Apr 2004

    Legal firm DLA says the Financial Services Authority will have to flex its muscles come Mortgage Day to flush out unregulated brokers. For regulation to be politically well received and respected by the brokers and lenders who will have ploughed resources into making their businesses compliant the FSA will have to be seen to be taking action on those operating without being regulated Helen Marshall, partner at DLA, says: "There will be those who will not have got their applications ...

  • GMAC launches online marketing toolbox

    6 Apr 2004

    GMAC-RFC has launched an online marketing toolbox to provide marketing support for mortgage intermediaries. The marketing toolbox has been created in response to research conducted by GMAC-RFC, which revealed that intermediaries required tips and guidance on PR and marketing activities. Over 200 mortgage intermediaries and IFAs were interviewed and their feedback revealed that well designed product literature, advice on advertising or public relations and information ...

  • GMAC-RFC sees record £949m worth of applications in March

    7 Apr 2004

    GMAC-RFC achieved a record month for applications in March 2004. The UK's 13th largest lender has announced its highest ever monthly figures with applications totalling £949m. In addition, completions for the first quarter of 2004 have been in excess of £1.5bn. Jeff Knight, head of marketing services at GMAC-RFC, said: "GMAC has a consistent approach to pricing and its 'mortgages for everyone' proposition has led to a steady increase in new applications ...

  • HAPPY HOLIDAY

    9 Apr 2004

    Mortgage Strategy would like to wish all its readers a happy holiday! Normal service will resume on Tuesday April 13.

  • HML wins business award

    5 Apr 2004

    Homeloan Management Limited has won the accolade for Most Effective Business Continuity Plan of the year at the Financial Services Technology awards. The award, presented by television entertainer Tom O'Connor at London's Royal Lancaster Hotel, recognised HML's excellence in the use of IT in business continuity planning for the protection of the company. Steve Haggerty, managing director at HML, says: "We're delighted to receive this award, which demonstrates ...

  • House prices rise 2.2% in March, says Halifax index

    5 Apr 2004

    Halifax's latest house price index shows house prices increased by 2.2% in March, taking UK house prices through the £150,000 barrier with an average price of £151,467. The average price in Yorkshire and the Humber breached the £100,000 mark during the first quarter, making it the last English region to do so. Halifax says average prices remain below this level in only Scotland at £85,212 and Northern Ireland at £93,692. The index also ...

  • Housing spend too low, admits Kelly

    5 Apr 2004

    Since 1960 the UK has invested a lower proportion of its national income in housing than any other EU country, the Treasury admitted last week. Speaking at the Council Of Mortgage Lenders' annual lunch on Friday, Ruth Kelly, financial secretary to the Treasury, also said that house building in the UK is now down to levels last seen in the 1920s. She added that if the low supply continues a property built today would have to last 1,000 years before being replaced. She ...

  • igroup makes gross new advances of £400m in March

    6 Apr 2004

    igroup has revealed it made gross new advances of more than £400m in March. In the same period, new business instructions reached a new high of close to half a billion pounds. Jonathan Sadler, sales director at igroup, says: "This is a great result for the entire team, and a tangible endorsement of igroup's focus since the start of the year on delivering to itsintroducers enhanced service, better products and market-leading technology. "The company ...

  • Internet Insite

    5 Apr 2004

    After my first visit to south Wales (Mortgage Strategy March 15), I had an email from a broker in Swansea. Inter City Finance wasn't sure whether to be miffed, disappointed or relieved that I hadn't reviewed its site. Ever one to please, I thought I would make a return visit but this time just to Swansea. Can't say I'm impressed. Select Mortgages doesn't offer much and nor does Mortgage Solutions Swansea. As for Inter City Finance, there's more here but the site doesn't ...

  • Kensington hikes one-year discount rate to 2%

    5 Apr 2004

    Kensington has increased its one-year discount rate from 1.75% to 2% on all variable rate products. Alastair Pate, director of marketing and strategy at Kensington, says: "We are continually looking to deliver value in the market. This offer demonstrates Kensington's commitment to helping intermediaries serve their clients who require specialist mortgages."

