Mortgage Strategy
8 April 2002

  • A lifetime of Birmingham Midshires

    9 Apr 2002

    A woman from Birmingham Midshires has celebrated her retirement after spending her whole working lifeat the company. Val Colman, from Astwood Bank in Redditch, works at the Redditch branch of BM. She has spent 45 years at the company and joined back in 1957 when it was the Redditch Benefit office. Her one and only job came when she left school and her responsibilities included making deliveries and handling telephone enquiries. She celebrated her 60th birthday ...

  • ACCA warns of increase in red tape for small firms

    9 Apr 2002

    A survey carried out by the Association of Chartered Certified Accountants (ACCA) has found that thousands of small firms already coping with heavy red tape burdens are to be further crippled by the forthcoming Employment Bill, due to come into effect next year. Provisions of the Bill include the removal of the exemption which currently excludes employers with fewer than 20 employees from having to provide formal disciplinary and dismissal procedures for employees. The ...

  • Amber Home Loans, Bank of Scotland join HLP network

    8 Apr 2002

    Bank of Scotland and Amber Home Loans have become the latest lenders to join the HomeLoan Partnership (HLP) mortgage network. HLP members will now be able to access the Bank's range of prime mortgage products and earn a procuration fee of 0.27% with a minimum fee of £275. A procuration fee of 3% (minimum fee of £225) is available to introducers in relation to Amber's buy-to-let and 100% mortgages, while a procuration fee of 0.8% (capped at a maximum ...

  • B2L market 'could be £65bn short'

    8 Apr 2002

    Mortgage lenders and the CML are offering radically different estimates of the size of the UK buy-to-let market. Recent CML data suggests the overall value of buy-to-let loans is worth £14.7bn. But John Heron, managing director of Paragon Mortgages, believes the estimate could be as much as £65bn short. Heron says: "We do not know what the true size of the buy-to-let market is but it is clearly much bigger than the CML figures would indicate, and could easily be worth ...

  • Barnsley Building Society adopts SDS software system

    8 Apr 2002

    Mortgage lending software provider SDS announced that Barnsley Building Society is to use the 'SDS Maps' software for its application processing. Steve Lofthouse, assistant general manager at Barnsley, says: "We selected SDS's processing system over several other solutions. SDS Maps has the flexibility and web-enabled technology we were looking for, and it combines all our mortgage processes into one system." The SDS platform includes a 'broker portal' ...

  • Birmingham 'no' to house transfer

    9 Apr 2002

    Birmingham tenants have voted overwhelmingly against council plans to transfer council housing stock to a private landlord. Birmingham City Council announced on Monday that 66.8% of voters were against the proposals. The result was welcomed by officials from union Unison, which had been campaigning against the sell-off. Birmingham council leader Sir Albert Bore said he and his colleagues now had to reflect on the result. Regional organiser for Unison, Fiona ...

  • Bolton: the row rumbles on

    8 Apr 2002

    I must thank Michael Bolton for his reply to my letter regarding product bias (Mortgage Strategy 2 April 2002). However, I would like to make a couple of points so that he can put his mind at rest regarding the compliance of my company. Yes, we do disclose both our packaging and procuration fee payments to our customers in all cases. Why would we want to hide any part of our income from our clients? Just what is Bolton talking about with regard to the rate of his products? Yet ...

  • Brits abroad

    8 Apr 2002

    With foreign travel now cheaper than ever and with less than perfect weather back home, more and more UK homeowners are choosing to invest their rising incomes in a property abroad. Mortgages on foreign properties are a lucrative market for lenders. Business has grown beyond the timeshares of the Costa del Sol and, nowadays, UK sun worshippers want an overseas home with a little more je ne sais quoi - and are prepared to dig deep to buy it. Spain, France, Portugal and Florida are the ...

  • Brits prefer to save for holidays than for their future

    11 Apr 2002

    The British public are regularly putting money aside for holidays but aren't saving for the long-term, according to research from VirginOne. A third of adults who are saving for something in particular say they're saving money for a holiday, while just 3% say they're putting money into a retirement fund, and another 3% say they're aiming to pay their mortgage off early. Only 2% of those questioned are putting emergency money aside in case of redundancy, whereas ...

