Mortgage Strategy
6 September 2004

  • 16 firms default by FSCS

    9 Sep 2004

    Declaring a firm in default opens the way for anyone who has lost money, as a result of dealings with such a firm, to make a claim for compensation to FSCS. The limit for investment compensation is £48,000. Ron Devlin, interim chief executive of the FSCS, says: "FSCS' role is to protect customers of financial services firms. It is important for people to know that there is an organisation that can help if they have lost money and the firm can't pay." The ...

  • A View From The floor

    6 Sep 2004

    Building societies are currently enjoying their strongest growth period for seven years, according to a new report by KPMG. The figures show a 14.6% increase in building society assets for 2003/2004 taking the total sector holdings to £224.8bn. This should come as no surprise to those who know the societies well. Undoubtedly, the demutualisations of the early 1990s had an effect on the sector and a period of readjustment followed, but building societies are now punching above ...

  • All change for independence

    6 Sep 2004

    For firms to describe themselves as independent after Mortgage Day, they must offer consumers a purely fees-based payment option. David Whitely, press officer for the Financial Services Authority, says: "If this is how the consumer chooses to pay, any commission received on a sale will have to be paid to the consumer." London broker Alexander Hall focusses its advertising campaign on no-fee, independent advice. Andy Pratt, Alexander Hall chief operating officer, ...

  • ARs and the state of independence

    6 Sep 2004

    Just as brokers are making their final decisions about which network to join after wading through piles of marketing material, a new issue has surfaced that could influence the route they take. It emerged at the end of last month that networks are divided over whether they want their members to avoid calling themselves independent as they are worried about losing a vital source of income - their slice of the broker's proc fee. For a broker to call themselves independent ...

  • Aspire to more than mediocrity

    6 Sep 2004

    I'm a firm believer in the importance of drive, ambition and focus in terms of individual personal development and in achieving company-wide strategic objectives. Therefore I agree with Paul Arden that setting stretching goals is key to success. This was underlined by some of the performances in the Athens Olympics where many athletes surprised and delighted their supporters but not themselves because they had set themselves the ultimate objective of a gold medal many years ...

  • Base rate remains unchanged

    9 Sep 2004

    The status quo was widely expected as recent increases are thought to have starting slowing the housing market.

  • BIA launches innovative ad campaign

    10 Sep 2004

    The campaign which first breaks in the specialist IFA and mortgage media in mid-September features a series of adverts each focusing on a different member and their individual criteria for joining BIA.  The response from the BIA staff member explains why and how the network addresses and solves concerns about these issues.  The adverts also include full details of how to request a free of charge BIA development pack.   Martin Banbury, executive chairman of BIA says: "We wanted ...

  • Blair sparks hope of Stamp Duty cut

    6 Sep 2004

    Blair has vowed to help aspiring first-time buyers who have been priced out of the market, saying: "We will increase the supply of new housing and helping people to get onto the housing ladder." Stamp Duty on houses in the UK is currently paid on properties over £60,000. Rob Clifford, managing director at Mortgageforce, thinks a cut in Stamp Duty would help the current housing situation but that more would still need to be done. He says: "Stamp Duty is certainly ...

  • Blue Sky

    6 Sep 2004

    I want to be as famous as Persil automatic," said Victoria Beckham. Your vision of where or who you want to be is the greatest asset you have. Without having a goal it's difficult to score. Have you noticed how the cleverest people at school are not those that make it in life? What you learn at school are facts, known facts, your job at school is to accumulate and remember facts. The more you can remember, the better you do. Some people simply don't have a great ...

  • Bridge paper to be scrapped

    6 Sep 2004

    With FSA regulation soon to come into force, the Institute of Financial Services is accepting its last registrations for the fast-track route now. The Bridge qualification gives qualified financial advisers the chance to achieve CeMAP by taking just one module. However, due to changes in FSA regulation, the syllabus is to be restructured and the IFS will no longer be able to offer the CeMAP Bridge option. Meanwhile the National Association of Commercial Finance Brokers ...

  • Bristol and West launches products suite

    6 Sep 2004

    The nine products include discounted and fixed rates, as well as three self-certification mortgages. Offering value to borrowers concerned about long term base rate movements are the five year fixed rate at 5.59% and the seven year at 5.69%. In the shorter term, the two year discount offers a useful set of benefits for remortmagers, including no valuation fee and legal fees paid by Bristol & West. Neena Kithoray, senior product manager at Bristol & West, says: "With ...

  • Britannia's interim results show record lending

    10 Sep 2004

    Its operating profit was £67.9m up 7.6%, with record lending of £2.9bn, for the half year plus 73%. All three lenders within the group, Britannia, Platform and the commercial lending department, delivered first half figures. Quality of lending remains high. Just 4.4% of group residential lending for the half year was at more than 90% LTV with the average mortgage LTV at just 66%. 94% of lending is at multiples of 3.5 times salary, or less, minimising the risk of bad ...

  • Brokers are being let down in this regulation

    6 Sep 2004

    The ordinary mortgage broker could be forgiven for feeling overlooked in the regulation melee. We hear sourcing systems going on about their technological masterpieces but where is the substance to back up the claims? Does it matter who had the first demonstration KFI if the broker has yet to be provided with a version of the system with which to become familiar? Then there is the argument about online trading. I use the MTE regularly but primarily to obtain AIPs from lenders ...

  • Cartel starts PR wing

    6 Sep 2004

    In readiness for this October's impending Mortgage Day and all the changes in the financial industry that entails, Cartel decided earlier this year to push strongly into the avenues of advertising, public relations and marketing. Marie Giovanni, 30, has been tasked with heading up Cartel's marketing initiative. She says: "We are all very proud of the company's organic growth and the success it has built purely by word of mouth. But this year, with the build-up ...