  • Knowing who is assured of what

    5 Apr 2004

    Last week's column considered the contractual arrangement that exists between a life assurance company and the policyholder together with the principle of insurable interest. This week's column takes a look at issues related to the ownership of a life assurance policy which is another topic covered by the CeMAP paper one syllabus. It is important to be able to distinguish between the parties who are involved with a life assurance policy and to know what their involvement ...

  • Lack of homes keeping prices high, says Country Homesearch

    6 Apr 2004

    County Homesearch says a lack of quality property particularly in the south is keeping prices high. The latest review of 22 offices from Scotland to Lands End shows that the County Homesearch Company, which only acts for buyers, is finding it hard to achieve any notable discounts on property for clients, and this is increasingly true the further north one goes. The company says it seems that, following on from last month's review, there is an increasing divide between ...

  • Lib Dem urges OFT investigation into PPI

    7 Apr 2004

    An urgent review into the sale of payment protection insurance has been called for by Liberal Democrat shadow chancellor Vince Cable. It follows claims that industry regulator the General Insurance Standards Council is failing in its duty to protect policyholders by ignoring excessive commissions charged by brokers and other intermediaries selling these products. Cable says: "There is clearly a serious consumer scam operating in the payments protection insurance market. ...

  • Lib Dems call for PPI sales review

    5 Apr 2004

    An urgent review into the sale of payment protection insurance is being called for by Liberal Democrat shadow Chancellor Vincent Cable. This follows claims that industry regulator the General Insurance Standards Council is failing in its duty to protect policyholders by ignoring excessive commissions charged by brokers and other intermediaries selling these products. Cable says: "There is clearly a serious consumer scam operating in the payments protection insurance market. ...

  • Long-term benefits of IT investment

    5 Apr 2004

    Last year saw a flurry of activity as opportunistic lenders and product providers took advantage of the fact that the rapidly growing protection market was non-regulated by investing in e-commerce solutions to automate the sale of non-regulated products. But in 2004 the mortgage market has a new priority and is faced with a serious deadline. Mortgage regulation comes into force on October 31 and you must either comply or go out of business. The cost-effective way to survive ...

  • Making a big business out of mutual status

    5 Apr 2004

    Nationwide Nationwide is the world's largest building society, offering a broad range of retail financial services including mortgages, savings, current accounts, credit cards, life assurance and investment products, personal loans and household insurance. Today's Nationwide is the product of over a hundred mergers, most notably the one between Nationwide and Anglia in 1987. Nationwide is headquartered in Swindon and has branches around the country. Subsidiary ...

  • Marketing

    5 Apr 2004

    This week in my A to Z of lenders' intermediary marketing material, I take a look at two specialists - Mortgage Express and Mortgages PLC. The comment made by Mortgage Express that it is moving away from pre-printing material in favour of providing information via downloads from its website highlights a dilemma that faces all lenders as they develop their web-based services. The quality of printed material via a download is not going to come anywhere near the quality of the material ...

  • Miles says UK is long way from risk-based pricing

    5 Apr 2004

    Professor David Miles says lenders in the UK mortgage market are a long way from adopting risk-based pricing. Speaking at a round table event last week organised by Zurich Mortgage Network, Miles expressed doubt that such strategies were even on their way because of the way the market is currently structured. Miles tells Mortgage Strategy: "The tendency for interest rates to be higher for many existing customers than new borrowers - the cross-subsidisation issue - is ...

  • Moneyfacts launches e-commerce portal

    6 Apr 2004

    Moneyfacts has expanded its operations with the launch of an e-commerce portal for financial advisers, eMoneyfacts. For the cost of a current year's subscription to Moneyfacts magazine, eMoneyfacts combines the best features of printed publications and online services to deliver assistance to those advising on mortgages, savings, protection, credit cards and loans. Features includes ePages, an online version of Moneyfacts mortgage pages, updated in real-time and ...