  • Broker panic over mock exam Igroup revamp GEM of a product

    8 Apr 2002

    Sub-prime lender igroup has revamped its flexi-6 product range, adding two new products and rebranding the range GEM 0 - 7. Bob Sturges, igroup communications manager, says: "The enhanced new product range is designed to give clients a wider choice of mortgages to meet their individual needs." GEM 0 is igroup's first foray into the near-prime market. Available to borrowers with historical adverse but no mortgage arrears in the last two years, the product ...

  • Buy-to-let business continues to grow for the Derbyshire

    10 Apr 2002

    The amount of buy-to-let lending being arranged by The Derbyshire is reaching record levels. The three-year discount buy-to-let product was launched at the beginning of February 2002 and, in the last week of March, the growing buy-to-let market accounted for 10% of The Derbyshire's mortgage business. The Derbyshire's buy-to-let product has an initial interest rate of 4.70 % (APR variable 5.9%) - a 0.99% discount off the standard variable mortgage rate. It ...

  • Buy-to-let market moves north

    11 Apr 2002

    Continued high property prices in London and the South East are encouraging potential buy-to-let landlords to look further north for properties, according to UCB Home Loans. Charles Reed, managing director of UCB Home Loans, says: "Landlords comparing rental income with the value of property can find it difficult to make enough profit in parts of London and the South East at the moment. Careful purchasing of property can offer landlords rental returns of between 8% and 10% in ...

  • Byers promises to tackle lottery of location

    13 Apr 2002

    Stephen Byers, the secretary of state for transport, local government and the regions, last week claimed that one of the major challenges facing the government was to tackle "life's lottery of location, which determines an individual's future on the basis of where they were born." Byers has published a table of comparisons between towns and cities. Speaking at the Core Cities conference in Manchester, he says: "These figures make stark reading. They show in the clearest ...

  • CEBR forecasting eye for April

    8 Apr 2002

    In our latest Monthly Economic Bulletin, published this week, we assess the potential options for Gordon Brown's forthcoming Budget. Importantly, how can he raise the £10bn a year necessary to bring government spending on health closer to the European average as a percentage of national income? The simplest way to raise the money would be to slap 3p on the basic rate of income tax, lifting it from 22p to 25p. However successive Labour manifestos have promised not to raise ...

  • Consumers confused over MPPI safety net

    8 Apr 2002

    Six out of 10 mortgage holders believe they have Mortgage Payment Protection Insurance, yet only two out of 10 have the policy in place, FSA research leaked to Mortgage Strategy reveals. The internal research for the Financial Service Authority's consumer division shows many borrowers relying on a safety net that isn't there. Three out of 10 respondents would be unable to make further mortgage payments without MPPI if they became unemployed. While four out of 10 say they ...

  • Escaping to second charge

    8 Apr 2002

    I have recently read through a document published by the FSA entitled 'Mortgage and general insurance regulation: A guide for firms', which, to my surprise, does not include advice on second charges. One of the conditions that the Treasury refers to is that the proposed guidelines only apply to a loan secured by a first legal charge domestic property. The second charge market in the UK is currently very buoyant and I have no doubt that it will continue to thrive. Take, for ...

  • Financial institutions come top in security awareness test

    9 Apr 2002

    Financial institutions have come top of the class in an international on-line security awareness audit. However, they "could still do better" according to Pentasafe Security Technologies, who offer the challenge online to companies to test the levels of their security, as their score just scraped an unsatisfactory C grade. This was marginally better than the average D grade score from other industry sectors, with 90% admitting to opening or executing a dangerous email ...

  • First-time buyers pay the price

    10 Apr 2002

    Research from the Halifax reveals a significant increase in the number of first-time buyers across the UK paying stamp duty. First-time buyers have been particularly affected by the decision of successive governments since 1993 to increase the £60,000 threshold above which house buyers pay stamp duty. As a result, the average first-time buyer in six UK regions - West Midlands, East Anglia, South West, South East, Greater London and Northern Ireland - are now likely ...