  • CII launches Society of Mortgage Professionals

    10 Sep 2004

    The society has recruited Richard Fox, currently compliance director at the MCCB, to become its chief executive from November 1, when the it launches. It says it will work alongside the Association of Mortgage Intemediaries, not in competition with it. It is also in the process of establishing an advisory board of nine leading market figures. Although nothing has been confirmed in writing yet, Rob Clifford, managing director of mortgageforce, and Chris Cummings, director ...

  • Classic Network Solutions recieve MTA letter

    9 Sep 2004

    Ray Ronan, head of sales and marketing, says: "Not only have we received our MTA letter but we have also received the results of an independent audit carried out for the FSA and ourselves testing that our systems are fully operational and robust for M Day.  We received a clean bill of health which is a testament to the hard work carried out by our compliance team.  "We commissioned this audit as part of our drive to be proactive in the market and not reactive.  We didn't ...

  • CML figures fuel fears of HBOS market dominance

    6 Sep 2004

    The Council of Mortgage Lenders' annual list of top lenders names HBOS as the biggest lender for the second year running, both by size and by total mortgage assets in 2003. HBOS' estimated market share of gross mortgage lending in the year is 26.0%, while Abbey's is 10.7%. If HBOS was to be successful in a bid for Abbey it could boost its total market share to 30.7%. Deutsche Bank says HBOS is expected to emerge the victor from the looming takeover battle. In ...

  • Commonhold threat to landlords

    6 Sep 2004

    Landlords could become a thing of the past when commonhold, a new form of tenure, is introduced in three weeks' time. With commonhold, owners band together to form an association that draws up rules on how interdependent properties, such as flats in a block, will be managed. And unlike leasehold, there is no need for landlords. The Council of Mortgage Lenders says that the biggest advantage of the commonhold idea for both owners and lenders, is that the value of a ...

  • Concern that IFAs will be at lenders' mercy

    6 Sep 2004

    This is a particular problem for IFAs specialising in equity release and home reversion where many firms don't offer the same online facilities as traditional brokers. KRS has been contacting all major providers for reassurance that they will provide the illustrations in time. The feedback has ranged from assurances that an online service will be in place to postal guarantees, provided the information is entered in time. KRS has revamped its website to make it easier ...

  • Conti launches Bulgarian scheme

    6 Sep 2004

    The emerging Eastern European countries including Bulgaria have gained a reputation for having legal systems that make it difficult for purchasers to establish legal title over properties. Conti has launched its scheme to ensure that lenders working with them in Bulgaria can be confident of obtaining a charge against properties in the country to give overseas buyers the peace of mind and security they need. Simon Conn, senior partner at Conti, says: "We have been working closely ...

  • Conti launches eastern European mortgage scheme

    6 Sep 2004

    The emerging eastern eight countries, which include Bulgaria, have gained a reputation for having legal systems that can make it difficult for purchasers to establish legal title over their chosen properties. Conti has launched this new scheme after many months of negotiation and due diligence, which Simon Conn, senior partner at Conti, says was to ensure that the lenders working with them in Bulgaria can confidently get a charge against properties in the area to give UK and ...

  • Curriculum Vitae - John Goodfellow

    6 Sep 2004

    Name: John Goodfellow Age: 57 Company: Skipton Job title: Chief executive Where do you live? Skipton, North Yorkshire Describe your Current Job: As well as being chief executive of Skipton, I also head the Skipton Group, which currently consists of 14 subsidiaries including Homeloan Management, Amber Homelans, Pink and Connells estate agency group. My objective is to grow both the society and its ...

  • Dear Delia

    6 Sep 2004

    Mrs Rodgers has only been self-employed for six months and has a contract with her previous employer for 12 months. Projected earnings for her first 12 months of trading are £20,000. They want to consolidate £20,000 of credit card borrowing. To do so they need to borrow £205,000 at 80% LTV. What are the options available to them? Delia says: There are a number of deals available for self-employed borrowers. To help the Rodgers we have Gordon Covell of Bankhall ...

  • Dunfermline more than doubles lending, and doubles in size

    9 Sep 2004

    Thismeans that it has doubled in size in nine years - from just over £1bnin 1995 to £2bn in 2004. Since the branch network was restructured to provide a closer focus on the customer three years ago, lending has increased from £142m in the first seven months of 2002 to £181m in the same period of 2003. This figure has since more than doubled in the first seven months of 2004 with all lending reaching £387m. Much of the lending, £256m, ...

  • Earnings potential

    6 Sep 2004

    Falling demand for new mortgages is likely to speed up broker attempts to drill for alternative sources of income, renewing interest in previously neglected fields such as Right to Buy. The scheme's forgotten potential was recently highlighted by Monty Burn in Mortgage Strategy. He said there is top money to be made at the bottom end of the market if brokers have the will to look for it. This raised eyebrows among many who considered the scheme's glory days lay ...

  • Financial health matters

    6 Sep 2004

    The Financial Services Authority estimates the cost of the pensions debacle to be in the region of £11.8 billion. Confidence in the industry is at an all-time low. Against this background some fear a third scandal is on the way as the level of indebtedness has broken through the symbolic £1 trillion barrier for the first time. Concerns about lending practices are front-of-mind and with the MPC raising base rate to control the housing market, fears that people have been ...

