Mortgage Strategy
5 August 2002

  • 4.49% fixed rate tops new Abbey range

    6 Aug 2002

    Abbey National will launch a new mortgage range on August 7 2002, available to first-time buyers, movers and remortgage customers. Top of the range is a two-year fixed rate of 4.49% for loans up to 95% LTV. The range has no extended tie-ins and no compulsory insurance. Besides the two year 4.49% deal, best buy fixed rates include a five year 4.99% deal for loans up to 90% LTV. Best buy discount rates include a two year 3.95% deal for loans up to 75% LTV and ...

  • Abbey finds self-employment is hard work

    8 Aug 2002

    The demands of self-employment are taking their toll on the family life of the UK's 3.7 million small business owners, reveals research by Abbey National business. The 'New Entrepreneurs Report' finds that owners of the UK's small businesses are some of the hardest workers in the country. 80% regularly put in more than the average 35-hour week, 58% work more than 45 hours every week and 13% work a staggering 75 hours a week or more. The report found that ...

  • ABI and BBA rule out joint insurance body

    7 Aug 2002

    The ABI and BBA have decided not to pursue the idea of a new body to represent the banking and insurance industries. The associations say the decision follows consultation with a wide range of member companies and a careful consideration of the desirability and practicality of setting up such a body. In view of the number and scale of the important issues currently facing both industries, it has been agreed that it would be more sensible for the two associations to work ...

  • Advice definition is final, says Treasury

    8 Aug 2002

    The definition of advice in the consultation draft of the Regulated Activities Order is final, says the Treasury. Strategic or generic advice will not be regulated following the format for investment advice, and only advice on the merits of a particular mortgage will be captured. The Treasury registers the concerns of respondents who sought greater clarity between advice and information. It concedes that merely "matching the consumer's preferences and expectations ...

  • Advisers are still crossing the bridge

    5 Aug 2002

    With full implementation of the MCCB fitness and competence requirements just five months away, those brokers who haven't already received their qualifications should set the wheels in motion now or risk the prospect of not qualifying. The latest registration figures from the Institute of Financial Services show that nearly 59,000 advisers have registered for the papers so far and that advisers are signing up for their exams at a rate of around 2,000 each month. Of the IFS-registered ...

  • Age of landlords falling

    5 Aug 2002

    Investors as young as 20 are turning to property as a long-term investment, research from The Mortgage Business reveals. The HBOS subsidiary says that one in 10 of its buy-to-let customers in 2001 was in the 20 to 29 age group. Over 40% were in the 30 to 39 age group. Over 50% of investors were under 40 in 2001, a growth of 10% from 2000. Investors are also becoming more prudent. TMB's research shows that deposits of 25% or more from investors in the 20 to 39 age group have ...

  • Aiming to be the best that an IFA can get

    5 Aug 2002

    Best advice mortgage centre Best Advice Mortgage Centre is a specialist packaging company based in Newcastle. Via its network of accredited intermediaries, the company offers members of the public access to a wide range of leading non-conforming and sub-prime mortgages. Many of these products are exclusive deals developed in association with some of the biggest and most respected lending names in the non-conforming and sub-prime markets. BAMC has three offices in the city and employs ...

  • Amber sells £30m book

    5 Aug 2002

    Amber Homeloans has sold £30m of its mortgage book to Saffron Walden Mortgage Services, a subsidiary of the building society. Amber focuses on light/medium adverse, self-certification, 100% loans and buy-to-let mortgages. Amber managing director Gordon Jolly says: "Portfolio sales are an integral part of Amber's strategy as a creator and trader of mortgage assets. This is the first time we have worked on a transaction with Saffron Walden Herts & Essex. We hope this ...

  • Amber sells £30m assets to Saffron

    5 Aug 2002

    Amber Homeloans Group today announced the sale of mortgage assets worth £30 million to Saffron Walden Mortgage Services Limited, a subsidiary of the Saffron Walden Herts & Essex Building Society. Saffron Walden Herts & Essex Building Society will now take over the administration of this residential mortgage book. Amber, which is a wholly owned subsidiary of Skipton Building Society, is a lender in the specialist mortgage market. Its management team have gained ...

  • Appointed reps regime to extend to mortgages

    8 Aug 2002

    The Government will extend the appointed representatives regime to the new regulated activities of advising and arranging regulated mortgage contracts. Details from the Treasury's Regulated Activities Order consultation paper published today reveal that no respondent had a fundamental objection to extending the appointed representative regime to mortgages. But it says many were concerned with the detailed rules that may surround the regime. A spokesman for ...

  • Arrears figures down

    5 Aug 2002

    Arrears and possessions are continuing to fall, writes Harriet Williams. The Lord Chancellor's department recorded 14,397 mortgage possession actions entered in the second quarter of 2002, down 14% on the 16,696 actions entered for the same period last year. Total possession orders made dropped 15% to 10,348. But Bernard Clarke, communications manager at the CML, says: "This is probably the bottom of the curve. We are urging borrowers not to overextend themselves. If house prices ...

  • Beat the Abbey habit

    5 Aug 2002

    From Ian Griffiths Regarding Abbey National's priority processing of applications with their own general insurance policies attached, I too was advised by the business development manager team that these applications would 'go through quicker'. Understanding exactly what I was being told, I duly completed the ASU box on the client's application. Low and behold, an application went through with little delay. However, once the offer letter was produced I promptly cancelled ...

