Mortgage Strategy articles from August 2005

Mortgage Strategy archives from August 2005

COMMENT: First-time buyers with a difference.
August 1, 2005... It's graduation time and up and down the country thousands of students are fulfilling their dreams and starting to celebrate after a successful stint at university has earned them their gowns and mortar boards. For most, this will be the...

Abbey is looking at specialist markets.
August 1, 2005... Abbey has confirmed that it is looking at entering the sub-prime and buy-to-let markets. The UK's second largest bank owned sub-prime lender First National before selling it to GE two years ago. Abbey was also rumoured to have made an...

Openwork to rate lenders' service.
August 1, 2005... Openwork plans to cut its lending panel to less than 30 in the next six months, and name and shame lenders who fail to meet its standards. Paul Shearman, mortgage proposition director at Openwork, says its present lending panel of 38 is...

GMAC-RFC achieves top 10 lender status.(Brief Article)
August 1, 2005... GMAC-RFC has achieved top 10 lender status in figures released by the Council of Mortgage Lenders. It is now the 10th largest mortgage lender in the country, rising from 12th place last year. The results, which show the top lenders...

IN BRIEF: Exclusive B2L deals with MEX.(buy-to-let )(Mortgage Express)(Brief Article)
August 1, 2005... Exclusive Connections has launched three buy-to-let non-status exclusive products with Mortgage Express. Craig Easeman, head of sales and marketing for Exclusive Connections, says: "We are now able to market two fixed rates and one...

IN BRIEF: Paymentshield's DA service.(directly authorised )(Brief Article)
August 1, 2005... Paymentshield has launched a limited protection panel offering, aimed at directly authorised adviser firms. The Paymentshield Protection Club consists of Norwich Union, Scottish Provident, Standard Life and Scottish Widows. Copyright:...

IN BRIEF: Money Partners' securitisation.(Brief Article)
August 1, 2005... Money Partners has completed its first securitisation deal in the UK residential mortgage backed securities market. Totalling #400m and comprising non-conforming first and second charge mortgages, the deal was issued by Money Partners...

IN BRIEF: Meadows case appeal is turned down.(Tony and Michelle Meadows)(Brief Article)
August 1, 2005... The Court of Appeal last week upheld a case against London North Securities, The hearing determined that the judge at an earlier hearing was right to find in favour of Tony and Michelle Meadows, whose #5,000 loan for home improvements...

IN BRIEF: PFS Conference.
August 1, 2005... Personal Finance Society members have been sent details of the inaugural PFS Conference, which will take place on November 21 and 22 in Birmingham. Copyright: Centaur Communications Ltd. and licensors

Pressure grows on Halifax.(Halifax Bank)(Brief Article)
August 1, 2005... Ray Boulger, senior technical manager at John Charcol, says he fully supports Jonathan Cornell's campaign for Halifax to stop calling its Retirement Home Plan a lifetime mortgage. Cornell, technical director at Hampton's International...

mortgageforce price was #6.8m.(Brief Article)
August 1, 2005... West Bromwich's annual accounts reveal it bought mortgageforce for #6.8m in March this year, though one industry source says the actual figure was nearer #10m. The national franchise operation was bought by the West Brom on March 22 as...

Portman cuts rate on its lifetime mortgage.(Brief Article)
August 1, 2005... Portman has cut the interest rate on its lifetime mortgage from 6.39% to 6.15%. Paul Howard, director of intermediary sales at Portman, says "We have maintained a competitive stance in this market throughout the year and this cut shows...

MS kart teams dominate in East End showdown.(Mortgage Strategy)(Brief Article)
August 1, 2005... Mortgage Strategy swept the board at Chelsea's annual go-karting tournament in London's East End last week. Strategy's two teams walked off with first and third places out of the 11 teams that took part in the event, held at Revolution...

Study indicates KFIs are no use.(Key Facts Illustrations )(Brief Article)
August 1, 2005... Research by the Intermediary Mortgage Lenders Association reveals that there is little evidence Key Facts Illustrations are helping customers when choosing a mortgage. The findings come only a week after the Financial Services Consumer...

IN BRIEF: FSS to recognise trainers.(Financial Services Skills )(Brief Article)
August 1, 2005... The Financial Services Skills Council has launched a scheme to recognise educational trainers in the financial services sector. The FSSC Recognised Trainer Scheme is suitable both for independent trainers and for individuals working as...

