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The HBOS iron fist loses its grip

A pre-close trading statement from HBOS reveals that the lending giant’s retention scheme has not delivered the anticipated results.

As a result its mortgage market share has slipped.

The group says it expects to deliver a robust financial performance in 2007.

In retail, HBOS says it continues to enjoy “excellent” growth in savings and banking products whilst maintaining its relative caution in unsecured lending.

However, in mortgages, the retention strategy introduced in the latter part of 2006, designed to trade an element of gross share for improved principal repaid, has not delivered the anticipated benefits.

A statement on the London Stock Exchange says: “After a slower first quarter for net lending, we are now seeing an improved performance, having taken corrective action in the second quarter.

“The start to the year is however likely to result in a first half net lending share of less than 10%.

“We are confident that we will now return to our normal 15-20% range in the second half of the year.”

Keefe, Bruyette Woods says it expects some relative weakness following the trading statement.

It says the net mortgage of under 10% in the first half of 2007 is likely to “disappoint” with general insurance sales down.

It adds that this may be good for Northern Rock.


Constant product changes have wasted my time

I met a new client on May 29 at 4.30pm and we agreed to make a remortgage application to a high street lender for a fixed rate product with all the trimmings at 5.64%. The proc fee payable for a loan of this size (45,000) is about 166.50. After network deductions it’s about 154, which […]

Market Harborough appoints new CEO

Market Harborough has appointed Mark Robinson as its new CEO, replacing Philip Dearing who announced his departure in February to join Mutual One.Robinson comes from rival society Cumberland where he was a general manager. Trained as a chartered surveyor, Market Harborough describes him as having “a substantial and varied career” in financial services, having previously […]

Expo feedback demanded presence of missing lenders

In my review of the Mortgage Business Expo Manchester in the May 28 issue of Mortgage Strategy, I made reference to the delegate feedback we collected at the event, which took place on May 16 and 17. Feedback from both delegates and exhibitors was positive when it came to the show’s specialist focus, our seminar […]

MI online service offers ARs customised websites

Mortgage Intelligence has launched an online service that gives its app-ointed representatives the chance to have customised websites.Each website will be custom-built to members’ branding specifications and will include a jargon buster, a mortgage calculator and contact forms for clients to leave their details.Sally Laker, managing director of MI, says: “Today it is essential for […]


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