  • FSA fines Shawlands Financial Services £140,000

    12 Apr 2002

    Shawlands Financial Services Ltd (formerly Frizzell Life & Financial Planning Ltd) has been fined £140,000 by the FSA for record keeping and associated compliance breaches. These related to "back to back" policies, involving the use of annuities to fund savings plans, which were arranged between June 1992 and October 1997. Shawlands became a wholly owned subsidiary of Liverpool Victoria Friendly Society on 5 June 1996. The practices for which Shawlands has been ...

  • Hacker Young investigates double-charges on second home owners

    8 Apr 2002

    Second home owners could be paying too much VAT, according to accountancy group, Hacker Young. Paul de Beresford, partner and VAT expert at their London office, is currently investigating the legality of VAT charges on the initial purchase of second homes, and the ongoing rent and service charges. He says: "The relevant EC Directive states that holiday accommodation should be taxed, however the UK has implemented this in a way that examines the right to occupy a property ...

  • Halifax attacked over effects of admin cutbacks

    8 Apr 2002

    Halifax came under fire last week after it emerged that it has closed seven regional underwriting centres since the HBOS merger in a bid to slash costs and achieve higher productivity. Mike Waite, director of Royston-based Mortgage Quest, says: "I'm not putting business through Halifax at the moment, simply because the service standards are abominable. I'm having to fax through information two or three times in a row and then, a week later, I realise that it's not been picked ...

  • Halifax offers customers commission-free travel money

    10 Apr 2002

    Between 11 April and 30 June 2002, Halifax will be offering its customers the opportunity to order commission-free foreign currency and foreign currency travellers cheques. The offer allows customers to order Travellers Cheques in nine different currencies, as well as cash in a wide range of foreign currencies - including both Japanese yen and South Korean won for customers who are travelling to watch England in this summer's World Cup. Customers can order their ...

  • Halifax urges Chancellor to dig deep in forthcoming budget

    11 Apr 2002

    Halifax is calling on the government to speed up the introduction of a range of welfare reforms as well as changing the rules on ISA investment in next week's budget. It says the introduction of a Pension Credit to make sure pensioners get a minimum income of £100 a month, irrespective of their savings, should be brought in immediately rather than in April 2003 as planned. It also believes parents should have the immediate benefit of the Child Tax Credit being ...

  • High Street Home Loans launches 6.45% sub-prime mortgage

    12 Apr 2002

    High Street Home Loans has launched a new sub-prime self-certification mortgage. The product enables borrowers with impaired credit histories to borrow up to £250,000 for purchases or remortgages. The deal only applies to applicants who have got CCJs of less than £5,000 and are seeking an LTV of up to 85%. Borrowers can choose either a fixed 1.5% discount, valid until June 2003, with a current interest rate of 6.45%, or a fixed rate of 5.45%, valid until 31 ...

  • Housebuilding figures up for February

    12 Apr 2002

    The government has provisionally estimated that 15,100 dwellings were started in Great Britain in February 2002 compared with 14,300 in January 2001. Completions numbered 13,000 compared with 11,300 the previous year. In the latest three months, 40,500 dwellings were started, up 3% on the same three months a year ago, while total completions at 41,300 were up 4%. The effects of the weather on starts in late 2000 still affects the comparison with a year ago. In ...

  • Intermediary Response

    8 Apr 2002

    Mike may be happy that he has found the perfect property but he may not find it easy when it comes to finding a lender who is willing to give him the funds to purchase the property. Mike needs to consider why he wants to buy the flat. It may be ideal for him because he works nearby but he has to consider how many other people will be in the same position as him. In previous cases like this that I have come across, the valuer will often make the point on the valuation document that ...

  • Lack of awareness over stakeholder pensions highlighted

    11 Apr 2002

    Research on behalf of Norwich Union shows that only just over a half of people earning between £10,000 and £25,000 a year say they've heard of stakeholder pensions. Of those who have heard of stakeholder products, the majority have heard about them via the television. The results show that awareness of stakeholder products increases in relation to earnings, with the result that more than eight out of 10 people earning over £50,000 a year have heard ...

  • Landlords fear licensing law change

    8 Apr 2002

    Mortgage intermediaries have voiced concern at a private member's bill planning to introduce the licensing of thousands of buy-to-let properties. Though the primary aim of the Home Energy Conservation Bill proposed by Dr Desmond Turner MP is to reduce energy use in houses of multiple occupancy (HMOs), the bill would require landlords of properties with three storeys, or five or more tenants, to acquire licences from local authorities. But John Socha, chairman of the Small Landlords' ...

