Mortgage Strategy
7 March 2005

  • 75% Of packagers could be wiped out in a year

    7 Mar 2005

    Jon O'Brien, operations director at the Professional Mortgage Packagers Associates, says that packagers have to consider their options. He believes they can either get swallowed up by another packager, go down the lender route, or consider satellite packaging.He says: "Every packager has got to make decisions. Sub-prime lenders are telling me that within the next 12 to 18 months they are only going to deal with about big 50 packagers."It will be the big packagers that will gain ...

  • A rough guide to FSA compliance

    7 Mar 2005

    ARs can use an FSA visit to ensure the service they signed up for is on track, while there are certain things directly authorised firms must check in advance of this test of their systems, says Neal Smith

  • A View From The floor

    7 Mar 2005

    Adrian Coles, director-general at the BSA, says the revised Banking Code is a good thing in that customers will be able to access clear and understandable information

  • Accord to halve its service calls

    7 Mar 2005

    Accord Mortgages is looking to halve the number of calls made to its service centres by the end of 2005.Rather than brokers chasing cases and having to telephone to find out what stage their applications have reached, the firm intends to use text messages and emails to keep brokers updated, thus heading off any problems early.Linda Will, managing director of Accord Mortgages, says: "The phones are bearing the brunt of enquiries as many brokers are reluctant to refer to our online ...

  • Adviser Office and Invu integrate to provide document management

    8 Mar 2005

    Lindenhouse and 1st, have announced the total integration of their Invu and Adviser Office products.

  • Amber Homeloans relaunches website

    10 Mar 2005

    Amber Homeloans has relaunched its website as a one-stop solution for intermediaries.

  • Assessment centres can be good for both parties

    7 Mar 2005

    Mark Witcomb is senior consultant at Venatus Business Intelligence

  • B&B issues pre-Budget wish list

    7 Mar 2005

    Bradford & Bingley has outlined what it hopes chancellor Gordon Brown will consider in his Budget on March 16 to offer first-time buyers assistance.

  • Bank of England holds interest rates at 4.75%

    10 Mar 2005

    The Bank of England Monetary Policy Committee has held interest rates at 4.75%.

  • Base rate freeze expected, says Charcol

    11 Mar 2005

    London brokerage Charcol says the base rate freeze was expected.

  • Be sensitive to cultural factors

    7 Mar 2005

    Richard Howells, head of Bankhall Mortgages, says being aware of cultural differences is important when negotiating business deals with people from different countries

  • Blue Sky

    7 Mar 2005

    What is negotiation? It is a set of skills anyone can learn. When researchers observed the behaviour of negotiators, they learned that the most successful negotiators do the following things

  • BMS to increase sub-prime proc fee to 1%

    8 Mar 2005

    BM Solutions will be increasing its sub-prime procuration fees by 0.25% to 1% this Friday.

  • Book now for the industry's premier event in 2005

    7 Mar 2005

    Mortgage Strategy's Mortgage Summit in Jerez, Spain, is now just a little over six months away.The Mortgage Summit will be the industry's premier event for mortgage strategists, combining a day and a half of top quality, editorially driven conference streams, debates and work shop meetings.Keynote, panel and plenary sessions will take place in the purpose built conference centre, while workshops comprising groups of five delegates will take place at each of the sponsors' ...

  • Bright future for buy-to-let sector

    7 Mar 2005

    With a continuing housing shortfall and lenders giving property investors an attractive choice of mortgage products the future certainly looks rosy for the sector, says Tony Capon

  • Broker says AfI is in meltdown

    7 Mar 2005

    A broker has accused Abbey for Intermediaries of being in meltdown following job cuts since the takeover by Banco Santander.The broker, who does not wish to be named, claims that he is experiencing severe difficulties trying to contact the Redhill service centre and says calls are not being returned.He says: "We have clients losing out on properties - it's a nightmare. Some are accusing me of negligence because of placing them with Abbey."I have left 26 messages since last ...