  • First Financial Services website gains RNIB accreditation

    6 Sep 2004

    Two million people in the UK have a sight problem, but Huntswood Outsourcing, has become the first financial services company to be awarded the RNIB's See It Right accreditation and logo for its website accessibility. By law, all UK company websites must conform to the disability discrimination act, covering this and other accessibility issues, but a recent report found that two thirds of FTSE 100 firms fail to do so. In addition, an investigation in April by the ...

  • FOS announces events for intermediaries

    8 Sep 2004

    The Financial Services Authority will regulate mortgage intermediaries from the end of October this year, and insurance intermediaries from January 14 2005. From the same dates, these firms will be covered, by law, by the Financial Ombudsman Service. Each event begins at 10.50am. There will be a presentation at 11.00am (lasting approximately 50 minutes), followed by an informal question and answer session. There's no need to book - intermediaries can just turn up on the day ...

  • FOS announces events for intermediaries

    10 Sep 2004

    The Financial Services Authority will regulate mortgage intermediaries from the end of October this year, and insurance intermediaries from January 14 2005. From the same dates, these firms will be covered, by law, by the Financial Ombudsman Service. Each event begins at 10.50am. There will be a presentation at 11.00am (lasting approximately 50 minutes), followed by an informal question and answer session. There's no need to book - intermediaries can just turn up on the day ...

  • FSA receives 6,822 requests for application packs

    10 Sep 2004

    Comparable figures for the general insurance sector were 13,282 registrations for an application pack and 9,191 applications for authorisation up until September 3. With regard to applications for authorisation the estimated breakdown was 5,044 from the primary insurance market and 4,147 from the secondary insurance market. Also, by the end of September 3, 9,614 letters had been sent to applicant firms indicating that the FSA was minded to authorise them to carry out mortgage ...

  • FSA will watch small firms closely

    6 Sep 2004

    Second charge secured loans are often overlooked as a viable alternative to remortgages. Over the past five years or so, the second charge or secured loans market has gone from strength to strength. Since 1999 the market has grown by more than 30% and I expect this trend to continue over the next year, albeit at slightly lower levels of about 20%. This growth has been fuelled by several factors: rising house prices, increased awareness of the products available and, more recently, demand ...

  • FSA will watch small firms closely

    6 Sep 2004

    Judging by announcements from Canary Wharf last week, it seems that the Financial Services Authority has been inspired by Team GB's fine Athens medal haul. There was certainly much flexing of muscles going on. Not only was oil giant Shell landed with a whopping £17m fine for overstating its reserves but announcements were made on recent enforcement actions closer to home. In particular, firms preparing for FSA regulation should note the announcement that more than 100 ...

  • Genesis launches affiliate status for smaller networks

    8 Sep 2004

    As an affiliate, a smaller network can continue to manage a network of brokers, whilst receiving regulatory support from Genesis. The affiliate network scheme has been designed to appeal to small networks, many of whom offer excellent packaging and mortgage club services but do not have the financial resources or compliance infrastructure to support ARs after M Day. Genesis can provide such networks with compliance, training and administration services, enabling them to continue ...

  • Genesis offers solution to ARs wanting to go independent

    9 Sep 2004

    Genesis was the first network to make brokers aware of a problem arising out of the FSA regulations, which stipulate that a broker calling himself independent must offer his clients a whole of market product range and the option to pay a fee for the service provided. Where the client opts to pay a fee the gross procuration fee payable from the lender to the network has to be rebated to the client. Most networks assumed that any fee rebate would relate only to the net fee received by the ...

  • GMAC-RFC - What it stands for

    6 Sep 2004

    Bill Armstrong's letter (Mortgage Strategy August 30) asks for clarification regarding GMAC-RFC's name. The letters stand for General Motors Acceptance Corporation, Residential Funding Corporation. GMAC is the financial arm of General Motors (which at last count included Vauxhall, Opel, Saab and Daewoo) and the RFC bit identifies its mortgage activity. No doubt someone from GMAC(colloquially) will tell Bill but as an ex-employee (and also to prove I read your excellent magazine) ...

  • Goldsmith Williams establishes Right to Buy team

    9 Sep 2004

    With future trends in house prices remaining uncertain, recent months have seen a rise in the number of people purchasing their council houses. Goldsmith Williams has responded to this demand by introducing a right to buy product, allowing mortgage brokers to offer their clients specific benefits, which include, competitive fixed fee products , online case tracking for mortgage brokers and their clients, automatic updates when key milestones are reached. SMS text messaging to keep clients ...

  • Guaranteed rents for buy-to-let investors save taxpayers millions

    10 Sep 2004

    This was revealed this week as the partnership between buy-to-let investors and the London borough of Hillingdon and managed by Orchard & Shipman plc celebrated its second anniversary by showing how savings on community housing can exceed £1.5m every year for every 1,000 properties. This public sector leasing partnership with individual private investors provides a guaranteed buy-to-let rental return for up to five years by cutting out letting and management fees and reducing ...

  • Guaranteed rents for buy-to-let investors save taxpayers millions

    8 Sep 2004

    This was revealed this week as the partnership between buy-to-let investors and the London borough of Hillingdon and managed by Orchard & Shipman celebrated its second anniversary by showing how savings on community housing can exceed £1.5m every year for every 1,000 properties. This public sector leasing partnership with individual private investors provides a guaranteed buy-to-let rental return for up to five years by cutting out letting and management fees and reducing ...

  • Halifax reveals 0.6% fall in house prices in August

    6 Sep 2004

    This was the tenth monthly fall in the last five years, a period when prices in the UK have more than doubled. House prices have increased by 1.8% during the past three months. This is significantly below the 6.5% rise recorded in the preceding three months. It is becoming increasingly clear that the five rises in interest rates since November 2003 are acting as a brake on house price growth. A number of other key market indicators have shown a softening in housing market ...