  • Better buy a Bully bonus

    5 Aug 2002

    Bradford Bulls Rugby League Club has announced that it is to launch its own financial services arm. Bradford Bulls Financial Services will operate in conjunction with RBR Insurance Group. BBFS will be officially launched on August 2. The package, which includes deals on mortgages, loans, life assurance, healthcare plans and savings accounts, has been designed to benefit fans and the club. BBFS will be offering fans an exclusive two-year discount mortgage product from Bristol & ...

  • BM won't lend in Scotland

    5 Aug 2002

    From George Williamson While it seems that BM Solutions is doing great, it does not wish to be great in Great Britain. While in theory it says it will lend in Scotland, in practice its systems make it almost impossible to recommend it to my Scottish clients. Why? In Scotland, an offer to purchase a property can be unconditionally accepted immediately by the seller, binding the purchaser to buy on a set date. The purchaser cannot then pull out without being sued. So a purchaser should ...

  • Boiling point

    5 Aug 2002

    The Bank of England didn't spring any surprises last week after it left interest rates on hold at 4%. Indeed, one corporate scandal after another and the stockmarkets fluctuating widely may delay the next rate rise until 2003. As a result, lenders are starting to relax their fixed rate pricing, meaning there's plenty of opportunities for your clients to cash in. But is it better to fix or cap mortgage rates? Fixing repayment rates against costly shifts in interest rates is ...

  • BoS card supports real ale

    7 Aug 2002

    As the Great British Beer Festival gets underway at London Olympia, Bank of Scotland is offering real ale drinkers the opportunity to support the Campaign for Real Ale all year round, simply by using their CAMRA Platinum MasterCard. Bank of Scotland makes a payment of £2.50 to CAMRA when a cardholder uses their card for the first time, in addition to 25p for every £100 spent on the card. The card offers an interest rate of 1.9% APR on balance transfers for the first ...

  • Brokerage denies ex-employee's malpractice accusation

    5 Aug 2002

    Master broker theblack&whitemortgagecompany has strenuously denied allegations of malpractice made by a former employee. Several claims against the brokerage, which appointed its 200th mortgage adviser in July, have been made by the former employee. But chairman Chris Ollerenshaw denies the claims. He says: "This is obviously one of our ex-sales staff who has become a little disgruntled. While I regret that you can't always get on with everyone that you want to, I am delighted ...

  • Brokers get new weapon against delayed payment

    8 Aug 2002

    Brokerages and other businesses are now able to claim up to £100 in debt recovery costs for overdue payment thanks to new legislation. Small businesses are already allowed to charge interest on late paid bills, and the new right to charge compensation costs aims to make late payers think twice before offering an excuse for not paying up. Under the new package, debtors will be liable to pay the creditor £40 towards recovery costs of debts of £1,000 and ...

  • Brokers welcome Britannic battle

    5 Aug 2002

    Mortgage intermediaries and lenders have welcomed Britannic Money's entry into the sub-prime market as a boost to competition, but warn that the new products are not without their flaws. Mike Fitzgerald, sales director at Brentchase Financial Services, says: "A wider choice allows brokers to give best advice on a range of products." Bill Petrie, head of mortgage services at Towry Law, welcomes the increased competition in the market but dislikes the fact that the FRESH product ...

  • Buy-to-let stays outside regulation

    8 Aug 2002

    The Treasury has ruled out regulation of buy-to-let mortgages. It is sticking to the view that buy-to-let mortgage constitute a commercial transaction, even though several consumer bodies and consultation respondents have argued that amateur landlords need regulatory protection. Despite these responses, the Treasury says it "believes that the definition of a mortgage is the right one, and that there should be no changes".

  • CA calls for replacement of HIP interest payments

    5 Aug 2002

    The Consumers' Association wants interest rates frozen on thousands of home income plans sold in the 1980s. New sales of these roll-up loans were outlawed in 1991 but many borrowers face growing debts after their high-risk investments failed. Some elderly borrowers are facing debts over five times the size of their initial loan. Theresa Fritz, spokeswoman for the CA, says: "Our director, Sheila McKechnie, has formally asked the Council of Mortgage Lenders to put pressure on ...

  • CAM approach could encourage debts

    5 Aug 2002

    Mortgage brokers have expressed concern that Britannic Money's new FRESH sub-prime CAM mortgage could encourage naïve borrowers to get further into debt. Trevor Youens, director of Flower Independent Financial Advisers, says: "At least Britannic is not taking them into a CAM straightaway but I am still concerned that it allows people to get further into debt very easily." Bill Petrie, head of mortgage services at Towry Law, says: "Sub-prime borrowers need a fixed rate, ...

  • CIS tells borrowers not to overstretch

    8 Aug 2002

    As house prices continue to increase faster than income rises can keep pace, Co-operative Insurance Services is warning frustrated borrowers to think carefully before stretching their income multiples too far. An increasing number of lenders are offering four and five times people's salary and beginning to stretch to 110% mortgages in an attempt to plug the widening gap between salaries and house prices. Although such offers can help first-time buyers on the property ...

  • Code-breach IFA fined record amount

    5 Aug 2002

    Mortgage brokers who advise clients based on information from lead generators and sourcing systems risk huge compensation claims, the MCCB warned last week. The Mortgage Code Arbitration Scheme has ordered an intermediary to compensate a customer £66,300 for failing to give suitable mortgage advice, the largest ever payout for a breach of the code by over £40,000. MCAS found that the intermediary had not exercised the due care required when selling an equity release mortgage ...

