Mortgage Strategy
7 October 2002

  • 'Seal of approval' clubbing continues

    7 Oct 2002

    Birmingham Midshires Solutions is facing a growing chorus of disapproval from packagers after it launched its controversial packager "seal of approval" campaign. Nick Stettner, managing director of packager Mortgage Master, told Mortgage Strategy: "Once again the majority of the sub-prime lending industry (both lenders and packagers) finds itself on the defensive against another Michael Bolton tirade. "Whilst it may provide an amusing sideshow, his comments damage the credibility ...

  • Abbey National rejects Bank of Ireland merger talks

    8 Oct 2002

    The board of Abbey National has unanimously rejected the possibility of a merger with the Bank of Ireland. The board met on October 7 to discuss a preliminary approach from the Bank of Ireland relating to a combination of the two businesses. In a statement issued on October 8, Abbey National says it has concluded that the Bank of Ireland's approach is "not in the best interests of shareholders". It adds that implementation of the operating and structural ...

  • ABI outlines savings steps

    10 Oct 2002

    The Association of British Insurers has outlined some vital steps it says the government needs to take to implement Ron Sandler's vision of a suite of simple savings products. Speaking at a Treasury conference called to kick off the consultation on the new products, Keith Satchell, ABI deputy chairman and chief executive officer of Friends Provident, said the success of the Sandler proposals relies on a number of necessary steps being taken. Firstly, the government ...

  • Action needed to tackle Welsh local authority housing failures

    7 Oct 2002

    Local authorities in Wales are failing to deliver results on housing, according to an article in the UK Housing Review 2002-2003. The article argues that the Assembly government cannot simply pass the buck to local government but should intervene to redress the failures. Specifically, the article criticises the "tyranny of partnership" that exists between central and local government in Wales. It argues that the cosiness of this partnership has reduced the Assembly government's ...

  • Alliance & Leicester launches TV ads

    9 Oct 2002

    Alliance & Leicester is returning to TV advertising, with a campaign supporting its Direct Personal Loans product. Alliance & Leicester is a leading provider of direct loans and the brand is supported by an annual marketing spend of over £25m. Stephen Leonard, director of marketing services, says:: "Alliance & Leicester is the already the largest user of the insert channel and one of the largest direct marketing users. "The move into direct response ...

  • Australian bank calls off Abbey National pursuit

    10 Oct 2002

    National Australia Bank has confirmed it made a bid for Abbey National - but says that all talks of a merger have now ended. The NAB says: "The discussions regarding the National's proposals did not result in any agreement and have now ceased." Confirmation of the NAB bid comes in the same week that Abbey rejected a takeover approach from Bank of Ireland on the grounds it was not in shareholders' best interests. Bank of Ireland has said it is "surprised" ...

  • BANK OF ENGLAND MAINTAINS INTEREST RATES AT 4.0%

    10 Oct 2002

    The Bank of England's Monetary Policy Committee today voted to maintain the Bank's repo rate at 4.0%. The minutes of the meeting will be published at 9.30am on Wednesday 23 October. Reacting to the Bank of England's decision to keep interest rates on hold, CBI Chief Economic Adviser, Ian McCafferty says: "Stability is crucial for business at the moment. So before making a move the Bank needs to be convinced that a cut would not need to be quickly reversed.

  • Beware the danger of only a single platform

    7 Oct 2002

    Name and address supplied While I read last week's news in Mortgage Strategy that Mortgage Brain and Mortgage 2000 will be sharing their own "groundbreaking" common platform for mortgage applications with interest, mortgage brokers must see the danger of placing trust in a single platform. I distribute almost 75% of cases through the Trigold platform and have no reasons to complain at the service I have received. However, if its service floundered, which company would I ...

  • BM Agency Services shows strong growth

    7 Oct 2002

    BM Agency Services, the provider of financial and insurance products to intermediaries, is achieving commission turnover of over £350,000 a month after only a year in operation.Formed in June 2001, it is the newest and fastest-growing company in the Berkeley Morgan Group with over 160 intermediary agencies and brokers representing over a 1,000 individual advisers throughout the UK.Because of its rapidly increasing size and its close links with the Berkeley Morgan ...