  • Burgesses launches British income protection

    8 Mar 2005

    Burgesses has today launched british income protection, a package it says is a low cost non-discriminatory protection against the risks of unemployment and disability. British income protection is fully compliant with FSA guidelines and provides a maximum monthly benefit of 1000, or 50% of gross monthly income, whichever the lesser. Cover is available to all UK residents below retirement age, irrespective of occupation, gender or employment status.

  • Buy-to-let is prime source of property for rental market

    8 Mar 2005

    Nearly 60% of all properties coming to the rental market are buy-to-let investments, but over a quarter of the supply still belongs to landlords letting their own homes, says Association of Residential Letting Agents.

  • CeMAP Services launches ICOB section on compliance guidance website

    8 Mar 2005

    CeMAP Services has produced sample forms to help with ICOB regulation, under the sample forms link on its website.

  • Channel your ambition to your own advantage

    7 Mar 2005

    Colin Lloyd is head of operations at Reed Insurance

  • Charcol calls for Stamp Duty reform

    9 Mar 2005

    Charcol is calling on the chancellor to radically alter the rules that govern Stamp Duty land tax in his Budget statement on March 16.

  • Chase de Vere's rewarding idea

    7 Mar 2005

    Chase De Vere Mortgage Management is offering what it believes to be the industry's most generous commission package for introducers.It will pay introducing firms or individuals a percentage of the loan amount for any client they recommend, not only on the first transaction but on each transaction the client conducts for the rest of their lives.The commission will typically be between 15% and 25% of Chase De Vere's gross earnings on each deal - typically 1%. This will usually ...

  • CML urges reform of 'unfair' tax

    7 Mar 2005

    The Council of Mortgage Lenders' Budget submission urges the chancellor to reduce the burden of Stamp Duty on homebuyers.The CML calls on the government to commit to reforming what it describes as a lazy and unfair tax over the life of the next Parliament.With the general election likely to be in May, now is the time to press for Stamp Duty reform.If you've not done so, sign the coupon below and send it to: Mortgage Strategy, 50 Poland St, London W1F 7AX. Or visit www.mortgagestrategy.co.uk

  • CMLS signs franchise agreement to create CMLS London

    7 Mar 2005

    Complete Mortgage and Loan Services has signed its latest franchise agreement, creating CMLS London, a packaging firm situated in the City.

  • Consumer confidence increases by 5% in February

    11 Mar 2005

    Consumers' confidence in the housing market has increased for the second time this year with a jump of 5% in February.

  • Curriculum Vitae - Mark Leaper

    7 Mar 2005

    "In shooting, I have a better hit rate clay targets than live ones"

  • Dear Delia

    7 Mar 2005

    Simon White is director of Ashdown Lyons

  • Financial Engineering launched by Clerical Medical

    11 Mar 2005

    Financial Engineering, the next service in the intermediary support programme, Advice Matters, is now available from Clerical Medical.

  • Freedom Finance named in Sunday Times top 100

    7 Mar 2005

    Freedom Finance has been named as one of the top 100 companies to work for in the UK in the annual list complied by The Sunday Times.

  • FSA calls for contributions to enforcement process review

    11 Mar 2005

    The Financial Services Authority has invited interested parties to help shape views on its Enforcement Process Review.

  • FSA website redesigned for speed and efficiency

    7 Mar 2005

    The Financial Services Authority has restructured and redesigned its website with the aim of helping firms cut the time they spend on regulation.It claims improved navigation and an intuitive search facility will make it quicker and easier for users to find the information they need. Firms should also find it simpler to use the site to send information to the FSA, reducing paperwork and spending less time on regulatory reporting.The website has been visited by 270,000 visitors ...

  • FSCS default declarations open the way for consumers to claim compensation

    8 Mar 2005

    Consumers may be entitled to compensation of up to 48,000 if they have lost money as a result of their dealings with any one of 32 firms recently declared in default by the Financial Services Compensation Scheme.

