Mortgage Strategy articles from April 2007

Mortgage Strategy archives from April 2007

COMMENT: Learning to live with uncertainty.
April 2, 2007... Lenders are taken to task over their affordability calculators in ourcover story starting on page 58 this week. We ask the million-dollar questions - why are lenders reluctant to divulge the formulae underlying their affordability calculators...

Surveyors in rescue drama.
April 2, 2007... Two fearless chartered surveyors braved rapids to save a drowning man from being swept over a 30ft waterfall while on a fundraising adventure in Malawi. David Wright, who works for Wolton Chartered Surveyors in Bolton, and Stewart...

Strategy's Shadow MPC will debate base rate moves.
April 2, 2007... Mortgage Strategy has brought together top industry experts to form a Shadow Monetary Policy Committee to vote on interest rate changes. Every month, the nine-strong committee will meet to discuss the market and examine the evidence as to...

Ex-SPML dream team in second charge rumour.
April 2, 2007... The ex-SPML dream team's new lender is to be backed by a US bank and will launch with a second charge offering in September, sources claim. Last week Mortgage Strategy revealed that John Prust, Bill Cherry and Stuart Aitken are planning...

IN BRIEF: MSTV is a hit with brokers.(Brief article)
April 2, 2007... Mortgage Strategy TV has seen a massive rise in its viewing figures and has attracted a total of 6,541 viewers. With a high of nearly 2,000 viewers on March 7, the TV show's audience is growing by an average of 7% each week. Copyright:...

IN BRIEF: UK is second best country for B2L.(Brief article)
April 2, 2007... The UK is the second most profitable country for buy-to-let investors, Assetz's property investment tracker shows. Poland is in first place with a total 165% return on cash investment followed by the UK with 63%, Bulgaria with 54% and France...

IN BRIEF: Persimmon unveils deal.(Brief article)
April 2, 2007... Persimmon Homes has launched a mortgage product, the Persimmon Capital Plan, that enables purchasers to borrow up to 97% LTV with the loan split into two portions. The first is a conventional mortgage on a three-year fixed rate which is...

IN BRIEF: Consortium buys Vertex.(Brief article)
April 2, 2007... Vertex has been acquired from United Utilities by a consortium of three top US investment firms - Oak Hill Capital Partners, GenNx360 Capital Partners and Knox Lawrence International. Tom Drury has stood down as Vertex's managing director...

IN BRIEF: Sims makes a Swift move.(Brief article)
April 2, 2007... Martin Sims has quit his position as head of sales development and project management at Kensington Mortgages to join the Swift Group. He will develop Swift's sector-specific sales teams. Copyright: Centaur Communications Ltd. and licensors...

IN BRIEF: Accord expands credit repair range.(Brief article)
April 2, 2007... Accord Mortgages has expanded its credit repair product range with two- year fixed rates that come with free valuation. Accord's offering now includes full status and self-cert options from its near prime plus range. Copyright: Centaur...

IN BRIEF: Brits resent paying Inheritance Tax.(Brief article)
April 2, 2007... UK taxpayers spend more on Inheritance Tax payments than any other tax meaning the death duty is their second most resented tax, according to Unbiased.co.uk. The overall amount of IHT payments totalled #3.5bn last year. Copyright:...

TMW embraces packagers.
April 2, 2007... The Mortgage Works is changing its distribution strategy so that its sub-prime pro-position will only be available through packagers. Portman's specialist lender launched into sub-prime in January this year through a pilot scheme with...

Rumours of US housing crash don't bother brokers.
April 2, 2007... Recent wobbles in the US sub-prime market have left UK brokers unperturbed. A massive 76% of Mortgage Strategy Online readers say they are not concerned about rumours of a possible housing market crash in the US, while only 24% are worried. ...

GMAC-RFC case is on FSA radar.
April 2, 2007... The Financial Services Authority says the case of a 71 year old pensioner who was left homeless after taking out a mortgage he could not afford is on its radar. In 2004, PBF Financial of Basildon arranged a #75,000 GMAC-RFC mortgage for...

Conti keeps mum on suitors' identities.
April 2, 2007... Conti Financial has confirmed that it is in discussion with potential buyers but has declined to name names. It is rumoured that foreign exchange company MoneyCorp is one of the suitors interested in buying the overseas broker. ...

Dated price comparisons breed fear, says Knight.
April 2, 2007... The practice of comparing house prices with single incomes is outdated and harming the housing market, warns Stephen Knight, executive chairman of GMAC-RFC. In a recent speech on responsible lending, Knight criticised soothsayers such as...