  • BMS' packager policy is certainly sub-something

    7 Oct 2002

    From Jeffrey Cureton-Royle and Nigel Grinsted So Birmingham Midshires Solutions' Michael Bolton now likes packagers again. (Does he really?) But apparently only a few and only if they wear the acclaimed 'Approved Packager' badge with unashamed pride. (Hoorah! How do we get a badge?) Allegedly, the rest of us are just 'middling men' who slow up the whole process, so it seems. (Sob sob.) So how did the chosen few get chosen? (Now that's a good question.) Maybe ...

  • Britannic Money issues CP146 guide to intermediaries

    8 Oct 2002

    Britannic Money has produced a guide explaining how FSA proposals on mortgage regulation could affect intermediaries. The proposed rules are contained in the consultation document CP146, titled "The FSA's approach to Regulating Mortgage Sales". The deadline for consultation responses is November 11, 2002. The new rules will take effect during 2004, and mean that almost all mortgage intermediaries will require authorisation from the FSA ? changes that Britannic ...

  • Brokers sceptical about Financial Health Service

    7 Oct 2002

    The idea of a "Financial Health Service" has met a sceptical response from brokers. The FHS is the brainchild of David Shelton, head of intermediary strategic planning at Clerical Medical. He proposes a network of qualified financial health advisers who will provide basic "financial health checks" on subjects as diverse as mortgages, debt and pensions. More complex cases will be referred to IFAs or other advisers. Shelton says the service will be aimed at low ...

  • Bungalows beat Buckingham Palace as "dream home"

    9 Oct 2002

    Country cottages and bungalows leave castles and penthouses way behind in the properties that average Brits consider a "dream home". An NOP survey for Abbey National shows that 24% of Britons would opt for a country cottage if they won the National Lottery. A further 18% would put a bungalow at the top of their housing shopping list. The Dream Home Survey asked UK residents the house type and location of a property they would buy if they won a big jackpot. The ...

  • Buyers' struggle threatens health of housing market

    8 Oct 2002

    The UK property boom is facing an "inevitable" slowdown as the supply of first-time buyers dries up, says Yorkshire Bank in its latest Housebuyers Survey. The quarterly survey shows that in the face of continued price rise predictions, the market's underpinning is starting to fall away as more and more first-time buyers are unable to climb onto the property ladder. Geoff Greer, Yorkshire Bank's newly appointed chief operating officer, says: "We're not predicting ...

  • Census reveals equity release potential

    7 Oct 2002

    Results from the latest UK census show Brits heading South West for retirement - creating a huge potential equity release market. The highest proportions of retired people are in Dorset, Devon and Somerset, where around one third of the local population is retired. East Sussex and Essex also have a high percentage of retired residents. The census results tie in well with the practical experience of IFAs. Tim Carter, mortgage adviser at Christchurch-based Connell Mortgage ...

  • Charcol launches five-year fix at 4.45%

    10 Oct 2002

    Charcol is offering borrowers an exclusive five-year fixed rate mortgage, with amarket-leading rate of 4.45% until December 31 2007. Ray Boulger, senior technical manager at Charcol, says: "Fixed rates have defied the base rate freeze over recent months with the best of the five-year bunch down over 1% in the last three months. This product represents a superb opportunity for borrowers seeking medium-term payment security on arock-bottom rate." He adds: "While a downward ...

  • CII launches new online service for members

    7 Oct 2002

    The Chartered Insurance Institute (CII) has launched a new members-only area on CII Library Online - www.ciilo.org - providing free access to a wide range of information resources for CII and SOFA members. Initially this facility provides thirty technical files aimed at busy practitioners. Each file has been written exclusively for CIILO by an expert in the field and will be reviewed monthly for currency and updated as necessary.The topics covered range from motor claims to pension ...

  • CMC boss Steene primed for mortgage return

    7 Oct 2002

    The notorious David Anthony Steene, former boss of City Mortgage Corporation, could be about to make a dramatic return to the mortgage industry. Steene was managing director of CMC for four years up until 1998 and is largely responsible for the creation of today's sub-prime mortgage arena. But the success of this now respectable market came at a price. Borrowers with CMC signed up to deals at a rate of 9.9%. But dual pricing meant that, if borrowers were hit by redundancy, sickness, ...

  • Confidence is high among mortgage professionals, says Paragon

    7 Oct 2002

    Confidence among financial professionals in the mortgage market has slipped slightly but still remains at its second highest level in nearly eight years. This is shown by the latest quarterly Financial Adviser Confidence Tracking (FACT) Index issued by Paragon Mortgages, which also indicates that remortgages are primarily employed for control and investment purposes. For the third quarter of 2002, the Index stands at 131.3. This is down marginally from the spring ...