  • Hamptons International fights sexism charge in court

    6 Sep 2004

    Merylin Bartley, 37, is suing the firm for £120,000 for constructive dismissal and sexual discrimination. The £40,000-a-year senior sales negotiator alleges that the male-dominated Hamptons office ostracised her when she returned to work after maternity leave. When Bartley originally told her boss Paul Sennet she was pregnant she was told that he had already guessed because, quote: "your tits are enormous". When Bartley returned to work she found that ...

  • HBOS clarifies KFI accuracy

    7 Sep 2004

    HBOS has confirmed that it will only guarantee the online KFIs generated via its own web-based systems. This guarantee extends across the five mortgage brands. HBOS has invested significantly in the technology deployed in each of its five mortgage brands. This has been a deliberate move in preparation for mortgage regulation on October 31. The take-up amongst intermediaries has already been significant - in the Halifax brand alone over 85% of intermediary business is now transacted ...

  • Housing market confidence on downward trend, says Woolwich

    8 Sep 2004

    The fall in confidence demonstrates that recent interest rate rises have had a significant impact on the housing market. The Woolwich index shows that 56% of homeowners believe their property will continue to increase in value compared to 62% in July and 65% in June. This is the largest month-on-month drop since the Woolwich started measuring consumer confidence in 1998. That said, confidence is still slightly higher (1%) than August, 2003. Andy Gray, head of mortgages ...

  • Huntswood website wins RNIB award

    6 Sep 2004

    By law all UK company websites must conform to the Disability Discrimination Act (1995) covering this and other accessibility issues, but a recent report found that two thirds of FTSE 100 firms' sites do not. An investigation in April by the Disability Rights Commission into web access found that four out of five websites are virtually impossible for disabled people to use, and that visually impaired people struggle the most.

  • Industry reacts to interest rate freeze

    10 Sep 2004

    The most recent change in interest rates was an increase of 0.25% to 4.75% on August 5 2004. The Monetary Policy Committee has raised interest rates five times since last November, to try and grind to a halt, the UK property market and consumer spending. Jak Sardar, economist for Barclays says: "'The decision to keep interest rates on hold at 4.75% confirms our predictions that they would not raise rates this month. The five interest rate increases since November ...

  • Intermediaries top landlord poll

    7 Sep 2004

    A further 36% of this number look for the best deals on a six-monthly basis.The mortgage market is always changing and by reviewing their arrangements regularly, canny investors are able to take advantage of favourable deals. Mortgage advisers are the most popular source of information about current mortgage products, with 60% of landlords turning to them first. The media and best buy tables were also popular with investors. Landlords were cautious of using estate agents for ...

  • Internet Insite

    6 Sep 2004

    Interesting thing, design. What works for some people can be complete anathema to others. And this week's three websites from the West Midlands show just how different things can be. In the middle of the road is Oak Tree Mortgages of Shirley with a design concept that flows from the company name - and it works reasonably well too. At one end is Futures Mortgage Centre of Wolverhampton and West Bromwich, with a modern design that also flows from the company name. At the other end is ...

  • Lenders should recognise the potential in Northern Ireland

    6 Sep 2004

    For many years Northern Ireland has been seen as a place apart, not always for the best of reasons. However, as the province enjoys some normality after more than 30 years of disruption our housing market distinguishes us as different again, and certainly unlike our nearest neighbour, the Republic of Ireland. The rise in property prices in the Republic has been well documented. A basic three bedroom-semi in a Dublin suburb will set you back about £270,000. Mainland UK prices continue ...

  • Life insurance website launch

    8 Sep 2004

    Users simply go online, complete a short application form, which should take no more than five minutes, and, subject to them meeting the wide acceptance criteria, they will receive immediate life insurance cover from Reliance Mutual, one of the UK's oldest Mutual Life insurance companies. Users can also take advantage of the free, no-obligation quotation facility, which requires just five questions to be answered to enable the highly competitive monthly premium to be calculated ...

  • Lifetime Insurance Mortgage Expertsand Exclusive Connections enter into business alliance

    9 Sep 2004

    LIME members and clients will have access to a comprehensive and professional packaging service from Exclusive Connections, the largest mortgage packager in the market. The service will be available via six of Exclusive Connections local offices and will provide members with access to a packaged panel of 17 lenders and an inclusive range of products with highly competitive procuration fees. In addition, Exclusive Connections is now able to offer their members access ...

  • Look for clients in the Right places

    6 Sep 2004

    Many think the scheme's glory days faded along with its creator, Margaret Thatcher. Yet tens of thousands of council house dwellers still buy their home at discounted rates under Right to Buy every year, adding to the 1.5 million who have bought property since the scheme was introduced in 1980. This accounts for one in three of the extra 4.5 million owner-occupiers in the UK over the past 20 years. Quite a legacy. Anybody who suggests the current administration is ...

  • Majority of non-regulated intermediaries will sell additional products following regulation

    9 Sep 2004

    Research by The Exchange says 56% of currently non-regulated intermediaries will start selling other products following the introduction of mortgage regulation in October 2004. The findings also reveal that three-quarters (75%) of the intermediaries surveyed believe the cost of mortgage regulation will be passed onto the consumer. The research shows that two months short of regulation, intermediaries are concerned with existing e-commerce facilities and that intermediary ...