All PPI clients can claim refunds.
April 2, 2007... The Financial Services Authority has confirmed that payment protection insurance customers with single premium policies will be eligible for refunds whether they are new or existing customers. Last week, Mortgage Strategy reported that...

IN BRIEF: Optoma unveils DB exclusives.(Brief article)
April 2, 2007... Optoma is to release exclusives with free valuations and free legals on DB Mortgages' product range. The incentives are being released alongside reduced rates for members of the Intrinsic network. Copyright: Centaur Communications Ltd....

IN BRIEF: Rightmove offers a tasty prize.(Brief article)
April 2, 2007... Rightmove and McDonald's are teaming up to offer a prize of a #240,000 house as part of the Bigger Win Monopoly promotion. The prize is won by collecting the Park Lane and Mayfair property game stickers hidden among thousands given away with...

IN BRIEF: Retirement Plus to be authorised.(Brief article)
April 2, 2007... From April 6 this year, Retirement Plus will be authorised by the Financial Services Authority. It will be regulated as a provider, arranger and administrator of home reversion plans. Copyright: Centaur Communications Ltd. and licensors

Politicians clash on housing.
April 2, 2007... A bitter war of words has broken out between rival housing ministers Yvette Cooper and Michael Gove over housing stock and first-time buyers. In a recent parliamentary motion, Michael Gove, Conservative MP for Surrey Heath and shadow...

Two lenders under fire for snubbing packagers.
April 2, 2007... Royal Bank of Scotland and Coventry have come under fire for rejecting the packaging market. RBS Intermediary Partners recently pulled out of dealing with packagers following a valuation process review. It defends its decision as a...

HBOS plans Xmas savings account.
April 2, 2007... HBOS is to launch a Christmas savings account for low income households in May, just six months after it found itself at the centre of the Farepak scandal. Last Christmas, HBOS was accused of pulling the plug on Farepak by Sir Clive...

IN BRIEF: Citigroup denies job cull claims.(Brief article)
April 2, 2007... Citigroup, parent of Future Mortgages and Egg, has denied claims that it is to cut up to 15,000 jobs in an impending restructure. It is rumoured that increased costs could mean mass relocation or redundancy of staff in its US and offices...

IN BRIEF: Friends Provident in GI clarification.(Brief article)
April 2, 2007... In the March 26 issue Mortgage Strategy we reported that Friends Provident's targets for new business growth could be endangered by a challenging mortgage payment protection insurance market. Friends Provident would like to point out that it...

HIP deadline changes again.
April 2, 2007... The government has changed the deadline by which house sellers must have Home Information Packs if their properties are on the market before June 1 this year in a third successive amendment to the HIP regulations. The regulations were...

Network Data named top company for investors.
April 2, 2007... Network Data has been picked by AIM Bulletin, the Alternative Investment Market magazine, as the top company to invest in. Every month, an AIM company is featured in the magazine's 'where to invest' section and Network Data filled the top...

Halifax recovers stolen briefcase.
April 2, 2007... A briefcase stolen from a Halifax employee containing mortgage account details of 13,000 customers was recovered last week. The HBOS lender offered a swift apology after the briefcase was stolen from the employee's car. It also wrote...

Edeus poised to launch fixed rate product range.
April 2, 2007... Edeus has revealed it is launching a fixed rate range in anticipation of another base rate rise soon. However, edeus chief executive Michael Bolton warns that fixed rates may not be good news for consumers because the likelihood is that...

MTE to be revamped for packagers.
April 2, 2007... Mortgage Brain and the Mortgage Trading Exchange have developed a packager proposition to answer critics who feel the system does not cater fully to the packager community. The offering, which includes enhanced sub-prime and buy-to-let...

Confused FSA guidance angers AVM providers.
April 2, 2007... Automated valuation model providers have slammed the Financial Services Authority for creating confusion over AVM regulations and casting doubt on the future of instant mortgage offers. In a letter sent to the Council of Mortgage Lenders...

Instant B2L offers are imminent.
April 2, 2007... Point-of-sale offers on buy-to-let mortgages are just around the corner, according to automated valuation model providers. Rival providers Hometrack and UKValuation are both putting the finishing touches to systems that will see instant...

MoneyQuest down under.
April 2, 2007... MoneyQuest has expanded into Australia despite its struggling housing market. Steve Pollard, chief executive officer of the Glasgow-based brokerage, has been in Australia for the past four months setting up an office in Perth to provide...

Mortgage club recommends Evaluate.
April 2, 2007... Mortgage Promotions has agreed to recommend Primrose's technology platform Evaluate to its members. Evaluate is now recommended to all directly authorised brokers using the mortgage club as an online sourcing and application system for...

