Mortgage Strategy articles from April 2006

Mortgage Strategy archives from April 2006

COMMENT: Estate agents must be licenced now.
April 3, 2006... The BBC's Whistleblower expose two weeks ago confirmed what many had long-suspected of the estate agency industry - and even more have long been the victims of. The general reaction among our columnists is one of shock - shock, that is,...

PT reviews packager panel.
April 3, 2006... Personal Touch Financial Services is in due diligence with its packaging panel due to concerns that some firms may not be financially sound. Industry sources have recently expressed concern that many smaller packagers might not survive the...

Contract clause could hit Rightmove's HIP business.
April 3, 2006... Investors buying shares in Rightmove have been warned that a contractual clause between Rightmove and its three main shareholders could lead to a drop in the value of its future Home Information Pack business. The company's prospectus...

Prestbury unveils leads search engine facility.
April 3, 2006... Prestbury has finally launched trumpo.com, its search engine facility that provides leads to member firms, after being delayed by trademark objections from Donald Trump. Now that trademark investigations have ruled out potential...

IN BRIEF: Heritable increases maximum loans.(Brief article)
April 3, 2006... Heritable Bank has increased the maximum loans offered on its range of buy-to-let and self-cert mortgages. The maximum amount buy-to-let investors will be able to borrow has been doubled from #5m to #10m. It has also increased the maximum...

IN BRIEF: Kensington incentives.(Brief article)
April 3, 2006... Kensington Mortgages has introduced incentives to complement its Extra Choices product range. Buyers get #250 cashback and remortgaging clients have the option of #250 cashback or free legals. Copyright: Centaur Communications Ltd. and...

IN BRIEF: Rooftop deals verified on ENC.(Brief article)
April 3, 2006... Rooftop Mortgages is the latest lender to have its products listed and verified on Trigold's ENC platform, which enables intermediaries to source sub-prime products. Copyright: Centaur Communications Ltd. and licensors

IN BRIEF: Adverts on HIPs.(Brief article)
April 3, 2006... Mortgage providers could be able to use Home Information Packs to advertise their services. The Office of the Deputy Prime Minster says although marketing material won't be allowed inside the packs, adverts on packaging in separate...

IN BRIEF: Whitechurch in MPPI deal.(Brief article)
April 3, 2006... The Whitechurch Network has teamed up with general insurance firm Securah to provide its advisers with access to monthly mortgage payment protection insurance products. Copyright: Centaur Communications Ltd. and licensors

IN BRIEF: Vertex buys 1st.(Brief article)
April 3, 2006... Vertex Financial Services has acquired 1st Software Group. 1st, which has over 11,000 users, will become a key part of Vertex, fitting within The Exchange business. Copyright: Centaur Communications Ltd. and licensors

IN BRIEF: Guide dog.(Brief article)
April 3, 2006... The Yorkshire will pay for a guide dog puppy through its first year of life from the donation of 1,500 old mobile phones. Staff and customers chose to call the yellow Labrador, which was born on December 5, Buddy. Copyright: Centaur...

Knight calls on lenders to offer deals up to 6 x income.
April 3, 2006... Stephen Knight, executive chairman of GMAC-RFC, is calling on lenders to develop products for five or six times a person's income. Speaking at the Council of Mortgage Lenders annual lunch last Friday, Knight told attendees: "With the...

Brokers say Stamp Duty should have been scrapped.
April 3, 2006... A whopping 85% of brokers unsurprisingly think Gordon Brown should have scrapped Stamp Duty in the last Budget. Just 15% thought this was a bad idea. Judging by feedback last week, most brokers felt the chancellor had let borrowers down by...

Alexander Hall waits for proof.
April 3, 2006... Alexander Hall says it has not received evidence from the BBC to support the allegations made in its Whistleblower series, exposing the underhand practices of estate agents. The BBC did a follow-up on last Monday's Watchdog programme but...

Beaumont promoted to deputy CEO of MPLC.
April 3, 2006... Mortgages PLC has promoted Peter Beaumont to the post of deputy chief executive officer. Beaumont will continue to report to Trevor Pothecary, who becomes chairman and chief executive. Pete Thomson has been promoted to the role of sales...

Misys takeover talks fail as price can't be agreed.
April 3, 2006... Acquisition talks between Misys and unknown potential buyers broke down last week after the parties were unable to establish a satisfactory price for Misys' network Sesame. Misys was allegedly in talks with several insurance providers...