  • Hamptons expands, launching Hong Kong office

    7 Mar 2005

    Hamptons International Mortgages this week officially launches into South East Asia to capitalise on the growing expatriate market.Hamptons Hong Kong office launches on Thursday this week. The company also has offices in Tokyo and Singapore.Although the estate agency has operated in the former colony for some years, it has now embarked on establishing a brokerage to complement its services in the region.Just last year the firm pre-sold over 20m-worth of apartments in London's ...

  • Has the FSA been too slow off the mark in policing financial promotions?

    7 Mar 2005

    The watchdog has been doing the groundwork and firms not complying with its rules on promotions will soon feel its bite, says our experts

  • HBOS profits soar to record 4.7bn

    7 Mar 2005

    HBOS, the country's biggest mortgage lender, last week revealed record profits of 4.77bn.The figure, calculated before tax and exceptional charges, is a 23% increase on the 3.88bn it made in 2003.At the same time, the company achieved its stated aim of reducing its market share.While it grew its retail mortgage book by 18.5bn to 193bn, this represented an 8% fall in HBOS' overall net lending market share from 25% in 2003 to just 17%.HBOS says this was down to a combination ...

  • HML scoops securitisation award

    7 Mar 2005

    Homeloan Management has won the Structured Finance International award for the best servicer for securitisation.

  • Home for a stately 70m

    7 Mar 2005

    The most expensive country property ever to go on sale in the UK went on the market last week.Priced at over 70m, Updown Court is being heralded as the first 21st century stately home in Britain with grounds larger in area than either of the royal residences, Buckingham Palace and Hampton Court.The property is being jointly marketed by estate agencies Savills and Hamptons International on behalf of property developer Leslie Allen-Vercoe of Rhymer Investments.Located in the ...

  • Homefast warns first-time buyers over additional costs

    11 Mar 2005

    Homefast property lawyers are warning that it is not just the cost of the property that can prove expensive for first-time buyers.

  • In the dark on how many rent out homes

    7 Mar 2005

    Halifax last week held its hands up and admitted for the first time it has no idea how many mortgage borrowers let their properties out without informing the lender.The implications for Halifax and other lenders, particularly those that securitise, could be far reaching.When one of Halifax's two million borrowers decides to purchase another property and rent out their existing home they should inform the lender.But Halifax, like all other lenders, has no real idea of the ...

  • Internet Insight

    7 Mar 2005

    Mortgage Strategy's weekly guide to what's hot and what's not on the web. Jeff Sutherland-Kay checks out the websites of brokers, product providers, clubs, networks and packagers

  • Investor confidence unaffected by unsure market

    7 Mar 2005

    Research from Landlord Mortgages reveals that the rocky housing market hasnt affected investors confidence in property investment.

  • Just a series of unfortunate events

    7 Mar 2005

    AMI members have reported a series of strange happenings recently, all of which represent isolated malfunctions in an otherwise smoothly functioning market, says Chris Cummings

  • Just Retirement enters equity release market

    7 Mar 2005

    Just Retirement is to launch a fixed lifetime mortgage. The fixed lifetime mortgage, an equity release product available exclusively through the independent financial adviser community, carries enhanced benefits which may allow older homeowners who are - or have been - smokers or have a medical condition the opportunity to access a higher cash sum.

  • Justice must be done on FOS complaints

    7 Mar 2005

    We all like to complain and therefore must expect people to make complaints against us. You can't please all the people all the time - and sometimes it feels as though you can't please any of the people any of the time.Yes, there will always be complainants but when they cost you money it's time to implement a risk strategy. But with the Financial Ombudsman Service you have no control and for the most part, little say in the number of complaints made against you.The ruling that ...

  • Kensington appoints head of corporate accounts

    7 Mar 2005

    Kensington Mortgages has appointed Stuart Johnson to the position of head of corporate accounts.Johnson joins Kensington from The Mortgage Operation where he spent seven years.