  • Drop-lock deal from Savills

    7 Aug 2002

    Savills Private Finance is offering an exclusive drop-lock mortgage deal which allows borrowers to track base rates now, but drop into a fixed or capped rate product from the same lender at any time. The mortgage tracks the Bank of England base rate at 0.5% above for five years, giving a current pay rate of 4.5%. After that the margin rises to 0.75% above base rate. Borrowers also have the ability to switch into any fixed or capped rates available from the lender at any ...

  • Ex-MSMS boss joins Nextra UK

    6 Aug 2002

    Joe Bradley, former chief executive officer of Marlborough Stirling Mortgage Services (MSMS), takes up his new job as chief operating officer of Nextra UK today. Nextra UK, the Telenor-owned provider of managed services, has put Bradley in charge of co-ordinating sales, client management and service offerings. He will ensure that customers' needs are met by providing not technology services and solutions that add value to their businesses. Bradley has over 25 years ...

  • FSA rules bring endowment trading hope

    9 Aug 2002

    Troubled holders of endowment mortgages are being told to take hope from new FSA rules, which will oblige life companies to make policyholders aware of the existence of the traded endowment policy market. The FSA's rules take effect in Septmber, Surrenda-link, the UK's leading TEP Company estimates that this could make each policyholder over £1,400 more on average, should they sell their policy as opposed to surrendering. Currently, if a policyholder ...

  • FSA to consider mortgage effects of CP121

    8 Aug 2002

    The FSA will consider the links between CP121 and mortgages as it develops the detail of proposals for mortgage regulation, the Treasury revealed today. The government admits that the finalising of mortgage regulation ahead of changes to the polarisation regime is "unhelpful timing". There was no mention of polarisation in the latest consultation on mortgage regulation. But the government has noted the concerns of respondents who are determined that the FSA ...

  • Future offers 1.25% discount across range

    6 Aug 2002

    Future Mortgages has launched a new discount of 1.25% off all mortgage products to 31 December 2003. The discount applies to all status, self-certification, buy-to-let and right-to-buy products over £25,001. The discount means Future rates now start at 5.45% on loans up to 90% LTV, with all the usual underwriting criteria unchanged. Brian Pitt, sales and marketing director at Future, says: "We have launched this new discount to provide mortgage advisers ...

  • Government launches corporation tax consultation

    7 Aug 2002

    The government has launched a consultation on reforming the corporate tax system. Announcing the consultation, Dawn Primarolo, paymaster general, said: "In 1997 the government set out to reform and modernise the corporate tax system and boost the UK's competitiveness in the global business environment. "The strategy and objectives underpinning these reforms were set out in our consultation document of July 2001. They guided the reforms made in this year's Budget ...

  • Hamptons International poaches Charcol man

    5 Aug 2002

    Hamptons International has poached Charcol associate director Ian Broadwick, writes Harriet Williams. Broadwick will take a senior role after Hamptons relocates to City of London offices on September 1. The London-based team will mastermind a countrywide expansion in 2003, establishing regional headquarters in Guildford, Manchester and the West Country in a bid to double turnover to £6m. Broadwick is expected to leave Charcol within days after handing in his resignation ...

  • Home reversion to escape regulation

    8 Aug 2002

    Home reversion schemes will not join mortgage-based equity release products under FSA regulation, the Treasury announced today. The Treasury does not consider that is has the power to give the FSA responsibility for regulating home reversion products, which are equity release schemes that involve the sale of the property by the 'borrower' to the person providing the finance. HMT says this is because they are not financial services products, but are "sale and purchase ...

  • House price growth eases off

    6 Aug 2002

    Growth in UK house prices slowed down to 1.9% in July following a 2.4% spurt in June, the latest Halifax house price index reveals. Housing transactions eased back in June to 132,000 from 139,000 in May, but remain around 3% higher year on year. The annual rate of house price inflation is now 20.8%, compared to 19.3% in June. Shortages of houses for sale is driving up prices in London and the south, with estate agent stock of unsold property at its lowest level ...

  • HSHL hires new Packager Relationship Manager

    5 Aug 2002

    High Street Loans (HSHL) has hired Packager Relationship Manager, John Cullen, 42, in an attempt to build a major new distribution channel for its range of non-conforming mortgages. The appointment follows last week's announcement by the company that it is to launch a new initiative to recruit up to 100 new packaging partners by the end of the year. They wish to develop new partnerships with large and medium-sized intermediaries who are eager to have ...

  • IFA sues lender over failed application

    5 Aug 2002

    Chris Herbert, a former IFA with The Chancery Asset Management Group, is suing both his ex-employer and lender Capital Home Loans for lost fees totalling nearly £5,000. Herbert alleges that Capital's business development manager, Ross Turrell, gave assurances that a loan on five buy-to-let properties would be considered using normal underwriting criteria. The houses were tenanted by a charity to re-establish reformed drug addicts and alcoholics into society. Most lenders ...

  • IMLA voices its concern over qualification numbers

    5 Aug 2002

    The Intermediary Mortgage Lenders Association has voiced concern at the alarming level of apathy among intermediaries over the mortgage advice qualifications. Current MCCB rules require that mortgage advisers should have passed either the CeMAP or the MAQ qualification by December 31 2002 but IMLA's research indicates advisers are not completing their qualifications. IMLA suggests confusion over the changes made to the regulatory regime by the MCCB and the government, concern ...

  • Inflation report puts rate cut on cards

    8 Aug 2002

    Prospects of a further drop in interest rates have improved after the Bank of England revised forecasts for inflation downwards in its latest quarterly inflation report. The Bank now predicts that UK inflation is set to remain below its target of 2.5% for most of the next two years. This means the Bank's rate-setting Monetary Policy Committee is more likely to leave interest rates at 4% for the time being - or even consider another cut. Inflation is currently ...

