Mortgage Strategy
6 January 2003

  • 7.8 million adults fail to qualify for mainstream credit

    8 Jan 2003

    The UK market for non-standard and sub-prime lending stands at 7.8 million adults, latest research from Datamonitor has revealed. This is a decrease from 7.9 million at the end of 2001, continuing a longer term trend that has seen the UK non-standard population decrease from 8.2 million in 1998. Despite this, more than 21% of the adult population can be classified as non-standard. In a new report, Datamonitor defines such individuals as those who are "systematically ...

  • Abbey and British Gas plan equity release debut

    8 Jan 2003

    Abbey National and British Gas plan to enter the equity release market in 2003. The companies will attempt to realise some of the potential £7bn value of the equity release market, which is currently worth less than £1bn. Abbey National will pilot a roll-up scheme in Eastbourne and Tunbridge Wells early this year, followed by a nationwide launch later in 2003. The Abbey scheme will be available to people aged 60 and over. They will be able to unlock ...

  • Abbey celebrates single point of contact for intermediaries

    10 Jan 2003

    Abbey National for Intermediaries is mailing over 20,000 of its intermediary contacts to mark the arrival of a single point of contact for intermediaries. The ANFIS new year card contains a message from Ambrose McGinn, director of sales and marketing. McGinn says: "When we launched ANFIS in September last year, we made a promise to intermediaries of access to a wide range of products through one point of contact. Now we are delivering on that promise. "From ...

  • Abbey launches new ad campaign

    10 Jan 2003

    Abbey National is launching a new TV advertising campaign starring actor and ex-pop star Martin Kemp. The aim of the ads is to extend Abbey National's Trade-In offer, which promises to provide customers with a better deal than offered by competitors on their mortgage or current account, or give them £50. Gary Brown, Abbey National's director of product acquisition, says: "This new campaign builds on the success of our 'Trade-In' offer which has run since ...

  • ABI advises homeowners on frozen pipes

    9 Jan 2003

    With much of the country facing a sudden spell of freezing temperatures, the Association of British Insurers is advising homeowners on how to avoid flooding from burst pipes and making an avoidable insurance claim. It tells occupiers to turn off the water if pipes or tanks freeze, and using a hairdryer or hot water bottle to defrost the pipe. In the event of a burst pipe, the ABI advises homeowners to turn off the stop cock and switch off the central heating to avoid ...

  • ABI plans income protection guide for consumers

    7 Jan 2003

    The Association of British Insurers is aiming to raise awareness of income protection by consulting on a new consumer guide and revisions to its current statement of best practice. The consultation will involve the FSA, Office of Fair Trading, the Financial Ombudsman Service and the Consumers' Association. The new consumer guide and statement of best practice will come into force by the end of May. The deadline for responses is January 31. The consumer guide explains ...

  • Act has nothing to do with consumer protection

    9 Jan 2003

    From Charles Banbury In response to your story on CP159 in Mortgage Strategy December 16, what all this shows is how wrong the regulators have been. When I entered this business in 1978 the way to deal with competition was to select the best product offered by providers. You did not have to be a rocket scientist to work out that non-allocation, capital units and initial units was not to your client's advantage in the event of early encashment or surrender of a saving or investment. If ...

  • An appointment with FSA complexity

    9 Jan 2003

    Here we go, the first of 50 action-packed, death-defying, edge of the seat regulation articles this year. Happy New Year by the way. The FSA has now published its Consultation Paper 159 on the extension of the appointed representatives regime to cover the mortgage and general insurance markets. By the time of FSA regulation in October 2004, all intermediaries dealing with mortgages and/or GI must elect to either become directly authorised by the FSA or become an appointed representative ...

  • APS mortgage club grows membership by 200%

    7 Jan 2003

    Manchester-based mortgage club APS Europe hopes to build on a successful first year after a 200% increase in membership over the last 12 months. In addition to attracting new introducers to the direct submission club throughout the course of the year, APS Europe's panel of lenders grew from 30 at launch to 38 by December 2002. APS Europe says this growth is due to the simplicity of the services provided and the good relationships established between APS staff and ...

  • BANK LEAVES RATES ON HOLD AT 4%

    9 Jan 2003

    The Bank of England's Monetary Policy Committee has voted to leave interest rates on hold at 4% for another month. The Confederation of British Industry said the bank made the right decision in light of worldwide economic uncertainty. Ian McCafferty, CBI chief economist, says: "In the face of so much uncertainty at home and abroad, the bank was right to leave rates unchanged for now." But he says the bank must be ready to make another rate cut if necessary.