  • Leader: Confusion reigns over regulation

    8 Apr 2002

    From mid-2004 all those who advise on, enter into or administer mortgage contracts will need to be authorised by the FSA. The new regulatory regime proposed by the Treasury - due to come into effect in 2004 - is set to create a level playing field for everyone in the business of mortgage advice. Soon, borrowers will have access to a consistently high standard of mortgage advice across the board. And, according to research carried out by the Council of Mortgage Lenders, ...

  • Legal & General signs up 10,000th IFA

    8 Apr 2002

    Suzanne Attfield of Momentum Financial Services has become the 10,000th IFA to register for Legal & General's extranet service, IFA Centre. Launched in 2000, IFA Centre provides a range of services for IFAs including policy enquiries, pension plan summaries, new business tracking for individual life assurance applications, quotation facilities for mortgage, pensions, protection, savings and investment products, and ISA, PEP, and unit trust valuations. Over 30% of term ...

  • Legal & General's new business grows 34%

    12 Apr 2002

    Legal & General is reporting a 34% increase in new business in its first quarter. New business amounted to £233m, up from £174m a year ago. The insurance group says much of the growth, particularly in the UK, comes from its major strategic alliances with Barclays, Northern Rock and Alliance & Leicester. UK new business grew by 54%, while sales of ISAs and unit trusts rose by 77%. The company says 19% of ISA sales at its Direct operation, ...

  • Lender Response

    8 Apr 2002

    A few years ago I recall John Prescott - as part of the government's drive to reduce the pressure for new homes to be built in the green belt - advocating that more people should consider buying or renting property above shops. While living on a high street might not be everyone's cup of tea, the accommodation provided can often be more spacious than would be anticipated. Before exchanging contracts, however, we would recommend that Mike considers how easy it would be to sell ...

  • Marks & Spencer Financial Services sees increase in ISA sales

    11 Apr 2002

    Marks & Spencer Financial Services has seen a 44% increase in its ISA and unit trust sales in February, compared to the same month last year. The figures compare favourably with results released by the Investment Management Association this week showing a 41% decline in ISA sales for the industry as a whole. Lorraine Brannan, head of marketing at Marks & Spencer Financial Services, says: "At Marks & Spencer Financial Services we appear to have bucked the current trend ...

  • MCCB warns firms of pitfalls of late renewal of registration

    11 Apr 2002

    The Mortgage Code Compliance Board (MCCB) has begun a new campaign warning firms of the pitfalls that exist for late intermediary registration renewal. The MCCB has mailed more than 13,000 intermediary firms with registration renewal forms. This year, as a result of past feedback, the MCCB has streamlined the renewal process, with a more concise intermediary registration renewal form, making considerably less work for the firms. Although the renewal process is going ...

  • Millions more homes now liable for stamp duty

    10 Apr 2002

    New figures from the Council of Mortgage Lenders show how the the government's decision to index taxes and benefits fully in line with house prices has unfairly penalised home-owners. More than 60% of first-time buyers paid stamp duty in the final quarter of 2001, compared to 23% in the second quarter of 1997. The CML figures show that in order to rise in line with house price inflation since May 1997, the stamp duty threshold, which has remained unchanged at £60,000, ...

  • Mis-representing the appointed

    8 Apr 2002

    Further to Helen McCormick's article entitled "Smaller firms under threat by 'appointed' tag" (Mortgage Strategy, 2 April 2002) I would like to try and clarify a number of issues regarding the term "appointed representative" (AR) as applied to mortgage intermediaries. There is a lot of confusion in the market, as witnessed by today's (4 April 2002) article on the back cover of your sister magazine, MoneyMarketing. If it is any consolation, at every one of our internal ...

  • Moneyfacts launches new version of mortgage sourcing system

    12 Apr 2002

    Moneyfacts Group has launched its latest version of Mortgage SearchScreen. Users of the latest version can download in minutes the Moneyfacts database, which covers all mortgage products from virtually every lender in the country - and store the data on their PC hard disk. Advisers can then source mortgages offline, whenever or wherever they like. Fresh data can be downloaded as often as necessary. Mortgage SearchScreen4 includes client database management; ...