Changes won't affect brokers, pledges Abbey.
April 2, 2007... Abbey has reassured intermediaries that it will maintain its decentralised underwriting service despite changes to its branch-based operations. Abbey currently has underwriters dedicated to intermediary business based in its 12 regional...

IN BRIEF: CNLIS appoints Briscoe to board.(Brief article)
April 2, 2007... The Council for the National Land Information Service has appointed Sir Brian Briscoe to its board of directors. Briscoe was previously the chief executive of the Local Government Association. Copyright: Centaur Communications Ltd. and...

IN BRIEF: Average Council Tax bills to rise.(Brief article)
April 2, 2007... The average Council Tax per dwelling for 2007/08 will be #1,101 - an increase of 4.3% from 2005/06. For London, the average Tax will be #1,258. If it were not for the precept applied in London to finance the Olympics, the average Council Tax...

IN BRIEF: Borrowers want to cut their terms.(Brief article)
April 2, 2007... Intelligent Finance says almost three-quarters of borrowers want to reduce their mortgage terms or increase their payments to reduce their balance. For nearly a third of people, paying off their mortgage is their biggest financial concern. ...

IN BRIEF: Two-year fix from Scarborough.(Brief article)
April 2, 2007... Scarborough has launched a two-year fixed rate deal with a rate of 4.94% until May 30 2009. It is available for both purchases and remortgages, with the latter benefiting from the society's free legals package. Copyright: Centaur...

IN BRIEF: Freedom unveils self-cert tracker.(Brief article)
April 2, 2007... Freedom Lending has launched a two-year self-cert tracker exclusively via members of the Alliance of Mortgage Packagers and Distributors. It is priced at base rate plus 0.18% to 85% LTV or base plus 0.38% to 90% LTV. There are optional free...

IN BRIEF: UCB Homeloans cuts fixed rates.(Brief article)
April 2, 2007... UCB Homeloans has cut 0.15% from its residential self-cert and full status fixed rate deals. In the self-cert range, its two-year flexible fixed deal will be available at 5.84%, its three-year flexible fix at 5.79% and its five-year flexible...

IN BRIEF: Monthly lending fell in February.(Brief article)
April 2, 2007... Monthly gross mortgage lending fell in February but was up 7% on the same period last year, analysis by the British Bankers' Association reveals. Lending stood at #14.9bn, well down on the #16.6bn seen in January. Copyright: Centaur...

Age limits in the spotlight.
April 2, 2007... Lenders that impose an age limit on mortgages could be shooting themselves in the foot as more people are requiring mortgages into retirement, say industry pundits. Last week, it was revealed in the national press that a 102 year old man...

Enterprise offers free legals via EDGE.
April 2, 2007... Enterprise Group is offering free valuations and free legals for all products sourced through its EDGE sourcing system. Provided EDGE is used upfront to source product solutions and checklists, brokers on Enterprise's panel will qualify...

Call for more lender leniency on consent.
April 2, 2007... Secured loan lenders are calling on mortgage lenders to be more lenient when it comes to giving consent. At the moment, borrowers taking out secured loans who have a mortgage elsewhere must receive consent from the original lender to add...

MT launches website design service for ARs.
April 2, 2007... The Mortgage Times Group has launched a website design service offering brokers the chance to design their own company websites. MT's appointed representatives are able to chose the design, appearance and contents of their website and the...

DCLG defends its low cost home ownership schemes.
April 2, 2007... The Department for Communities and Local Government has defended its approach to low cost home ownership assistance, which has come under attack from the government's Committee of Public Accounts. The CPA says the DCLG is insufficiently...

Brokers go cool on overseas B2L.
April 2, 2007... Brokers are losing faith in the business potential of the overseas rental market, research from BM Solutions reveals. A survey by the lender asked 200 specialist brokers which products they thought had the greatest growth potential over...

HIPs go public.
April 2, 2007... Last week, the government launched its consumer advertising campaign to raise awareness of Home Information Packs prior to their implementation on June 1. The campaign kicked off with full-page brightly coloured adverts in national...

IN BRIEF: Heritable extends introductory offer.(Brief article)
April 2, 2007... Heritable Bank has extended its residential mortgages introductory fee offer by a month to April 30 following feedback from advisers. The extension also applies to applications falling outside standard criteria. Copyright: Centaur...

