Mortgage Strategy articles from April 2005

Mortgage Strategy archives from April 2005

Comment: Yanks might stick around this time.(American mortgage banks)
April 4, 2005... With the news this week that Bear Stearns is back in the UK mortgage market, you could be forgiven for thinking specialist lending in this country has gone full circle. A little over 10 years ago the Yanks were already starting to become...

Andy Young to quit Sesame and head TBMC.(The Business Mortgage Company)(Brief Article)
April 4, 2005... A replacement has not yet been found for Young who leaves at the end of May after three years. Young, who came to Sesame after a successful stint as director of Zurich IFA Mortgage Network, says he has decided to join TBMC to lead its...

Bear Stearns buys back into UK with E&CMC takeover.(Essex and Capital Mortgage Corporation )(Brief Article)
April 4, 2005... US investment giant Bear Stearns has bought Essex & Capital Mortgage Corporation in a multimillion pound deal that will see the Southend- based sub-prime broker acquire its packager parent ICMG before the sale completes. The deal gives...

In brief: Equity withdrawal estimate halves.(Brief Article)
April 4, 2005... The Bank of England's estimate of mortgage equity withdrawal almost halved from #11.3bn in 2004 Q3 to #6.9bn in 2004 Q4 - easing fears over consumers' appetite for debt. Though the figures have shown a steady decrease since 2003 Q4, the...

In brief: Government homes boost.(Brief Article)
April 4, 2005... The government has pledged to create one million more homeowners in the next five years with public sector land being provided for 1,000 new homes. The first phase, consisting of 470 homes, is to be built at Oxley Park, Milton Keynes; Oxford...

In brief: Northern Rock cuts rates.(Brief Article)
April 4, 2005... Northern Rock has unveiled a number of rate reductions to its latest range of products. Rates on all flexible, fixed and tracker rates now start at 5.19% up to 85% LTV and 5.39% up to 95% LTV. The Together range, which allows borrowing of up...

Abbey ponders online deadline.(Brief Article)
April 4, 2005... Abbey says it is aiming for brokers to submit all business online - doing away with paper applications or at least not paying proc fees for them - by the middle of the year. Abbey head of intermediary marketing Jeff Scott says 90% of its...

Win tickets to London's House and Garden Fair.(Brief Article)
April 4, 2005... Clarion Events, organiser of Mortgage Business Expo Manchester, is giving Mortgage Strategy readers the chance to win one of 50 pairs of tickets to The Daily Telegraph House and Garden Fair. Tickets will be given to the first 50 mortgage...

'Over-burdensome' FSA slammed in Tory report.(Brief Article)
April 4, 2005... A report published by the Conservative Party last week claims many institutions are suffering under the 'over-burdensome' regulation by the Financial Services Authority. The paper, entitled Reform of regulation covering the UK financial...

Brokers warm to customer fees.(Brief Article)
April 4, 2005... Brokers are saying no to procuration fees and charging the client instead, says Portman. Paul Howard, associate director at Portman, says within the past two months several brokers have said they will not take the proc fee and instead...

In brief: Insurance system for DA brokers.(Brief Article)
April 4, 2005... Pink Home Loans and The Exchange have launched into the insurance market for directly authorised brokers. The two have developed a customised trading platform based on The Exchange's Exweb broker portal which can be used by DA brokers. ...

Franchise outfit to be set up.(Smart Mortgage Group)(Brief Article)
April 4, 2005... Bob Singh, director of Smart Mortgage Group, is setting up a franchise- style operation called Chess Financial Services. Singh will head the new company, which will operate as a separate entity to Smart. He will relinquish control of Smart...

Charity soccerfest set for May 19.(Brief Article)
April 4, 2005... The international soccer showdown of the year approaches - May 19 sees the Shelter Invitational Tournament 2005 at Selhurst Park, home of Crystal Palace FC. And Mark Harris, Savills Private Finance managing director, is looking for keen...

