Mortgage Strategy
5 July 2004

  • 'Misleading' claim sparks review at The Woolwich

    5 Jul 2004

    This comes in response to a complaint from IFA Thomas Jones at Bristol-based Academy Associates, whose grievances were raised with The Woolwich by Mortgage Strategy. The lender says it is now looking at how it can ensure information in letters is updated following Bank of England base rate changes. It may also give a more prominent position to the statement that the information in the letter was correct at the time of printing. Jones says: "My client received a letter from The ...

  • 10,000 sign up to West Bromwich's Stamp Duty campaign

    9 Jul 2004

    The latest figures show that since the Stamp Duty campaign began, over 1,000 people a week have responded to the campaign launched by West Brom chief executive Andrew Messenger to persuade chancellor Gordon Brown, in his next budget, to raise the threshold on Stamp Duty in line with house price inflation. West Brom is not alone in flying the 'Raise the Roof' banner. Other key organisations are now rallying round the flag, as shown by West Bromwich-based property developers ...

  • A guide to purchasing - the legal process

    7 Jul 2004

    Our experience in conveyancing has shown that a major worry for clients when buying or selling property is the feeling of not knowing what is happening at any given time. This can also create extra work for the introducer in explaining the legal process. The steps below apply to a straightforward transaction and can be used as a short guide to the legal process for your clients. Buying a property - the legal process ? We write to the seller's solicitor and confirm ...

  • A ray of light after the sporting gloom

    5 Jul 2004

    As we all know, the summer in this country only really starts once England have crashed out of a major football tournament on penalties and Tim Henman has caved within lobbing distance of the Wimbledon final. English sporting life runs on a cruel cycle indeed but after all the misplaced optimism and disappointment of June it was nice to see the FSA of all people doing its bit to put a smile on the faces of some firms in our industry. Last week saw the delivery of the ...

  • A sunny outlook for this Spanish homes specialist

    5 Jul 2004

    Banco Halifax Hispania was set up in 1993 as a subsidiary of Halifax to serve the expatriate market (residents and non-residents) in Spain, looking to buy a second home in the sun. Employing over 100 people, it has 10 branches; two in Madrid and others in Barcelona, Sevilla, Málaga, Denia, Marbella, Fuengirola, Benalmádena (pictured above) and Torrevieja. Banco Halifax Hispania has developed a wide range of financial products from straightforward cheque accounts and ...

  • A view from the floor

    5 Jul 2004

    Each year Norwich and Peterborough conducts a survey into what its customers think of it. This year's results show that more than eight out of 10 customers surveyed think that the staff are the best thing about the building society. This figure is up 6% on last year. When asked how often they visit their local branch: • 49% visit weekly • 21% use the branch monthly • 16% less than once a month • 11% pop in daily • The remainder ...

  • Advisers can make paperwork pay

    5 Jul 2004

    If you've opted for direct authorisation I expect you are putting the final touches to your post-Mortgage Day procedures, compliance regime and training and competence manuals now. However, those who've chosen to opt for appointed representative status are more likely to be perusing the abundance of offerings from the bewildering number of principals out there. If you are being crushed under this mountain of paperwork there's some good news from the FSA with the announcement that ...

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

    5 Jul 2004

    Richard Griffiths is managing director of Network Data First and foremost compare the procuration fees paid out to ARs. Some networks charge a percentage of your turnover - don't forget to deduct their percentage. You may prefer the alternative of a monthly flat fee instead. Always check the small print - is there a minimum monthly fee and who pays for the PI cover and the mortgage sourcing system? Andy Valvona is network director at Mortgage Next Costs ...

  • AMI elects six board members

    5 Jul 2004

    As Chris Cummings, managing director of AMI, says, "the people have spoken", bringing in a swathe of new faces. AMI members voted in Rob Clifford, managing director of mortgageforce; Paul Fielding, principal of Cambria Financial; Simon Conn, joint partner at Conti Financial Services, and Bill Warren, compliance director of Complete Mortgage & Loan Services. Clifford says: "Over the next 12 months AMI will build on the work it has done in its first year. And from November ...

  • AMI responds to funding plans for FOS and FSCS

    9 Jul 2004

    Mortgage lenders and intermediaries alike will fall under the organisations' remit from October 31 and CP04/4 'Mortgage firms and Insurance intermediaries: Funding of the Ombudsman and Compensation schemes' lays down the FSA's proposals for each firm's contribution. The FSA is now considering AMI's response and will publish the final rules in October.   From 2005 mortgage intermediaries will receive a single invoice covering their FSA dues - including periodic ...

  • Anger at regulatory creep

    5 Jul 2004

    The FSA told Mortgage Strategy that it will include activities such as buy-to-let and second charge loans within its overall evaluation of firms after Mortgage Day. Brian Lentz, principal of Hertfordshire-based Portfolio Insurance Consultancy and Mortgage Broker, says the danger has now emerged that the FSA could reject a broker's application for authorisation over the handling of non-regulated activities. He says: "The FSA has already absorbed many duties previously ...

  • Apple launches into Spanish market

    5 Jul 2004

    The company now offers both UK and Spanish-based mortgage brokers an array of mortgage products starting with rates at 2.75%. Finance is available up to 80% LTV for non-residents, with a dual language generic application form giving access to a selected panel of Spanish banks and UK lenders. With more and more UK residents looking to either move abroad or purchase a second home in the sun with a large percentage looking at Spain in particular, the company says that this ...

  • Aussie housing market mirrors UK, says RICS

    6 Jul 2004

    In its latest economic analysis RICS looks at the key issues, outlining what is really going on in both markets, drawing parallels and highlighting the differences between the two. It has found that while some reports in Australia show that house prices fell in early 2004, the Australian Bureau of Statistics says that while there was a slowdown in the first quarter of 2004 there have been no price falls as of yet. Milan Khatri, chief economist at RICS, says: "Australia's ...