  • Mortgage firms account for 70% of direct authorisation applications received by FSA

    5 Apr 2004

    The FSA says it has received 4,229 applications for direct authorisation and estimates at least 70% of these are from mortgage firms. Speaking at the FSA's T&C Conference last week, Sarah Wilson, director of high street firms, says the regulator had, as of March 31, received 13,210 registrations for application packs, of which 5,945 were from firms in the mortgage market and 7,265 were from general insurance firms. She said the FSA had so far received 4,229 applications ...

  • Mortgage Talk welcomes Halifax FTB mortgage

    7 Apr 2004

    Mortgage Talk has welcomed Halifax's first-time buyer mortgage and says its a welcome boost for new homebuyers this Easter and summer. Andrew Frankish, operations director at Mortgage Talk, adds that the products are exactly what the market needs at the moment. He says: "Recent statistics show that the average deposit for first-time buyers has quadrupled since 1996, and is rising at a rate of almost 7% a year. Three years ago, the average first-time buyer was 34 years ...

  • MPLC and mortgageforce in sub-prime joint venture

    5 Apr 2004

    Mortgages PLC is to launch a 50-50 joint venture with national franchise brokerage mortgageforce to offer sub-prime mortgages and loan products direct to the consumer. The operation, branded Spring Mortgages & Loans and headquartered in Derby, will see most of mortgageforce's 128 franchisees market loans exclusively from MPLC under a separate trading name. Spring will be a standalone company with MPLC and mortgageforce continuing to operate as separate businesses. ...

  • Nationwide raises its annual inflation estimate

    5 Apr 2004

    Average house prices rose by 1.4% in March, Nationwide's quarterly house price report reveals. This has led the lender to up its estimate for annual house price inflation to 15% from 9%. The report shows that the average house price now stands at £142,584, 16.7% higher than a year ago. It also reveals that the strength of house price growth over the first quarter has been widespread with most regions experiencing a pick-up in growth compared with the fourth quarter of ...

  • Network Data launches two Woolwich exclusives

    6 Apr 2004

    Network Data has released details of two new exclusive Openplan Flexible products funded by The Woolwich. The switch & save two-year stepped discount, for remortgages only, is 4.29% for year one, which equals a 1.75% discount, and 4.59% for year two, a 1.45% discount. The stepped discount is 4.19% for year one, which equals a 1.85% discount, a 4.29% for year two, a 1.75% discount and is available for purchases 90% LTV or remortgages 90% LTV. George Fleming, lender ...

  • Newcastle launches three-year property bond

    6 Apr 2004

    Newcastle has developed a three-year building society account where the return is linked to the performance of the Halifax house price index. This short-term property bond, available from April 7 2004, offers a return based on 75% of any rises in the Halifax house price index over the next three years with a full capitalguarantee. Research from the society's branches has shown there is a clear demand for shorter term products. Capital is guaranteed if the Halifax ...

  • Number of second homes to rise to 340,000 by 2025

    5 Apr 2004

    By 2025 the number of second residences will rise from 150,000 to 340,000, figures from the Centre for Economics and Business Research reveal. The centre says these figures are accurate, assuming that there are no adverse changes to local taxation systems beyond those already announced, where from 2004/2005 local authorities will be allowed to reduce the council tax discount on second homes from the current level of 50% to 10%. The centre adds this could accelerate the ...

  • OFT's missed opportunity

    5 Apr 2004

    From Peter Gladdy With reference to Rosemary Gallagher's article 'OFT: Agents pushing services' (Mortgage Strategy March 29) it is my opinion as the compliance director of Mortgages Direct, the financial services subsidiary of the country's largest independent estate agency group, that the Office of Fair Trading has failed to call for the measures needed to protect consumers and improve the way the profession operates. The OFT, in its report into estate agency, ...