IN BRIEF: HIP positive.(Home Information Packs )(Brief Article)
August 1, 2005... Chartered surveyor, e.surv says it continues to see the implementation of Home Information Packs as a positive development. HIPs are due to be introduced in early 2007 and, whatever the rights and wrongs of the issue, last week's...

IN BRIEF: Online confidence soars.(Brief Article)
August 1, 2005... Consumer confidence in internet banking has soared, says a report by Lloyds TSB internet banking. Eight in 10 internet users now say that they feel confident or fairly confident using online banking services. Copyright: Centaur...

Number of landlords could rise by 40% in next 10 years.(Landlord Mortgages )(Brief Article)
August 1, 2005... Landlord Mortgages is predicting a 40% rise in the number of commercial landlords over the next 10 years, as buyers tap into the market. Lee Grandin, managing director of Landlord Mortgages, expects to see more professionals entering the...

Platform narrows the gap in sub-prime sector.(Brief Article)
August 1, 2005... Platform, the intermediary lender of Britannia, has launched a range of almost and near prime products designed to narrow the gap between prime and sub-prime. The range, the first of its kind from the lender, follows the recent launch...

Service to help bankrupt clients.(Packager Capital Link)(Brief Article)
August 1, 2005... Packager Capital Link is launching a national service to mortgage brokers which provides a facility to negotiate with trustees and their solicitors on behalf of bankrupt clients. The service helps clients who are facing the possession of...

IN BRIEF: Islamic deals to reach #1.4bn in 2009.(Brief Article)
August 1, 2005... Datamonitor predicts that the Islamic mortgage market will grow at an average of 47% per year to reach #1.4bn in gross advances by 2009, as more mainstream lenders realise its potential. The removal of double Stamp Duty, which previously...

IN BRIEF: TMB cuts fixed rates.(The Mortgage Business )(Brief Article)
August 1, 2005... The Mortgage Business has reduced its two and three-year fixed rates to 5.35%. The two-year rate is fixed at 5.35% until the end of 2007 reverting to 1.79% base rate tracker with an APR of 6.6%. Copyright: Centaur Communications Ltd....

IN BRIEF: Newspaper group makes Smart buy.(Smart New Homes acquired Trinity Mirror Newspapers)(Brief Article)
August 1, 2005... SmartNewHomes. com has been acquired by Trinity Mirror. The newspaper publisher has purchased Smart Media Services for an initial sum of #11.3m and a deferred consideration based on future earnings. Copyright: Centaur Communications Ltd....

IN BRIEF: Prices rise.(Brief Article)
August 1, 2005... House prices rose 0.2% in July, reversing the previous months fall, the Nationwide House Price Report reveals. It says the market continues on a broadly flat but softening trend. Copyright: Centaur Communications Ltd. and licensors

Prudential releases details of its lifetime mortgage.(Brief Article)
August 1, 2005... Prudential has released details of its lifetime mortgage, the Property Value Release Plan. The company previously offered a Northern Rock lifetime mortgage, but revealed in May that it was ending this relationship to launch its own...

First Active targets B2L via brokers.(Brief Article)
August 1, 2005... First Active is launching into the buy-to-let sector, targeting the remortgage market, exclusively through intermediaries. Its products include a fixed rate and a discount rate. These mark what First Active calls its latest phase of...

Amber launches full range of fixed deals.(Amber Homeloans)(Brief Article)
August 1, 2005... Amber Homeloans has launched a full range of fixed rate mortgage products. Adverse fixed rates are available to full-status or self-cert customers, with rates of 4.99% for feather adverse full status, 5.49% for light adverse full status...

Coventry adds a proc fee viewer to website.(Brief Article)
August 1, 2005... Coventry has added a proc fee viewing service on its dedicated intermediary website, www.thecoventry.co.uk/intermediaries. Brokers at individual, company or principal level can view the proc fees they have received, including information...

FSA says 1,600 firms are using fee instalment plan.(Financial Services Authority )(Brief Article)
August 1, 2005... The Financial Services Authority has revealed that around 1,600 small firms have already taken advantage of its fee instalment scheme. Earlier this year, the FSA brought together the Small Business Practitioner Panel, the Financial...

MT exclusive breaks 6% barrier.(Mortgage Times Group)(Brief Article)
August 1, 2005... The Mortgage Times Group and specialist lender First National have launched an exclusive two-year fixed rate product at 5.99%. The product comes at 75% LTV with no extended early repayment charges. Christopher May, director at The...