  • Consumers are not yet caught in the net

    7 Oct 2002

    It's a well-known fact that few consumers use the internet to purchase or arrange a mortgage. But as we revealed on www.mortgagestrategy.co.uk last week, latest research from Datamonitor shows that the number of consumers who purchased or arranged a mortgage in the 12 months to June 2002 online stands at just 4%. So it's no real surprise to find that mortgage intermediaries are sceptical about the internet's potential for mortgage distribution. Datamonitor's mortgage intermediary ...

  • Endowment warning from Standard Life

    7 Oct 2002

    Thousands of homeowners with a Standard Life endowment mortgage potentially face a shortfall after the life insurer cut terminal bonuses by an average of 10%, writes Harriet Williams. The cuts mean the payout on a £50-per-month 25-year endowment falls to £89,537 from £99,747. Standard Life will also charge a 10% exit penalty to anyone that cashes their policy in early. Some 20,000 life policies will mature between now and Standard Life's next bonus declaration ...

  • Estate agents offer free re-mortgage service

    8 Oct 2002

    Estate agency chain Sequence is offering its customers the chance to re-mortgage for free in any of its high street branches from October 2002. Sequence branches will perform a free search of over 1,000 mortgages from over 100 lenders including all the major banks and building societies. In just 15 minutes customers will be able to find out exactly how much they could save through re-mortgaging. Customers will have access to a number of exclusive re-mortgage offers ...

  • Everyone can take a punt on CAM Index of mortgage penetration 1997-2001

    7 Oct 2002

    Perhaps it is the ugly language that previously made this market so unappealing to mortgage intermediaries and lenders alike. And with terms like 'sub-prime', 'light, medium and heavy adverse' and 'non-conforming', it would hardly be surprising. But the mortgage market for borrowers with adverse credit histories has moved on considerably in recent years, despite the fact that the unkind terminology has stuck. Who would have thought it would be possible, not only to ...

  • Financial services firms experience lower growth

    8 Oct 2002

    Growth in business volumes across the financial services sector has tailed off over the past three months, reveals the latest quarterly survey by the Confederation of British Industry and PricewaterhouseCoopers. The results will disappoint companies which had seen volumes grow at the fastest rate for two and a half years in the previous quarter. A sharp deceleration in business growth with private individuals appears to have driven the slowdown in building societies' ...

  • Finding the right pegs for the right holes

    7 Oct 2002

    Q: How is Reynolds Recruitment structured? A: The original concept for Reynolds Recruitment started in early 2002. We felt that most financial services recruitment agencies lacked detailed knowledge and experience of the mortgage market, particularly the intricacies of lender requirements. We felt we could offer an improved service. We already have 10 different institutions on our books, including lenders, packagers, networks, software companies and mortgage wholesalers. We are also ...

  • First anniversary for MutualPlus branch sharing scheme

    8 Oct 2002

    Yorkshire and Britannia building societies are celebrating the first birthday of their branch sharing deal. The service, called MutualPlus, gives Britannia's 2.2 million members and Yorkshire's 1.8 million members choice and flexibility by providing access to over 300 branches throughout the UK. Within the first year of operating, there have been more than 500 MutualPlus transactions per month, between the two societies. Yorkshire and Britannia say this is a clear ...

  • Flood warning ahead of high tides

    7 Oct 2002

    Norwich Union is encouraging homeowners to take preventative measures to help minimise flood damage ahead of a combination of high tides and bad weather that is anticipated to hit the region this week. Research from the Environment Agency shows that fewer than one in twenty people ? who live or work in flood risk areas ? takes any action to prepare for flooding. However, there are steps residents can take to minimise damage to their homes and belongings, and be well ...

  • FSA sneaks through cold-calling ban

    7 Oct 2002

    The FSA wants to use mortgage regulation to ban cold calling to generate leads. Pundits say an obscure clause in CP146 - previously unnoticed - will put an end to the practice outright. Near-final rules proposing to outlaw "unsolicited real-time" promotions are buried in Annex D of CP146. If the ban goes ahead, it will be illegal to call potential borrowers unless they have "an existing customer relationship with the firm" and the customer "envisages" receiving unsolicited calls. Richard ...