  • Bank of Ireland Mortgages withdraws current range

    7 Jan 2003

    Bank of Ireland Mortgages has withdrawn its current mortgage range pending the launch of new products on January 13. The bank will continue to accept any outstanding applications until January 8. Any applications in principle forms must be returned in the 28-day timescale.

  • Banks crowned cheapest mortgage lenders for 2002

    8 Jan 2003

    Banks held on to their crown as cheapest mortgage lenders in 2003, with four banks in the top five and six in the top ten. An annual survey of mortgage costs by financial products researcher Defaqto shows that for standard variable rates or their equivalent, Egg and HSBC were again in the top two spots respectively, with Nationwide in third place, followed by Intelligent Finance and Standard Life Bank. The results were obtained by analysis of the amount of gross ...

  • Best Advice Network appoints new manager

    10 Jan 2003

    The Best Advice Mortgage Network, based in Newcastle, has appointed a new business development manager for the Midlands. Ken Smith will be responsible for forging relationships with intermediaries and marketing the network. Smith joins from Kensington Mortgages where he was a regional sales manager. Previously, he was regional sales manager for buy-to-let specialist Paragon Mortgages in the East Midlands. He says: "I am very pleased to be joining Best Advice Mortgage ...

  • BMS drops two packagers from list

    9 Jan 2003

    BM Solutions has ceased to conduct business with packager network Exclusive Connections and packager Scottish Life Home Loans, Mortgage Strategy can exclusively reveal. BMS made the decision to ditch Ex Con and Scot Life on Friday last week. Both Ex Con boss Patrick Day and Scot Life Home Loans managing director Steve Scholes were unavailable for comment. Martin Reynolds, BMS' key account manager, told Mortgage Strategy last Friday: "Today we serve notice to terminate packager ...

  • BoE figures show lending slowdown

    6 Jan 2003

    The growth rate of mortgage lending slowed down in November 2002 after a strong October, reveal the latest figures from the Bank of England. Secured lending outstanding grew by £7.4bn or 1.1% in November, some £0.6bn lower than October's rise. However, the value of loans approved was £22.4bn, £1bn higher than the average in the three months to October. The number of loans approved for house purchase in November was 121,000 compared ...

  • BoE Governor dismisses crash fears

    6 Jan 2003

    Sir Edward George, governor of the Bank of England, has dismissed fears of a dramatic fall in house prices. Speaking to the BBC last week, Sir Edward said that recent forecasts, which have predicted drops in prices of up to 30%, could not be relied upon. He said: "You shouldn't put too much weight on surveys, at this time of year in particular," Instead, Sir Edward foresees a gradual moderation in house price growth. He says: "You've got to ...

  • Bradford & Bingley goes the distance with Shelter

    9 Jan 2003

    Bradford & Bingley has agreed to be the key sponsor for Shelter - the official charity of The Flora London Marathon - with a £100,000 donation. The marathon, which takes place on April 13 2003, attracts around 38,000 runners, amateurs and professionals alike. Shelter is aiming to attract over 1,000 runners, raising more than £1m for its work with homeless and badly housed children. Bradford & Bingley has agreed to start the first 1,000 runners ...

  • Britannic warning causes share price drop

    7 Jan 2003

    Shares in Britannic Assurance have dived following news of falling profits, although the Britannic Group insists other parts of the business - including Britannic Money - are performing well. Britannic blames Assurance profits that are "significantly below" market expectations upon poor stock market performance may force it to defer bonuses to policyholders and cut share dividends. But the group says Britannic Money's results should slightly exceed expectations, ...

  • Broker claims FSA regulation could increase misbuying

    8 Jan 2003

    Brokers claim that mortgage regulation by the FSA could actually increase the risk of misbuying in the industry. Mortgage Talk identifies proposals for 'non-advised sales using filtering questions' as a particular worry, which could easily be interpreted as offering a recommendation to use a particular type of product. Peter Birch, a director of Mortgage Talk, says: 'While I feel that, overall, the FSA's suggestions are a good thing, I'm worried that ...

  • Brokers urged to inform clients about illness cover

    9 Jan 2003

    Brokers advising homebuyers have been urged to inform clients about critical illness protection, with guaranteed rates potentially being phased out, writes Ben Stafford. Norwich Union increased their guaranteed rates by 50% in December and other companies may well follow suit. Pundits say such moves reflect re-insurers' concerns that improvements in medical techniques will lead to a rise in the number of claims passed to life offices. Lee Davy, director at Cheshire-based life ...

  • CA says Sandler simplification will not prevent mis-selling

    6 Jan 2003

    The Consumers' Association says that FSA proposals to enact lighter touch regulation for face-to-face and telephone sales of simplified investment products will not prevent mis-sellling. Responding to an FSA discussion paper, Delroy Corinaldi, public affairs officer for the CA, says: "Each option put forward by the FSA must be judged against whether consumers will be faced with another mis-selling scandal in the future. There is scope for mis-selling Sandler products just ...