  • Market Watch

    6 Sep 2004

    • One-year money is down 0.10% to 5.14% • Two-year money is down 0.10% to 5.15% • Three-year money is down 0.09% at 5.20% • Five-year money is down 0.06% to 5.27% Refreshingly, most lenders seem to be increasing their SVRs by just 0.25% in line with the base rate increase. RBS has brought down its two-year fixed to 5.54% and its five-year fixed to 5.79% which both seem quite high compared with their peers. Rate of the week is C&G's ...

  • Marketing Brief

    6 Sep 2004

    It's interesting to see how lenders deal with my requests for marketing literature, especially when I contact the smaller, specialist ones where I usually speak to one of the senior managers. At Commercial Acceptances, for example, I ended up talking to the managing director (and very helpful he was too). But I wasn't impressed by the way some of them dealt with my enquiries. Take Credit & Mercantile, another bridging finance lender, for example. Having said it would ...

  • MCCB research confirms affordability is key for consumers

    7 Sep 2004

    The results - from a survey of over 200 mortgage borrowers - complement the mystery shopping research results published by MCCB in July. The survey covered the way affordability issues are being addressed by mortgage firms in the whole mortgage sales process. This research is the last to be commissioned by MCCB to gauge consumer opinion ahead of the FSA taking over regulation of the mortgage market on October 31 2004. The study was conducted by research specialists NOP World ...

  • Mortgage advertising under the FSA

    6 Sep 2004

    Prompted by the many confused advisers who contacted me last week, below is a brief resumé of the new rules regarding advertising. The FSA's detailed requirements for advertising are set out in MCOB Financial promotion - a mere 38 pages. However, you must also make yourself aware of the relevant sections of the main FSA Handbook, namely: From the Principles for Businesses (PRIN): • Principle 6: Customers' interests (a firm must pay due regard ...

  • Mortgage Brain to host free training events

    6 Sep 2004

    The events are open to all introducers and, in particular, Mortgage Brain users. Attendees will learn to better understand the new features of Mortgage Brain that enable compliance. The events will also include training so that introducers will be up and running in preparation for Mortgage Day. There will be two sessions per event. The mornings are for introducers who are directly regulated and the afternoons for members of networks. The events will be held throughout ...

  • Mortgage Direct receives MTA letter

    7 Sep 2004

    Peter Gladdy, director of Mortgages Direct, says: "We're pleased to have received our MTA letter. It is testament to the significant amount of time and money which Mortgages Direct has invested in compliance since the announcement of the pending FSA regulations. The letter is an important milestone in the development of the company and in our target of arranging £2billion worth of mortgages during this year." Mortgages Direct was established in 1990 to arrange mortgages ...

  • Mortgage Express acquires GMAC-RFC portfolio

    8 Sep 2004

    The purchase is the third arising from an agreement announced in December 2003 to acquire from GMAC-RFC a minimum of £400m, and up to £1.4bn, of loans in 2004 in four tranches. The total amount acquired by Mortgage Express so far in 2004 is £717m. All lending in the portfolio is secured on UK residential property and has a similar credit risk profile to previous portfolio acquisitions. The acquired mortgages are expected to be, by value, approximately 22% buy-to-let, ...

  • Mortgage Next publishes client care guide for brokers

    9 Sep 2004

    The guide specifies what actions brokers must take now to ensure they can continue to deal with their clients after M Day. Justine Tomlinson, Mortgage Next marketing director, says: "It has become clear that a number of brokers are not aware they must obtain their clients express permission if they want to continue dealing with them after M Day. FSA regulations specifically ban unsolicited real time promotions such as a broker phoning a client - unless the broker can prove ...

  • Mortgage Next strengthens management team

    9 Sep 2004

    Mal McConechy has been given responsibility for the newly created role of lender partnerships director. He will be responsible for managing the company's lender panel and ensuring the company's lending proposition operates within the new financial promotions regime. Lisa Barber takes over responsibility as sales director, a role which not only includes responsibility for the company's nationwide sales team, but also key account relationships. Lisa was previously director ...

  • MS Live event returns to Manchester

    6 Sep 2004

    The event will consist of presentations, focussed seminars and workshops and an exhibition of the biggest names in the business. As Mortgage Day nears a special industry panel debate will discuss the future of the industry. Panel members will include Chris Cummings, director of the Association of Mortgage Intermediaries, Rob Clifford, managing director of Mortgage Force, John Malone, head of mortgages at Premier Mortgages and Richard Fox, compliance director at the MCCB. In ...

  • Mutual benefits of dealing with societies

    6 Sep 2004

    The big guns of BMS having made their position clear by withdrawing the KFI facility from sourcing systems, others will surely follow. But most things move in cycles and I believe brokers could look at going back to how things were done in the good old days. Specifically, dealing more with building societies could lead to mutual benefits. A building society is run in the interests of its members and is not listed on the stock market or owned externally. The advantage of this is ...

  • Nationwide takes best (and worst) service award

    6 Sep 2004

    While Nationwide was voted as giving the worst service to brokers at the ceremony in Bristol, in a bizarre twist subsidiary UCB Home Loans was voted as giving best service. Andrew Forsey, managing director of Andrew Forsey Financial Services, asked brokers via Mortgage Strategy's letters page to vote on the best and worst service among mortgage providers and got some 700 responses. Northern Rock and Halifax were awarded second and third places in the worst category. Forsey ...

  • Network Data launches exclusive products funded by Abbey

    8 Sep 2004

    Details of the products are as follows: 4.64% two year stepped rate tracker at 0.11% below Bank of England in Year one and 0.49% above in year two, reverts to SVR currently 6.75%, with no extended tie in and included remortgage package. Network Data will pay 0.25% procuration fee for paper applications and 0.30% for on line applications received that subsequently complete. George Fleming, Network Data lender relationship manager, says: "We are very pleased to be able ...