  • L&G network denies its members are unhappy

    7 Mar 2005

    Legal & General Partnership has denied rumours its members are unhappy with the service it has provided since Mortgage Day.Sources tell Mortgage Strategy that some if its largest appointed representatives are considering going directly authorised because they feel let down by L&G and its IT provision in particular.However, Graham Newitt, managing director of intermediary solutions at L&G, says: "There are no problems. We were above target in February and did 1.75bn of ...

  • Lenders and borrowers linked directly

    7 Mar 2005

    An online marketplace called Zopa has been launched to connect borrowers and lenders directly.Zopa puts people who want to lend in touch with creditworthy borrowers and cuts out the banks. The borrower pays a 1% exchange fee to Zopa up front. The system has been created by a team led by Richard Duvall, who set up internet bank, Egg.Borrowers receive a rate linked directly to their personal credit rating and lenders can choose their rate of return depending on which borrowers ...

  • Let's scrap DIPs, says GMAC-RFC

    7 Mar 2005

    GMAC-RFC has called on lenders to stop wasting intermediaries' time with old-fashioned decisions in principle.The firm says its online binding decision system has been a success with brokers and has resulted in it achieving a 90% completion ratio.Jeff Knight, head of marketing services at GMAC-RFC says: "We are calling on all lenders to stop wasting intermediaries' time with old- fashioned DIPs which are about as relevant as the 19th century banking language they use."But ...

  • Market Watch

    7 Mar 2005

    With swap rates surging, last week was hectic for rate pulls and I reckon coming weeks will be just as busy.

  • Marketwatch

    7 Mar 2005

    Bankruptcy can be seen as the most extreme example of financial ill health, with the patient about to take their last breath having exhausted all ways of getting back on their feet.

  • McGinn to leave Abbey for Intermediaries

    7 Mar 2005

    Ambrose McGinn, director of Abbey for Intermediaries, is to leave the company on March 24.

  • Millions in Cash from Conning Brokers

    7 Mar 2005

    Mortgage brokers' MCCB fees should be returned to them as it would be a shame if the Board's final act - and enduring epitaph - was to bite the hand that fed it, says Richard Griffiths

  • Mortgage repayments to soar as 2003 fixed rates end

    7 Mar 2005

    Almost 350,000 people who took out two-year fixed rate mortgages in 2003 are facing an increased monthly mortgage bill of 52.53m.

  • Mortgage Times Group launches online case tracking

    7 Mar 2005

    The Mortgage Times Group has launched an online case tracking facility.

  • Mortgage-1 reports record applications

    7 Mar 2005

    Mortgage-1 has reported record-breaking levels of new applications in February.

  • Mortgages PLC and Mortgage promotions launch initiative

    11 Mar 2005

    Mortgages PLC and Mortgage Promotions have launched of an initiative which will provide an insight into market trends in the mortgage industry.

  • MPLC demands public apology from BMS

    9 Mar 2005

    Mortgages plc, the UK residential lender and wholly owned subsidiary of Merrill Lynch, is calling on BM Solutions to issue a public apology following its recent confirmation that it intends to increase the level of its procuration fees.

  • Nationwide calls on industry to heed Miles Report

    10 Mar 2005

    Nationwide has called on the mortgage industry to follow the recommendations of the Miles Report as a matter of urgency because it would save consumers around two thirds of a billion pounds.

  • Nationwide launches fixed rate mortgage

    8 Mar 2005

    Nationwide has launched its fixed rate mortgages of two, three and five years.

  • Network Data denies sale plan

    7 Mar 2005

    Network Data has denied speculation that it is looking to sell to a lender.Richard Griffiths, managing director of Network Data, says although he is raising capital to invest in other networks he has absolutely no plans to sell to a lender.Griffiths says: "I own 80% of Network Data and selling to a lender is not in my plan."One source says that, come July, lenders will be looking to take some responsibility for the people they do business with, especially if they have not ...