  • CAG closes down

    9 Jan 2003

    CAG Private Finance, the IFA arm of Countrywide Assured Group, has been closed down, writes Helen McCormick. CAG was formed three years ago and was based in London. Former managing director Roger Curtis and operations director Sharon Onciu have joined Tunbridge Wells-based IFA Columbus. Curtis says: "This is good news all round. We were a minute part of Countrywide. It had no experience of IFA business and does not want to go down that route again. Both parties felt the time had ...

  • Charcol anticipates rate cut

    10 Jan 2003

    Charcol says lenders can be expected to drop the price of fixed rates soon as the possibility of a short-term drop in interest rates increases. Following the Bank of England's decision to leave the base rate at 4% for January, Ray Boulger, senior technical manager at Charcol, says: "There appears to be little chance of a base rate rise for some time. "A cut in the next few months is looking increasingly likely, following some bearish economic figures over the last ...

  • CML asks government for clarity on private finance

    7 Jan 2003

    The CML is calling for the government to carve out a more definite role for private finance in the social housing sector. More than five million families in the UK are social tenants. The CML says that the £27bn of private finance spent on social housing so far has improved the accommodation of 1.5 million people "in ways that would not have been possible had they been funded by taxation alone". A further 24,000 new homes have been built following the transfer ...

  • CML sees buoyant lending ahead

    6 Jan 2003

    The CML predicts buoyant mortgage lending in 2003 in its latest market briefing. A slowdown in the rate of house price inflation is widely expected. The CML says: "Most commentators agree that house price growth should moderate going into 2003, with forecasts ranging from 4% to 10%." It adds: "With continuing strength in approvals we expect lending to remain buoyant going forward." Although UK inflation has nudged back above target, the CML says the Bank of ...

  • Confidence soars among mortgage advisers

    7 Jan 2003

    Confidence among specialist financial advisers and mortgage brokers almost rivalled an all-time high at Christmas, reveals the Paragon Mortgages Financial Advisor Confidence Tracking Index. The Index reached 135.3, only marginally lower than the eight-year high of 135.5 reached in the second quarter of 2002. Buy-to-let mortgages rose from 9.2% to 10.5%. Of these, 41% were arranged to extend the portfolios of experienced buy-to-let investors. However, the number ...

  • Connells appoints southern mortgage services partner

    6 Jan 2003

    Ron French has joined Connells as mortgage services development partner covering the company's Hampshire, Wiltshire, Berkshire and Southampton areas. French has over 13 years experience in estate agency and mortgage services. He says: "I chose to join Connells because they are a leading estate agency business with a dynamic and progressive approach to our industry. "I have taken over a great team of consultants and am excited at the prospect of developing my team into ...

  • Demand for commercial property expected to slow

    9 Jan 2003

    Demand for commercial property rose in the second half of 2002, but is expected to slow over the first half of 2003. A report by the Confederation of British Industry and property advisers GVA Grimley shows 27% of companies increased property holdings over the past six months, while just 14% decreased them. This gives a balance of +13%, an improvement on the balance of +9% in the last survey. Looking ahead, a balance of +5% points to more modest growth in demand. However, ...

  • Estate agency website on the lookout for brokers

    9 Jan 2003

    An estate agency website is looking for more mortgage brokers to join its lead generation scheme. The national website estateangels.co.uk, based in Bromley, allows potential housebuyers to register on the site, which then passes on their details to local estate agents, saving repeat visits. The site also sends these leads to 120 financial advisers, based in every postcode, each paying about £200 per month. Managing director Nat Daniels says: "Our brokers are doing three ...

  • EU tackling financial services too fast, say investment firms

    7 Jan 2003

    The 2005 target date for implementation of the EU Financial Services Action Plan should be set aside to ensure full consultation with Europe's finance sector, says the Association of Private Client Investment Managers and Stockbrokers. APCIMS says the blueprint for harmonising the EU's financial services will cause "significant problems and costs" to markets and investment firms unless more time is taken in 2003 to discuss its impact on member states. More than ...

  • Ex-building society boss faces fraud charges

    7 Jan 2003

    A former director of the Staffordshire Building Society has appeared in court on fraud charges. Andrew Thompson worked at the society as customer services director until his resignation in February 2001. He was a mortgage specialist who had been at the Staffordshire for six years. He is accused of false accounting, obtaining wrongful credit and theft dating to his time at the society. The society has passed details of the alleged fraud - which is understood ...