  • One in four still denied credit, says Datamoniter

    8 Apr 2004

    Datamoniter says that despite the non-standard population being at is lowest level in recorded history, financial exclusion is still a problem for one in four adults of working age in the UK. Datamonitor estimates that 9.4m people of working age in the UK would have been systematically refused credit by mainstream lenders in 2003. This is down by 600,000 people on 1999 levels. But despite progress, one in four UK adults of working age still struggle to borrow from ...

  • Optoma increases Abbey proc fee

    6 Apr 2004

    Optoma is increasing the proc fee for Abbey online submissions to 0.35%. The company says that this is to support the thousands of brokers who are now unable to claim through the Legal & General mortgage club. Andrew Seymour, chairman and chief executive at Optoma, says: "Brokers should be rewarded for submitting online as they are saving lenders millions of pounds in resource. "Optoma has increased the proc fee to reward the broker but also to demonstrate ...

  • Orchard & Shipman enters property auction market

    6 Apr 2004

    Slough-based sales and letting agents Orchard & Shipman have entered the property auction market with the aim of creating a market in tenanted properties. At the company's first auction last week nearly half of the properties sold housed local authority tenants. In only a year, the number of property auctions around the country has risen from 176 in the first quarter of 2003 to 194 in the first quarter of this year. The total value of properties auctioned has risen ...

  • Over a third of singletons feel like financial victims

    7 Apr 2004

    Over a third of singletons believe they're penalised financially, research from cahoot has revealed. Monthly outgoings for a single person can be as high as those for a couple - who have the advantage of sharing household bills. In fact, in a comparison with a couple's monthly household costs, a single person onlybenefits from slightly lower food bills and a 25% discount for council tax. Singletons in the 35- 54 year old age group are more convinced than ...

  • Paragon makes B2L easier

    5 Apr 2004

    Paragon is to use a reference rate of 5% to calculate clients' rental incomes, which experts say will inc-rease the chances of investors getting accepted for a buy-to-let deal with the lender. Previously Paragon was using its SVR to calculate rental income, which must be 130% of monthly mortgage payments. With a mortgage of £100,000 at a three-year fixed rate of 5.99%, the cost on an interest-only basis is £499.16 per month. On the old basis the ...

  • Playing safe with dual authorisation

    5 Apr 2004

    Should brokers apply for direct authorisation as well as trying to become an appointed representative of a network principal so they have a fallback position in case anything goes wrong? Mortgage Strategy asks two industry commentators, one from a lender and one from a network, for their views on dual authorisation. Southern Pacific Mortgage Limited director of credit Stuart Aitken says: "It has been suggested that firms opting for AR status should have an application ...

  • Portman updates fixed rate range

    7 Apr 2004

    Due to recent movements in market rates, Portman says it is making a number of changes to its range of fixed rate mortgage products. All the product changes will be effective from Thursday April 8 with the exception of the society's five-year fixed rate mortgage at 4.99% which has been withdrawn with immediate effect. ? The two-year fixed - 1.84% will be replaced with a two year fixed - 1.99%. ? The two year fixed - 4.49% will be replaced with a two ...

  • Post Office to offer mortgages

    5 Apr 2004

    The Post Office has revealed that a mortgage product is under development to be offered through its joint venture with Bank of Ireland over the next two years. Although no further details are available, this is one of many financial services products in the pipeline following the launch of unsecured personal loans last week. The venture is equally owned by the Post Office and BoI with profits split evenly between the two. David Mills, Post Office chief executive, ...

  • RAMP launches first exclusive product range

    8 Apr 2004

    The Regulatory Alliance of Mortgage Packagers has launched its first range of exclusive products. A cashback buy-to-let tracker, a cashback self-certification tracker and a non-conforming minor adverse self-certification product.   The mortgages are being introduced with the support of Platform and are only available through RAMP members. The alliance believes that the three products are among the best currently available to intermediaries.   John Rice, managing ...

  • Regulation could boost equity release market

    5 Apr 2004

    The number of people over 55 who would consider equity release under regulation has doubled in the past year, says Prudential Equity Release. Survey results suggest that 46% of those over 55 who have a mortgage or own their home would be more likely to consider equity release if the market was regulated. Half of it - lifetime mortgage products - will be regulated from October but reversion schemes will remain outside the FSA regime. The number of people releasing equity ...