  • B2L boom will not result in a crash

    5 Jul 2004

    The Social Market Foundation report, The Future of Private Renting in the UK by Michael Ball, housing economist at Reading University, says the expansion of buy-to-let has led some to predict a crash on the grounds of 'what goes up must come down'. But Ball says: "In 2003 the maximum LTV ratio was 80% and the minimum rental cover of mortgage payments was 130%, giving a significant cushion before financial oblivion is reached. The probability of a buy-to-let crash is diminished ...

  • Bad service awards in Bristol

    5 Jul 2004

    The event is aimed at rewarding good service too, but most importantly will give an accolade to the company with the worst service record. The scheme has been masterminded by principal Andrew Forsey, who has been a broker for the past 15 years and last week sent a letter to Mortgage Strategy announcing his plan. In the same week that TMB revealed it was temporarily shutting its doors to new business because of its service backlog, he stresses that the awards have a serious ...

  • Bananas Inc launches heavy adverse self-cert tracker

    9 Jul 2004

    The exclusive product, introduced in conjunction with Preferred Mortgages, is at LIBOR plus 5.25% for LTVs up to 75%, with a one-year discount of 1.5%. This gives an initial rate of 8.4%. As an additional saving, Bananas Inc is offering a refund of valuation fee, worth up to £200, on selected cases worth in excess of £100,000. For LTVs up to 85%, the product is available at LIBOR plus 5.75% with a one-year discount of 1%, giving an initial interest rate of ...

  • Bankhall could take stake in Paymentshield

    8 Jul 2004

    Sources say the move is designed to build on the strategic alliance the two groups formed in February this year. Between them Bankhall and Paymentshield control mortgage lending in the excess of £30bn and have a member network of 25,000. One industry source says: "I am 100% certain that this partnership will happen and money will change hands." But Paymentshield director Gareth Riding denies any such move. He adds: "I categorically deny that Bankhall is ...

  • Banking-Insurance Services receives minded to authorise letter

    6 Jul 2004

    Paul Bennington, general manager, says: "This is great news. Now we can concentrate on bringing our business plan to fruition, knowing we have the backing of the FSA." Banking-Insurance Services Limited also announces the launch of a recruitment campaign to provide a mortgage consultant in each postal area of the UK. B-ISL also plans to maintain recruitment of lead advisers to cover the whole of the UK whowill service enquiries from our websites for mortgages, term insurance ...

  • Barnetts wins ISO quality award

    8 Jul 2004

    The Southport-based firm has achieved registration to the quality management system ISO 9001:2000 from the British Standards Institution. Barnetts says it achieved its ISO 9001:2000 registration in just three and a half months. John Kirkman, regional manager of BSI, presented the certificate to Barnetts, which is already being added to the supplier lists of several blue chip companies. Elaine Seif, quality manager at Barnetts, says: "Through working with BSI, ...

  • BDS to provide members with Trigold software

    7 Jul 2004

    The Trigold system is used by over 15,000 mortgage intermediaries who not only have access to mortgage sourcing but also a leading compliance monitoring tool Compliance Shield. The system is equipped to provide documentation required by the FSA at point-of-sale and archive information for review and monitoring purposes. BDS was one of the first networks to receive its minded to approve letter, which was received on June 25 from the FSA. It's planning to be a principal for ...

  • Berkeley James joins Network Data

    7 Jul 2004

    Network Data has set out its stall as the network of choice for brokers in the UK market who opt for appointed representative status under the FSA regulations. To accommodate packagers operating in the UK market, Network Data's offering enables them to carry on with their day-to-day activities without the overhead of developing and maintaining full network facilities. The appointed principal solution is designed to maintain their existing business relationships with ...

  • Blue Sky

    5 Jul 2004

    In October 2003, Procter & Gamble chairman and chief executive Alan G. Lafley said, 'Our vision is that 50% of all P&G discovery and invention could come from outside the company. The company hoped that if it worked with public companies, start-ups, and universities, outside innovation would comprise half its portfolio. P& G's goal is part of the newest wave in management thinking. Leaders have argued repeatedly that opening the firm to outside innovation is an important ...

  • Boulger gives mortgage pricing rundown

    7 Jul 2004

    He says that timing has proved to be everything in 2003/04 for mortgage borrowers. The base rate has increased by 1% since November but swap rates, upon which lenders base their fixed rate pricing, have been yo-yoing for longer and by significantly more than that. The extent of the change is demonstrated by the fact that Cheshire offered a 25-year fix in August last year with a payrate of 5.14%. Less than a year on, this rate is now lower than the cheapest nationally available ...

  • Brokers fear failed business relationships post-regulation

    6 Jul 2004

    Researchers held a series of focus groups at the Northern Expo and discovered that brokers are concerned by the lack of networks to have been passed by the FSA and by the prospect of a failed relationship. If a network collapses once they've joined it they could be faced with the prospect of two years' frozen commission and being out of work for three months. Analysis of visitors' registration questionnaires suggested that 21% remained undecided about whether ...

  • Charcol sale is powering ahead

    5 Jul 2004

    Since the sale was ann-ounced in May, Charcol has been going through a separation process, allowing it to function as a standalone business, which is now complete. Charcol managing director Ricky Oakey has assembled an interim management team, including Walter Avrili in product procurement; Jeff Smith in sales; Candice Hodgson in marketing; Mina Pujaru in finance and Clive Kornitzer in operations. Ray Boulger, senior technical manager, is reporting to Avrili. Although ...

  • Chesnara MBO boosts KRS

    5 Jul 2004

    The new board of directors comprises four members of the existing management team: Colin Taylor, managing director; Dean Mirfin, business development director; Paul Wilson, operations director; and Richard Overson, sales director. They have all in-vested private equity in the company. The MBO is designed to enable KRS to build on its position as the UK's biggest equity release IFA by pursuing growth objectives in the equity release and retirement planning sectors, independent ...