  • Ex-Staffordshire boss pleads not guilty

    8 Jan 2003

    A former director of the Staffordshire Building Society has pleaded not guilty to six fraud charges in Wolverhampton Crown Court. Andrew Thompson, the society's former customer services director, faces two counts of dishonestly obtaining wrongful credit during his time at Staffordshire. Another three charges relate to false accounting, and a final accusation to falsifying petty cash receipts . Between March and December 2001, Thompson is alleged to have committed ...

  • Fall in business volumes and employment for financial services

    7 Jan 2003

    Business volumes and employment in the financial services industry fell over the past three months, ending a year of mixed fortunes, according to the latest quarterly survey by the CBI and PricewaterhouseCoopers. 21% of respondents said volume of business was up over the last three months but 31% said it was down. The balance of -10 for the final quarter of 2002 compares with zero in the first and third quarters and +43 in the second quarter. They are less negative about the next ...

  • First Mortgage Options unveils expansion plans

    9 Jan 2003

    Specialist mortgage packager First Mortgage Options plans to take on another 20 staff after the company's business doubled in size during 2002. The vacancies will be created in the company's rapidly expanding mortgage processing department. More jobs could be created if the company exceeds its targets. During the last year the Northwich-based FMO generated £120m in sales of its range of mortgage, remortgage and secured loan products. Debbie Lloyd, ...

  • FSA crackdown on misleading ads

    9 Jan 2003

    The FSA is calling on consumers to help it police a crackdown on misleading financial advertising. Consumers are being asked to send examples of bad promotional materials to the regulator, which has published a guide to the advertising rules on its website. Firms are responsible for ensuring their promotions meet the 'clear, fair and not misleading' standard, although adverts do not have to pass FSA approval before publication. Where adverts fail to ...

  • Genesis Approved signs two more lenders

    10 Jan 2003

    Genesis Approved, the intermediary mortgage club of Genesis Home Loans plc, has added two lenders to its direct submission panel, which now comprises 14 mortgage lenders. Genesis Approved members now have access to BuildStore - the leading provider of mortgage products and related services to the self-build and renovation market. BuildLoan from BuildStore is the only self-build mortgage available to intermediaries that releases funds in advance of each build stage, ...

  • Half of Britons plan to work after retirement

    9 Jan 2003

    More than half of Britons plan to work after retirement, in a trend that may mean a number of middle-aged and elderly people delay their application for equity release products. However, one in three plan to retire early in their 50s, shows research by Lloyds TSB Prviate Banking. In contrast to the average Brit, more than half of those with a salary of £100,000 or over plan to retire in their 50s. However, the rich are more likely to work after retirement with ...

  • Half of UK's 'poor' adults own homes

    9 Jan 2003

    As many as half the adults defined as 'poor' in Britain are either buying their homes with a mortgage or own their properties outright, a study for the Joseph Rowntree Foundation reveals. Another 41% of poor adults live in social housing and 9% in the private rented sector. The foundation says the findings challenge the existing policy of state support for low-income households, where 92% of help with housing costs goes to tenants and only 8% to owners. The ...

  • Halifax cuts personal loan rates

    6 Jan 2003

    Halifax has reduced the rates on its personal loans to give interest rates starting from 7.9% APR. All personal loans now offer a three-month repayment holiday, providing breathing space for the customer before they start making payments.

  • Halifax index corrects inflation figures

    10 Jan 2003

    The average UK house price rose to £121,794 in December, the latest Halifax house price index reveals. The index records a monthly change of -2.1%, but Halifax is quick to point out this apparent drop is "purely attributable" to technical adjustments made to December's calculation. These include the inclusion of properties costing in excess of £1m. The Halifax's previous policy of excluding such homes has been criticised for decreasing the accuracy ...

  • Halifax under fire for hiding payback

    9 Jan 2003

    Halifax has been criticised for hiding early payback features on mortgage offers issued to borrowers. Andy Wilgoss, managing director of Square Mile Mortgage Finance, told Mortgage Strategy that one of his clients raised the issue when hoping to pay a 10% lump sum prior to retirement. Only after a written enquiry did the lender confirm that the feature would be available. Though Halifax lists the early payback as a feature in its intermediary literature, it was not listed in the ...

  • HBOS appoints new Bank of Scotland governor

    8 Jan 2003

    HBOS has appointed George Mitchell as governor of the Bank of Scotland and Sir Ron Garrick as deputy chairman of HBOS plc. The appointments follow the retirement of Sir Peter Burt, deputy chairman of HBOS and governor of Bank of Scotland, and take effect immediately. George Mitchell is chief executive of Bank of Scotland corporate banking, and treasurer and managing director of Bank of Scotland. He was appointed chief executive of the Bank of Scotland Retail ...