  • Network Data teams up with Conti Financial Services

    7 Sep 2004

    The partnership comes in response to rising interest in overseas property purchases and allows borrowers access to a comprehensive list of mortgage and insurance lenders, which until recently was limited in choice. Acquiring an overseas property can be challenging. Simon Conn, senior partner for Conti Financial Services, says: "By working with Network Data's members, we can assist them in a complicated and difficult market. With the number of staff, lenders and variety of schemes ...

  • Network Data teams up with Conti

    10 Sep 2004

    The partnership comes in response to rising interest in overseas property purchases and allows borrowers access to a comprehensive list of mortgage and insurance lenders, which until recently was limited in choice. Simon Conn, senior partner for Conti Financial Services, says: "Acquiring an overseas property can be challenging. By working with Network Data's members, we can assist them in a complicated and difficult market. With the number of staff, lenders and variety of ...

  • Networks turn to third parties for compliance help

    6 Sep 2004

    Innovate Business Services has received a number of requests from networks, lenders and insurers looking to regulate behind the scenes what their advisers do . The company will vet new advisers and monitor and audit regulatory standards either as a consultant or as an outsourced or white labelled offering. It also provides technical services for complaints, financial promotions, DPA, monitoring and financial monitoring among other areas. Colin Preston, managing ...

  • New homes market stable as confidence returning

    7 Sep 2004

    The announcement follows three consecutive months of decreases as the fear of interest rate rises and uncertainty over the market combined with the annual summer slowdown had its effect on price levels. However the figures show that the seasonal dip is now over and prices are rising again, albeit more steadily than in previous years. Homebuyers have on the whole sat tight over the summer months, waiting to see how the market would respond to persistent interest rate rises and ...

  • No room for misunderstanding in the FSA world, warns AMI.

    9 Sep 2004

    Intermediaries who do not fully understand the FSA's rules for mortgage advice will face harsher penalties than ever before after Mortgage Day, The Association of Mortgage Intermediaries has warned. From October 31, intermediaries offering mortgage advice must be fully aware of the new FSA requirements. These requirements go far beyond those that currently exist under the Mortgage Code and firms that fail to implement the changes in time will face enforcement actions ranging ...

  • No time to relax with authorisation, warns ADMA

    6 Sep 2004

    Martin Gilsenan, spokesman at ADMA, says: "ADMA wants to impress on brokers that getting authorised is only the first step. "Compliance with FSA rules require ongoing dialogue with the regulator and the reporting requirements which first become due in April 2005 and six monthly thereafter. "Brokers need to be able to provide key information at that time and understanding what is required and starting to collate it now, brokers will be ready for the first deadline. "In ...

  • Norwich & Peterborough slashes fixed rates

    8 Sep 2004

    The rates for two-year fixed rate mortgage schemes are now 2.99% and 3.39%, the five-year fixed rates are now 5.58%, 5.98%, 5.74% and 6.34% and the 10-year rates are now available at 5.68%, 5.93% and 5.78%. Gary Lacey, N&P's group product manager, says: "These reductions mean that N&P is offering some of the most attractive fixed rates in the current mortgage market with some offering extra incentives to borrowers. This is great news for customers who are keen to keep their ...

  • Number of loans falls in July

    10 Sep 2004

    The CML in its latest market briefing says that even with continued signs of a cooling in the housing market, there is still the possibility of a renewed surge, early next year. It says: "The housing market is so strongly influenced by confidence. Firstly, the BOE may take its foot off the brake too soon, and the strong economic fundamentals, coupled with lower than expected interest rates, may engender a revival in confidence and drive the market forward." However, ...

  • On the beat

    6 Sep 2004

    Stop and think what they deliver and it will surprise you. If volumes are an indicator, production alone is significant, adding up to many billions in annual mortgage completions. But the media messages are confusing for packagers. Read one article and they're in business, another and they're out. None of this is helpful. The word packager is meaningless in today's market. It is a generalisation that undermines the value of intermediaries who can produce business in significant ...

  • Personal Finance Society , LIA and SOFA announce name and details

    9 Sep 2004

    The merged organisation will come into being on January 1 next year, subject to votes by both organisations. The mailings precede a series of member roadshows during September and October, which in turn are followed by EGMs, at which the votes will be taken on October 13 (LIA) and 15 (SOFA).  In a foreword to the joint document, SOFA chairman Nick Bamford, says: "The proposed merger with the LIA will allow us to extend our values and standards across a much wider number ...

  • Pink promotes discount self-cert from MEX

    6 Sep 2004

    The product is discounted by 1.16% for three years and has an early repayment charge of 3% of the amount repaid for the discount period. After the discounted period, the product will revert to bank base rate plus 2%. The product is available for employed and self-employed clients up to 90% loan to value. Applications can be made for both purchase and remortgage applications and the product offers flexible features including overpayments and underpayments. Nic Ekin, product ...

  • PMN encourages multiple AR applications

    7 Sep 2004

    According to The Professional Mortgage Network many would-be ARs are making a serious mistake by committing to just one network, particularly as PMN believes that as many as 20 networks won't be in a position to be offering full network facilities to members on Mortgage Day. Dale Knight, PMN managing director, says: "Many mortgage networks simply won't be able to offer a full suite of services to members come Mortgage Day. The FSAwill impose such draconian measures on them ...