  • Relaxed calculations are a welcome relief

    5 Apr 2004

    Brokers have applauded The Mortgage Works' decision to relax lending calculations on its buy-to-let product. The intermediary lender of the Portman has reduced the measure by which it determines rental calculations from Bank base rate plus 1.95% to Bank base rate plus 1.45%. This is the figure by which lenders 'stress-test' a loan, setting the amount of rent a property will draw in against the amount needed to service the mortgage. With interest rates ...

  • Remembering Chris Perrott

    5 Apr 2004

    From Brian Lentz It was with sadness that I read of the death of former IFA Chris Perrott. He was an example and an inspiration because, in the face of illness and suffering (in 1997 he was given a year to live when diagnosed with multiple myeloma, a bone marrow cancer that destroyed both his kidneys leaving him on dialysis), he continued to promote the sale of critical illness contracts through his web charity, raising money for equipment to help the critically ill. He had ...

  • Review of adviser exams could lead to drop in standards, warns LIA

    8 Apr 2004

    A proposed review of financial advisers' exams could lead to a drop in standards and further confusion among the public, the LIA has warned. The Financial Services Skills Council is proposing a range of modular exams from which employers can select, depending on the roles of their employees. However, the LIA, which represents 20,000 people in the industry, says that this structure removes the prescription of qualifications necessary for particular jobs, currently ...

  • Rising rates drive homeowners to fix

    7 Apr 2004

    Rising interest rates have prompted UK homeowners to think about moving their mortgage to the safety of a fixed rate deal, a survey by ICM for Direct Line Financial Services has revealed. The Direct Line survey, which is the first in a series, compares the different views of UK homeowners against personal finance journalists on mortgage interest rates. Interestingly, homeowners appear more pessimistic than journalists about an increase in base rates, but journalists are ...

  • Saffron Waldon Herts & Essex appoints sales and markeing director

    7 Apr 2004

    The Saffron Walden Herts & Essex has appointed Andy Golding as its sales and marketing director. Golding has responsibility for the sales and business development areas of the society together with picking up day-to-day responsibility for its marketing and product development. He says: "I believeSaffron Walden Herts & Essex is in an ideal position to embrace opportunities for growth over the next few years. "Firstly, as a regional mutual society which operates ...

  • Select Committee report shows concern about housing crash, says Lib Dems

    7 Apr 2004

    The Liberal Democrats say that a Treasury Select Committee report on the 2004 budget showing commentators concerns over a housing market crash, demonstrates the potential threat it poses to the economy. Norman Lamb MP, Liberal Democrat member of the committee, says: "It is clear that many independent commentators differ from the Chancellor on the potential threat to our economy from rising interest rates, high house prices and consumer debt. "The Deputy Governor of the ...

  • Service targets DA brokers

    5 Apr 2004

    Mortgage, general insurance and protection service provider Mortgage Support Network has joined forces with compliance services firm SimplyBiz to create Mortgage Support Direct, targeting brokers opting for direct authorisation. SimplyBiz, set up in 2000 by DBS founder Ken Davy and the UK's third largest compliance services provider, and MSN already have 1,000 member firms and 2,000 advisers. The aim now is to recruit a further 2,000 firms. MSD says it will offer competitive ...

  • SHIP planning tough code of practice for home reversion

    6 Apr 2004

    Equity release industry body SHIP, which  represents 90% of the equity release industry, has submitted a strong paper in response to the Treasury consultation on home reversion schemes, urging the government to regulate them.   SHIP believes regulation of home reversion schemes is imperative to ensure that consumers benefit from a fair choice of products in this fast growing marketplace and to protect consumers against the risk of unauthorised providers entering the market. The ...