Taureans are the most bullish about buy-to-let.(Brief Article)
August 1, 2005... Stubborn Taureans are astrologically more likely to own buy-to-let property, research from Landlord Mortgages has revealed. From its database of 20,000 landlords, Landlord Mortgages has shown that those born under the star sign of Taurus,...

Mortgage lending hits 2005 high.(Brief Article)
August 1, 2005... Figures from the Major British Bankers Group on lending to individuals shows gross mortgage lending peaked at #16.5bn in June. This was the highest total of the year so far, though 9% lower than in June 2004. Seasonally adjusted net...

IN BRIEF: Back office boost for Exclusive.(Brief Article)
August 1, 2005... Dashboard Software has teamed up with Exclusive Connections to provide a packaging solution for EC's branded members across the network. Dashboard offers a back office solution with a suite of management information and reports for...

IN BRIEF: Enterprise joins Thinc panel.(Brief Article)
August 1, 2005... Enterprise Group has been appointed to the panel of Thinc Destini, to deal with sub-prime mortgages. A branded packaging company has been created by Enterprise especially for Thinc Destini, which will be one of three packagers on the...

VOX POP: Should Halifax rename retirement deal?
August 1, 2005... Top Mortgage Strategy pundit Jonathan Cornell has hit out at Halifax for continuing to label its Retirement Home Plan mortgage a lifetime mortgage. The lender will feature in Cornell's regular column as villain of the week until it...

Market Watch: 01.08.05.(mortgage banks)
August 1, 2005... Last week was another pretty uneventful one for swap rates. * One-year money is down 0.01% at 4.46% * Two-year money is up 0.03% at 4.40% * Three-year money is up 0.03% at 4.45% * Five-year money is up 0.01% at 4.51% ...

ANALYSIS: Will trade body for lead generation sector be of any benefit.
August 1, 2005... Will a trade body for the lead generation sector be of any benefit to intermediaries? Quay Communications' campaign to set up a trade body for the lead generation sector gets a cool reception from our experts MARK LLEWELLYN-SLADE is...

ANALYSIS: Banks' rush to lend could end in tears.
August 1, 2005... Over the past month Mortgage Strategy has reported on two traditional investment banks looking to grab a slice of the mortgage market. First there was UBS and the news the global finance house was looking to set up a mortgage broking desk as...

ANALYSIS: ING rumour proves market is dynamic.(Brief Article)
August 1, 2005... Rumours are rife that ING Direct has finally set a timescale for its long-talked about launch into the UK intermediary mortgage market. It is now widely thought that the Dutch-owned organisation will make its UK mortgage market debut by...

ANALYSIS: Use freebies as a soft-sell weapon.(mortgage brokers are facilitated with technologies)
August 1, 2005... Following my article about a free website for mortgage intermediaries a couple of weeks ago, I thought it would be interesting to look more deeply into our lust for freebies. Free legals, free surveys, free phone numbers and six months'...

ANALYSIS: Cost must drive switch to e-commerce.
August 1, 2005... Prior to joining the sub-prime sector, agreements in principle seemed pointless to me. The intricacies of the sub-prime market soon disabused me of that notion. For those active in sub-prime, take a moment or two to open a product...

ANALYSIS: At-a-glance guide to lifestyle and risk.
August 1, 2005... The Office for National Statistics has released an atlas of cancer cases in the UK. It details the number of cases and highlights incidence rates in each region. The aim of the atlas is to support a government campaign to encourage...

ANALYSIS: Remove temptations to mis-sell MPPI.(need of insurance for any product that bought by consumers)
August 1, 2005... Have you changed a domestic appliance, telephone or mortgage lately? I bet you didn't escape the inevitable pressure to buy ancillary insurance along with your purchase. From simple warranty extensions to more complex protection plans,...

ANALYSIS: Refer your equity clients to specialists.
August 1, 2005... Latest statistics show the equity release market is continuing to grow despite the concerns raised by the Financial Services Authority's mystery shopping exercise and its findings. Safe Home Income Plan figures, however, show many IFAs...

ANALYSIS: Open standards will benefit industry.
August 1, 2005... Much has been written in this magazine in recent weeks about the need for a coordinated approach to open standards in the mortgage industry. The Derbyshire is at the forefront of the debate on the best ways of identifying and then...

ANALYSIS: Don't reinvent the regulatory wheel.
August 1, 2005... Resounding constitutional defeats in France and the Netherlands appear not to have dampened the European Commission's integrationist agenda. Its latest proposals place the mortgage industries of each member state firmly under the spotlight....