PMPA launches proc fees protection plan.(Professional Mortgage Packagers Alliance )(Brief Article)
April 4, 2005... The Professional Mortgage Packagers Alliance is to launch the PMPA Intermediary Payment Protection plan. The plan is designed to provide a guarantee, verifiable by PMPA, that in the event of a member ceasing to trade it will settle...

In brief: Enhancements.
April 4, 2005... First National is to make changes to its first charge mortgage product range from April 4. The enhanced range will include a one-year discount to replace the existing six-month discount offer. Copyright: Centaur Communications Ltd. and...

In brief: TBMC subscribes to Moneyfacts.(The Business Mortgage Company )(Brief Article)
April 4, 2005... The Business Mortgage Company has subscribed to Moneyfacts DataScreen. Moneyfacts DataScreen is an online competitor information system and is used as a research tool by banks, building societies and credit providers. Copyright: Centaur...

NU to enter home reversion market via intermediaries.(Norwich Union)
April 4, 2005... Norwich Union is to be the first big brand name to enter the homer reversion equity release market since AMP pulled out of the UK. On Wednesday it launches the NU Home Reversion Plan, funded by Grainger Trust plc, to be sold through IFAs...

West Brom will offer deal direct.(Brief Article)
April 4, 2005... West Bromwich will offer Norwich Union's home reversion and lifetime mortgage products as part of its tied arrangement with the firm, but says it is against offering equity release products via brokers. West Brom was one of the firms...

Sub-prime clients prefer to use mortgage brokers.(Brief Article)
April 4, 2005... Research from Chelsea reveals the majority of sub-prime customers feel more confident using a broker for sub-prime cases. This comes as the lender prepares to launch its new sub-prime range. Chelsea says it hopes to jump to the...

IFS defends #40 admin charge.(Institute of Financial Services )(Brief Article)
April 4, 2005... The Institute of Financial Services has defended its #40 charge to issue updated CeMAP certificates. Lisa Green, a director of Link Mortgage Services in Sittingbourne, Kent, applied for an updated qualification certificate after getting...

In brief: B2L tracker.(buy-to-let )(Brief Article)
April 4, 2005... Norwich and Peterborough is launching a buy-to-let mortgage to purchasers and remortgages. The product tracks LIBOR+ 0.59% for the life of the loan. Robert Lankey, head of commercial lending at N&P, says: "We believe this rate to be one of the...

In brief: Overseas assistance.(www.totalplanet.co.uk)(Brief Article)
April 4, 2005... A new online tool at www.totalplanet.co.uk has been launched to help investors buy in overseas property hotspots, focussing on emerging states such as Bulgaria, Croatia and Turkey. Copyright: Centaur Communications Ltd. and licensors

In brief: Introducer scheme.(Goldsmith Williams)(Mortgage Promotions)(Brief Article)
April 4, 2005... Mortgage Promotions and Goldsmith Williams have together launched an introducer scheme that offers flexible remortgage, purchase, sale and Right to Buy products. Copyright: Centaur Communications Ltd. and licensors

In brief: Safety net.
April 4, 2005... To attract more online banking customers, and keep existing ones, banks must change consumers' belief that online banking isn't safe, a report by Forrester Research reveals. Copyright: Centaur Communications Ltd. and licensors

Easter boom shows who's hot and who's not, says GMAC.(Brief Article)
April 4, 2005... GMAC-RFC saw a surge in activity over the Easter period and is heralding this as a sign that the winners and losers since statutory regulation are starting to show. Compared with the same period in 2004, it saw record figures on March 29,...

Leeds axes Holbeck name in rebrand.(Brief Article)
April 4, 2005... Leeds & Holbeck last week revealed members have given their backing to a company-wide rebrand and that redemption fees will be increased by just under #100. Early redemption administration charges have increased from #110 to #195 and the...

Reed to leave UCB and take Nationwide role.(Brief Article)
April 4, 2005... After six years as managing director of UCB Home Loans, Charles Reed is to leave to move into mainstream lending at parent Nationwide in Swindon. Reed will take up the post of divisional director for customer service and communications...