  • Nicks notes

    7 Mar 2005

    Avon recently announced that it is considering selling life and household insurance through its door-to-door sales channel. At first this might seem like bad news - added competition for intermediaries.

  • On the beat

    7 Mar 2005

    Many things make me see red, both inside and outside the industry . Outside the industry they are too numerous to mention and I won't bore you with the list.

  • Optoma recruits two underwriters

    10 Mar 2005

    Optoma Broker Solutions has recruited two underwriters to its team of 40 in the Leatherhead head office.

  • Packagers must be open on fees

    7 Mar 2005

    Make no mistake, Mortgage Strategy has highlighted the high - and even higher - proc and packaging fees paid by some sub-prime lenders. What's more, one packager that advertises in this publication has had the gall to question our stance.That packager - which already knows where it stands - should think again.There are many issues associated with packaging, not least including ensuring your clients are fully aware of fees and how and why they are paid. Equally important, ...

  • Paragon and James Hay join forces

    9 Mar 2005

    Paragon Mortgages and James Hay have unveiled a joint venture.

  • Purely is simply a good broker option

    7 Mar 2005

    Purely Mortgages' end-to-end mortgage processing system can provide smaller brokers and packagers with a quick and cost-effective solution to their IT needs, says Frank Eve

  • RAMP members plan for expansion

    9 Mar 2005

    The Regulatory Alliance of Mortgage Packagers' latest quarterly survey shows that all of its members are making plans to expand their business in 2005.

  • Regulation is putting brokers off non-conforming business

    7 Mar 2005

    From Matthew CowanLending decreased by 18% in January and while most commentators attribute this to a general slowdown of the market, I believe there is an additional factor involved.As a packager operating principally in the niche and non-conforming sectors, I have spoken to a large number of brokers who are now frightened to write this kind of business. Many intermediaries see niche and non- conforming business as high risk because of the potential cost of claims against them.Brokers ...

  • RICS to help bring historic buildings back in to use

    11 Mar 2005

    The Royal Institute of Chartered Surveyors, English Heritage and the British Property Federation are teaming up to help bring historic buildings back into use.

  • Run with the pack

    7 Mar 2005

    Whatever your opinion of Home Information Packs, they're on their way and mortgage brokers can take certain steps to ensure they embrace this radical development as an opportunity rather than a threat, says Harvey Jones

  • Saffron Waldon Herts & Essex launch lifetime tracker

    8 Mar 2005

    The Saffron Waldon Herts & Essex lifetime tracker mortgage follows the Bank of England base rate plus 0.20% for the life of the loan, with a rate of 4.95%, 5.2% APR. Andy Golding, sales and marketing director, says: "The lifetime tracker mortgage is the perfect product for homebuyers or remortgagers wanting complete piece of mind.

  • Scottish Widows Bank reveals record profits

    9 Mar 2005

    Scottish Widows Bank has celebrated its 10th anniversary with record pre tax profits, up 49% to 24.6m for 2004, representing a decade of profit.

  • Sell conveyancing services to boost dwindling fee incomes

    7 Mar 2005

    From Mark BaileyReading Mortgage Strategy every week I have spotted a theme - since regulation, mortgage intermediaries are struggling to live up to their pre-regulation fee income levels.With all the extra red tape cases are taking longer to process, so to maintain income levels brokers are having to do twice as many cases. This, combined with the issue of reduced fees from many lenders, means we have a large number of unhappy brokers.My advice is to look elsewhere ...

  • Should ARs also get two free complaints?

    7 Mar 2005

    Mortgage Strategy revealed last week that while the Financial Ombudsman Service allows two free complaints for each directly authorised broker, it permits only two per network rather than per appointed representative.

  • Skipton says interest rate freeze was expected

    11 Mar 2005

    Skipton has responded to the Bank of England's decision to hold interest rates by saying a freeze was expected.