  • Genesis new range blasts off

    11 Oct 2002

    The Discovery, Columbia, Atlantis and Endeavour products all have a new, extended end date of January 1 2005 and revert to a LIBOR-loaded SVR after the fixed period. Available up to 90% LTV on full status loans, Discovery now offers an improved fixed rate of 5.69%, while Atlantis is available up to 85% LTV self-certification at a fixed rate of 5.89%. Both of these products allow for adverse credit, which includes £3,000 of unsatisfied CCJs in the last three years, ...

  • Halifax figures show soaring September house prices

    7 Oct 2002

    House prices shot up in September at the fastest rate in a year, bringing annual house price inflation to 24.2% and the average London home to a value of over £200,000 for the first time. The Halifax house price index shows that the average house rose in value by 4.3% last month, only the second time this year prices have risen by anywhere near that amount. In May they also rose by 4.3% but since then have been slowing down considerably, rising by just 0.2% in August. Halifax ...

  • Halifax lists UK property hotspots

    10 Oct 2002

    Loughton in the South East is the hottest place in the UK for house price growth, reveals the first Halifax 'Top 10' of property hotspots. Average prices in Loughton were £170,664 this time last year and have soared by a massive 75% to £298,413 now. Residents of Smethwick in the West Midlands are cashing in on a 68% surge, to take the average house price to £94,264. Pontypridd in Wales, Alfreton in the East Midlands, North Shields in ...

  • HBOS boss beats off fears of weakening housing market

    9 Oct 2002

    HBOS, the country's largest mortgage lender, has dismissed fears of a collapse in the housing market. The group, which owns Halifax, said it expected the market to remain strong. Addressing a banking and insurance conference in London, James Crosby, chief executive of HBOS, said: "Housing affordability is nowhere close to being stretched." His statement comes days after Halifax reported a 4.3% increase in house prices last month, taking the annual rise to ...

  • Housebuilding rates slow down

    11 Oct 2002

    The rate of housebuilding has slowed down despite the housing shortages being felt around the UK. In the latest three months there were an estimated 42,800 total starts, down 10% on the previous three months, and down 4% compared with the same period a year ago. On the same basis of comparison private enterprise starts were 38,000, down 10% on the previous three months and down 7% compared with a year ago. In the latest three months, completions totalled 41,100, ...

  • How are the regulatory proposals in the FSA's near-final rules likely to impact on buy-to-let?

    7 Oct 2002

    The Treasury's confirmed position is that buy-to-let mortgages will not be included within the scope of direct regulation because, in common with most of the industry, it believes that the letting of residential properties is a business activity and associated mortgages are, therefore, commercial loans. This is a sensible policy, but there are those, albeit relatively few, who do not accept the consensus and continue to lobby for direct intervention. Their argument is that "buy-to-let" ...

  • IFA confidence falls slightly

    7 Oct 2002

    Confidence among financial professionals in the mortgage market has slipped slightly but still remains at its second highest level in nearly eight years, Paragon Mortgage's latest quarterly Financial Adviser Confidence Tracking index reveals. The new Paragon Mortgage FACT index shows that the prime purpose in remortgaging remains the control of outgoings. After control of outgoings, at 38% of all remortgages, home improvements accounted for 24% and 17% of remortgages were to finance ...

  • Intermediary faith in specialist lending continues, claims BM Solutions

    7 Oct 2002

    Specialist intermediary lender BM Solutions has published the latest findings from its Specialist Mortgage Adviser Regular Tracking (SMART) index. SMART tracks the confidence and general sentiment of intermediaries operating in the specialist buy to let, self-certification and sub-prime mortgage markets. The full findings from the second BM Solutions SMART index are: * Self-certification mortgage cases continue to be the strongest specialist mortgage product ...

  • Ipswich enjoys record savings

    9 Oct 2002

    Ipswich Building Society has announced a record inflow into its savings accounts in September, of deposits totalling £11m. This is the highest figure in the society's 153-year history, over 30% higher than in any previous month. John Whayman, chief executive of Ipswich, says: "With the continuing uncertainty on the stockmarkets, savers are increasingly looking for the security and excellent returns offered by Ipswich Building Society. Our Fixed Rate ISA ...