Marlborough service to save lenders money.(Brief Article)
April 4, 2005... Marlborough Stirling has set up a mortgage consultancy service to gauge the efficiency of lenders' operations and generate potential cost savings of over #300,000 per year. The aim of the service is to provide lenders with an objective...

Complaints system to change.(Brief Article)
April 4, 2005... The Financial Services Authority and the Financial Ombudsman Service have proposed a system of precedents for handling complaints that have wider regulatory implications for firms and consumers. The proposed rule changes are set out in a...

CHL dumps B2L accounts rule.(Brief Article)
April 4, 2005... Capital Home Loans has done away with the need to show accounts when applying for buy-to-let mortgages to a ceiling of #2m. The no accounts rule applies to all buy-to-let products provided by CHL and its Irish Permanent brand. ...

In brief: Chase de Vere gets MT Select.(Brief Article)
April 4, 2005... Mortgage Trust is opening its MT Select buy-to-let range to Chase De Vere Mortgage Management. The MT Select range consists of a streamlined version of MT's core buy-to-let range and features good rates and simplified criteria. ...

In brief: Charcol tracker.(Brief Article)
April 4, 2005... Charcol has launched a buy-to-let stepped tracker, with an opening rate of 4.59%. The brokerage says such a low initial pay rate drastically decreases the rental income a borrower needs. Copyright: Centaur Communications Ltd. and...

In brief: SWB meetings.(Scottish Widows Bank)(Mortgage Promotions )(Brief Article)
April 4, 2005... Scottish Widows Bank and Mortgage Promotions will host a series of breakfast meetings in the former's regional offices. The first features Nick Baxter running a session focussing on the new reporting requirements and the future of the...

In brief: Buy-to-let panel.(Mortgage Times Group)(Brief Article)
April 4, 2005... The Mortgage Times Group has set up a specialist buy-to-let packaged panel consisting of 17 lenders. Lenders such as The Mortgage Works, UCB Home Loans and GMAC-RFC are panel providers. Copyright: Centaur Communications Ltd. and licensors...

First sign of an FTB upturn.(first-time buyer market)(Brief Article)
April 4, 2005... Estate agents are seeing the first signs of a reviving first-time buyer market following the chancellor's Budget decision to step up the Stamp Duty threshold. Jim Gillespie, operations director at Property Supermarket, says that within...

Chelsea defends #8m Bage payoff.(Michael Bage)(Brief Article)
April 4, 2005... Richard Hornbrook, chief executive at Chelsea, has defended the society's decision to award its retired former boss an #8m pension fund. Chelsea was severely criticised in the national press for offering its former chief executive Michael...

MPPI mis-selling warning.(mortgage payment protection insurance)(Brief Article)
April 4, 2005... CETA has warned that the mis-selling of mortgage payment protection insurance is a growing problem with the potential to damage the reputation of the whole industry. The general insurance network says it understands from a source close to...

Equity schemes not used enough.(Brief Article)
April 4, 2005... Prudential says many pensioners are not making use of equity release, with 86% of of over-65s polled considering moving home to free up cash. The equity release and pension provider says that while over half of over-55s move to the...

In brief: Fees-free product.(Brief Article)
April 4, 2005... Pink Home Loans is offering a two-year fixed rate sub-prime product as part of its fees assisted remortgage campaign. The deal, part of the Crystal range funded by Mortgages PLC, offers a rate of 7.45% fixed for two years up to 85% loan to...

Will #8m payoff put you off using Chelsea?
April 4, 2005... At the Chelsea AGM last week it emerged the pension fund of its former boss could be as much as #8m. Members attending were told the society's performance for 2004 had seen gross mortgage lending of #2.3bn and that levels of efficiency,...

In brief: BuildStore bucks the lending trend.(Brief Article)
April 4, 2005... Self-build and renovation specialist BuildStore says February was a record month for mortgage business. The company clocked up #70m in loan applications during the month, a year on year increase of 51%. The figures are in contrast to those...