  • CML says market slowdown has now begun

    9 Jul 2004

    It says that successive increases in UK base rates since last November have begun to influence household borrowing and spending behaviour. Last month's remarks by Bank of England governor Mervyn King to the effect that the risk of falls in house prices had increased, appear to have had a particular salutary effect on households The Bank of England's decision to hold rates steady provides a breathing space for it to more fully assess the impact of earlier rate rises on households. ...

  • Complaints are rising, says FOS

    5 Jul 2004

    The FOS annual review shows that 97,901 new cases were dealt with during the year to March 31, 76,704 of which were resolved. Of the cases received, 51,917 related to endowment policies linked to mortgages - a staggering increase from 13,570 the previous year. But complaints specifically concerned with mortgage loans fell from 9,438 in 2003 to 3,220 in 2004. FOS chief Ombudsman Walter Merricks says an even greater increase is expected next year. A major exercise to recruit ...

  • Confidence in house prices dips by 14%, reveals Nationwide

    7 Jul 2004

    In its monthly consumer confidence report, while 52% of people expect their homes to continue to rise in value over the next six months, this is significantly less than the 66% whofelt this way before Mervyn King, governor of the Bank of England, warned about a property price fall in a speech to the CBI in Glasgow on June 14. Research for Nationwide, conducted before and after King's speech, shows that the number of people who believe their homes will lose value by the year ...

  • Countrywide seeks UK boss

    5 Jul 2004

    Mortgage Strategy revealed on June 14 that Countrywide Home Loans, the largest independent originator of mortgages in the US, was planning to launch a lender in the UK. At the time a source at the US-based lender told MS: "We're definitely launching into the UK and we're definitely launching into the sub-prime market." Countrywide is the largest prime lender in the US and fourth largest sub-prime funder and has been looking to recruit an executive team for the ...

  • Curriculum vitae - Mike Fitzgerald

    5 Jul 2004

    Name: Mike Fitzgerald Age: I remember England winning the Football World Cup Company: Brentchase Financial Services Job title: Sales director Where do you live? Doddinghurst in Essex Current Job: I am sales director for Brentchase Financial, which I started in 2001, and marketing director of the Essex Mortgage Brokers' Association. Brentchase specialises in arranging mortgages for high net worth clients. What ...

  • Dear Delia

    5 Jul 2004

    The property he is moving to is valued at £190,000 and he is looking for a mortgage of £152,000. He is self-employed as a nightclub owner and has sufficient income to cover the mortgage requested. What are his options? Delia says: This case shows how useful self-cert is for many, despite the bad press this sector has received in the recent past. To offer advice we have Dev Malle from Pink Home Loans and Colin Barrett from BM Solutions. Have you got a problem for ...

  • Derbyshire launches five-year fix

    7 Jul 2004

    Available for a limited period only, the mortgage is available for up to 80% of the property value, has no early repayment charges after the fixed rate period and comes with six months' accident, sickness and unemployment cover. There is a £350 application fee and £75 payable upfront. Standard valuation fees apply.

  • Equfund denies talks with Countrywide on funding

    5 Jul 2004

    The talks claim was rejected by Equfund managing director Danny Mahon as it was announced that Equfund management is considering expanding funding sources for branded lending activities. As part of ongoing development, the group is opening a call centre in West Kirby, Merseyside, creating 50 new sales support jobs by the end of 2004. Equfund says the move was prompted by a changing market and the need to provide a more responsive communication platform to the huge numbers ...

  • Family faces repossession

    5 Jul 2004

    Kelvin and Rachael Joseph took out their £79,000 GMAC-RFC mortgage with protection from a Lloyds of London syndicate called Marketing and Management Services in October 2002. In August 2003 Rachael suddenly found herself paralysed from the neck downwards. This was diagnosed as transverse myelitis, a debilitating condition, and she had to spend the next two months in hospital. Kelvin was unable to work as he had to look after their three children, aged 11, seven and ...

  • Fast growth levels do not mean the buy-to-let market is unsustainable

    5 Jul 2004

    Last week political think-tank the Social Market Foundation asserted what many of us have been saying about buy-to-let - that there is no evidence of an impending cataclysmic crash in this market. The report, The future of private renting in the UK, covers the sector in some detail. The author, Michael Ball, sets the scene by saying: "The revival of market-based private renting since the early 1990s has engendered some considerable optimism. Private renting now clearly has a positive ...

  • Financial adviser gets life sentence for murdering client

    5 Jul 2004

    Peter Crittenden persuaded Joan Beddesdon to part with almost £300,000, then murdered her when she changed her mind and demanded her money back. Crittenden, who lived in Worcester, was convicted of murder at Chester Crown Court. Beddesdon had originally replied to an advertisement in the Times placed by Young Ridgeway and Associates offering financial advice in October 2000. Lord Carlile QC, prosecuting, says: "You murdered Joan Beddesdon in a planned ...

  • Firms recruiting staff at fastest rate for 15 years

    6 Jul 2004

    In the latest quarterly survey of the industry, published by the CBI and PricewaterhouseCoopers, shows 5% of companies reduced employment over the last three months but 41% took staff on. The balance of plus 36% is the fastest rate of growth recorded since the survey began in December 1989. It compares with a balance of only plus 5% in the previous survey. Companies expect further growth in employment over the next three months. It is not expected to be as rapid as over ...

  • First board election is an AMI milestone

    5 Jul 2004

    This is a significant milestone for the trade association. It has made a real impact in its first year, campaigning actively on your behalf at government and industry levels. This has resulted, among other things, in important changes being made to FSA regulation, which will make the transition to a regulated market a little easier. AMI also offers an impartial source of advice and knowledge for mortgage brokers. It has an information-rich website, email newsflashes, a regulation ...

  • FSA and FOS set out consultation proposals

    5 Jul 2004

    As part of the two-year review of the Financial Services and Markets Act, the Treasury has asked the FSA and the FOS to review the circumstances in which the FSA takes regulatory action instead of individual cases being determined by the Ombudsman and also whether in specific circumstances decisions by the Ombudsman should be subject to some sort of appeal. Clive Briault, managing director of retail markets at the FSA, says: "We are seeking to clarify the differing roles and responsibilities ..