BM launches credit repair range.
April 3, 2006... BM Solutions today launches a range of credit repair products exclusively for its sub-prime clients. Unveiled on the back of a record March which saw more than #2bn applications processed, the range targets customers coming to the end of...

IN BRIEF: SMS launches online form.(Brief article)
April 3, 2006... Solent Mortgage Services has launched its generic application form on the Mortgage Trading Exchange, allowing brokers using it to submit mortgage business to SMS' branded lending partnerships. SMS has invested heavily in its web-based...

IN BRIEF: Scarborough sells #500m portfolios.(Brief article)
April 3, 2006... Scarborough has sold two mortgage portfolios totalling almost #500m to Basinghall Finance, the joint venture between German banking giant WestLB Capital Markets and Home Funding. Copyright: Centaur Communications Ltd. and licensors

IN BRIEF: AIFA members get FSA fees boost.(Brief article)
April 3, 2006... The Association of Independent Financial Advisers says its members will gain significantly from the improved terms of the instalment plan for regulatory fees unveiled by the Financial Services Authority. In 2005 AIFA persuaded the FSA to...

GMAC-RFC pilots 95% LTV deal through packagers.
April 3, 2006... GMAC-RFC has become the first lender to pilot a self-cert 95% LTV product through packagers. The product, available only to second-time buyers, is being piloted through 35 branded packagers and 25 packagers. Guy Garrard, director of...

Accord extends its cascade system.
April 3, 2006... Accord Mortgages is extending its Adverse Business Cascade system, making it into a 360 degree system titled All Business Cascade. This will be the last stage in the system's development, allowing borrowers to be moved up from...

Turner could be in line for Countryside role.
April 3, 2006... Speculation mounted last week that Grenville Turner has been offered Harry Hill's chief executive position at Countrywide after the former head of intermediary business at HBOS refused to comment on rumours to that effect. Although...

Industry welcomes ARLA, NAEA merger.
April 3, 2006... The decision to merge the Association of Residential Letting Agents and the National Association of Estate Agents is being hailed as a positive step for the industry. In a joint statement last week Robert Jordan, president of ARLA, and...

Future enters B2L market.
April 3, 2006... Future Mortgages launched into the buy-to-let market last week but restricted access to products to 10 packagers while it tackles its service issues. Future spokesman Andrew Wiggins says the lender is aware it has had problems with its...

Brown makes another U-turn on SIPPs.
April 3, 2006... In yet another U-turn, chancellor Gordon Brown is to allow holders of self-invested personal pension plans to invest directly in student halls of residence and indirectly in other residential properties. The details of the plans are set...

Nationwide moves to allow higher borrowing.
April 3, 2006... Nationwide has raised its affordability calculation, increasing the amount new applicants can borrow. The decision to change the way affordability is assessed was sparked by feedback from brokers who called on the society to update its...

IN BRIEF: A&L keeps mum on takeover talk.(Brief article)
April 3, 2006... Alliance & Leicester has refused to comment on speculation that it has turned down a #5.8bn takeover bid from French lender Credit Agricole. The Times reported last week that the lender approached A&L with a #13 a share offer but was...

IN BRIEF: Approvals up in February.(Brief article)
April 3, 2006... Mortgage approvals were up by 22% in February compared with the same month last year, figures from the British Bankers' Association show. February's gross lending of #14bn was the highest February total on record, 18% above the 2005...

IN BRIEF: HIPs warning.(Brief article)
April 3, 2006... Introducing Home Information Packs next year will be "like regulating fishing and putting the sharks in charge," says David Quick, managing director of Central Electronic Trading Agency. Quick fears brokers will be muscled out as estate...

Opus helps staff to stub out.
April 3, 2006... Glasgow-based packager Opus is easing the effect of the smoking ban on its staff by offering them hypnotherapy to help them quit. The ban on smoking in enclosed spaces came into force in Scotland on March 26, with heavy fines for anyone...

Oryen offers #150 cashback on deals.
April 3, 2006... Oryen Mortgage Packaging is offering intermediaries #150 cashback across its Southern Pacific Mortgages Limited product range, including near prime. This offer is exclusive to and entirely funded by Oryen, and is valid on cases submitted...

Online directory will help brokers access services.
April 3, 2006... The Mortgage industry has its own equivalent of the famous Million Dollar Homepage with the launch of the Brokers Bible. Following the same grid format that made a fortune for the creator of the Million Dollar Homepage, it has been...

Unity poised to launch B2L range.
April 3, 2006... Unity Homeloans is launching a range of buy-to-let products in April that will be available through members of the Professional Mortgage Packagers Alliance. Ian Nelson, chief executive of Unity, director of PMPA and chairman of founder...