  • Kent Reliance targets Jersey market

    7 Oct 2002

    Kent Reliance has launched Jersey Home Loans in a bid to double its Channel Island customer base within 12 months, writes Harriet Williams. Last week the building society purchased a 450-case mortgage book for £50m from Standard Chartered Grindlays. Mike Lazenby, chief executive of Kent Reliance, says: "As an offshore haven, Jersey only lets in the top banks, which aren't really there to provide mortgages. Average salaries in Jersey are around £25,000, and now normal people ...

  • Legal & General delivers online IFA newsletter

    7 Oct 2002

    Legal & General is continuing its drive to adopt e-business practices across its entire distribution activity by offering its 'IFA News' newsletter online via e-mail. IFA News provides details to IFAs of product and service developments from Legal & General as well as commentary on significant market issues affecting the IFA market. IFA News online will not only give IFAs news from the company in a faster, more efficient and environmentally friendly manner, it will ...

  • Low productivity in the public sector costs £15 million, says cebr

    7 Oct 2002

    Cebr's latest economic forecasts, published in the September 2002 issue of cebr Quarterly Business Forecasts, shows how the UK economy is becoming increasingly dominated by the public sector. The picture requires a bit of disentangling because for its forecasting model it has used the national accounts definitions of spending (controlled by statisticians and less susceptible to fiddling than the Chancellor's own data). On this definition, the cebr estimatea a ...

  • Lower fixed rate equity release loan from Norwich Union

    7 Oct 2002

    Norwich Union, the UK's largest provider of equity release loans, is reducing the fixed interest rate for new customers on its Cash Release Plan from 7.79% to 7.55%. The new interest rate is applicable from September 30 2002. Paul Stokes, head of marketing for Norwich Union Equity Release says: " The reduction in the fixed interest rate comes at a time when the equity release market is booming. Recent figures published by SHIP (Safe Home Income Plans), which represents the ...

  • Mortgage Express extends online intermediary service

    11 Oct 2002

    Mortgage Express has launched a new intermediary partner service, offering a one-stop solution for doing business online with Mortgage Express via mortgage clubs and networks. Previously only available to members of L&G Mortgage Club and Mortgage Intelligence, the service extends Online Services to include members of Mortgage Next, Zurich, Pink Home Loans and DBS. Mortgage Express' direct to mortgage adviser service, mx-online, is not affected. The intermediary partner ...

  • My mortgage week

    7 Oct 2002

    Monday: Having caved in to the family over the weekend to acquire a puppy, I lack sleep due to the overnight wailing that follows when the dog is left alone. I'm, therefore, not well prepared for the procession of people who visit my office. Firstly, our telemarketing manager sought guidance on the new telephone system we have recently installed to assist in managing incoming traffic and continue our steps to improving customer service. Then, our product development manager approached ...

  • Network Data launches trainee scheme

    7 Oct 2002

    Network Data Limited launches its Trainee Supervisory Service later this month in a bid to stem the threat to intermediaries from the MCCB's qualification deadline of December 31. NDL intends to register its RMAs as supervisors who will then be able to remotely supervise accepted trainees. NDL will vet applying trainees for suitability and level of supervision before acceptance as a registered trainee. Peter Gladdy, national sales manager at NDL, says: "All we are trying to do is ...

  • Neville James open to negotiation

    7 Oct 2002

    In response to today's environment of low investor confidence, and with the aim of boosting flagging demand, Neville James, the TEP specialist, is introducing an additional method of pricing policies. Neville James have announced that they are happy to negotiate on TEP (Traded Endowment Policies) sale prices. This new approach is to complement the more traditional method of pricing TEPs using FMVs and PDRs and also hopes to take some of the mystique out of TEP terminology. Simply ...

  • New 10-year fixed rate mortgage from the Derbyshire

    7 Oct 2002

    Borrowers can fix their mortgage rate until 2012 with a new ten year fixed rate deal from Derbyshire Building Society. The ten-year fixed rate mortgage of 5.24% (APR 5.70%) was launched on October 1. Other key features include: * 'Standard' mortgage valuation fee waived. * The mortgage is fully portable if customers move home. * Daily interest method of calculation for capital repayments. * No early repayment charges after the fixed rate period. Nick ...

  • New discount from Alliance & Leicester

    9 Oct 2002

    Alliance & Leicester has launched a new two-year discounted rate mortgage followed by a lifetime base rate tracker. The base rate tracker offers an initial discount of 1.5% below Bank base rates, giving an initial pay rate of 2.5%. After the discount the rate reverts to base rate plus 1.5%. There is no arrangement fee and the product is available to a maximum LTV of 95%.