  • How to get your message across

    9 Jan 2003

    Many financial advisers use advertising to help generate leads. Following simple guidelines can ensure those adverts produce more leads for less money. Using public relations alongside an advertising campaign is one of the most cost-effective ways to boost the response rate to a campaign. To be effective and make a real impact, an advertising campaign usually needs to run over a sustained period, with adverts appearing regularly to increase awareness and help generate sales. Cost ...

  • Insurance giant buys into Personal Touch

    7 Jan 2003

    Personal Touch Insurance has sold a 9.99% share of its business to Aegon UK for an undisclosed sum. The company, based in Solihull in the West Midlands, distributes a full range of financial services, mortgage and general insurance products through its intermediary channel. In addition, it provides a number of quality ancillary services to support its core distribution. Currently the business has in excess of 10,500 introducing agents and this continues to grow at a ...

  • Labour to halve Right to Buy discounts

    9 Jan 2003

    John Prescott will this week announce plans to halve the Right to Buy discounts available to council tenants in property hotspots. The government hopes that curbing the scheme will help address the lack of affordable housing available to key workers, as tenants who have bought their homes often sell them to property companies who in turn sell them on for profit. A spokeswoman for the office of the Deputy Prime Minister says: "Modernisation plans have been put together and this ...

  • Legal & General rolls out equity release mortgage

    9 Jan 2003

    Legal & General Mortgages' Equity Release Mortgage is now available to all IFAs. The mortgage, originally launched in March 2002, has until now only been available to a limited number of IFAs. L&G expects the equity release market to grow during 2003 as increasing numbers of pensioners use some of the equity tied up in their homes to boost their retirement incomes. The L&G mortgage meets the Safe Home Income Plan standard, meaning customers are guaranteed ...

  • LIA appoints new director-general

    7 Jan 2003

    The Life Insurance Association has appointed Mark Ommanney as its new director-general after a six-month selection process. Ommanney has worked chief executive officer of an AIM listed technology company, and previously acquired 25 years of financial services experience with Sun Life of Canada. His roles there ranged from individual sales to sales management and ultimately area sales director. Gavin Tisshaw, president of the LIA, says: "I am delighted that ...

  • Lifestyle Finance joins igroup panel

    10 Jan 2003

    Mortgage packager Lifestyle Finance has announced an agreement with lender igroup to introduce £20m of mortgage applications monthly, rising to £40m monthly over the next six months. Lifestyle is investing in a major national and advertising programme to generate business volumes, while igroup will provide fast-track offers and completions, together with marketing and in-house underwriting support. Mike Worthington, Lifestyle's managing director, says: ...

  • Lifestyle to recruit 100 mortgage advisers

    8 Jan 2003

    Sub-prime broker and packager Lifestyle Finance plans to recruit 100 mortgage advisers in 2003 as part of business expansion plans. The new mortgage advisers, who will be recruited as Lifestyle Finance employees, will be given full support, including compliance and product training, and supplied with confirmed sales appointment bookings. Lifestyle already has 45 brokers on its books. Mike Worthington, Lifestyle 's managing director, says: "Establishing a national ...

  • Looking forward to another year of growth

    9 Jan 2003

    Q: How is Ipswich Building Society structured? A: Ipswich Building Society operates through a conventional branch structure but also has a dedicated on-the-road sales team dealing specifically with mortgage intermediaries. Ipswich offers a full range of mortgage products via intermediaries, including tracker, discount and fixed products as well as Right to Buy and buy-to-let. We are also very active in the shared ownership market. This year has been a particularly successful one, gross ...

  • Low key

    9 Jan 2003

    Are house prices heading for a painful correction or will inflation continue its upward spiral? Harriet Williams reports on industry predictions for the year ahead while Stephen Knight, executive chairman of GMAC-RFC, says lenders seeking relationships with large intermediaries will need to develop remote processingExtra! Extra! Read all about it: House prices set to tumble… Forecast fuels negative equity fears… Odds shorten on severe correction... To believe some of ...

  • MCCB clarifies rules following challenge by IFA

    9 Jan 2003

    The Mortgage Code Compliance Board is reminding mortgage intermediaries that unqualified advisers acting without supervision will be prosecuted. The Mortgage Code enforcer clarified its stance after receiving an open letter (also sent to Prime Minister Tony Blair, outgoing FSA chairman Sir Howard Davies, and Mortgage Strategy) in which Surrey-based IFA Michael Lawrence vowed to continue offering mortgage advice, despite having failed the CeMAP twice and MAQ on nine occasions. Lawrence, ...

  • MDC unveils range of products aimed at packagers

    9 Jan 2003

    The Mortgage Distributors Co-operative has rolled out its first suite of products for distribution by packager members including Pink Home Loans, ICMG and The Mortgage Operation. Bristol & West is funding a discounted prime product and a tracker prime buy-to-let mortgage. The Mortgage Business is backing a prime buy-to-let product on a tracker rate, alongside a prime self-cert mortgage that offers a two-year discount. The MDC range is completed by two Birmingham Midshires ...