IN BRIEF: Avenel becomes L&E chairman.(Brief article)
April 3, 2006... Gilles Avenel has been appointed chairman of London & European Title Insurance. Avenel joined L&E's board in October 2005. He has over 30 years' experience in banking and insurance, the last 10 spent in executive and non-executive board...

IN BRIEF: FSA smooths application process.(Brief article)
April 3, 2006... The Financial Services Authority has improved its application process so that firms can build application packs tailored to their type of business. Copyright: Centaur Communications Ltd. and licensors

Poor old GMAC: Good child, bad parent.
April 3, 2006... When good parents go bad might sound like the name of one of those new- fangled reality shows that have taken over the airwaves in America but it also describes what's gone wrong at GMAC Residential, a subsidiary of US auto giant General...

IN BRIEF: Minister pledges help for FTBs.(Brief article)
April 3, 2006... Housing minister Yvette Cooper last week pledged to provide more help for first-time buyers alongside plans to deliver more homes. Speaking at a shared equity conference, Cooper announced the formation of 23 Homebuy Agents to give...

IN BRIEF: Equity seminars.(Brief article)
April 3, 2006... IFA support services provider Threesixty has teamed up with Just Retirement to stage a series of seminars exploring issues around equity release and Inheritance Tax. Copyright: Centaur Communications Ltd. and licensors

Nationwide slams HLCs.
April 3, 2006... Nationwide is urging lenders to scrap higher lending charges which it says will cost borrowers #200m this year. The society says the government's modest change to the Stamp Duty threshold in the Budget means lenders must act to help...

C2 moves to help B2L professionals.
April 3, 2006... c2-financial is launching an 85% LTV buy-to-let mortgage with no rental verification. The product is available through the company's Rooftop Mortgage funded branded lending operation centro home loans. The product is aimed at...

Education scheme unveiled.
April 3, 2006... The Financial Services Authority has launched a programme to improve the financial skills of 18 to 40 year olds. The regulator's Establishing a Baseline survey shows people in this age group are less financially capable than their elders...

CHL products for limited companies.
April 3, 2006... Capital Home Loans is launching a range of sub-prime buy-to-let mortgage products for limited companies. The move follows increasing numbers of landlords taking advantage of the tax breaks that come with limited liability status. Landlords...

IN BRIEF: Network cost calculator.(Brief article)
April 3, 2006... Mortgage Next Network has launched an online cost calculator which enables appointed representatives to compare the cost of belonging to their existing network with that of being a member of the Mortgage Next Network. Copyright: Centaur...

IN BRIEF: Wolsey appointment.(Brief article)
April 3, 2006... Wolsey Securities, the specialist in 100% development finance, has appointed Paul Hollyman as a regional development director for the South-West. Copyright: Centaur Communications Ltd. and licensors

IN BRIEF: B2L hotspots.(Brief article)
April 3, 2006... Jon Clark of residential property specialist CCRE Touchstone says investors are looking beyond traditional areas such as London and Manchester to focus on regional cities and towns. Places such as Cheltenham and Poole are the new hotspots...

IN BRIEF: Cheaper calls.(Brief article)
April 3, 2006... Guaranteed and Genesis Home Loans are operating 0845 numbers so customers pay local rates for calls to the companies' Peterborough and Maidstone offices. Copyright: Centaur Communications Ltd. and licensors

IN BRIEF: Bright future.(Brief article)
April 3, 2006... The evidence points to a strong residential property investment market in 2006 and beyond, says Paragon Mortgages. Figures from the Council of Mortgage Lenders, the Royal Institute of Chartered Surveyors and the Office of the Deputy Prime...

VOX POP: Are the two main political parties doing enough to help FTBs?
April 3, 2006... First-time buyers are set to become an election issue. The government introduced shared equity schemes and raised the Stamp Duty threshold in the Budget. And the Conservatives have also got in on the act, with David Cameron last week...

Investors look beyond traditional destinations.
April 3, 2006... Britons are looking beyond the traditional property hotspots of Western Europe when buying holiday or second homes abroad, research from HIFX shows. The currency specialist says although France and Spain make up 43% of all its currency...

ANALYSIS: Marketwatch.
April 3, 2006... Swaps increased substantially last week but on the whole it was a pretty quiet week for rate changes. It was one of those rare weeks with no Northern Rock rate changes. * One-year money is up 0.06% at 4.77% * Two-year money is up 0.09%...