Market Watch: 4 April 2005.
April 4, 2005... It was a pretty quiet time for swaps last week and they closed marginally down. * One-year money is down 0.01% at 5.13% * Two-year money is down 0.02% at 5.07% * Three-year money is down 0.02% at 5.06% * Five-year money is...

Will packagers remain a strong force in distribution?
April 4, 2005... Will packagers remain a strong force in distribution despite lenders' efforts to push them out? Packagers have much to offer the market but a contrary impression is being cultivated by those with vested interests, say our experts ...

Monty Burn: Process your way to a profitable business.(Column)
April 4, 2005... In an attempt to offer readers of this column financially rewarding ideas I have researched a number of methods including tips on how to get your foot in the door. This week's potential money-spinner is a processing product from Mortgage 2000....

On the beat: Simon Biddle.(Online Advertising)
April 4, 2005... So much has been written about the online revolution it's difficult to add anything new. In all the hype, trying to separate the wheat from the chaff is a challenge but one certain fact is that the online revolution places in the consumer's...

Nicks Notes.(Cancer Research )
April 4, 2005... Cancer Research UK has predicted cases of malignant melanoma could surge in the next 300 years. A study based on trends shows the chances of today's children suffering from this type of skin cancer are three times those of their grandparents....

Financial Health Matters.
April 4, 2005... Credit reports are part of the daily fabric of our working lives as they are a key information source used in lenders' decision-making. Yet many consumers are unaware their credit data is being stored until they are refused credit and want to...

Letter: FSA is boosting brokers' image and professionalism.(Letter to the Editor)
April 4, 2005... From Brian Melling I'm amazed at the claims made by some advisers about how much longer the sales process is taking under the FSA. Often an extra two hours is mentioned. What takes this extra time? I know we need to explain the...

Letter: PTI should pay the #700 proc fees it owes me - if it can.(Letter to the Editor)
April 4, 2005... From Terry Phillips Last year I was an appointed representative of Personal Touch Insurance and despite completing over 40 mortgages was told that if I wished to continue with PTI after this October I would have to join another broker...

Letter: Brokers couldn't believe their luck when they saw fee.(Letter to the Editor)
April 4, 2005... From Monty Burn In response to Alan Sargent's letter of the week (Mortgage Strategy March 28), I know the Bristol & West product with the #750 proc fee sold by the "shedload" because my contacts at Pink Home Loans and B&W told me at the...

Letter: BMS must be raising fees to get more sub-prime business.(Letter to the Editor)
April 4, 2005... From Kevin Thornton I have watched without interest the debate on proc fees and BM Solutions. Despite its claims that proc fees for adverse cases should be no more than those in the clean market, BMS is gradually increasing the fees it...

Letter: Why is nobody making a fuss about IFA Promotions ads?(Letter to the Editor)
April 4, 2005... From Michael Norwood I draw the attention of readers to the use of IFA Promotions' advertising aimed at consumers by many providers in the mortgage and GI markets. Since regulation it is strange this type of promotion has not raised more...

The cost of paying for access to cash.
April 4, 2005... The increase in the number of ATMs that charge customers for withdrawing money could result in some communities missing out on free access to cash, says Rachel Blackmore Consumers are being charged more than #140m a year to access their...

A view from the floor.(Brittania, building society)(Brief Article)
April 4, 2005... Ian Adam, chairman of Britannia, says his society's members overwhelmingly endorse the strategy of remaining independent and mutually owned Britannia's recent AGM proved to be a success. Over 300,000 members took the opportunity to make...

Red tape must not tie brokers in knots.
April 4, 2005... With regulatory reporting and the Treating Customers Fairly initiative both in the news, the FSA must not forget excessive red tape is counterproductive for business, says Ben Stafford There are times when it is appropriate for the...