IN BRIEF: Promise unveils underwriting arm.(Brief article)
April 2, 2007... Promise Finance has launched Promise Solutions Network, an underwriting solution aimed at brokers. It features Promise Quote, an automated online underwriting system. Copyright: Centaur Communications Ltd. and licensors

IN BRIEF: Rightmove sees revenue grow.(Financial report)(Brief article)
April 2, 2007... Rightmove has announced revenue growth of 85% from #18.2m to #33.6m for its first full year after flotation. Use of its website was up more than 80% over 2005 and advertiser membership increased by 42%. Copyright: Centaur Communications...

IN BRIEF: Paragon in #1.5bn securitisation.(Brief article)
April 2, 2007... Paragon Group has achieved record pricing on its latest securitisation of #1.5bn. It is backed by prime buy-to-let mortgages and brings the group's total issuance to #18.5bn. Copyright: Centaur Communications Ltd. and licensors

IN BRIEF: Only in graduate recruitment drive.(Brief article)
April 2, 2007... The Only Group is to recruit 200 staff by the end of the year from the graduate and young professional markets. Posts to fill include mortgage and loans advisers and customer services staff. Copyright: Centaur Communications Ltd. and...

Nationwide launches 25-year fixed deal.
April 2, 2007... Nationwide has launched a 25-year fixed rate mortgage in response to consumer demand for longer term fixes. Previously, the longest fixed mortgage term the society offered was 10 years. The new product has a rate starting from 5.49%, no...

TBMC unveils buy-to-let fix at 4.65%.
April 2, 2007... The Business Mortgage Company has launched a buy-to-let fixed mortgage with an initial rate of 4.65%. The product, which will be launched under TMBC's Property Investment Mortgage brand, is fixed until June 30 2008 with an early...

Merger will create UK's biggest house builder.
April 2, 2007... House builders George Wimpey and Taylor Woodrow are to merge to become Taylor Wimpey, the UK's biggest property developer. If the proposed deal goes ahead, the new company will have annual revenues of #6.7bn, with 22,000 UK house...

Societies step closer to a revolution in funding.
April 2, 2007... MPs have backed a Private Members' Bill that could revoluntionise the way societies are funded. As reported in last week's Mortgage Strategy, Sir John Butterfill, MP for Bournemouth West and vice-chairman of the All Party Group on...

Signature offers virtual broking.
April 2, 2007... Signature Group has launched an online virtual advice service aimed at home buyers needing on-the-spot advice. The online service, called Virtual Mortgage Adviser, enables consumers to receive advice from a broker via a webcam. ...

More singletons enter the property investment fray.
April 2, 2007... BM Solutions says the demographic profile of property investors is changing, with singletons increasingly regarding property as a shrewd investment. The lender predicts a fifth of all property bought over the next 12 months will be...

CHL extends its self-cert limits.
April 2, 2007... CHL Mortgages has increased its maximum self-cert lending limits for self-employed people. The limits that now apply are a maximum loan size of #342,000 at 95% LTV, #450,000 at 90% LTV and #600,000 at 80% LTV. No higher lending...

IN BRIEF: Surveyor to train with Rooney.(Brief article)
April 2, 2007... A chartered surveyor has won the chance to train with Wayne Rooney and other members of the England squad. Richard Ingham, of Thomas Davidson, won the raffle prize at a celebrity poker evening hosted by Vinnie Jones. Copyright: Centaur...

IN BRIEF: The Money Portal buys into TPIM.(Brief article)
April 2, 2007... The Money Portal has acquired a 7.8% stake in The Property Investment Market. TPIM is an internet-based exchange which allows private investors to buy and sell shares in individual residential properties. Copyright: Centaur...

Brokers urged to help cut non-disclosure.
April 2, 2007... Legal & General is urging brokers to work with it to ensure clients supply their full medical histories when applying for critical illness cover. In 2006, the company saw a 19% cut in its rejection rate compared with the previous year...

Debtors who flee the country can now be tracked down.
April 2, 2007... Transcom has linked up with Arrow Global to buy portfolios of European debt and track down debt absconders who flee the UK. The debt collection agency is the first in the UK to use a European enforcement order allowing it to trace a...

How do you think this year's Budget will affect your finances?
April 2, 2007... The omission of Stamp Duty changes from Gordon Brown's Budget went down like a lead balloon with the mortgage industry, and his token gesture of raising the Inheritance Tax threshold was little consolation. He cut Income Tax by 2% but his...

IN BRIEF: Rate rises boost fixed rates.(Brief article)
April 2, 2007... Three base rate hikes within six months have unsettled home owners, says Fool.co.uk. It says owners believe more rate rises are on the horizon and almost eight out of 10 borrowers now opt for fixed rates. Copyright: Centaur Communications...