  • Small brokers fear reporting pressure

    7 Mar 2005

    Brokers that run their own firms and smaller organisations are complaining the reporting requirements of the Financial Services Authority will place unnecessary pressure on them.The FSA last week underlined its mandate for electronic reporting, which will come into effect on July 1.But sole brokers are saying the time required to file the electronic reports will eat into time they would have spent selling.Danny Lovey, sole broker at The Mortgage Practitioner, says: "The ...

  • Small businesses are being fleeced by FSA fees structure

    7 Mar 2005

    From Brian BatesLooking at the Association of Mortgage Intermediaries' review of FSA charges, it's clear that small businesses are paying over the odds in fees.AMI gives three examples. Business A earns 70,000 a year, business B earns 400,000 a year and business C earns 12.5m a year. Fees paid are as follows:A earns 70,000, pays 1,500 per annumB earns 400,000, pays 2,981 per annumC earns 12.5m, pays 63,875 per annum

  • Sourcing systems warning

    7 Mar 2005

    Brokers have been warned by Kensington Mortgages that in focussing on rates, sourcing systems do not always offer the best products.Though Kensington backs sourcing systems and has just joined forces with Trigold on its Enhanced Non-Conforming system, it says there are limitations to what the systems can currently do.It suggests that in future lenders' underwriting rules could be added to the systems.Mike Cook, head of product management and development at Kensington, says: ...

  • SPML integrates online AIP with Trigold

    7 Mar 2005

    Southern Pacific Mortgage Limited has announced its first full integration with Trigold.

  • SPML renews title insurance contract with L&E

    9 Mar 2005

    Southern Pacific Mortgage Limited has renewed its contract with London & European for the supply of title insurance.

  • Straight through to depolarlisation

    7 Mar 2005

    Depolarisation will mean a different landscape for lenders and a straight through processing capability will be important in making the best of the opportunities , says Phil Heaton-Jones

  • Stroud & Swindon reveals profit after tax of 8.9m

    7 Mar 2005

    Stroud & Swindon has revealed profits after tax for 2004 of 8.9m.

  • The Mortgage Mole

    7 Mar 2005

    Digging the dirt in the mortgage world

  • TMB to offer online GI and conveyancing

    7 Mar 2005

    The Mortgage Business is looking to offer online general insurance and conveyancing platforms by the end of this year. As part of its system it intends to offer Halifax home insurance electronically.The firm also wants to launch a conveyancing tool to help brokers and cut service times.Having last year taken the extreme measure of pulling out of the market for three months because of a build up in pipeline business, managing director Bill Dudgeon and director of sales and marketing ...

  • Unfair housing legislation overturned

    11 Mar 2005

    Legislation which could have turned thousands of Northern Irelands landlords into a secondary police force was overturned in the High Court today.

  • Vertex to buy Marlborough Stirling

    8 Mar 2005

    Marlborough Stirling is to be bought by Vertex Data Science, a wholly-owned subsidiary of United Utilities, with the deal expected to be completed by May 2005.

  • We must protect ourselves when dealing with B2L clients

    7 Mar 2005

    From Paul OrmerodI am a fan of Trigold so was delighted to see it produced a Key Facts Illustration not regulated by the Financial Services Authority for issue to buy-to-let clients.Why bother issuing a KFI at all, you ask, and isn't a reasons why letter a waste of time for a product that is unregulated?As a landlord of 10 years' experience and an IFA dealing with both residential and buy-to-let mortgages, I say bear two things in mind before taking the easy option. First, ...

  • Women call mortgage shots

    7 Mar 2005

    The lender has produced research showing that one in four women with partners make the financial decisions in their relationships, while just 7% of the women questioned say their men take control when it comes to financial issues.When it comes to mortgages and remortgaging, the research indicates that twice as many women as men make the final decision.It also shows that 48% of women are likely to seek financial advice from family, while 36% of married women see financial advisers ...

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