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RBS steps back from the intermediary market

Royal Bank of Scotland has released its interim results for the first half of 2006 which shows the bank has had reduced business in the intermediary market.

In its interim report RBS, says: Intermediaries are an important distributing channel for mortgage products in the UK and we are an active participant in this channel, although there can be significant swings in volumes based on competitive pricing.

In the first half of 2006 we stepped back from this market since, at the prevailing pricing, we considered the risk-reward equation unattractive relative to other opportunities.

The results also showed that average mortgage balances grew by 10% over the comparable period last year which is partly as a result of strong growth from First Active UK during 2005.

It says it focused primarily on its branch channels and its offset mortgage product again performed strongly and also revealed that mortgage arrears remain very low and small business credit quality remains stable.

The average loans and advances rose by 17%, and the bank says this reflects higher mortgage balances at First Active UK and The One account in the first half, despite reduced volumes in the intermediary mortgage channel and a reduction in average unsecured loan balances.

Furthermore, its net interest margin narrowed principally because of the increased proportion of low risk mortgage lending in our business mix.


GMAC-RFC portfolio sale

GMAC-RFC has completed its second portfolio sale to Oakwood Homeloans. The 330m deal comprised a pool of prime, buy-to-let and self-cert deals.

Refurbishment deal unveiled

First Mortgage Options has launched a 100% LTV deal for buying properties that are in need of refurbishment.

Government introduces energy inspectors

The government has controversially announced plans to introduce energy inspectors, who will be trained specifically to carry out the Energy Performance Certificate. Following the governments U-turn on Home Condition Reports the Energy Performance Certificate became the only mandatory part of the pack. As it stands the EPC training is incorporated in the Home Inspectors qualification, […]

Commercial First spells it out for borrowers

Commercial First has launched an illustration facility to give clients a summary of the costs and charges of commercial mortgage contracts. The Commercial First Illustration, which is the first of its kind, contains details of the terms of a mortgage contract including payments during and after the fixed rate or interest-only period expires. It also […]

India rate cut – more to come?

Kunal Desai, Head of Indian Equities at Neptune Investment Management India’s stockmarket rallied this week following news that the central bank was cutting interest rates more aggressively than expected. Commenting on the rate cuts and what this means for India’s economic growth, Kunal Desai notes that there were two important details in the announcement that have […]


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