  • Mortgage 2000 Mortgage Club increases proc fees

    9 Jan 2003

    Mortgage 2000 Mortgage Club is increasing procuration fees to brokers placing cases with Nationwide and Woolwich via the club. Brokers will now receive 0.3% of the mortgage advance on all Nationwide cases, 0.3% of the mortgage advance on Woolwich standard, Open Plan and buy-to-let products, and 0.5% on Woolwich offset products. Alan Collinson, m2-mortgage club national sales manager, says: "I'm delighted that we have been able to negotiate these significantly improved ...

  • Mortgage Express renames Horizon

    10 Jan 2003

    Mortgage Express has changed the name of its Horizon mortgage to FlexAbility. Andrew Moss, product development manager, says: "We decided to change the name to FlexAbility, because we believe it better reflects what the mortgage has to offer." A FlexAbility mortgage offers flexible payment options of overpayment, underpayment and payment holidays. Interest on overpayments is saved, not earned, so customers don't have to pay tax on it. The product has no redemption ...

  • Mortgage Next forms alliance with AXA

    6 Jan 2003

    Independent mortgage distribution network Mortgage Next has formed a strategic alliance with AXA Adviser Network as part of AXA's Mortgage Solutions. This integrated support package provides advisers with a market wide choice of lenders through a customised Trigold mortgage aggregator package backed up by a general insurance and compliance support package. Mortgage Next will provide product design skills and negotiate exclusive product terms for AXA's advisers. ...

  • MPLC strengthens its service infrastructure

    9 Jan 2003

    Sub-prime lender Mortgages PLC has strengthened its systems and infrastructure after record lending in 2002 led to several service issues. Paul Thomas, chief operating officer of Mortgages PLC, says: "We had a record year in 2002. Throughout that time we have been looking at both our systems and infrastructure and have strengthened both. "We're looking to recruit staff on both the processing and underwriting sides of the business in Glasgow and in the regional teams." MPLC ...

  • My mortgage week

    9 Jan 2003

    Monday: A 3am visit from our youngest, Conor, aged six. A nightmare involving spiders means he's in our bed for the rest of the night. Into our Reading office for a morning meeting. Almost all our advisers work in and rely on the leads from Romans Estate Agents and it is important they work as a part of the team. Tuesday: The day starts with a phone call from a client who is incensed that I have written to her saying that the two-page letter of complaint she wrote to us had been ...

  • N4 registration plans may be scrapped

    9 Jan 2003

    The MCCB may be forced to scrap plans for streamlined broker registration in the run-up to N4, despite the possibility of some 5,000 qualifying as advisers after sitting exams in December. Some 3,394 passed CeMAP in the month leading to the December 31 qualification deadline. Results for another 3,480 advisers who sat MAQ exams are still being calculated, but based on average pass rates they should add some 1,600 to the qualified. The MCCB proposes a single registration period ...

  • Nationwide and Egg top the low interest league

    9 Jan 2003

    Nationwide and Egg charge the lowest levels of mortgage interest among the top 35 providers, a Moneyfacts survey reveals. For a £100,000 standard variable rate loan taken on January 1 2002, £4,700 interest would accrue over the year to December 31 2002 with both Nationwide and Egg. HSBC is narrowly beaten into third place, with interest of £4,750. Abbey National is the most expensive. With interest of £6,073 it charges £1,333 ...

  • Nationwide calls for greater transparency in financial services

    7 Jan 2003

    Nationwide is asking the government and the FSA to take action to bring greater fairness and transparency to financial services in the UK. The building society has sent its five challenges for 2003 to more than 50 MPs and officials including the Chancellor of the Exchequer, key ministers at the Treasury and the Department of Trade and Industry, and key members of the FSA. Firstly, Nationwide calls for the promotion of quality standards for financial services. In a statement, ...

  • Nationwide fails to win support on CAT issue

    9 Jan 2003

    The Council of Mortgage Lenders and equity release groups have dismissed Nationwide's calls for lifetime mortgages to be covered by government CAT standards. Nationwide - which doesn't currently offer equity release - insists the move would reassure potential customers and stimulate market growth. Philip Williamson, chief executive at Nationwide, is behind a campaign to define a new CAT standard. Jennifer Stoddart, senior press officer at Nationwide, says: "It is in the ...