  • FSA minded to approve letters begin to roll in

    5 Jul 2004

    Many are still waiting to receive letters and the FSA says the timing is dictated by when original applications were made and how quickly subsequent queries have been dealt with. Pink Home Loans is one of the networks that received the letter. Tony Jones, its managing director, says: "We have successfully passed another important milestone in the road to regulation." Mike Allison, managing director of Personal Touch Insurance which has also received its MTA letter, says: ...

  • FSA sets up complaints hotline for rogue financial adverts

    7 Jul 2004

    The hotline is part of the FSA's commitment to put significantly more resources into the regulation of financial advertising, including setting up a new department which will lead the efforts to stamp out misleading advertising. The number, 08457 300 168, opens for business today. It will operate from 8am to 8pm Monday to Friday. Details of the caller will remain strictly confidential. In the past year the FSA has dealt with 580 advertising-related cases with 359 ...

  • FSA undertakes fundamental review of projections

    7 Jul 2004

    Projections are the means by which firms give their customers information about the potential future returns and associated charges from a wide range of investment products. The projections are currently governed by a prescriptive regulatory regime originally devisedabout 15 years ago. The projections review also sets out some broad options for change to provide consumers with better information about potential future returns. The objective of the review is to devise ...

  • Harrison Beaumont buys UK business of ARB Underwriting

    8 Jul 2004

    The arrangement will see the existing ARB Underwriting commercial portfolio, currently operated from Southampton, merged into the Harrison Beaumont business. A spokesman for Harrison Beaumont says: " The business represents an excellent strategic fit and will bring further scale to HB's existing operations. The move will open up an extended product range to ARB Underwriting intermediaries, whilst providing new markets for HB's current broker partners." The deal ...

  • Hitting the spot

    5 Jul 2004

    To advertise or not to advertise. That is the question. Mortgage Strategy asked brokers: "Are ads a triumph of style over substance?" Of the 11 brokers questioned, eight of the comments were entirely disparaging of targeted lender advertising: "All sorts of rubbish comes through the door." "I don't look at many of the adverts produced by companies." "You have to look beyond the Stars and Stripes and glitter. It's the client's needs that matter, not what ...

  • House prices up1.2% in June, says Halifax

    5 Jul 2004

    Over the past year, the biggest price rises have been in northern England and Wales, with a 36% increase for both regions. The average price in both West Midlands (£152,869) and East Anglia (£154,989) surpasses the £150,000 barrier for the first time during the second quarter, therefore joining Greater London, the South-East and the South-West above this mark. The rapid rise in house prices in the North means that increasing numbers of first-time buyers ...

  • How dreams can become reality

    5 Jul 2004

    Quite often the organisations that originate a product or service are not the ones that reap the financial benefit so I tend to agree with the authors. It may seem unfair but it is often the early followers rather than the original leaders who prove to be the big winners. In other words it can be more rewarding to come second in this type of race. This is for a number of reasons, perhaps the most important being that the market is inherently sceptical of anything until ...

  • I should know but I don't

    5 Jul 2004

    Q: Is there any indication of what FOS fees might be in the future? A: Where the Financial Ombudsman Service upholds a complaint, it will generally make an award based on the principle of "putting the client back in the position they would otherwise have been in, had the inappropriate advice not been given". In the IFA sector, the FOS has generally followed the rate paid by the courts with specific guidance on calculating redress for mortgage endowment cases. ...

  • I'm getting fed up with lenders causing me extra work

    5 Jul 2004

    From Andrew Wier You have no idea how happy it made me to read the letters from Gareth Davies, Brian Humphreys and Andrew Forsey regarding the appalling service levels being provided by major lenders (Mortgage Strategy June 28). I now know I am not alone in this world. I have been in the business of arranging mortgages since 1972 and at that time, just like today, my partner and I did everything from placing loans, follow-up, admin, after sales etc. Between us, in February ...

  • Interest rates held at 4.50%

    8 Jul 2004

    This comes despite warnings from Bank of England governor Mervyn King that rates may have to keep rising to slow down house prices. UK interest rates were put up by 0.25% in both May and June.

  • Interest-only mortgages could result in disaster

    7 Jul 2004

    The Survey of English Housing by the Department of English Housing released yesterday shows that more than 25,000 households have interest-only loans that are not linked to investment policies designed to repay the loans, with about 14,000 households not knowing how they will start to pay of the capital. In some cases people are being forced to turn to savings and selling property in order to repay the debt. Neil Franklin, a partner at Franklin's Financial Services, ...

  • Internet Insite

    5 Jul 2004

    As Brian Roberts Financial Services of Llandudo asked for its website to be reviewed, I thought I'd take a trip to North Wales. There are three very different approaches to the web in this week's Insite and all of them lacking character. Brian Roberts' mixture of formats doesn't work anywhere nearly as well as a1Mortgages4U. This latter is based on a Network Data website service but at least it tries to instil some personality, albeit without much success. At the other ...

  • Internet major boon for first-time buyers, says A&L

    6 Jul 2004

    Its first-time buyer research which found that a quarter of first-time buyers choose to surf the web to bone up on their mortgage knowledge. Almost three quarters of first-time buyers cited convenience as the reason they use the net as their main source of information on getting a mortgage, whilst a further 10% opted to use this method because it was so straightforward. Only 3% of the group chose to go online to benefit from better mortgage deals. Over one third of people ...

  • Investors urged caution when investing off plan

    6 Jul 2004

    Lee Grandin, managing director of Landlord Mortgages, says: "We've all heard stories in the past about investors who made a lot of money by buying properties off-plan at discounts to market value. But there are many pitfalls to be aware of which can prove costly in today's market. "It's still possible to make money from investing in off-plan properties, but an investment strategy which worked a few years ago will not necessarily deliver the same results today. Landlord ...