  • Intelligent Finance joins sales and marketing forces

    6 Aug 2002

    Intelligent Finance is integrating its sales and marketing teams. Ian Jeffery, currently sales director, will head up the new team as sales and marketing director from the end of August. Angela McIntosh, marketing director at Intelligent Finance, will be retiring at the end of August but has agreed to remain with the bank in a consultancy role on its flagship sponsorship programme until the end of the year. Intelligent Finance accredits McIntosh with a "massive contribution" ...

  • Intermediary response

    5 Aug 2002

    Steve Pollard, director of Moneyquest, says the client's options are limited by high income multiples and Ms Woods should consider borrowing or saving for a 5% deposit Many first-time buyers like Ms Wood face the problem of having little or no deposit as well as the fact that wages have not kept pace with rising property prices. Lenders have reacted to this by creating products such as 100%-125% mortgages and various ...

  • Internet leads to be rolled out across rest of UK

    5 Aug 2002

    Moneysupermarket.com is offering its lead-forwarding service to IFAs and mortgage intermediaries in Scotland and Northern Ireland, following the scheme's success across England and Wales. The Professional Adviser Alliance forwards leads to specific IFAs, each of whom has a postcoded territory. Moneysupermarket.com found that its existing network of 150 partners was generating over 150 qualified mortgage leads every day in May 2002. This adds up to over 54,000 leads a year, ...

  • Land Registry records 13.5% house price growth

    9 Aug 2002

    The average house price in England and Wales is now £133,247, reveals latest quarterly figures from the Land Registry. This is a rise of 13.5% on the comparable 2001 price of £117,398. The price report covers the period April to June 2002, and compares average prices and volume of sales with those for the same period in 2001. The report shows an increase in average prices across all economic regions of England and Wales. The volume of sales increased by ...

  • Legal & General on the Launchpad

    8 Aug 2002

    Legal & General has unveiled Launchpad, a new point of sale platform for mortgage advisers. Launchpad pulls together e-business technology across the housing and protection markets, allowing mortgage sourcing, lender applications and protection quotations and applications to be seamlessly linked in one process. By combining Legal & General's existing e-trading solutions with other systems required for housing and protection sales, Launchpad provides the gateway to ...

  • Lender response

    5 Aug 2002

    Gordon Bowden, business development director at Scottish Widows Bank, says that clients should appraise the risks of 100% mortgages with a financial adviserMs Wood needs to focus on closing the gap between her aspirations in terms of type of property and cost, and what realistically she can afford. Depending on her circumstances it may be that her parents or a relative could help her out with a deposit. This would need to be in the region of ...

  • Lenders wary of regulatory cost

    8 Aug 2002

    The Treasury says that it will take into account the cost of implementing the regulatory regime for both lenders and brokers. Most respondents agreed advice should be regulated - provided the approach taken by the FSA was a "light touch and proportionate". But many believe that it's not possible to state categorically "that the costs of changing from one system to another will be relatively modest". One respondent says: "In principle, the introduction of a single ...

  • Lloyds TSB profits up

    5 Aug 2002

    Lloyds TSB has announced record half-year results for gross new mortgage lending of £8bn, up one-third on the same period last year. The group's market share of gross new lending declined 1.6% to 5.9%. But there is a record mortgage pipeline moving through subsidiary C& G. And the group's interim result statement adds: "We have chosen not to chase market-share growth at the expense of price and quality." Peter Mounty, head of communications at C&G, confirms new ...

  • Making the time for old clients

    5 Aug 2002

    I was talking to a mortgage broker in the North East. It was a large office with a good frontage onto the street, although admittedly not in a prime location. And he was on his own - doing everything from advising prospects off the street to handling referrals from local estate agents, to chasing mortgage offers to phoning solicitors, to making the tea. He seemed to be doing a fair bit of business - hardly surprising given the strength of the market over the last couple of years, even ...

  • Market starts to think of cuts after rate freeze

    5 Aug 2002

    The Bank of England's Monetary Policy Committee voted to leave interest rates on hold at 4% last week. There has been no change in base rates for nine months and some pundits say the next rate move could even be down. John Cridland, deputy director-general of the CBI, says: "The right thing to do was nothing. There is little need for change with stockmarket declines, inflation at record lows and evidence that the recovery could be slower than was thought earlier in the year. ...

  • MIFAS launches buying club

    5 Aug 2002

    Misys IFA Services (MIFAS), has announced the launch of its buying Club for the benefit of its members. The MIFAS Buying Club will provide members with access to discounted products and services for their businesses. It offers products and services from Insight (providers of computer hardware and software products), Parity (IT and management skills training specialists), and has agreed a deal with Regus (office space suppliers), of which further details will be released ...

  • Moneyfacts updates Mortgage SearchScreen

    7 Aug 2002

    Personal finance provider Moneyfacts Group Plc has launched the latest version of Mortgage SearchScreen 4.1. Mortgage SearchScreen is truly independent and aims to cover all mortgage products from all providers. It helps thousands of intermediaries to manage client's individual requirements and can be networked to any number of users. To highlight updates and features, all new subscribers can trial the UK's most advanced mortgage sourcing system free for three months. Inte

  • Moneynet reports average property price of £185,009

    8 Aug 2002

    The latest data from Moneynet shows an average property price of £185,009 among a sample of 3,400 randomly selected website visitors. The average value of property to a first time buyer was £146,956, while users looking to remortgage valued their property at an average of £200,769. Existing homeowners looking to purchase a property could expect to pay around an average value of £214,951. The overall average mortgage amount required was £118,161, ...