  • Moneysupermarket.com signs IFA deals with Yahoo! Finance and Doshpoint

    11 Apr 2002

    Moneysupermarket.com has signed new partnership deals with Yahoo! Finance and Doshpoint.com to power their mortgage channels. Moneysupermarket.com believes this will increase the number of IFA leads generated by moneysupermarket.com and its 150 web partners by 100 a day. Doshpoint is a new personal finance website and is currently generating 25,000 visitors a month to its mortgage channel, which is powered by moneysupermarket.com. Yahoo! Finance currently has one million ...

  • Mortgage Board appoints new non-executive director

    9 Apr 2002

    The Mortgage Code Compliance Board has appointed Nick Lord to its board of directors. Lord replaces the recently retired Gerard Lemos, and will participate as an independent board member representing consumer interests. His appointment completes the full quota of independent and public interest members that lead the MCCB. With 18 years' experience in money and debt advice, consumer rights issues and social policy, gained predominantly through senior roles within the ...

  • Mortgages plc 5.45% discount through Pink Home Loans

    9 Apr 2002

    Pink Home Loans is offering a fixed rate of 5.45% funded by Mortgages plc. The rate of 5.45% is fixed to 31/03/03 and applies to the majority of the Mortgages plc range available through Pink Home Loans. David Copland, sales and marketing director at Pink, says: "It is a competitive rate and I am expecting it to be popular so would encourage intermediaries who are interested to enquire as soon as possible." Products available on the rate include adverse schemes, ...

  • My mortgage week - Ian Jeffrey

    8 Apr 2002

    Monday: The Intelligent Finance roadshow for advisers has been underway since 8 March so today is a welcome day in the office catching up on emails and correspondence. The roadshows went very well last week and it is fabulous to be able to get feedback immediately - particularly for our new 'Web in a Box' initiative. Getting all the people and material in the right place for each event is a huge task and this afternoon I have the pleasure of waving off Brian Ewing, our national sales ...

  • NatWest first to launch new fixed rate and discount 100% mortgage

    10 Apr 2002

    NatWest has launched a combined fixed and discount rate 100% mortgage. This offers customers the chance to take a 6.45% fixed rate on 50% of their mortgage and a 1% discount on the remaining 50% of the loan, giving customers an overall pay rate of 5.7%. NatWest is currently the only lender offering a 100% loan-to-value combined fixed and discount mortgage. The mortgage combines the advantages of a fixed and discount rate until 30 April 2004. The fixed rate part of ...

  • New fees from Furness via Pink

    9 Apr 2002

    The broker commission payable by the Furness Building Society on standard products submitted through the Pink Mortgage Club has been given a new structure. The new fee structure for standard cases is tiered according to loan amount, as follows: up to £30,000 - £100; from £30,001 to £60,000 - £175; from £60,001 - 0.3%. Pink Mortgage Club members can benefit from the higher broker commission payable via cases submitted via Pink, as ...

  • No need for regulation

    8 Apr 2002

    The FSA's guide on mortgage regulation - what can I say? As soon as the impotence of that amorphous group of individuals known as 'mortgage brokers' became apparent, the likelihood of anyone being able to stop this legislation going through was nil. The unanswered question is what appallingly widespread abuse of the public has this legislation been brought in to stop? This remains unanswered because, unless I'm incredibly naïve, there are only two wide practices ...

  • Northern Rock expects mortgage lending to stay strong

    9 Apr 2002

    Northern Rock says the housing market remains "robust" and it is expecting lending to stay strong. The Newcastle-based mortgage bank says last year's record lending performance continued into the first quarter of this year, and it expects lending to remain strong in the second quarter. Chief executive Adam Applegarth says: "Operating performance in the first quarter of the year continues to be very good. It is in line with expectations and builds ...

  • Norwich Union links up with Coventry Building Society to sell equity release

    9 Apr 2002

    Norwich Union links up with Coventry Building Society to sell equity release Homeowners who want to release equity from their properties can now buy Norwich Union's Flexible Cash Release Plan through Coventry Building Society branches. Norwich Union's equity release product - which gives people aged 60-plus access to some of the cash tied up in their home - is now available to Coventry Building Society customers following a link-up between the two companies. The ...