  • Ipswich launches fixed fee-free remortgage

    6 Jul 2004

    The company says that the three-year remortgage is a genuinely fee-free deal. There is no arrangement fee, no application fee, no compulsory insurance and legal fees are paid, or £250 cashback. This is in contrast to other lenders who offer remortgages that pay the borrower's legal or surveying costs, but apply charges that are added to the loan at completion. Paul Winter, sales and marketing director of Ipswich, says: "The new fee-free product is precisely ...

  • Is the end really nigh?

    6 Jul 2004

    This week Mervyn King, governor of the Bank of England, admitted that climbing house prices had a major impact on the Monetary Policy Committee's decision to increase interest rates over the last two months. The Committee's concern is not that prices are getting too high, but that at some point they will fall, taking the economy with them. The fear of this kind of collapse, or what the economists prefer to call an 'adjustment', means there is a real possibility of ...

  • Kensington reports strong growth in 2004

    9 Jul 2004

    John Maltby, chief executive of Kensington, says: "Kensington continues to generate a strong positive cashflow and the company is pleased to confirm that it will be raising the interim dividend, in line with a progressive dividend policy that increases returns to shareholders as the business grows. "Based on its leading position in a specialist growth market, broad distribution, efficient operating platform and disciplined risk management, Kensington is well placed to prosper ...

  • Kensington sells £101m mortgage portfolio to MAS6

    6 Jul 2004

    John Maltby, group chief executive of Kensington Mortgages, says: "Kensington is delighted to have completed this transaction with Britannia and is confident in the future of this attractive and growing market segment." And Simon Kingdom, group finance director at Kensington, says: "The portfolio sales programme, is a vital part of Kensington's overall funding strategy. This complements the company's successful RMS securitisation programme, the latest transaction seeing ...

  • Labour looking at promoting equity release

    7 Jul 2004

    Tory pensions spokesman David Willets has described the pensions crisis as a big a threat as terrorism or global warming and has urged the government to take immediate action or millions of pensioners could face hardship. Downing Street says it is exploring the various solutions to the problem and underwriting the risks of equity schemes, offering other incentives. Promises are being made to homeowners that they will not lose their benefit entitlements if they take out the schemes. Dean ...

  • Local authorities need to sign up buy-to-let landlords

    7 Jul 2004

    This is the view of Orchard & Shipman, the west London management agents who havebrought over 700 buy-to-let properties into use with long-term tenancies for the London Borough of Hillingdon in the past 18 months. Latest figures released by the Office of the Deputy Prime Minister show local authorities achieved 9% growth in the numbers of homeless families housed in the 12months to March. However, Chris Shipman, chairman of Orchard & Shipman, warns that now house prices ...

  • London Landlords Show to be held this Friday

    8 Jul 2004

    As at previous shows the National Landlords Association will be present, both with a stand to give information and advice to landlords and by providing one of the expert speakers for the range of meetings held during the show. David Salusbury, chairman of the NLA, says: "Once again we are pleased to be here at the London Landlords Show which we find a very valuable event. "The show gives the NLA the opportunity not just to recruit new members but also contributes to refreshing ...

  • MAB forms strategic partnership with Direct Financial Services

    8 Jul 2004

    This will allow MAB customers at its 250 branches across the country, which fall into this category to benefit from eleven specialist sub prime lenders. Alex Knaggs, sales director at Direct Financial Services, says: "Contrary to popular opinion, the non-conforming sector is not all about people with CCJs and previous repossessions. "MAB is increasingly seeing applicants with low credit scores because they are self employed or have not held a bank account for a sufficiently ...

  • Marketing Brief

    5 Jul 2004

    Two specialist lenders in my A to Z of intermediary marketing material this week - The Mortgage Business and UCB. Both demonstrate the importance of the internet to their overall intermediary mortgage proposition although UCB has some work to do to bring its online functionality up to the standard of other lenders, in particular its review partner in today's column. TMB has come a long way since I first looked at its website and it was good to see it promoting both the site ...

  • Marketing support is old news

    5 Jul 2004

    From Alison Dootson I read with interest the article in the June 21 issue of Mortgage Strategy detailing networkone's new marketing and PR initiative. I am not questioning its offering but the claim that it is the first. Many networks have been providing this support for years. In 2000 we launched IMA - a mortgage network which provided an extensive range of business development and marketing support including PR. IMA has now been incorporated into Lime, and continues to deliver ...

  • MI launches product for Northern Ireland market

    5 Jul 2004

    MI says the mortgage, Max 130, is designed for clients who either haven't got the money for a deposit, need extra cash or are looking to consolidate their credit arrangements. The deal is only available through advisers for remortgages, first-time buyers and home movers. The product is available to both employed and self-employed applicants. No MIG premiums apply, options to overpay, underpay or take payment holidays are included and further loans are available after completion ...

  • Mortgage Times enlists packagers

    5 Jul 2004

    The group sees satellite packaging as a vital part of its distribution strategy. By packaging their own cases, top introducers can take advantage of higher procuration fees while keeping the mortgage process inhouse. The service also includes white labelling of The Mortgage Times' key operational services, with full branding and marketing support available. Satellite packagers are also offered the opportunity to have their websites customised. They can also gain full compliance ...

  • Mortgage Times offers exclusive non-conforming deal

    7 Jul 2004

    It comes with no early repayment charge overhang, free valuation up to £500,000 and free legal costs for a remortgage. Purchase mortgages also benefit from free valuation and a £250 contribution to legal costs via Platform. Borrowers not only benefit from a discount of 1.50% in years one and two but also a further discount of 0.25% in year three. The 1.50% discount in the first two years includes Platform's 0.25% bonus discount which applies on all applications ...

  • MPC inflation medicine working, says Charcol

    9 Jul 2004

    He says: "It's still very early to call but the four base rate increases since November last year, in particular the May and June increases, now appear to be one important factor taking the edge of what has been an over-exuberant rate of house price growth. "My hunch is that when we look back on 2004 we will see that the current 20% or so year on year increases in the Halifax and Nationwide indices will have marked the peak rate of increase. "Charcol still believes, ...