  • Mortage Express' 100% football to kick off soon

    5 Aug 2002

    As the football season approaches, Mortgage Express is giving footy fans another good reason to celebrate by relaunching its football prediction game. Previously known as Fax Football, the new online version, 100% football, offers players the chance to put their football knowledge and prediction skills to the test. Competitors have to register themselves as a manager (either as an individual or as part of a team) and predict the outcome of 10 fixtures every week for the rest of ...

  • Mortgage Brain workshop

    6 Aug 2002

    Mortgage Brain is holding a series of free workshops around the UK to give introducers an overview of how the sourcing platform's products and services could benefit business. Monique Venter, marketing manager of Mortgage Brain says: "Mortgage introducers have continually told us how valuable face to face presentation and discussion is in helping to gain maximum business benefit from the use of technology. We are pleased to announce the latest series of Mortgage Brain Workshops ...

  • Mortgage debt collection to be regulated

    8 Aug 2002

    Debt collection in relation to mortgages will be regulated under the FSA, as requested by respondents to the Treasury's consultation paper. The Treasury says the regulated activity of 'administering' a regulated mortgage contract expressly includes "taking any necessary steps for the purposes of collecting or recovering payments due under the contract from the borrower." This means that, where debt collecting involves these activities, a firm will need to be ...

  • Mortgage Express launches 100% football

    5 Aug 2002

    As the start of the football season approaches, Mortgage Express is giving footie fans another good reason to celebrate by relaunching its popular football prediction game. Previously known as Fax Football, the new online version, 100% football, offers players the chance to put their football knowledge and prediction skills to the test. The competition is open to Mortgage Express' industry partners, including intermediaries, networks, packagers, IFAs and trade journalists. ...

  • Mortgage Promotions boosts Chelsea fee

    8 Aug 2002

    Mortgage Promotions is increasing the fee it pays to members on business introduced to Chelsea Building Society. The new fees are: 0.28% of the advance, or 0.3% of the advance on loans over £150,001, subject to a minimum £175. 0.85% of the advance on the Prospect mortgage, subject to a maximum of £1,400.00) Nick Baxter, director of Mortgage Promotions, says: "We aim to run ourselves to make our members richer - increasing ...

  • Mortgages PLC enhances product range

    9 Aug 2002

    Mortgages PLC has announced major enhancements to its range of products, in particular those targeted at medium and heavy adverse borrowers. The changed products will be available from 19 August 2002. Highlights include: Initial pay rates from 5.00% 1.5% discount extended until October 31 2003 up to 90% LTV (1% on buy-to-let) Rate reductions on heavy adverse of up to 0.55% New heavy adverse 75% product with self-certification with ...

  • MPC keeps rates unchanged

    5 Aug 2002

    The Monetary Policy Committee (MPC), kept rates unchanged before going off on its August holidays, because it is generally thought that the house price boom has not come to an end. It was believed that due to the unusual circumstances in June, such as the World Cup and the Jubilee Celebrations, the weak retail sales figures could not totally be trusted. There had been some unexpectedly high and low figures, and the discrepancy between reported numbers and ...

  • My mortgage week - John cupis

    5 Aug 2002

    Monday: My first full week back at work and I arrive at Legal & General's Kingswood office in Surrey after having had only four hours sleep. Regrettably, this is not due to a late night in a bar with Mortgage Strategy editor Robyn Hall, but the by-product of the birth of our second son Oliver, who enjoys revelling in the early hours. I do some catching up with the team in the morning and some preparation for presentations on Wednesday. Tuesday: Oliver sleeps through the night ...

  • NACFB launches B2L code of practice

    5 Aug 2002

    The National Association of Commercial Finance Brokers has launched a code of practice for the buy-to-let market in a bid to ensure best practice in this buoyant commercial sector. Recent months have seen a notable change in opinions of the buy-to-let sector, with advisers and lenders such as Southern Pacific Mortgage Limited and Birmingham Midshires Solutions advocating regulation of the sector. NACFB says that the commercial nature of the buy-to-let market makes it difficult ...

  • Nationwide makes wedding offer to footy fans

    6 Aug 2002

    Football League sponsor Nationwide is offering consolation to die-hard football fans who have arranged to tie the knot on the same day their team kicks off the first match of the new season. Winners of the Weddings of the New Season competition will receive £2,000 in return for proving their wedding date as 10 August 2002 - the opening day of the Nationwide league. Nationwide is using the competition to highlight the increasing numbers of people seeking personal ...

  • New customer services boss at Scottish Life

    7 Aug 2002

    Scottish Life has appointed a new customer service director in the form of Isobel Kennedy, currently head of customer services for Royal London at their Wilmslow operations centre. Kennedy takes over from John Wallace, who retires after 35 years service at Scottish Life. Brian Duffin, chief executive of Scottish Life, says: "I am delighted to welcome Isobel to our senior team. I am sure she will contribute significantly to the continued growth and success of Scottish ...

  • New development boss at SPML

    8 Aug 2002

    Southern Pacific Mortgage Ltd (SPML) has strengthened its business development team with the appointment of Fred Paton to the position of head of corporate development. Paton has held senior positions with Mortgage Express, the Royal Bank of Scotland and regional building societies, and has many years experience in the intermediary-based mortgage market. In his new role, Paton will support and develop additional distribution channels for the business, particularly within ...