ANALYSIS: Equity release market.
April 3, 2006... Are lower rates or product innovation most important in the equity release market? Innovation is crucial and rates must be sustainable to keep lenders in the market for the long haul, say our experts Jan Holt is head of sales for...

ANALYSIS: Bringing something fresh to the party.
April 3, 2006... 2006 has been earmarked as the year of new lenders. This is good news for brokers and more importantly for consumers, who will benefit from better products. This effect will be due to the need of new entrants to make a splash in the market....

ANALYSIS: Equity quango will be a waste of time.
April 3, 2006... What first-time buyers need is a quango. That's the government's idea to help the young adults who still inhabit their teenage bedrooms because they can't afford their own homes. The Shared Equity Task Force will, according to housing...

ANALYSIS: Brown has been a lucky chancellor.
April 3, 2006... As Gordon Brown reminded us in his Budget speech last week, he is now the longest serving chancellor since the 1820s. The mortgage market has thrived during his decade in office. But this has rather more to do with his luck in coming to...

ANALYSIS: An expose that surprised nobody.
April 3, 2006... Shock horror - estate agents are a dodgy bunch. But did it really take an undercover investigation team from the BBC's Whistleblower series to prove the people we trust to sell our houses use a few tricks of the trade to rip us off? ...

ANALYSIS: Be prepared for your date with the regulator.
April 3, 2006... I'm a firm believer in the benefits of preparation. Winston Churchill once said his best off-the-cuff remarks were prepared weeks in advance, while another of my favourite sayings is 'Genius is 1% inspiration and 99% perspiration.' ...

ANALYSIS: Savvy consumers will value financial advice.
April 3, 2006... It is a commonly held belief that consumers in this country are not good at managing their money. "Just look at current levels of debt," say commentators. For the first time, how people make ends meet, how they plan their finances, choose...

ANALYSIS: Blow the whistle loud but act with discretion.
April 3, 2006... For years estate agents have borne the brunt of derogatory jibes about their nefarious practices and received nothing more than shrugs and apathy from a public inclined to believe the accusations are little more than mischievous banter ...

ANALYSIS: B2L remortgaging will increase in popularity.
April 3, 2006... Although the buy-to-let market has remained stronger and more resistant to wider market trends than was predicted, it is interesting to note there has been a growth in remortgages, in the same way as we have seen in the owner-occupied market...

ANALYSIS: We must shop the dodgy operators.
April 3, 2006... Reactions to programmes such as the BBC's Whistleblower about estate agents range from a sharp intake of breath and concerned shake of the head to a knowing sigh and a comment about biased journalism. I expect the press will be buzzing...

ANALYSIS: Communication is key to HIP success.
April 3, 2006... It took a lot longer than it should have to formulate and it involved a reshuffle among the Home Information Pack mandarins at the Office of the Deputy Prime Minister but at last it arrived - the timetable on the lead-up to the...

ANALYSIS: Just Retirement rate will stir things up.
April 3, 2006... We begin the second quarter of the year with yet another rate cut. Hot on the heels of other drawdown providers, Just Retirement has followed the trend, announcing a rate cut on its lifetime mortgage effective from today. Its rate is...

ANALYSIS: Smoking ban will be good for us all.
April 3, 2006... Scotland has taken the bold decision to lead the UK in the battle against smoking and the illnesses associated with it. The ban on smoking in public places, which was implemented on March 26, means an end to smoking in pubs, restaurants and...

LETTER: Edison nicked the idea of the light bulb from Joseph Swan.(Letter to the editor)
April 3, 2006... From Jim Rodger Will someone please tell Kensington that Edison did not famously invent the light bulb. He famously nicked the idea from Joseph Swan. The first constant electric light was developed by James Lindsay who was...

LETTER: I've had estate agents asking me how much clients earn.(Letter to the editor)
April 3, 2006... From Rick Gifford I appreciate Chris Shelton's comments in his recent letter but the BBC programme on estate agents brought an immediate response from those in a regulated industry - I rest my case. And I have had estate agents asking...

LETTER: MS should know gazumping is not a problem in Scotland.(Letter to the editor)
April 3, 2006... From Colin Kee Further to your story on gazumping in Mortgage Strategy Online, I must object to the use of the word Britain. As Murdo McHardy states, gazumping is not a problem in Scotland, so why does your article refer to the...