  • New partnership for Leek United and Royal & SunAlliance

    9 Oct 2002

    Leek United Building Society and Royal & SunAlliance have announced a sole partnership deal to provide household insurance and domestic mortgage indemnity cover for Leek United. The society's flagship home insurance product, Homesecure, is a flexible household insurance which enables customers to select the amount of cover they need, rather than paying over the odds for a product with unnecessary features. As well as providing increased limits of cover within the ...

  • No book for AMS

    7 Oct 2002

    Bradford and Bingley's recent acquisition of a £650m loan book from GMAC-RFC has not been passed on to its servicing outsource partner Alltel Mortgage Solutions because of continued technical delays to its system. The new assets are instead being administered by Homeloan Management, which was appointed by GMAC-RFC to administer its portfolio of loans. This arrangement will continue for about two years, at which point the loans will be transferred to AMS. In a statement ...

  • One in three consumers do not know their rates

    10 Oct 2002

    More than one in three adults do not know the relationship between the rates banks pay on their savings and the rates they pay on their mortgage borrowings, reveals ICM research for Intelligent Finance. Some one in 10 adults revealed that they thought the interest rate that their bank or building society paid them was actually higher than the rate they were charged on their mortgages. A further one in seven thought they were about the same. Offset provider Intelligent ...

  • Pace yourself for laughs

    7 Oct 2002

    Entertainment in Business is sponsoring a business comedy forum. EIB was formed by GMAC-RFC chairman Stephen Knight, Norman Pace of Hale & Pace fame, and scriptwriter Terry Morrison. At the event, which will be held on November 28 at London's Comedy Store, Pace and Morrison will demonstrate the effect that humour has on an audience and the way this can translate into more business for the presenter. Knight says: "This is going to be a fantastic event and this approach will ...

  • Preston ready to move with Migration Data

    7 Oct 2002

    Colin Preston, former head of sales at Trigold, is to launch a lead generation company for brokers and lenders. Migration Data will match properties for sale to existing customer lists to give lenders and brokers an 'early warning' that their customers are moving on - and possibly leaving old product or advice providers behind. Preston told Mortgage Strategy: "We have the UK rights to data from a firm that tours the streets for sales boards. They generate about 50,000 records ...

  • Principality grows further lending team

    11 Oct 2002

    Principality Building Society is highlighting further lending as one of the growth areas in financial services. Further lending offers a service to mortgage owners looking to unlock some of the equity they have built-up in their homes. Due to the increased requirement for further lending, the department has recently expanded to a team of 10 staff. It has just appointed a head of department in the form of communications graduate Kate Charles who, at 27, is the ...

  • Reynolds to offer temp staff

    7 Oct 2002

    Mortgage recruitment specialist Reynolds Recruitment is to provide temporary contract staff for lenders who experience peaks and troughs in their service. Andrew Reynolds, partner in Esher-based Reynolds Recruitment, says: "We are looking not only at the permanent market but also at temporary and contract staff. People may have been running their own businesses and want to remain self-employed but come under someone else's banner in terms of compliance and regulation." And partner ...

  • RIGHT TO BUY FOR A MILLION TENANTS

    9 Oct 2002

    More than a million tenants would be given the Right to Buy their homes under a Conservative government. Local government spokesman David Davis told the Conservative party conference in Bournemouth that the current Right to Buy scheme was a "lottery", with those in council accommodation allowed to buy their home and those renting from housing associations excluded. Under the new Tory plans Housing Association residents will be given cut-price deals and the cash raised ...

  • Scottish house price average reaches £66,648

    10 Oct 2002

    Average house prices in Scotland are now £66,648, reveals the latest Scottish House Price index from the Bank of Scotland. The index records an annual rate of house price inflation of 7.3% for Scotland, compared to 21% for the UK as a whole. The UK average house price is £114, 035. The picture across Scotland is mixed. Inverness has seen the biggest rise with an average increase of 39% over the last year, to £91,947. The average price in Aberdeeen ...

  • Self-cert will be first victims of rate rise

    7 Oct 2002

    Brokers and borrowers considering taking on self-cert mortgage products are likely to be the first victims of any increase in interest rates. And pundits are also predicting difficulties for those who exaggerate income to afford properties that standard LTV ratios would not allow. One broker, who asked to remain anonymous, claims as many as one out of four cases for employed self-cert clients could have been exaggerated in order to boost their LTV status. Mike Fry, director ...