  • MPLC jobs safe despite sale

    9 Jul 2004

    Nikko Principal Investments, which owns MPLC, said that it had entered into detailed negotiations with "a global financial institution" with the objective of selling MPLC as a going concern - meaning most jobs would be safe. If a sale is concluded it will also include Genesis, the packager and would-be mortgage network. MPLC claims it received a number of offers for the business and Mortgage Strategy Online understands that one offer is believed to have come from ...

  • MS rated the top read by brokers

    5 Jul 2004

    Of the brokers questioned for the inaugural Pink 1000 Index, 35% said Mortgage Strategy was their number one read. Other magazines lagged far behind - Mortgage Introducer came second with 21% of the vote and Mortgage Solutions was third with 16%. Pink Home Loans managing director Tony Jones says: "Mortgage Strategy as a whole is topical and up-to-date on FSA related issues. I would say its topicality is the key - this is what brokers are looking for. For example, when consultation ...

  • MS redesigns website for speed and ease of use

    5 Jul 2004

    Anthony Holdgate, assistant operations manager for Centaur's financial magazines who was responsible for the upgrade, says: "The site has become a non-framed site and is less image-heavy. This is a benefit to people not using broadband and also makes the whole proposition a lot clearer." The revamped site has already attracted positive response. Intelligent Finance spokeswoman Jennifer Blackwood says: "The redesign gives the site a fresh, clean look which is easy on the eye ...

  • MSN launches summer offer

    6 Jul 2004

    Qualifying cases receive a free survey and an additional proc fee bonus of up to £1,000 per case direct to the broker on completion. The promotion is applicable to a range of adverse lenders and products including SPML's standard and light adverse products up to 90%, GMAC's non-conforming products, excluding fixed and trackers, Platform's non-conforming products as well as Kensington's products. David Morgan, head of packaging at MSN, says: "This will ...

  • NAEA sees rise in enquiries following ad campaign

    8 Jul 2004

    The number of people using the NAEA website in May since the ads were run has increased by almost 70% to over one millon hits per month. The website provides information on buying, selling and renting homes and also allows users to search for NAEA member agents and properties for sale in any area in the UK. In addition, the NAEA received 100 calls immediately following the campaign and has received 200 enquiries regarding membership in the last six weeks alone. The ...

  • National Counties subscribes to Moneyfacts DataScreen

    6 Jul 2004

    The Moneyfacts DataScreen system is designed for those requiring accurate, comprehensive competitor information, updated every day in real time as changes are made by providers across the industry. Keith Barber from National Counties says: "The rate of change in financial products these days makes Moneyfacts DataScreen a valuable tool for us. NS is committed to keeping its product range highly competitive and DataScreen informs its decisions well. The speed and ease of use are ...

  • Network Data helps L&G brokers L&g-it

    5 Jul 2004

    It says the current restructuring of the L&G proposition for its smaller agents has left many disenchanted with the new deal. L&G wants smaller agents to enter into new five-year contracts with one of its designated five umbrella companies - who are larger agents of L&G - including the Mortgage Advice Bureau and Mortgage Talk. Network Data is offering its network services to these smaller brokers to help them leave L&G in a smooth and painless transition. Richard ...

  • One less excuse for delaying the decision

    5 Jul 2004

    Last month Enable became one of the first networks to receive its minded to approve letter from the FSA and last week the floodgates opened with announcements first from Pink Home Loans and later the same day from Bankhall, then the Legal & General Partnership followed by Inter-Alliance subsidiary Sage Financial and Personal Touch Insurance. The news wires were buzzing with activity as each of the networks who publicised the fact they had received their letter reported a surge ...

  • Pleasing networks and the FSA

    5 Jul 2004

    This week I look at the importance of being FSA-compliant. Is this a case of Big Brother watching you? Probably so but it is in your best interests to ensure you are operating in a fully compliant manner otherwise you run the risk of a swingeing fine and face the possibility of being kicked out of the industry. To look at what compliance means, as a benchmark study, I will run through the 10 section headlines of the Network Data compliance manual. OK I know it's boring ...

  • PMN offers free AMI membership

    6 Jul 2004

    Normally intermediaries have to pay £320 per annum to join AMI. However, PMN will now be responsible for all AMI subscription fee payments on behalf of its members. Key benefits include lobbying, business support and ongoing advice. Complimenting the services already offered by PMN, AMI also offers members access to specialist advice on compliance, training and competence, regulation and a range of other subjects. Dale Knight, managing director of PMN, says: "Professionalism ...

  • Price boom leaves more people liable for IHT

    5 Jul 2004

    The report also cites a buoyant mortgage market and decreasing demand for savings-based insurance products as reasons for high sales figures, though there is also a suggestion that the good times may be coming to an end for the protection business. Forthcoming regulatory change is blamed for the industry losing sight of basic consumer needs as firms are preoccupied with their own issues. The review expects the recovery shown in investment markets to lead intermediaries ...

  • PSM Law Group signs deal with PTI

    7 Jul 2004

    The company says it has ditched the traditionally dusty image of legal firms by embracing the IT revolution and developing leading edge technology - most notably its online conveyancing system. Eighteen major lenders, including Lloyds-TSB, already use the company's PSM online division to process their remortgage cases, because the technology is fast, simple and allows borrowers and lenders to opportunity to view their cases via the internet 24 hours a day. Now The ...

  • Rate hold gives industry breather, says CBI

    8 Jul 2004

    It says the early signs are that the rapid increases in house prices and consumer spending are finally beginning to moderate. Ian McCafferty, chief economic adviser at the CBI, says: "So far there are few signs of inflation pressures that could seriously threaten the Bank of England's target. Rates are likely to have to edge up further later in the year, but for now the Bank need be in no hurry."

  • Rate hold sign of housing market slowdown, says The Woolwich

    9 Jul 2004

    This is reinforced by the latest research released by The Woolwich yesterday, which shows a 2% decrease in consumer confidence in the housing market. This is the first time confidence has slipped since December 2003. The Woolwich monthly index for June shows a dip to 65% of homeowners believing their property will continue to increase in value. Confidence peaked at 67% in May. Andy Gray, head of mortgages at Barclays and The Woolwich, says: "This drop in confidence was ...