  • Nervous housebuyers ready to welcome seller's packs

    8 Jan 2003

    Fluctuating predictions for the future of the UK property market in 2003 have left housebuyers nervous and ready to welcome seller's packs with open arms, research from Yorkshire Bank reveals. And the bank says that the emerging need for greater assurance in uncertain times is also reflected in the numbers of buyers now no longer prepared to borrow to their maximum. Its latest Housebuyers Survey of 2,500 adults nationwide has nearly nine out of 10 housebuyers (88%) ...

  • New fee-free deal from The Derbyshire

    6 Jan 2003

    Derbyshire Building Society has launched a new fee-free remortgage. The new three-year discount remortgage replaces The Derbyshire's former three-year fixed rate remortgage product. It combines a three-year discount of 1.54% off the Derbyshire SVR with the waiving of fees and charges, to give a current rate of 4.15%. A key feature is that borrowers can repay up to 20% - a market leading amount - of their capital each year without having to pay any early redemption ...

  • New sales manager at xit2

    8 Jan 2003

    Outsourced processing provider xit2 has appointed a new sales manager to mastermind the company's entry into the packaging sector and other new markets. Mark Hollands has eight years experience of the lending industry, including roles with GMAC-RFC as key account manager for central London, with Bank of Ireland Group and Yorkshire Building Society. Holland says: "I am delighted to be joining xit2 at such an exciting time. There is currently a huge amount of pressure ...

  • Principality director to retire

    8 Jan 2003

    James Jamieson, financial director of the Principality Building Society, will retire in March 2003. Jamieson has been with the Society for almost 24 years, having joined as assistant secretary in charge of the accounts department. He was appointed general manager of finance in 1986 and finance director in 1992. He oversaw the development of the treasury department and also been involved in the development of current systems in the finance area. Peter Griffiths, ...

  • Regulatory dilemma could drive me to litigation

    9 Jan 2003

    An open letter to Luke March, chief executive, Mortgage Code Compliance Board Dear Mr March, as the December 31 deadline loomed for the mortgage exam, I felt it was time to update you on my own situation. I sat the MAQ Bridge paper for the ninth time on December 3 2002 (and am awaiting the result of two MAQ exams). On the advice of your Sue Scott, I sat two CeMAP exams and failed both. I did not leave my exams until the last moment, I sat my first MAQ exam two years ago (until recently ...

  • Revenue share is not the only way for brokers to get value

    9 Jan 2003

    From Stuart Glendinning The article on lead generation in Mortgage Strategy December 9 was interesting and topical. In it, mortgageforce MD Rob Clifford claimed that revenue share "has got to be the fairest way [to purchase leads]. The only way a broker can be certain a lead is worth buying is if someone is sharing the income". Well, revenue share has its place and if an intermediary can obtain quality mortgage leads on this basis it makes sense to take advantage of it as it ...

  • Self-cert makes for best selling specialist loans

    9 Jan 2003

    Self-cert mortgages are the best selling non-standard mortgage product, a survey of 1,750 introducers by Sun Bank reveals. December's survey also finds brokers tend to recommend discounted as opposed to fixed rate products because of the pricing differential and their view on interest rates. But fixed rate products remain popular with clients who want certainty over what their mortgage repayments will be over the short-term. Products without extended redemption ...

  • Skipton launches deal for first-time buyers

    9 Jan 2003

    Skipton Building Society is launching a new mortgage specifically for first-time buyers on January 13. The product has an initial rate of 3.95% in year one and offers borrowers 1% cashback on completion. This equates to monthly interest repayments of £330 on a £100,000 mortgage in the first year and cashback totalling £1,000. The Flexible First Step Mortgage offers a 1.75% discount on the variable rate in year one, followed by a 0.3% discount in year ...

  • Small drop in rental returns

    7 Jan 2003

    The rate of return on the total cost of a buy-to-let investment has fallen by 0.1% since summer to reach 9.52%, reveals a quarterly index of rental returns from the Association of Residential Letting Agents. The return on an initial cash investment of a deposit of 25% of the total value of a buy-to-let property is now 18.89%. This is down 0.25%. The ARLA indices of rental returns provide national and regional figures calculated both for the initial total cost of the ...

  • SPML announces £1bn completions for 2002

    8 Jan 2003

    Southern Pacific Mortgage Limited has announced record completions in 2002, achieving a total of over £1bn in mortgage lending, doubling the lender's total for 2001. John Prust, SPML's sales and marketing director, says: "This is a magnificent achievement for the company and reflects the hard work and dedication of all the staff, together with the strong business partnerships SPML has built with its packager panel. "Many other lenders have suffered significant ...

  • Staffordshire lending reaches record high

    7 Jan 2003

    Staffordshire Building Society enjoyed record new mortgage business in 2002, lending more money than in any of its previous 100 years. The gross amount of new mortgage business completed by the society in its centenary year was £306m. This was achieved despite difficult local business conditions in both manufacturing and in the society's rural areas that are slowly recovering from the 2001 foot and mouth outbreak. The Staffordshire achieved its volumes even ...