  • Paymentshield annouces 10th anniversary roadshows

    10 Apr 2002

    Paymentshield is holding 16 roadshows around the UK. The roadshows will include demonstrations of INERTIA version 2, a free quotation system and details of future development plans on Paymentshield/Paymentshield Life Underwriting Services (PLUS) products. There will also be a talk on the new FSA regulations and how they will affect the mortgage market. Gareth Riding, marketing director at Payementshield, says: "Visitors will be able to discuss their own business ...

  • Pink launches flexible mortgage with a discount

    9 Apr 2002

    Pink Home Loans is launching an exclusive flexible mortgage with a discount funded by Britannic Money, available from 15 April 2002. Rates are tiered according to loan to value with a three-year discount of 0.65% across the range. Initial pay rates start from 4.59% up to 75% loan to value on a full status basis. The product also offers a self-cert option up to 80% loan to value, which gives an initial pay rate of 4.84%. The product offers a free remortgage legal ...

  • Rate uncertainty sees fixed rise

    8 Apr 2002

    Despite interest rates being frozen at 4% last week, fixed rate mortgages continue to grow in popularity. James Rodea, business development manager at Hamptons International, believes this is down to the wider expectation that rates will rise in the long term. He says: "When interest rates rise there is always the shift in focus from discounted or tracker mortgages to fixed rates. Any broker will be able to tell you that fixed rates have increased since the turn of the year, while ...

  • Rates frozen as prices rise

    8 Apr 2002

    The Bank of England left interest rates on hold at 4% last week as house prices and consumer debt continue to outstrip market expectations. Nationwide revised its 6% house-price inflation forecast up to 10%, after recording a 0.9% increase in the price of an average UK property for March. Halifax stuck by its prediction that house-price inflation will ease over the course of 2002 - especially in London - as higher unemployment and weaker income growth reduces consumer confidence. Nationwide ...

  • Real cost mortgage calculator launched to IFAs

    11 Apr 2002

    A new model to calculate and present the real cost of a mortgage has been developed by the compliance consultancy division of Bacon & Woodrow, the largest independent partnership of consultants and actuaries in Europe. Based on a new set of indicators, 'mortgage repayment measures', the model will allow advisers to demonstrate to borrowers the real cost of a mortgage today, where it is unlikely to be held to maturity. The MRMs are presented in tabular or graphical ...

  • Restoring an unwanted reputation The growth of sub-prime, 1997-2001

    8 Apr 2002

    At last month's Efficiency and Excellence in Mortgage Processing conference, one of the hot topics was, inevitably, mortgage regulation and fee disclosure. The issue causes a mixed and hotly debated reaction whenever raised and this conference was no exception. The new regulatory regime proposed by the Treasury - due to come into effect in 2004 - is set to create a level playing field for everyone in the business of mortgage advice. Whether the party is involved in lending, a mortgage ...

  • Restricted lending practice backed by Nationwide

    8 Apr 2002

    Nationwide has backed the strategies of NatWest, Alliance & Leicester and Royal Bank of Scotland in restricting the amount they lend in areas where house prices have risen dramatically. Although Nationwide has no plans to alter its own loan criteria, a spokeswoman says: "Some lenders aren't being prudent in terms of the affordability of their buyers." In its analysis of last month's housing market, Nationwide says: "Responsible lenders must allow affordability constraints ...

  • Royal & SunAlliance cuts level term assurance rates

    12 Apr 2002

    Royal & SunAlliance UK Life is lowering the rates on its Lifewise level term assurance by up to 20% across a range of terms, ages and sums assured. The new rates apply from 8 April 2002 and are available for both family protection and business protection/key person cover and particularly benefit high sums assured of £250,000 and above. Mark Edwards, personal market leader, says: "Our latest rate cuts are good news for IFAs and customers and puts affordable life ...

  • Royal & SunAlliance launches new business partner extranet

    10 Apr 2002

    A new business partner extranet - www.royalsunconnect.co.uk - has been launched by Royal & SunAlliance (R&SA), giving brokers and business partners a single gateway to the company's range of products and services. The extranet brings together many of R&SA's commercial, personal, life and pensions, plus healthcare and assistance websites, offering business partners one access point into the company via the web. Chris Dobson, broker network manager from the UK personal ...