LETTER: Watch out if you are offered a lead for Kevin in OL10.(Letter to the editor)
April 3, 2006... From Kevin Thornton I don't know if anyone else has had a call from CMS Consulting but according to the lady who has phoned me twice it could save me money on my mortgage by sending a mortgage adviser to see me. Apparently I filled...

LETTER: Many sub-prime clients prefer the single premium option.(Letter to the editor)
April 3, 2006... From Roger Snodiin I have read with interest the flurry of letters in Mortgage Strategy on mortgage payment protection insurance and would like to offer support to the besieged Paul Violet - one of the few correspondents who has met...

LETTER: Future Mortgages' idea of urgency makes me laugh.(Letter to the editor)
April 3, 2006... From Michael Muir There follows an amusing moment from a lender. I have been working on a remortgage case with Future Mortgages for six months. I faxed a reply to it with urgent stamped all over it and it confirmed it would look at...

LETTER: Putting the record straight on clubs' pricing models.(Letter to the editor)
April 3, 2006... From Nick Baxter I refer to the 'advertorial' for Millfield in your 20 March issue and would like to put the record straight in respect of the different pricing models between mortgage clubs and networks. Generally, networks charge a...

LETTER: Co-op's price structure is exploitative, not protective.(Letter to the editor)
April 3, 2006... From Simon Burgess I am sad to find that the Co-operative Insurance Society and its sister- orgnaisation, the Co-op Bank, are not following ethical policies. The Co-op's Ethical Engagement Policy states that "companies that we invest in...

LETTER: Lenders should try to make life easier for packagers.(Letter to the editor)
April 3, 2006... From Judith White I read with surprise the article in the March 10 issue concerning RAMP and the PMPA issuing a joint statement to Kensington regarding the fees on its recently launched product range, and the reports that followed. ...

LETTER: FSA should look at links between estate and financial services.(Letter to the editor)
April 3, 2006... From Terry Pritchard I have just watched the BBC's Whistleblower programme which has supposedly broken the news that a number of estate agents in this country operate outside the ethical boundaries expected of those in positions of trust....

FEATURE: Growing pains.
April 3, 2006... Although house prices are relatively low compared with the rest of the UK, Northern Ireland has seen rapid inflation in recent years, sparking concerns about affordability, says Barney McCarthy Having turned our attention to the property...

House price growth continues to outpace other parts of Britain.
April 3, 2006... Paul McGerrigan is national sales manager of GE Money Home Lending The housing market in Northern Ireland remains extremely strong and continues to outpace the rest of the UK. In the December 2005 House Price Index from the Office of the...

South-eastern region sees highest rises.
April 3, 2006... Fionnuala Earley is group economist at Nationwide House prices in Northern Ireland are growing faster than in any other part of the UK. In 2005 the average price of a house in Northern Ireland increased by more than #14,500 to #125,585. This...

Peace gives Northern Ireland economy a chance.
April 3, 2006... Martin Reynolds is head of sales of BM Solutions BM Solutions has been in the Northern Ireland market throughout the country's difficult recent history. Thankfully, now peace has arrived the economy is starting to take off. The Halifax House...

A trend toward investing in property.
April 3, 2006... Peter Charge is director of sales and marketing for The Mortgage Business Northern Ireland has a buoyant housing market and we are seeing a trend towards investing in property. This is primarily accounted for by buying second homes for rent...

FEATURE: Keeping a grip.
April 3, 2006... Understanding the circumstances and priorities of borrowers is essential for lenders looking to formulate effective retention strategies, says Toby Conrad Many lenders now use propensity models to predict which borrowers are most at risk...

COMMENT: Time for the majority to step forward.
April 3, 2006... The image of estate agents has been tarnished by a minority and we must show the public this is not how most agents or intermediaries treat customers, says Richard Coulson Welcome to my first column for Mortgage Strategy. I'm delighted...

COMMENT: Cold calling can come in from the cold.
April 3, 2006... Given an overhaul and a rebrand, cold calling could become a useful tool when it comes to identifying those consumers who are most in need of financial advice, says Tom Atkins In recent years, cold calling has become a dirty phrase,...

Dear Delia: First-time buyers with CCJs.
April 3, 2006... Dear Delia Peter and Jane are first-time buyers and have managed to save a deposit in addition to their savings to cover the costs of moving. They have each had #2,000 County Court judgements against them, but these have been satisfied. Their...

COMMENT: Marketing Brief.
April 3, 2006... Support is critical in the mortgage industry. Kevin Paterson's A-Z review rates the marketing material that lenders issue to help brokers with sales and business development Capital Homes Loans www.chlmortgages.co.uk Scope: ...