  • Strong 2002 returns for Sun Bank

    6 Jan 2003

    Specialist lender Sun Bank experienced year on year growth of 140% growth in 2002, to take its completed mortgage loans to over £600m. Paul Howard, sales and development director, says: "The growth in business volumes at Sun Bank over the past 12 months has surpassed all our expectations. "A combination of increased distribution, differentiated market leading products and a much more visible brand have been the main contributors to this success." Sun ...

  • Technology company offers new toolkit for mortgage networks

    9 Jan 2003

    A technology company is targeting mortgage networks with a range of sales and illustration tools to help boost business. Mainstream Computing previously concentrated on sales tools for financial institutions, but has added mortgage intermediaries and networks to its list after concluding that existing technologies are inadequate. Dr Mark Blakey, manaing director of Mainstream Computing, says: "We're very excited about this. Mortgage sourcing systems lack good sales ...

  • Tenet buys Capital Planning as part of strategic investment plan

    9 Jan 2003

    IFA group Tenet has bought Capital Planning UK for an undisclosed sum, in line with its strategy to invest in members and clients of its subsidiaries CPUK has a 100-strong team of IFAs and support staff of 30 operating from six offices in London and the South East. Its sales for the current year are expected to be in excess of £6m. It is the first time Tenet has purchased an IFA firm, although the company has previously invested in other financial services businesses, ...

  • The future is bright for packagers Timetable to regulation

    9 Jan 2003

    Last year there was much speculation on the future role of packagers. This is a subject worthy of serious debate. Packagers are capable of adding significant value to any specialist lender's operation and, given they can rise to the challenges, they will secure an important place in the specialist lending market of the future. Of course, I would say that as igroup only accepts packaged business. However, our vested interest does not alter the fact that we believe many packagers ...

  • The Mortgage Mole

    9 Jan 2003

    More, please Mole was more than happy at the prospect of starting 2003 soberly following December's festivities. What with 18 Christmas parties, some 14 Christmas lunches and countless Christmas dinners, Mole was feeling a little jaded by the time December 25 finally rolled around. The award for best event of the month is shared between arch rivals BM Solutions and Mortgages PLC. With BMS hosting an evening of fine wine and dining at the Tower of London and Mortgages PLC, its annual ...

  • This week's problem case

    9 Jan 2003

    John and his girlfriend recently split up and sold their property, clearing the mortgage arrears. John has run into difficulties with payments on two CCJs totalling £1,500. After various short contracts, he now has a permanent job with a salary of £23,000. Having rented at several addresses for two years, he wants to buy a flat for £71,000. He has an £11,000 deposit, but is unclear whether he needs a non-conforming loan or if he can go to the high street. Intermediary ...

  • Weighing up your options is crucial

    9 Jan 2003

    As mentioned in the final issue of Mortgage Strategy in 2002, the last published average pass rate for CeMAP paper one was for the period of January to October and was just 39.6%. In the absence of objective research, the reasons for this comparatively low pass rate can only be speculated upon. Reasons that have been suggested include the fact that few candidates deal with the contents of the paper one syllabus on a day-to-day basis so are less familiar with the subject matter than is ...

  • Woolwich chief exec Peacock to step down

    9 Jan 2003

    Mortgage brokers have expressed regret at news that The Woolwich chief executive Lynne Peacock is to step down early this year. Peacock has been with the former building society for 19 years and has worked in almost every department, most recently as operations director. She was behind The Woolwich Open Plan account. Peacock originally decided to leave after The Woolwich was taken over by Barclays but was persuaded to stay. Although she sat on the board of The Woolwich, she was ...

  • Woolwich joins Best Advice Mortgage Network panel

    10 Jan 2003

    Newcastle-based packager Best Advice Mortgage Network has added the Woolwich to its panel of lenders. Under the terms of the deal, members of the Best Advice Mortgage Network will be able to access a wide range of products from the Woolwich. Richard Hall, managing director of Best Advice Mortgage Network, says: "The Woolwich is a very welcome addition to our panel and is part of our strategy to offer intermediaries and their customers access to a choice of products. We ...

  • Words of comfort In uncertain times

    9 Jan 2003

    Welcome back to Mortgage Strategy and Happy New Year! 2003 has barely started, yet already the doom mongers are on the march and the mortgage market is a hive of activity. As we explore in our cover feature starting on page 17, had some of December's headlines to have been believed, many of us would be out of a job by now. But, as GMAC-RFC's Stephen Knight points out, latest estimates from the Council of Mortgage Lenders suggest gross advances will break through £215bn this ...

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