  • PMN warns that backing one horse could be a costly mistake

    6 Sep 2004

    The Professional Mortgage Network says that many would be ARs are making a serious mistake by committing to just one network says PMN. PMN believes that as many as 20 networks won't be in a position to start trading post Mortgage Day. Dale Knight, managing director of PMN managing, says: "The Financial Services Authority will impose such draconian measures on them because their systems and infrastructures don't meet the regulators benchmark criteria that it will ...

  • Professional Mortgage Partnerships receives MTA letter

    6 Sep 2004

    The network has also announced the appointment of Martyn Bell as head of its network. Bell joins Professional Mortgage Partnerships with a background of over 25 years in financial services. His role will be to ensure that the network offers excellent products and service to cover the needs of all its appointed representatives plus continuing to offer support for directly authorised brokers. Bell says:"The MTA letter is an important first step on the road towards authorisation, ...

  • Read the application, Nick

    6 Sep 2004

    From Andy Schleider I read with interest and agree with most of Nick Walker's letter in your August 2 issue. The only thing I ask him to do is to look at the mortgage application for The Mortgage Works (previously Sun Bank, now part of Portman). It has a non-status offering and an affordability declaration clients sign to state that they have sufficient income to meet mortgage repayments. There is also a section that the broker signs to confirm that affordability has been ...

  • Redecortaing is our holiday obsession

    8 Sep 2004

    The average person spends more than 20 days a year - that's a staggering 486 hours - striving for perfection in their homes. A minimum of £550 is spent on each room of the house, on decorating materials such as paint, fixtures and fittings. And each person will decorate rooms up to six or seven times until they create home sweet home. The poll of 4,000 homeowners was conducted by mortgage provider Cheltenham & Gloucester in conjunction with their ...

  • Rock seeks clarification on Which? research

    6 Sep 2004

    Which? has already admitted that one of its key criticisms - that advisers working for major high street names failed to make it clear that they could only recommend their own company's mortgages - applies to independent advisers, not tied advisers. Ron Stout, public relations manager at Northern Rock, says: "The only specific area we could identify was incorrect and Which? has accepted that. But as the research stands, it's too general and we await more specifics." In ...

  • Rodea quits Hamptons

    8 Sep 2004

    Rodea has been appointed commercial director at Cluttons. Rodea says: "Over the past seven years I have helped build leading mortgage brokerages for two major estate agency brands in Savills and Hamptons, and I am keen to bring the experience and contacts I have developed during this time to Cluttons. "It is a challenge that I am relishing. I start in a few weeks time with an open mind and plenty of ideas. We will be offering an exciting package that will attract a ...

  • Small brokers face big issues

    6 Sep 2004

    There are tough issues coming up for the small mortgage broker and it doesn't look good for the consumer - or for anyone who values a competitive market. The concern is that small brokers (as defined by the relatively small volume of mortgage protection business they will be producing) will be a less appealing proposition to the insurance companies dealing with them for mortgage-related insurances. Andrew Cowell, head of sales at The Source, asks how many providers ...

  • Smee quits Aifa

    9 Sep 2004

    Smee has held his post at AIFA since September 1999. During that time he has navigated the organisation and its membership through numerous regulatory reviews, including the lengthy consultations on depolarisation, and has steered the industry through a change in legislation, regulators and rules.   John Gummer MP, Chairman of AIFA and AMI says: "The IFA industry is in Paul Smee's debt.  He has fought the IFA corner tirelessly and has earned AIFA the reputation of a representative ...

  • Some final thoughts on making your network choice

    6 Sep 2004

    Like most other turkeys in the country, they will be dead by Christmas. Since June the trade press has been increasingly vociferous in warning brokers that they should not leave their application to join a network until the last minute. Now, time is truly up and it is vital that brokers apply now. Their chosen network will be pushed to process their application, submit the relevant forms to the FSA and receive a response by the end of October. Thousands of words ...

  • SPF launch equity release scheme for Spanish houses

    9 Sep 2004

    SPF has launched the first ever product that allows UK owners of Spanish property to release equity up to 80% of the property value. Until now, releasing equity from a Spanish property, where strong property price increases have occurred in recent years, has been almost impossible beyond 40% of the value of the property. The product works by allowing clients to swap Sterling debt on their current mortgage in the UK for a Euro mortgage in Spain. This effectivelyreleases equity ...

  • SPML announces board appointments

    9 Sep 2004

    Melanie Leask has been promoted from executive manager mortgage servicing to director of mortgage servicing, and Anthony Keeble has been promoted from chief accountant to finance director. Angela Davies, formerly SPML's director of operations has moved to a position within SPML's parent company, Lehman Brothers, where she will continue to contribute to SPML's strategic direction and support. Andrew Townsend, SPML's finance director, is to leave the company at the ...

  • Survey reveals firms are failing in the compliance stakes

    10 Sep 2004

    Directly authorised mortgage companies and individuals are failing to ensure that they are in a position to deliver a compliant sales infrastructure by Mortgage Day. A Professional Mortgage Network survey of 400 organisations that are to assume directly authorised (Principal) status under the FSA's statutory regulatory regime reveals that: ?81% of directly authorised respondents have failed to recruit a suitably qualified individual, or team, to manage the compliance ...

  • Technology is key to brokers' future

    6 Sep 2004

    The pace of technological change in the mortgage market is breathtaking. It was not long ago that we had to live without email or the internet, and the mortgage process was one long paper chain. Now all brokers have access to the internet and most have their own consumer websites. Also, most acceptances in principle are done online through lenders' intermediary websites. Product selection systems allow access to electronic transfer of data and mortgage companies could not operate ...