  • Rate rises bringing realism to market, says Mortgage Talk

    7 Jul 2004

    Andrew Frankish, operations director at Mortgage Talk, says the figures published by the Nationwide shows that UK house price rises for June increased by only 0.9%, down from a May figure of 1.7%. He says: "Although the Nationwide survey indicates a UK-wide average house price of £151,524, the perceived slowdown in the rate of price rises will bring relief for first time buyers, who have seen the time needed to save a deposit increase to nearly four years in some areas." "Six ...

  • Repossessions boom in 2003

    5 Jul 2004

    In the first quarter of 2004 the number of repossession actions entered rose by more than 16% over those in Q1 2003. During the first quarter of this year, 17,444 repossessions actions were entered into and 10,049 orders were made. However, 58% of these orders - some 5,244 - were suspended, down from 60% last year. Conveyancing and repossessions firms xit2 and e.surv have been quick to play down the figures. Paul Duckworth, managing director of xit2, says its own figures show ...

  • Results of first ever Pink 1000 Index survey unveiled

    5 Jul 2004

    Tony Jones, managing director at Pink, says: "The first survey questions centred around the topic of regulation and there are some interesting findings." The research shows that there is major uncertainty over FSA rules, even among those planning to go directly authorised. Only 22% of felt they had a full understanding of the regulations, 39% said they understood the terms in most cases and 8% had no knowledge at all. Jones says: "It is quite worrying that 8% of brokers ...

  • RICS survey highlights natural segregation

    5 Jul 2004

    The survey also includes factors that buy-to-let investors consider when looking at a property. Chartered surveyor estate agents were asked to state the three most important criteria specified by homebuyers registering on their books. The most important factor for couples with children at home is proximity to good schools and nurseries. Young, single buyers look for good nightlife and close proximity to bars, restaurants and clubs while leisure facilities are ...

  • Sainsbury's pulls out of mortgage market

    6 Jul 2004

    It will no longer sell its range of fixed rate and base rate tracker mortgages to new customers, choosing instead to concentrate on other financial products, such as loans, credit cards, insurance and savings accounts. The bank will expand its credit card range this month with a new card that will offer 0% interest on all spending for the first 12 months, currently the longest 0% deal available on the market. Tim Pile, chief executive if Sainsburys, says: "Existing mortgage ...

  • Service is getting worse

    5 Jul 2004

    From Jim Gillespie I agree with Andrew Forsey's letter (Mortgage Strategy June 28). I am convinced brokers across the UK are suffering from drops in service standards at the hands of lenders unable to cope with business levels. I would like to nominate one lender for a new award category of 'Lender whose Performance has Deteriorated most over the past 12 months'. This accolade must surely go to Nationwide. Clearly unable to cope with business volume, apart from taking ...

  • Size is no excuse for poor service

    5 Jul 2004

    While the mortgage industry is a sector primarily driven by products and prices we must not forget that it is also a market where good customer service is paramount and poor relationships can lead to mortgage deals falling apart. Successful mortgage companies understand how important good service is both to the borrower and the introducer. But with success comes growth and growing businesses at some point will have to tackle the reality that being big means they might not always ...

  • SLB sees profits double in 2004

    5 Jul 2004

    The half yearly results, from the beginning of 2004 to May 15, are doubly pleasing for the Standard Life subsidiary as they are 50% higher than the £4.1m profit made for all of 2003. Gross mortgage lending for the period was £2bn, an increase of 23% compared with the first six months of 2003. As a result, mortgages under management stood at £9.3bn, up £0.6bn from the year-end. Peter Joshi, finance director at Standard Life Bank, says: "The figures ...

  • SMS unveils new image

    6 Jul 2004

    John Auburn, managing director of SMS Mortgage Services, says: "Since joining SMS earlier this year, the company has taken the opportunity to deliver a fresh new look to the company, which reflects the enhanced approach to the services we provide. "SMS Mortgage Services brings up to date the image of a modern, solutions driven servicing business already considered by its clients as providing services of the highest quality.'' With over £1.2bn in assets currently ...

  • Some will emerge from regulation with tarnished brands

    5 Jul 2004

    From Kevin Duffy I found Steve Royal's recent Blue Sky analysis to be an interesting piece (Mortgage Strategy June 14). That said, I hope that both Steve and Kristine Kirby Webster (the author of the Brand It Like Beckham insert) will permit me to challenge some flawed assumptions. • Real Madrid do not have the "best players in the world". The combined efforts at Euro 2004 of Raul, Figo, Zidane and our very own self-obsessed David Beckham roundly dismiss such a notion. ...

  • SPML extends prime discounts

    8 Jul 2004

    The range of discounted prime products offers between 1.35% and 1.50% discount for full status borrowers and between 0.25% and 0.50% for self-cert options depending on LTV and loan size. Discounts apply to a standard variable rate of LIBOR, currently 4.65%, plus 1.75%. A range of fixed rate options is also available from 5.50% to December 1 2005. John Prust, sales and marketing director at SPML, says: "In a steadily rising interest rate environment mortgage brokers ...

  • SPML launches web-based product wizard

    6 Jul 2004

    A more detailed printable mortgage illustration on the product selected can also be produced. John Prust, sales and marketing director at SPML, says: "Access to totally accurate product information is going to be a crucial issue in future, as the requirement to produce accurate KFIs for customers comes into force. The product wizard will be a valuable primary source of reliable SPML product information, and can also be used for verifying product information obtained from ...

  • Summer breeze will blow the bubble away

    5 Jul 2004

    Well it depends on your definition. Mortgage Strategy too asked in last week's issue whether the market was slowing down and the answer, without a doubt, is yes. Despite what some may think I can't accurately forecast the future but I can spot the signs of a property slowdown. The CML's May lending figures showing £1bn less lending than in April and the main factor driving down lending is eroding consumer confidence. Just three short months ago sellers were ...