I Should Know But I Don't: Partner will shortly retire.(loan broker partnerships)(Brief Article)
April 4, 2005... Q: My partner will shortly retire, leaving the brokerage in my hands. Will I have to inform the FSA of this change? A: Yes. Authorised firms are responsible for making sure information held about the firm by the FSA is correct and...

Bonds of regulation must be loosened.(mortgages)
April 4, 2005... Any delay in streamlining the onerous regulatory process will severely damage the mortgage industry, further limiting consumers' choices and pushing up costs, says Mike Fitzgerald I was recently invited to address a forum organised by The...

An open letter to John Tiner at the FSA.(Financial Services Authority, United Kingdom)
April 4, 2005... Inconsistency in the application of the FSA rules not only makes for confusion in the market but could also mask a flaunting of the rules by some, says Richard Griffiths in his letter Dear Mr Tiner, Over the two-year period prior to...

Act to de-stress your company.(organisational stress)
April 4, 2005... Paul Griffin, managing director of SmartMove, says decisive action and good communication are necessary to relieve your company of the symptoms of organisational stress There are considerable cost benefits from tackling stress at work....

Dear Delia: Plumber to buy rental property.
April 4, 2005... Mr Walters is a self-employed plumber who wants to buy a rental property for #200,000. He has #50,000 as a deposit. An estate agent has told him he can expect a rental income of #1,000 per month but suggests that because of the property's...

Interview: Clifford's climb.(Interview)
April 4, 2005... Rob Clifford says his entrepreneurial drive will not be stifled by West Bromwich's takeover of mortgageforce, the firm he created. He gives his first in-depth interview to Barney McCarthy While recent headline-making transactions in the...

Commercially sensitive.(Regulation)
April 4, 2005... The commercial mortgage market has great potential for brokers but can be complicated so novices should tread carefully, says Stephanie SpicerThe commercial mortgage market has great potential for brokers but can be complicated so novices...

Online commercial sector can pay for brokers.(Brief Article)
April 4, 2005... Frank Eve, managing director, Frank Eve Consulting Mortgage intermediaries should not ignore the opportunities the online commercial mortgage sector can provide. The commercial mortgage market has made significant progress in the...

Comparative returns on property investments.(Illustration)
April 4, 2005... Comparative returns on property investments Total return Income return Capital growth All property 18.3% 6.3% 11.4% Equities 12.8% - - Property equities ...

How much will a commercial mortgage cost?(Brief Article)
April 4, 2005... Interest rates vary according to the lender and the repayment option chosen. There are certain factors your client ought to consider. An arrangement or processing fee (typically in the region of 0.5 -1.5% of the loan) is normal. Loans...

What your commercial clients should know.
April 4, 2005... John Rattigan, compliance director, Cartel Buying commercial premises can be a good investment. Owning a property gives a business stability and the property can become a significant asset. Alternatively, your client may be buying a...

This week - 4 April 2005: John Wriglesworth.(Brief Article)
April 4, 2005... JOHN WRIGLESWORTH economist With house prices reaching dizzying highs over the past few years, many consumers have taken out interest-only mortgages. The more astute have sensibly put in place repayment vehicles but the Council of...

Guard yourself when advising on B2L.(Column)
April 4, 2005... Intermediaries must be sure of where they stand with regard to regulatory requirements when advising customers wishing to take out buy- to-let mortgages, says Neal Smith This week I will address a question that frequently crops up in my...

Integration a must as market shrinks.
April 4, 2005... Despite their huge IT investments, in a shrinking market lenders must realise that cutting the cost of the mortgage process through integration is in everyone's interest, says Frank Eve With mortgage application volumes declining and...

Insight: Internetinsite.(Column)
April 4, 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 I'm in Derbyshire this week and, apart from my usual look...

CurriculumVitae: Mark Harris.
April 4, 2005... Name: Mark Harris Age: 35 Company: Savills Private Finance Job Title: Managing director Where do you live? Shirley, Surrey Describe your current job: Where do I start? I act as broker, administrator, agony aunt,...