  • New fixed rates from Yorkshire Building Society

    6 Aug 2002

    Yorkshire Building Society will launch two market-leading flexible fixed rate mortgages this week, with two-year rates from 4.49% and five-year rates from 5.24%. The new mortgages are available up to 95% of the property value, and offer borrowers a choice of either the lowest fixed rate on the market, or a slightly higher rate which has no arrangement fee and provides assistance with valuation and legal fees. As with all Yorkshire mortgages free accident, sickness and ...

  • New legislation for mortgage regulation published

    8 Aug 2002

    New regulation for mortgage advice was published has been published by HM Treasury. The regulations are the outcome of extensive consultation earlier this year. Ruth Kelly, Financial Secretary to the Treasury, says: "Buying a mortgage is the biggest financial decision most people will ever make. It is vital that people make the right choice - these regulations will make it easier to do that. "I am grateful to all those who took part in the consultation. The result ...

  • New self-cert from BMS and TMO

    6 Aug 2002

    The Mortgage Operation and Birmingham Midshires Solutions have launched a new self-cert product with no income checks, a generous two year discount with no overhang and a hefty£1,000 cashback. Richard Stokes, TMO product manager, says: "It's always easier to sell a product that has help with fees - combine that with a great discount and no income checks and we expect this product to be a best seller. It represents a great deal for clients and is one of the most intermediary ...

  • Next Treasury paper imminent says CML

    5 Aug 2002

    The Council of Mortgage Lenders is expecting near final rules on mortgage regulation and the latest consultation paper from the Financial Services Authority to be published by the end of this week. Mortgage Strategy has seen a secret memo sent on Friday to members of the Mortgage Intermediary Advisory Group, which says that the FSA's consultation paper will be due out towards the end of this week - but it adds that "this may slip to the week commencing August 12". The memo, ...

  • No redemption for BM

    5 Aug 2002

    From Andrew ParkerI became a customer (not an introducer) of Birmingham Midshires in September 2000 when I took out a mortgage for approximately 72,000. In October 2001 I requested a settlement figure including redemption penalties and was quoted 1,900 on an outstanding balance of 69,500. My statement quoted a redemption figure of 72,121.79 from a figure of 70,538.21 on September 20 2001.I queried this with Birmingham Midshires three times before I got a reply in the form ...

  • Not so hi-finance

    5 Aug 2002

    From Sohan Jheeta I recently bought a hi-fi. To my surprise the proprietor offered me an interest-free loan voluntarily. I informed him that I would rather pay cash and that he ought to let me have some discount since I would not be using the credit facility. He refused. Anyway, after weighing up the pros and cons, I was tempted to purchase the hi-fi on hire purchase. This got me thinking - loans are easily available, but why? In addition, the offered loan was of the unsecured type ...

  • Packagers want 'advice' clarification

    5 Aug 2002

    Mortgage packagers are calling for greater clarity around their future role and a stronger voice in the consultation process. Concerns were raised at two packager forums held by Southern Pacific Mortgage Limited last month. Of most concern was the distinction between packagers' roles in offering 'information' or 'advice' and whether the packaging process is an information-only affair. Mortgage Strategy exclusively revealed in June that the FSA will include packagers ...

  • Pink opens parachute

    6 Aug 2002

    Pink Home Loans has reduced the rates payable on the exclusive Parachute Mortgage funded by Amber Homeloans. Borrowers can now take advantage of a minimum reduction of 0.25% regardless of the amount of adverse credit. Tony Jones, managing director at Pink Home Loans, says: "Many sub-prime productscategorise borrowers into light, medium and heavy adverse profiles resulting in borrowers paying for credit problems they may not have. "The Parachute is based on LIBOR ...

  • Platform offers new fix

    9 Aug 2002

    Platform Home Loans is launching a new range of market leading fixed rates starting from 4.99% and fixed until October 1 2003. The new fixed rates are: Up to 65% LTV = 4.99% Up to 75% LTV = 5.49% Up to 85% LTV = 5.99% Up to 95% LTV = 6.99% The fixed rates are available across the whole range of Platform products with the exception of right-to-buy. There is an early redemption fee of 6% for the first three years and a ...

  • Preferred expands for record-breaking year

    7 Aug 2002

    Preferred Mortgages has made four new appointments to support its growth strategy after a record-breaking year to date. Peter Else joins Preferred in the position of servicing manager with responsibility for the collection and customer services divisions. Else joins the company after 22 years at Bank of Ireland Mortgages, where he was head of mortgage administration. Sharon Ault has been appointed head of human resources. She joins Preferred after 27 years with the ...

  • Professionals must be authorised to give advice

    8 Aug 2002

    Professionals such as solicitors will need authorisation or appointed representative status if they recommend a particular mortgage product, the Treasury announced today. Most respondents to the Treasury's consultation paper agreed that solicitors undertaking conveyancing should not be required to be authorised merely because they offered general advice to the borrower, but that they should if making a positive recommendation of the products of a particular lender. But ...

  • Record mortgage results at Leeds & Holbeck

    6 Aug 2002

    Leeds & Holbeck, the UK's eighth largest building society, has announced record half-year results across all areas of its business. The society recorded a 77% increase in mortgage applications to £1.1bn - a greater total than the amount recorded for the whole of 2001. Mortgage completions were up 43% to a record £529m. There was a 14% increase in pre-tax profits to a record £16.9m. More records were set in Other Income, which experienced a 22% ...

  • Rightmove launches new price index

    7 Aug 2002

    Property website rightmove.co.uk will launch a new house price index service next week. The Real Time Property Report is based on the asking price of properties on the Rightmove website. Details of the new site were announced as Rightmove released its quarterly results for the three months to the end of June 2002. Highlights include: Profits for the second quarter of £129,000 (compared to a loss of £615,000 for the second quarter ...