  • The cost of regulation is a small price to pay for fairness and trust

    6 Sep 2004

    To some lenders and intermediaries, it's no coincidence that the new regulatory regime comes into force on Halloween. For them, M-Day is a real-life horror story, something to fear as they count the costs and implications for their business. At The Derbyshire, we believe regulation is no pumpkin but will benefit the consumer, and thus our industry. Preparing for regulation has been onerous and the costs of compliance will be high but this is a fair price to pay for regaining ...

  • The Mortgage Mole

    6 Sep 2004

    IRON-Y Another hectic week for Mole, last week. After dashing back from the Edinburgh Festival courtesy of those charmers at Intelligent Finance it was on to Dublin for Bankhall's glitzy awards ceremony. Mole was, of course, only there as an observer leaving the seriously stupid drinking to Ironside who, as usual, was on form. Let us say no more. RUNNING TOTAL Meanwhile those wheels were in motion on Sunday as Ironside, features ed Helen and hackette ...

  • Time for co-operation, not posturing

    6 Sep 2004

    Of late there have been fleeting glimpses of a spirit of cooperation breaking out in the mortgage industry. Some notable examples have been Mortgage Intelligence, Mortgage Next and Pink sharing their exclusive products, and Network Data integrating its mortgageLink system with the Mortgage Trading Exchange. Perhaps I might spend a few minutes on the good tidings of the latter development before getting back to grim reality and the unhelpful posturings of a number of lenders in ...

  • TMB returns with three core products

    6 Sep 2004

    On Friday the company launched a range of three core products. The Prestige mortgage is for loans over £500,000, base rate plus 0.99% for the life of loan. House 2 House is a buy-to-let based on income, not rental yield, and is a level tracker of base rate plus 1.79%. The third product, Ten to Let, is a buy-to-let based on rental yield at 125%. It is a level tracker at base rate plus 1.99%. All the loans have a maximum loan size of 75%. The company says it will launch ...

  • TMO receives its MTA letter

    8 Sep 2004

    Mark Charlesworth, managing director, says: "We are pleased to announce receipt of our MTA letter, which endorses our detailed plans post Mortgage Day. "After discussions with our membership earlier in the year we know that many will be directly authorised after October 31 and that it will be business as normal. However, many others are looking at the introducer route. Consequently we put together a unique proposition which gives our members three introducer options. These options ...

  • TMO roadshows promote introducer options

    10 Sep 2004

    Three options are being offered to those brokers who will not be authorised to give, or to those that will choose not to give advice, after October 31. There are no application fees or ongoing charges, and Introducers will face far less or no regulation or compliance worries (depending on the Option taken) as clients will receive full advice through TMO's business to consumer brand, The Mortgage and Loan Group. MLG's advice team will take care of the compliance burden because ...

  • TMW lowers rental income ratio on B2L deals

    6 Sep 2004

    The previous ratio was 130%, which has now dropped to 125%. This will be based on a nominal rate of 5.99% or the actual pay rate if higher up to 80% LTV. Paul Howard, associate director for Portman Group Intermediary says that after the recent interest rate rises it didn't seem right to factor in more service interest. He says: "We still have confidence in the buy-to-let market. Surveys show the sector is doing well. I feel we are near the top end of the interest rate cycle ...

  • Top ten tips for giving your house the edge, when selling

    8 Sep 2004

    With house prices falling nationally for the first time this year it is vital that anyone looking to put their property on the market has the edge when it comes to selling it. The average national house price fell by 0.1% in July according to Hometrack property research company. However, it is not expecting a housing market crash, making it the ideal time for anyone who is still considering putting their house on the market to act now before they slip any further. Bolton, ...

  • Tough times ahead for central London developers

    8 Sep 2004

    Tough, rather than disastrous, were the words used last year to describe future trading conditions. And this has proved to be pretty much the case. Take up may have fallen by 50% over 2003, but high levels of off-plan sales in previous years have provided developers with a sizeable buffer zone to cushion any future storm they may have to weather. Take up and supply constraints are likely to prove the two vital factors which will help insulate many central London developers from ...

  • Useful tips to maximise rental yields

    10 Sep 2004

    Nick Clark, managing director of Homebuyer Events, organisers of the show, says: "The key to this business as with any investment is to undertake thorough research. There's a whole range of options currently available aside from UK residential property, including property investment clubs, commercial opportunities and homes overseas. There are still substantial returns to be made by investing in property - with the buy to let boom by no means over." The property investor ...

  • Vesta Packaging launches sub-prime mortgage

    10 Sep 2004

    Its new start mortgage for purchase and remortgage permits unlimited arrears in the previous 12 months where the current lender is deemed a conforming lender and it will also accept applications, where the current lender is classed as sub prime, so long as any three out of the last six payments have been made and this is available upto 85% LTV.   An unlimited amount of County Court judgments are allowed, in addition to individual voluntary arrangements well conducted for at least ...

  • What will be the position regarding HBOS products and whole of market coverage after M-Day?

    6 Sep 2004

    The answer to this question lies in the Financial Services Authority's Mortgage Conduct of Business Rules 4.3 which deal with the scope of service provided by firms when advising and selling. The scope of service offered by advisers is defined under three categories: the whole market; a limited number of mortgage lenders; or a single mortgage lender. The distinction between limited number of lenders and whole of market seems to ignore the scope of the majority of advisers ...

  • Will interest-only deals be the next scandal?

    6 Sep 2004

    Lenders and brokers are warning that a future mis-selling scandal could surround borrowers taking out interest-only mortgages without setting up repayment vehicles. Some believe borrowers are mistakenly relying on their properties to increase in value to pay off their debts and there is concern people are buying consumer items with money that could be contributing towards mortgage payments. Platform has warned that while there is a place in the market for interest-only ...

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