  • SLB says demutualisation will not affect strategy

    5 Apr 2004

    Standard Life Bank says plans for its parent, Standard Life, to demutualise in 2006 will have no effect on its current strategy. A strategic review published last week reveals that in order to raise further capital the board was aiming to demutualise and that a proposal would be put to members at the 2006 annual general meeting. The review also announced 1,000 job cuts in Standard Life's pensions and life division. Alan Dring, head of sales at SLB, says demutualisation ...

  • Smee to be keynote speaker at Practiv event

    8 Apr 2004

    IT consultancy Practiv has bagged Paul Smee, director-general of the Association of Independent Financial Advisers, as keynote speaker at its forum on May 12. Titled 'The Future of Financial Services, the event is being held at the Science Museum in London and is aimed at senior executives of Iinsurers, distributors and network. Smee will be the keynote speaker at this event, presenting his view on the IFAs' view of the market. As the IFA represents a significant ...

  • SMS opens Midlands office

    6 Apr 2004

    Solent Mortgage Services has extended its regional branch network into the Midlands, with an office in Milton Keynes. SMS Midlands is the eighth SMS office in the UK. Operations manager Phil Green heads the office with 13 members of staff, including three business development managers, bolstering SMS' presence in the Midlands market. Green previously worked for Mortgage Pack which recently merged with SMS. Kelvin Cooper, managing director at SMS, says: "With a number ...

  • Spelling it out on debt consolidation

    5 Apr 2004

    In Mortgage Strategy September 8 2003 I mentioned that apart from it being covered in statutory regulation there was also an ongoing Office of Fair Trading study into debt consolidation practices. This study is now available (see www.oft.gov.uk) and I am sure you will agree it is an engrossing read. I want to draw your attention to the comments made by Jonathan May, director of the markets and policy initiatives division of the OFT. He warns: "Where lenders or brokers are in breach of ...

  • SPML extends fixed rates by six months

    5 Apr 2004

    Southern Pacific Mortgage Limited has extended its fixed rates on standard, large loan, let-to-buy and Right to Buy schemes by six months to September 1 2005. Fixed rates on these schemes start from 5.99%. The current discount offer on SPML's Right to Buy scheme D has also been increased by 1% to 1.75%, while the term for its light adverse scheme discount has been extended to September 1 2005. John Prust, SPML's sales and marketing director, says: "Feedback from ...

  • Stick to the facts, Richard

    5 Apr 2004

    From Neal Smith Come on Richard Griffiths. You're obviously a perspicacious chap but your column in last week's Mortgage Strategy (March 29) was blatant tub-thumping! I can forgive you for not including The Whitechurch Mortgage Network in your full network choice offering in the March 22 issue of Mortgage Strategy but please leave mud-slinging attacks on your competition for the sales pitch. I look forward to your well-informed articles and hope future ones ...

  • Taking a stand on Labour's funds plan

    5 Apr 2004

    One of the more interesting matters raised by Gordon Brown in the Budget was a consultation on property investment funds. On the Treasury's website, alongside the Budget download, there is an opportunity to glance through the PIF consultation paper. So what is it, what do we need to do about it and wherein lies the opportunity? The consultation picks up on the main themes of the Miles and Barker reports. Ruth Kelly, the financial secretary to the Treasury, remarks ...

  • Taking non-conforming lending back to its roots

    5 Apr 2004

    Star Finance and Credit was launched last week as a non-conforming lender specialising in self-cert commercial and bridging loans and Right to Buy deals. Mike Rashman, who founded the Prime Finance Group that was sold to London Scottish Bank in May 2003, is heading the venture. Commercial loans start at 9.9% APR with LTV up to 75%, bridging loans from 1% a month, interest-only with LTV up to 80% and Right to Buy deals start at about 10.75% APR. Rashman says the ...

  • Tenet warns of PII increase

    5 Apr 2004

    IFA network Tenet Group, parent of mortgage network Lime, is warning that the cost of professional indemnity insurance for mortgage brokers could increase more than many in the industry are predicting. Tenet is basing its view partly on the number of complaints the Financial Ombudsman Service is expecting to receive about mortgage and general insurance intermediaries, as laid out in the FOS' plan and budget for 2004/05. The FOS will handle complaints when mortgage ...