  • SKY's the new limit for PAA

    7 Oct 2002

    The Professional Adviser Alliance (PAA) is now able to receive potential leads from 15 million Sky Active users. Moneysupermarket.com has reached an agreement with BSkyB to provide mortgage and loan channels on Sky Active, Sky's interactive service. These same viewers will be able to request that an adviser call them to give them advice on mortgages via their TV sets if they wish to apply either online or via their TV screens. These leads will be forwarded to the PAA, the 300-plus ...

  • Staffordshire and AXA sign new deal

    9 Oct 2002

    Staffordshire Building Society has signed a new deal with AXA to renew their existing seven-year relationship. Staffordshire will offer AXA products through its wholly owned subsidiary Staffordshire Financial Services, which has a dedicated sales force that has doubled in size over the past year. As part of its continued expansion plan, AXA's relationship management team will help with financial services recruitment, training and development of the sales team. Bill ...

  • Stamp duty's record increase

    7 Oct 2002

    The government pocketed a record £2.7bn in stamp duty from homebuyers last year, official figures show. More than half of the tax was paid by homeowners in the London and South East of England, who handed over more than £1.5bn to the Treasury. The government has increased stamp duty four times since it took office in 1997. In the year before Labour came into power, revenue from stamp duty on residential property purchases was £675m, with £315m generated ...

  • The correct title explained and Bolton's blindness

    7 Oct 2002

    From Andy Linnett In response to Russell Martin (Mortgage Strategy, September 30, 2002, Letters to the Editor), he is quite correct in stating that title insurance covers future loss incurred if the title becomes defective and that, in a right-to-buy situation, it negates the need for a deed of postponement. There are two types of title insurance - one is "defective title insurance" that relates to a specific known defect and the other is "all-inclusive title insurance" which is ...

  • The e-trade wars

    7 Oct 2002

    The news that Mortgage Brain and Mortgage 2000 are to combine resources to provide a common trading platform has enlivened the debate surrounding electronic application processing. With the four-horse race becoming a three-way affair between the combined Mortgage Brain Ltd (MBL)/Mortgage 2000 platform the Mortgage Trading Exchange, Trigold and The Exchange's ExWeb, industry voices are asking whether the number of providers will continue to decline. And the big question on everyone's ...

  • The Finance Centre expands distribution channel

    7 Oct 2002

    Sub-prime packager The Finance Centre (TFC) has launched a major campaign to increase the size of its distribution channel. Spearheaded by national sales manager, Tom Gurrie, and his team of regional business development managers, the Buddy campaign's goal is to increase the number of introducers TFC deals with by 25% over the next 12 months. Gurrie says: "We believe that there are many specialist intermediaries operating in the sub-prime market who are not currently ...

  • The Finance Centre seeks new buddies

    8 Oct 2002

    Sub-prime packager The Finance Centre has launched a campaign to increase the size of its distribution channel. Led by national sales manager, Tom Gurrie and a team of regional business development managers, the 'Buddy' campaign's goal is to increase the number of introducers TFC deals with by 25% over the next 12 months. Gurrie says: "We believe that there are many specialist intermediaries operating in the sub-prime market who are not currently getting the ...

  • The mortgage mole

    7 Oct 2002

    Owen goal Ruby Wax's barbs apart, this year's eighth IMLA dinner was fortunately a trouble-free and enjoyable affair. As the great and the good, the bad (some more so than others) and the ugly enjoyed the occasion at London's Hotel Inter-Continental, Mole was knocked off guard when one agitator sprang from the reeds. Not one for letting bygones be bygones, this London-based mortgage company predator launched into a blistering tirade on editorial protocol before being calmed ...

  • The remedy for a common problem

    7 Oct 2002

    Last week this column considered ways in which borrowers in arrears could be helped to resolve their financial difficulties. Unfortunately, it is not always possible to resolve such cases and lenders are then faced with deciding how best to deal with the situation. In England and Wales, five legal remedies are set down in the Law of Property Act 1925 which are, in essence, courses of action that are available to lenders regarding borrowers in default. These legal remedies are as follows: •S

  • The Woolwich admits poor service

    7 Oct 2002

    The Woolwich has admitted its servicing standards are unacceptable following repeated complaints from brokers. The lender attributes lengthy turnarounds to record volumes of business and the popularity of its Open Plan offset deal. Perry Jones, spokesman for The Woolwich, admitted to Mortgage Strategy: "We recognise there is a considerable amount of work we still need to carry out to provide the level of service our customers should expect. We are redesigning our mortgage servicing ...