  • Savers don't benefit when interest rates rise

    12 Apr 2002

    A survey by Chase de Vere has shown that it is unlikely the whole of any rise in interest rates will be passed on to investors. A study earlier in the year by Chase de Vere outlined how banks and building societies were quick to pass on falls in the base rate to savers, with 70% of TOISA providers and 73% of Cash Mini ISA providers reducing the interest rate offered by more than the fall in the base rate. Research from 12 investment houses shows that they all believe ...

  • Scottish Equitable Protect helps IFAs cope with back pain

    11 Apr 2002

    Scottish Equitable Protect is helping IFAs understand the issues surrounding back pain for clients who are taking out protection products, with the publication of the latest edition of its IFA underwriting newsletter, Underwriting Today. The company highlights that annually there are 12 million GP visits and 1.6 million outpatient appointments for back problems. In 1998, there were 120 million days' sickness absence due to low back pain with 60% of all adults suffering back ...

  • Scottish Widows craves larger mortgage family

    8 Apr 2002

    Scottish Widows Bank is dipping its toe in the packaged mortgage market and may move into the offset mortgage market later this year in a bid to bolster profits and enhance market share. Already Scottish Widows Bank is taking a small amount of business from packager Scottish Life Mortgages and the bank says it may look at moving further into the market. Graeme Hartop, deputy managing director of Scottish Widows Bank, says: "It's pretty low-key at this stage - we are just dipping ...

  • Second charge loophole warning

    8 Apr 2002

    Pink Home Loans has warned that the lack of Treasury guidelines on second charge loans may not be in clients' best interests and could drive brokers into the CCA sector in order to avoid regulation. In a letter to Mortgage Strategy, David Copland, sales and marketing director at Pink, writes: "The second charge market in the UK is currently very buoyant and I have no doubt that it will continue to thrive. "Surely the guidelines should apply to any charge secured against domestic ...

  • Seminars set to target buy-to-let investors

    8 Apr 2002

    Investors looking to reap dividends from the buy-to-let market without taking on the responsibility of managing property themselves are being targeted at seminars in central London this month. Buy-to-let investment outfit Andrew Reeves Property Ventures is to hold two seminars for intermediaries and clients looking to profit from the expanding niche market. The firm - set up by Reeves, formerly chairman of the Association of Residential Letting Agents, in 1989 - aims to attract ...

  • Singing from the same hymn sheet

    8 Apr 2002

    The qualification deadline for CeMAP 1, 2 and 3, CeMAP Bridge and MAQ papers is looming. Those who want to offer unsupervised full advice and recommendation to their clients post-December 31 this year must ensure that they are qualified to CeMAP level 3 or the equivalent. Firms must establish a system of supervision of sales staff and must ensure appointed supervisors have the necessary technical knowledge, assessment skills and coaching skills. Firms must also maintain a register ...

  • Stepped discount deal from L&G Mortgage Club

    9 Apr 2002

    Legal & General's Mortgage Club is offering an exclusive stepped discount mortgage that offers a 2.5% discount off the SVR in year one and 1.82% discount in year two. Borrowers will pay interest currently at 3.45 per cent (APR 5.8 per cent variable). Mortgages are available up to 95% LTV and it is fully portable. Borrowers have the option to re-pay up to 10% of the mortgage loan each year without incurring an early repayment charge. Six months interest is payable ...

  • Still looking good for consistent support

    8 Apr 2002

    Q: How is Scottish Widows Bank structured? A: Scottish Widows Bank is wholly owned by Scottish Widows Group Limited. Founded in 1815, Scottish Widows is one of Britain's strongest and most respected financial institutions. Following the transfer of business from Scottish Widows Fund and Life Assurance Society to Lloyds TSB Group on 3 March 2000, Scottish Widows PLC is now one of the top three providers in the UK life, pensions and unit trust market. Scottish Widows Bank was ...