  • Right-to-buy will stay says government

    5 Aug 2002

    The government has denied reports it is preparing to cancel the right-to-buy scheme for local authority tenants. John Prescott, deputy Prime Minister, has complained that discounts of up to £38,000 on purchase prices lose the Treasury money. Transfer of housing stock to the private sector also threatens targets for affordable key-worker housing. Labour is concerned about right-to-buy abuses, whereby tenants purchase at a discount, only to sell or rent at market values. Last ...

  • Rooker speaks out in favour of flexibility

    5 Aug 2002

    Housing minister Lord Rooker has declared that the government will do what it can "to push the idea of flexible mortgages". Speaking last month at Prime Minister's Questions, Lord Rooker pointed out that flexible mortgages represent a rapidly growing share of mortgages in certain sectors of the market, particularly among those in the A-B economic class and those who have owned more than one property in the past. He told the House: "People now know that mortgage flexibility can ...

  • Royal Bank of Scotland profits up 15%

    8 Aug 2002

    The Royal Bank of Scotland Group has reported a 15% increase in profit in its half-year results, although bad debt provisions soared 77% compared to the first six months of 2001. Nonetheless, the group's results are solid overall and went some way to ease fears about bad debts in the UK banking sector. RBoS profits increased £400m to £3,151m from £2,751m in the first half of 2001. All divisions contributed to the profits rise. Under the retail banking ...

  • Royal London chooses Mortgage 2000

    6 Aug 2002

    Royal London has chosen Mortgage 2000 as its mortgage sourcing partner, as the company upgrades its mortgage service. The Royal London deal includes an electronic mortgage sourcing system, an electronic illustration service and full electronic trading system which will deal exclusively with Mortgage 2000's panel of 35 mortgage lenders. To complete its mortgage offering, Royal London has recruited twenty mortgage advisers who have been FPC3 and MAQ trained. The mortgage ...

  • Securitisation vehicles escape regulation

    8 Aug 2002

    The Treasury has agreed to make certain technical amendment to regulated activities so that special purpose vehicles - used for securitisation purposes - will be excluded from regulation. The Treasury's policy had been to ensure that where regulated mortgage contracts have been securitised and are being administered by an authorised person they were not being treated as carrying on regulated activities in relation to those securitised contracts. But lenders ...

  • Skipton heads for new Stateside

    6 Aug 2002

    Skipton Building Society is launching a new version of its US Dollar Libor Tracker loan - the Stateside Mortgage - with rates starting from just 3.55% and free legal fees for all remortgages. The interest rate tracks the three-month US Dollar Libor Rate (USDL) for the first five years. The loan is repayable by the borrower in pounds sterling, thereby avoiding the complication of dealing in a foreign currency. The initial setting for the USDL rate will be 1.9%. There ...

  • Skipton joins Pink Home Loan's direct lender panel

    5 Aug 2002

    Skipton Building Society is the latest addition to the Pink Home Loan's direct lender panel, which now means that there are a total of 32 lenders on panel. Members of Pink Home Loans can now access the full range of mortgages offered by the Skipton through direct access to the lender via the Pink Mortgage Club or Pink Premier. Paul Darwin, national intermediary sales manager at Skipton Building Society, comments, "We are delighted to have been invited ...

  • Skipton joins self-build panel

    9 Aug 2002

    Skipton Building Society has become the latest lender to join the BuildLoan self-build mortgage lending panel with an exclusive flexible two-year stepped discount mortgage. The key features of the BuildLoan self build mortgage are: Up to 95% of land purchase, so clients only require a minimal deposit to buy their land. Up to 95% of build costs, which means that most self builders will be able to build their new home without first having to release equity ...

  • Some packager categories facing regulation

    8 Aug 2002

    Packagers will be regulated under forthcoming legislation - but only some, says the Treasury in its newly published regulation for mortgage advice. Despite widespread confusion about the regulatory status of packagers, the Treasury confirmed it does not plan to amend proposed legislation to take account of packager firms. However, it says that certain packagers "may or would?carry on the regulated activity of arranging", and "could therefore be subject to regulation". The ...

  • Staffordshire launches new discounts

    8 Aug 2002

    Staffordshire Building Society has launched two new discount mortgage products, with rates starting from 3.79% for two years The first product is a straight 1.95% discount rate off the society's standard variable rate - currently 5.74% - for two years, making a pay rate of 3.79%. The product comes with free accident, sickness and unemployment cover for six months plus a free valuation. It is available on all types of mortgages up to a maximum of £200,000 or 95% LTV - ...

  • Talks to be held on housing law

    5 Aug 2002

    Housing Minister Jeff Rooker, announced on Friday that there would be an investigation into how housing law could be changed, that would sweep away unnecessary bureaucratic restrictions. The changes to section 27 of the Housing Act 1985 would make it easier for local authorities to enter into Private Finance Initiative and other contracts. The proposals would change the way in which councils can delegate housing management services. It would allow contractors to sub-contract ...

  • The Mortgage Mole

    5 Aug 2002

    RUN A MILE Anyone who thinks Mole is tougher than those nice, well-dressed PR people who invite us to so many champagne-fuelled events should take a look at the Olympian feats of the Lansons Communications team. A group including Rowena Merrick and Georgie Gannon, who represent Mortgage Express among others, are training hard for the Great North Run in aid of Leukaemia Research Fund. It is the largest ever half marathon and 47,000 people will take part on October 6 in Newcastle. Mole ...