IN BRIEF: Rightmove ads target London.(Brief article)
April 2, 2007... Rightmove has launched an advertising campaign aimed at home movers buying, selling and renting in London. The campaign involves promotions on radio stations and billboards. Copyright: Centaur Communications Ltd. and licensors

IN BRIEF: BM Solutions unveils B2L deals.(Brief article)
April 2, 2007... BM Solutions has launched deals in its buy-to-let range including a two- year tracker at base plus 0.04% at 110% rental income cover. Other products include a 5.39% rate fixed until May 1 2009. Copyright: Centaur Communications Ltd. and...

ANALYSIS: Marketwatch - 02.04.07.
April 2, 2007... Sadly, swaps rose for the second week in a row so the prospect of cheaper fixed rates is slipping away. It's been quiet on the rate front for several months. We've seen the occasional tweak up and down but nothing major. * One-year money...

Is it conflict when lenders offer products via brokers and in branches?
April 2, 2007... There is no definitive answer but lenders should let brokers know if they are operating differential pricing policies, say our experts Andrew Montlake is a partner at Cobalt Capital This is an emotive question and the response is not...

ANALYSIS: Long and short of it for fixed rates.
April 2, 2007... Last week, I looked at the prevailing popularity of fixed rate deals in the market and we have recently seen the launch of a product from Nationwide that has been the focus of some attention in this regard. It has launched a fixed rate...

ANALYSIS: The old guy could have the last laugh.
April 2, 2007... There are several ways to look at the shocking news that a 102 year old man has been given a 25-year mortgage. We could blast the broker who arranged the loan - Mortgages for Business in Kent - as shameless in its pursuit of the proc fee...

ANALYSIS: Nobody seems to want to assist first-timers.
April 2, 2007... Gordon Brown's final Budget did nothing to help first-time buyers - unless they can find a carbon-neutral home which are few and far between in the UK. The chancellor ignored calls to increase the Stamp Duty threshold from its present...

ANALYSIS: Brokers don't have to suffer from phone rage.
April 2, 2007... I don't know if it's legal to be this angry but if it's not then at least virtually every other person in the UK is also guilty. I'm talking about the particular anger that comes when we are lied to, patronised and inconvenienced all at the...

ANALYSIS: Shared equity sector needs competition.
April 2, 2007... This was the year we expected Stamp Duty thresholds to be changed in the Budget. At least it was expected that the tax would be abolished for first-time buyers. As we all know, none of this happened and for first-timers - particularly in...

ANALYSIS: Lyons' meat is too rich for ministers.
April 2, 2007... 'New Council Tax horrors sneaked through' or 'Home tax will help the poor' - which recent headline writer was right? Well, neither. The excitement was caused by the publication of the Lyons Review into the future of local government....

ANALYSIS: Popular innovations are few and far between.
April 2, 2007... Throughout the history of mortgages there have not been too many innovations which, with the benefit of hindsight, could be considered ground-breaking - or perhaps more accurately, both ground-breaking and popular. Interest-only mortgages...

ANALYSIS: Regulator intends to stick to its principles.
April 2, 2007... For many months, we have talked about the Financial Services Authority's intention to move towards a more principles-based regulatory regime and what the implications of this might be for intermediary firms. We are now beginning to see the...

ANALYSIS: Apply TCF approach to buy-to-let deals.
April 2, 2007... Last month, the Council of Mortgage Lenders issued its statistics pack for 2006 relating to buy-to-let. For brokers doing buy-to-let mortgages it was doubtless gratifying to note that outstandings at the end of 2006 represented close to 9%...

ANALYSIS: Don't let your advice pass its sell-by date.
April 2, 2007... If you were selling perishable commodities, how careful would you be with the management, storage and sales of such products? I reckon very. Perishable goods deteriorate quickly when not stored properly and the cost of unsold goods hits...

ANALYSIS: Distribution choice is good for brokers.
April 2, 2007... Before starting on this piece, I'd better explain some jargon. Open distribution refers to distributors or clubs for directly authorised brokers who can use whichever club route they want, when they want and take responsibility with the...

ANALYSIS: Finding hidden benefits in the Budget.
April 2, 2007... The Budget is an all-encompassing beast that dominates the country's hearts and minds whatever the political climate. Yet chancellor Gordon Brown's latest one has drawn even more attention because it is likely to be his last and we were all...

ANALYSIS: Learning to challenge Labour's plans.
April 2, 2007... This year's Budget finally killed off pension term assurance less than a year after its introduction. The questions now are - what about existing PTA customers and what lessons can we learn? Between December 2006 and a few days before...