  • Sun Bank intermediaries reveal record buy-to-let lending

    8 Apr 2002

    Buy-to-let mortgage applications for March were 141% higher than those in the same period last year, according to Sun Bank. In a recent survey of its mortgage intermediaries the lender also revealed that more than 35% of business conducted by those processing applications totalling between £10m and £20m pounds were in the buy-to-let market. Jeff Knight, IFA marketing manager at Sun Bank, says: "Along with our own evidence, recent CML figures illustrate that ...

  • The complete MCCB kit from Legal & General

    11 Apr 2002

    Legal & General has launched the second section of its Mortgage Code Compliance Board (MCCB) Toolkit. This second section, which covers training and competency requirements, completes the toolkit produced by Legal & General last November to support its business partners operating in the mortgage market place in meeting their obligations for fitness and properness. The launch last year of the first section resulted in over 800 toolkits being distributed to Legal & General's ...

  • The death of independence

    8 Apr 2002

    An open letter to Kevin Dignan, business support officer at the Treasury Dear Mr Dignan Having now read the consultation document on mortgage regulation, I have just a couple of comments. As an independent mortgage broker who works from home with a select client base, I feel uneasy that my business will be impossible to run after regulations are implemented in 2004. I have no problem with regulation. I spent 11 years in the regulated environment until leaving to run my broking ...

  • There's no place like (a self-build) home

    10 Apr 2002

    Self-build mortgage specialist Norwich and Peterborough Building Society has announced the results of an annual survey into its customers' homebuilding aspirations. Of those who completed the survey, 85% revealed they have considered, or would consider, having a home built to their own specifications, up 15% on last year. Of those who have already completed a self-build project, 63% would consider doing it all over again. Some 74% of all those surveyed were aged between 21-40 ...

  • This week's problem case

    11 Apr 2002

    After many weeks of searching, Mike has finally found the perfect flat to buy - it's located above a shop on the high street and its market value is £100,000. However, because of its location, he is having difficulty finding anyone to offer him a mortgage. He has a 15% deposit and has been employed in the same job as a credit controller for a stationery firm for the past three years earning £25,000 a year.

  • This week's problem case

    8 Apr 2002

    After many weeks of searching, Mike has finally found the perfect flat to buy - it's located above a shop on the high street and its market value is £100,000. However, because of its location, he is having difficulty finding anyone to offer him a mortgage. He has a 15% deposit and has been employed in the same job as a credit controller for a stationery firm for the past three years earning £25,000 a year.

  • Towry Law predicts Budget tax rises

    12 Apr 2002

    Towry Law Financial Services Limited, the national independent financial adviser, is predicting a number of key changes to be announced in this year's budget. VAT is expected to be up by 1% or 1.5% to raise several £bn and to bring the UK in line with other EU states' VAT rates. IPT is expected to rise substantially, bringing the UK in line with Europe. Towry Law says this would devastate the corporate PMI industry, forcing the onus back to the NHS. Income ...

  • Training to be what?

    8 Apr 2002

    The CeMAP questions in your training survey (Mortgage Strategy 2 April 2002) appear to have nothing to do with being a mortgage broker. If you haven't got a basic knowledge of the mortgage industry then you shouldn't be in it. In order to pass this exam you need to be an estate agent, a solicitor and an accountant. If I didn't have a good knowledge of the insurance business I'd be snookered as well. If we don't pass the exams by 31 December then we are out of business. ...

  • VirginOne opens new banking centre

    12 Apr 2002

    VirginOne is to open a banking service centre in Horwich, near Bolton, creating around 300 new jobs for the area. The new operation will provide customer service for the One account's 82,000 customers and is in addition to the company's main operation based in Norfolk, where the company will continue to recruit staff - around 150 this year. Jayne-Anne Gadhia, managing director of the One account, says: "We have seen a rapid growth in the number of new-style mortgages ...

  • Yorkshire Bank survey shows return of gazumping

    9 Apr 2002

    Gazumping is likely to make an unwelcome return to the UK housing market this spring as strong housebuyer confidence continues to fuel rising house prices. This is according Yorkshire Bank's latest Housebuyers Survey of more than 2000 adults nationwide. The quarterly study, which examines and monitors attitudes towards the UK property market, has found that one in 10 housebuyers are now quite prepared to resort to gazumping to get the house they want. Housebuyers ...

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