  • There's no recklessness in buy-to-let

    5 Aug 2002

    As the buy-to-let debate continues to fill column inches in the financial press, some criticism has been directed at lenders for jumping on the bandwagon and lending too much to buy-to-let investors, as fears grow that they will be the first to fall prey to a downturn in the market. Michael Coogan, director-general of the Council of Mortgage Lenders, has leaped to the defence of responsible mortgage lenders in a letter to the Financial Times (June 5 2002). At the same time, he welcomed ...

  • This weeks problem case

    5 Aug 2002

    Ms Wood is a systems analyst living in Manchester. She graduated in 2000 and immediately joined a large utility firm on its accelerated management programme. Her income is £22,000 per annum with no additional bonuses. This will rise as she progresses. Ms Wood wants a mortgage on a £105,000 flat in a redevelopment in Manchester city centre. She has no savings and has accumulated £7,000 of student loan debt.

  • Time to support a new code of conduct

    5 Aug 2002

    The FSA was supposed to issue "near final" rules for mortgage regulation by the end of June. It's now August. Delays in Gordon Brown's Treasury department mean that we will have to wait to see just how the FSA's plan to regulate mortgage advice will pan out. Current thinking is that the FSA's consultation paper will be published at the end of this week. One of the great failings of the initial proposal to regulate advice was that the buy-to-let sector was excluded. Buy-to-let ...

  • Treasury extends "arranging" exemptions

    8 Aug 2002

    The Treasury has extended exemptions under "arranging" regulation to include introductions to all authorised firms. The last consultation on mortgage regulation had proposed to make only those firms that help borrowers procure independent advice exempt from regulation. Now the Treasury has confirmed that introductions to any authorised person or appointed representative - "whether independent or otherwise" - should be exempt from regulation. The change ...

  • Treasury resists need for charity regulation exclusion

    8 Aug 2002

    The Treasury has admitted that proposals to exclude charities that do not arrange mortgages "by way of business" will be harder to implement than imagined. While many respondents to the latest consultation on mortgage regulation agreed that money advice agencies should not be regulated in principle, some say a specific exclusion will have to be written into the legislation. The Treasury acknowledges it "cannot say categorically that all money advice centres, Citizens' ...

  • Treasury rules make good sense, says London & Country

    8 Aug 2002

    Mortgage broker London & Country has broadly welcomed most aspects of the Treasury's near-final rules on the regulation of mortgage advice. Patrick Bunton, head of operations and compliance, says that rules on introducers and packagers "make perfect sense", and is pleased that the Treasury has deferred judgement on the implications of polarisation. But Bunton warns that Treasury confirmation that home reversion plans will not be regulated "could lead to confusion" ...

  • Treasury sticks by plans to remove £5 fee cap

    8 Aug 2002

    The Treasury has confirmed that the current £5 cap on brokerage fees not leading to a mortgage contract will be abolished. By removing the £5 limit the Treasury acknowledges there are occasions "when the appropriate advice is not to take out a mortgage" and paves the way for brokers to claim fees that reflect this. The Treasury also says that by carving mortgages out of Section 155 - the consumer credit act clause that directs a £5 cap - regulators ...

  • UCB reduces rates on fixed mortgages

    5 Aug 2002

    UCB Home Loans, the self-certification lender and subsidiary of Nationwide Building Society, is reducing the rates on its entire range of fixed rate mortgages from 5 August 2002. The reduction applies to both residential and investment buy-to-let mortgages. Residential rates will reduce by 0.36% for the 2 & 3 year products and 0.26% for the 5 year product. Both the 2 & 5 year buy-to-let fixed rates will reduce by 0.36%. Charles Reed, managing director, ...

  • US plays Patriot game over money laundering

    5 Aug 2002

    Lenders are counting the potential costs of the war against terrorism after it helped inspire a new set of tougher money-laundering regulations, writes Harriet Williams. Under new legislation against criminal gains, banks and building societies face penalties if they fail to report their suspicions "where there are reasonable grounds to know or suspect a person is engaged in money laundering". But the concerns of UK lenders are dwarfed by the battle their US counterparts are waging ...

  • VirginOne expands Horwich team

    9 Aug 2002

    VirginOne has announced plans to expand its intermediary operation in Horwich, Lancashire. VirginOne already employs over sixty people to look after intermediary business, both out in the field and at its Norwich headquarters in Norfolk. Plans for growth include at least 20 more people at the new contact centre in the North West. Scott Mowbray, marketing manager at VirginOne, says: "We are nearing full capacity in our Norwich headquarters and so it makes sense to look ...

  • Where has all the money gone?

    5 Aug 2002

    From Brian Humphreys Firstly, let me say what an excellent publication you put together each week, in particular, when you highlight poor service given by lenders or insurance companies. I agree entirely with Rozanne Duncan's comments about Mortgage Protection UK (Mortgage Strategy July 29 2002). How can the insurer allow this agent to carry on operating? We are owed about £400 and have received the usual promises that "the cheque is in the post". I would like to use ...

  • World Cup knocks housebuilding figures

    9 Aug 2002

    The latest housebuilding figures show that fewer dwellings were started this summer than last. Some 13,400 dwellings were started in June 2002, compared with 17,000 in June 2001. Some 46,600 starts were estimated in the three months to June compared with 48,800 in the first quarter of 2002. The low figure in June is likely to reflect the Jubilee Bank holidays and the World Cup. Dwelling completions were up in June to 14,100 compared with 13,800 in June 2001. Similarly, ...

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