  • Surveys are the answer to costly defects, says SecureMove

    8 Jul 2004

    The company is urging homebuyers to invest in a suitable survey. Peter Bray, managing director at SecureMove, says: "Money is usually tight when buying a property and people can often be tempted to cut corners to keep within their budget. However, one thing homebuyers shouldn't cut back on is a survey. Failure to highlight problem areas before you sign on the dotted line could cost you thousands of pounds. Not the ideal start to your new home." The top five ...

  • The Mortgage Mole

    5 Jul 2004

    Warning shot This week's unusual corporate entertainment award goes to Nick Berry, mortgage guru at software firm 1st, with his afternoon of clay pigeon shooting. Features ed Helen turned out to be a pretty good shot, with a 55% kill rate and an impressive shoulder bruise to prove it. However, she couldn't compete with the terrifying accuracy of ex-colleague and AMI policy officer Ben Stafford, who decimated 36 out of 48 clays. AMI's promise ...

  • TMB move sparks speculation on motive

    5 Jul 2004

    The HBOS subsidiary has temporarily withdrawn its product range having suffered backlogs over the last few months and all cases currently being processed must be submitted by mid-August. Tom Bland, associate at Savills Private Finance, says: "HBOS is obviously having a look at TMB with regards to servicing and the group's market share, which it wants to reduce." There is also speculation that this is the first sign of HBOS consolidating its brands and that it may be ...

  • TMB's honest move shows others the way

    5 Jul 2004

    For two weeks in a row now we have seen swaps fall. This has slowed down the number of fixed rate increases we saw the previous week. If this trend continues we may see fixed rates fall. • One-year money is down 0.04% to 5.21% • Two-year money is down 0.05% to 5.31% • Three-year money is down 0.05% to 5.38% • Five-year money is down 0.03% to 5.44% Last week we saw The Mortgage Business shut its doors to new business - a bold move but an ...

  • TMO offers direct to lender facility

    8 Jul 2004

    This excludes applications on all exclusive products, including £99 submission fee deals, which must continue to be sent to TMO for packaging. BM Solutions' applications can be submitted to TMO for packaging using the inhouse online process or via www.bmsolutions.co.uk selecting TMO lender direct from its drop down menu. Mortgage Express applications can be submitted to TMO for packaging using the inhouse online process or via www.mortgage-express.co.uk selecting ...

  • Top brokers pick comparison tool

    5 Jul 2004

    Mymortgagealert, which is free to brokers, provides enhanced client servicing and automatically identifies remortgage opportunities - potentially earning thousands in proc fee payments. Ian Gray, sales director at the West London-based company, says: "Giving clients that added value advice is how to keep them coming back - and is where adviser focus has now turned to after regulation. "Our service leaves the days of diary notes in the dark ages and acts as a client database, ...

  • UK pensions market to grow by 40%, says Datamoniter

    7 Jul 2004

    The UK pension sector is almost twice as large as its life side, and is forecast to increase by a further 40% in the next four years to just under £115bn, approximately £75bn, by 2008. Datamonitor attributes this growth to peoples' increasing need to supplement the state pension and growing availability of tax advantages for pension saving. The UK is not alone in facing the challenge of an ageing population and the related pension crisis. European governments are ...

  • UNIFI reacts angrily to HSBC's staff mistakes claim

    6 Jul 2004

    HSBC has told the media that call centres in Britain and overseas make one mistake per 1,000 callers, but overseas centres were more efficient at processing transactions. Overseas centres made eight errors per million transactions processed while British centres made 50 per million. Rob O'Neill, says: "These statistics totally misrepresent the facts and HSBC know it." "The facts are that the only errors recorded for the global centres are those that impact on customers ...

  • We should be demanding better service

    5 Jul 2004

    The Mortgage Business has announced a short-term closure to new business due to service problems. In times of peak volumes lenders may struggle to maintain previous high levels of service. In the late 1980s many lenders were so swamped with business that service was poor. Levels of service have improved since then - but not enough. With past experience of peaks, lenders have been investing heavily in technology. Computerisation gives lenders the opportunity to deliver to intermediaries ...

  • Where there's no will there's a way

    5 Jul 2004

    This week's article focusses on the subject of intestacy which, like the making of a will, is covered in the CeMAP paper one syllabus. Intestacy simply means dying without having made a valid will. This includes the situation whereby the deceased has left a will but it turns out to be invalid. A person who has died without making a valid will is said to have died intestate. If a will makes valid provision for the distribution of some of the assets of the estate but not of others ...

  • Who's who on the AMI board

    5 Jul 2004

    While trade association and industry stalwarts Stephen Atkins and Ray Boulger retained their seats, it was all change with the election of Simon Conn from Conti Financial Services, Paul Fielding at Cambria Financial, Robert Clifford from mortgageforce and Bill Warren from Complete Mortgage and Loan Services. Simon Conn, 47, senior partner, Conti Financial Services Conn started in financial services in February 1980 as a sales consultant for Legal & General's ...

  • Will BMS' self-cert fee hike stop you using it?

    5 Jul 2004

    Michael Bolton, director of mortgages for BMS, says: "If we hadn't slowed down our lending in this sector we would have done over £10bn of self-cert by the end of the year. Putting the brakes on now means we put a sensible limit on our market share." BM Solutions says the change is a short-term measure to get business back to where it wants it and says it will return to the market with a bang within months. So, Mortgage Strategy asks: Will BM Solutions' decision ...

  • Will network members eventually pay a price for the free membership they take up now?

    5 Jul 2004

    sally laker is managing director of Mortgage Intelligence There's no such thing as a free lunch. You get what you pay for. We have all heard these sayings and they usually prove to be true. Networks are no exception in this respect. After all they are in business to make a profit and have to ensure the numbers stack up. Let's look at the issue from a common sense point of view. It stands to reason that networks offering free membership on a permanent basis will ...

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