  • The Mortgage Mole

    5 Apr 2004

    Boot boys Those Mortgage Express lads don't half whip up a storm - especially on the football pitch. Mole hears that confidence within MEX's inhouse squad is now so high that they've challenged any lender or broker team who fancy their chances after smashing a woeful side from SPML 3-0. MEX's finest dominated the match and although they had three goals disallowed, still saw Ben Jackson netting two and Declan O'Leary belting in the clincher. Porn free Mole's

  • Threesixty links up to Trigold's Prospector and Compliance Shield

    5 Apr 2004

    Threesixty has announced its clients will be offered access to its mortgage panel through Trigold's Prospector sourcing tool. In addition, threesixty is also offering full compliance monitoring to over 500 IFAs and mortgage brokers, via the Trigold Compliance Shield system. Phil Young, partner at threesixty, says: "With regulation looming we felt compelled to evaluate the mortgage sourcing systems to assess which would offer the resources and tools required to satisfy ...

  • Tough negotiations can save thousands of pounds

    7 Apr 2004

    Tough negotiation and reduced fees can save buyers as much as £24,750 on the average property price of £163,000, reveals the annual 'Cost of Moving' survey from The Woolwich. Over one-third of house buyers negotiated between 6% and 15% off the asking price. In addition, the cost of moving from a £150,000 home to a home worth £200,000 has fallen by £300 from £5,523 to £5,202 this year. Andy Gray, head of mortgages at The ...

  • UK expenditure on housing doubles

    5 Apr 2004

    Total expenditure on housing has risen by 119% over the past decade from around £106.1bn in 1993 to almost £232bn in 2003, research by Mintel reveals. Mintel's British Lifestyles report shows that almost half of what the British spend goes on housing and finance - a total of around £400bn. This is up from 39% of expenditure 10 years ago. The report also shows that the total number of residential properties, both rented and owner-occupied, has grown at ...

  • Variable rate borrowers bracing for interest rate rise

    7 Apr 2004

    Millions of mortgage borrowers will ultimately suffer whatever the decision the Bank of England makes on base rates this week, says MyMortgageDirect. The company says that standard variable rate mortgage borrowers are this week bracing themselves for a widely tipped 0.25% rise in the Bank of England base rate. Taking the base rate to 4.25% would add around £20 a month to repayments for a homeowner with an average £150,000 mortgage. But whether the MPC gives ...

  • Why campaign against a champion of consumer protection?

    5 Apr 2004

    From Michael Bolton Regarding the recent letter from Peter Willingham of Accelerated Mortgages (Mortgage Strategy March 15), I suggest he wakes up and sniffs the spring air or he may find his firm accelerating out of business. Firstly, BM Solutions is the UK's biggest buy-to-let lender. If Peter is unsure, I suggest he calls the Council of Mortgage Lenders who will be happy to provide him with the relevant figures. Secondly, if Peter regards himself as a buy-to-let ...

  • Will the Post Office become a threat to intermediaries?

    5 Apr 2004

    The Post Office is now offering personal loans, the first in a series of low cost financial products to be launched as part of its personal finance joint venture with Bank of Ireland. People will be able to borrow between £1,000 and £25,000 and interest rates on the loans will range from 8% to 15%. The Post Office plans to offer car insurance, credit cards and savings accounts within 18 months. It has a distribution network of 16,500 branches - more than all ...

  • Win a BMW at Paymentshield roadshow

    8 Apr 2004

    Paymentshield is offering a total of seven brand new BMWs worth £200,000 just for attending a Paymentshield roadshow. In 2003 Paymentshield ran a similar scheme just before Christmas, when seven intermediaries were presented with Minis. For 2004 a total of seven BMWs are up for grabs with the main promotion winner driving off in a BMW M3 Coupe. Six intermediaries will drive away BMW 318 Compact Sports and onelucky intermediary will receive a BMW Z4 Convertible ...

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