  • This week's problem case

    7 Oct 2002

    Karen is looking to move home. She has no adverse credit history and is in full-time employment as an interior designer, earning £40,000 per year. She has found a property for around £105,000 but is unsure about whether to take a fixed rate mortgage or take advantage of a variable rate loan while interest rates are low. She has 10% deposit. Intermediary response David Hollingworth, mortgage specialist at London & Country, says the type of mortgage Karen should ...

  • TMO exclusive for existing buy-to-let customers

    7 Oct 2002

    The Mortgage Operation has launched an exclusive buy-to-let tracker with Birmingham Midshires. This year TMO will originate approximately £500 million in buy-to-let applications and recent months have seen an increase of 25% in enquiries for repeat buy-to-let cases. Richard Stokes, product development manager at TMO, says: "We believe repeat customers provide great value for the lender as they have a track record and there is less of an administrative burden. We ...

  • Traded endowments offer returns despite bonus cuts

    10 Oct 2002

    Not all is lost to the holders of endowment mortgages facing a shortfall, says market maker Beale Dobie. It claims that the traded endowment market could still offer investors annual returns of up to around 7% despite bonus cuts. This level of return could be achieved on many policies for secondary investment, even if life offices cut both annual and terminal bonuses by as much as 40%. Traded endowment policies (TEPs) remain popular with investors because they ...

  • Vernon Building Society embraces e-commerce

    10 Oct 2002

    Vernon Building Society has chosen software provider SDS Applications to support its mortgage application processing. 'SDS Maps' is a fully integrated, web-based solution, handling a mortgage application from customer enquiry through to completion. The system features integrated workflow, case-tracking, powerful document production facilities and customisable management information functionality. It is capable of producing pre-application mortgage illustrations ...

  • Ward voices support for mortgage industry

    7 Oct 2002

    IMLA chairman Tony Ward praised mortgage intermediaries last week for bringing in an estimated £100bn of mortgage lending in 2002. Speaking at the eighth Intermediary Mortgage Lenders' Association annual dinner, Ward told over 400 guests that whilst manufacturing and industry appears to be struggling, mortgage lenders and intermediaries could take comfort from being "the most dynamic and innovative mortgage industry within Europe". Speaking of CP146, Ward voiced his support ...

  • We have the interest, now we need the contact

    7 Oct 2002

    From Mal Hughes I refer to the article relating to the Professional Adviser Alliance (Mortgage Strategy, September 23, 2002). I feel this may be of interest to ourselves but we have been unable to make contact. Can you possibly supply me with any form of contact details be it phone, fax, email, website or address. Mal Hughes MLIA(dip) Principal Graham Irons Financial Planning Newtown Powys •Editor's reply: We most certainly can Mal. The ...

  • You really are either with us or without with The Woolwich

    7 Oct 2002

    Name and address supplied We have been in discussions with several of our peers and we are finding The Woolwich increasingly difficult to deal with. Its level of service to our clients is well below acceptable, the knowledge of its staff is sub-standard and, above all, its entire system lets it down. Be it new advances, further advances, stationary requests, business enquiries (the list goes on) we have had consecutive problems on back-to-back cases. There are serious problems ...

  • Zebra to market GMAC-RFC branded lending deal

    9 Oct 2002

    Luton-based packager MortgageSecure has launched a new company as part of a branded lending partnership with GMAC-RFC. Zebra Homeloans will market and promote GMAC-RFC mortgage products to professional intermediaries, primarily those based in the northern Home Counties. All mortgage processing including underwriting, mortgage offer and completion will handled by the Zebra team. Documentation will clearly state that the arrangement is in association with GMAC-RFC, ...

  • Zurich starts taking leads from PAA

    11 Oct 2002

    Zurich Advice Network has started taking mortgage leads from the Professional Advisor Alliance (PAA), the UK-wide alliance of intermediaries that provides independent mortgage advice to moneysupermarket.com customers and its portal partners. The deal follows the announcement that Sky is to source mortgage leads from its six million households. The Zurich Advice Network is one of the largest in the UK and will provide mortgage advice to customers across the UK from a ...

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