Brokers must be bold and creative.(Brief Article)
April 11, 2005... It might be over 6,000 miles away but Hong Kong is proving to be a lucrative niche market for UK-based lenders and brokers. While profit margins on traditional mortgage business in this country continue their steady decline some of the...

Industry concern about payslip adverts.
April 11, 2005... Industry pundits have hit out at advertisements offering borrowers replacement payslips for mortgage loans without demanding proof of income. The Blue Cheque Company sent details to The Whitechurch Network, offering its clients payslips...

MBS man in GMAC Commercial talks.(mortgage backed securities)(Lewis S. Ranieri)
April 11, 2005... Hammered by debt and stock downgrades, US automaker General Motors is negotiating to sell a majority stake in its commercial mortgage affiliate and speculation is growing regarding the future of its residential business. As Mortgage...

IF will add to offset range later this month.(Intelligent Finance)(Brief Article)
April 11, 2005... Intelligent Finance is to add to its offset range later this month, with brokers expecting this to include a fixed rate option. Since the internet and telephone bank was launched it has only had one product on a variable rate but it is now...

IN BRIEF: MT main sponsor for MS Awards.(Mortgage Times)(Mortgage Strategy)(Brief Article)
April 11, 2005... Mortgage Times is to be the main sponsor of the Mortgage Strategy Awards 2005, a glittering event being held at the Royal Lancaster this Thursday. Payam Azadi, head of marketing at Mortgage Times, says: "The Mortgage Strategy Awards are...

IN BRIEF: Resignations.(Sheval Property Finance)(Brief Article)
April 11, 2005... John Wheeler, sales manager at Sheval Property Finance, and Sidney Cohen, business development manager, have both resigned. Neither has yet confirmed where they will be moving on to. Copyright: Centaur Communications Ltd. and licensors

IN BRIEF: CML adviser.(Council of Mortgage Lenders)(Brief Article)
April 11, 2005... The Council of Mortgage Lenders has appointed Rob Thomas as a senior policy adviser, covering mortgage funding issues. This brings the number of CML policy advisers to six. Copyright: Centaur Communications Ltd. and licensors

IN BRIEF: BuildStore added to MP panel.(Mortgage Promotions)(Brief Article)
April 11, 2005... Mortgage Promotions has added BuildStore to its direct access lender panel to provide a range of self-build mortgages and home improvement loans for MP's registered users. Copyright: Centaur Communications Ltd. and licensors

IN BRIEF: Homes at risk.(Brief Article)
April 11, 2005... The AA is warning that half of Britain's householders are putting their homes and savings at risk as they don't have insurance to meet the value of the contents of their homes. Copyright: Centaur Communications Ltd. and licensors

GMAC blasts IT laggard rivals.(information technology)(Brief Article)
April 11, 2005... GMAC-RFC has accused rival lenders of wasting brokers' time with poor quality or non-existent online systems. It gives the examples of Platform which does not have an online application system and Abbey which has been suffering severe...

PTI defends payment delay to departing ARs.(Personal Touch Insurance)(appointed representatives)(Brief Article)
April 11, 2005... Personal Touch Insurance says delays in payments to appointed representatives leaving it are the result of ensuring that departing intermediaries are accepting liability. Mike Allison, managing director of PTI, says if ARs leave a network,...

Optoma Broker Solutions Limited: An apology.
April 11, 2005... In our issue of March 28, in an article entitled "BMS dumps Optoma amid FSA rule breach rumours", we stated that Optoma may be in breach of FSA Principles 6 and 9. We accept that Optoma Broker Solutions Limited has not breached any FSA...

MT adds Islamic lenders to panel.(Mortgage Times Group)(Alburaq )(Brief Article)
April 11, 2005... The Mortgage Times Group has added two Islamic mortgage lenders to its panel, Alburaq and Ahli United Bank. The group says Islamic mortgages are becoming more popular as lenders innovate in this market. The addition of Alburaq and...