Letter: Lenders agree to everything the FSA says, logical or not.(Letter to the Editor)
August 1, 2005... From Mike Prissick I have just been told by Northern Rock that my client making overpayments on her mortgage is not an acceptable method of showing intention of paying it off but an investment plan is. Northern Rock offers virtually...

Letter: B&W gave me rubbish service compared with GMAC-RFC.(Letter to the Editor)
August 1, 2005... From Brian Humphreys In a nutshell, my story is: Bristol & West - seven weeks and still waiting. GMAC-RFC - seven days to offer. I had not used Bristol & West for 10 years because it was always a nightmare to deal with. In July...

Letter: Halifax should call its lifetime mortgage a lifetime mortgage.(Letter to the Editor)
August 1, 2005... From Jonathan Cornell I am confused about the Halifax Retirement Home Plan, if it's a lifetime mortgage, call it a lifetime mortgage. I have been through the Halifax Lending Criteria and the Halifax Mortgage Guide and neither mentions...

Letter: Open standards charge has not yet been agreed.(Letter to the Editor)
August 1, 2005... From Paul Pettitt I am writing in response to the article entitled 'Open standards divide lenders' in Mortgage Strategy July 18. While it is good to see debate in the industry about the need for open standards, the article is rather...

Letter: We offered a credit repair guarantee back in May.(Letter to the Editor)
August 1, 2005... From Colin Snowdon I read with interest the news story entitled 'Sub-prime deals from Accord' (Mortgage Strategy July 11) in which the lender is credited with being 'the only lender to offer a full credit repair guarantee'. I'm...

Letter: Endowment claims firms take 25% and pose as the good guys.(Letter to the Editor)
August 1, 2005... From Nigel Pamment I read with interest Jim Gillespie's letter in your July 11 issue regarding the ambulance chasers of the financial services industry and I agree with him 110%. The thing that worries me about these seekers after truth...

Studying the options.(mortgage industry's special deals with college students)
August 1, 2005... Graduates might start out with debts but their high earning potential has led lenders to fashion special deals for them, says Barney McCarthy After two or more years of stealing traffic cones and avoiding studying by all possible means,...

Graduates now have average debts of #13,501.(survey on college student's average debt rate)
August 1, 2005... Graduates are leaving university with an average debt of #13,501, according to the 11th Barclays Annual Graduate Survey. This marks a 12% increase on the 2003 survey, when average debt per student was #12,069. Jeremy Law, head of student...

Paying the price of a university education.
August 1, 2005... The cost of going to university includes course and living costs, and involves choices about lifestyle and the degree of debt students are comfortable with. Course costs: * The government pays the bulk of the course costs for all...

Student loan repayments are based on income.(Brief Article)
August 1, 2005... Under the Graduate Contribution Scheme, it is the government that meets the cost of borrowing. Unlike commercial loans, student loans are only up-rated for inflation to maintain the value of loans in real terms. Graduates do not pay interest...

Steps to fairness.
August 1, 2005... Senior management must work towards embracing the Treating Customers Fairly initiative as it could benefit the whole industry, says Richard Fox For many people, owning a home remains a significant goal and for all but the fortunate few,...

COMMENT: Lead generation.(mortgage industry facilitate consumers with information )
August 1, 2005... Mortgage Strategy's monthly guide to the lead generation companies brokers could be doing business with. Justine Tomlinson looks at the options intermediaries have JUSTINE TOMLINSON, marketing director, Mortgage Next LEADBAY...

COMMENT: A real result for small broker firms.(Mortgage Code Compliance Board.)
August 1, 2005... Larger firms have been short-changed by the way the MCCB surplus has been distributed as a rebate in the Financial Services Authority's annual invoice, says Richard Griffiths RICHARD GRIFFITHS, managing director, Network Data By now,...

You don't need audited accounts unless.(Brief Article)
August 1, 2005... If you are an unincorporated sole trader or partnership, or an appointed representative of a network, you can skip this section. It applies only to limited companies or limited liability partnerships that are directly regulated by the FSA. ...

Dear Delia: General insurance.
August 1, 2005... Dear Delia I am advising a young married couple on their mortgage and they have asked me about general insurance. I have only recently moved into selling general insurance. They want to know, given their age and circumstances, what policies...

COMMENT: When regulation becomes personal.
August 1, 2005... Compliance in advising on mortgages is a matter of following the rules but when it comes to approved persons, it is the individual that is under the spotlight, says Bill Warren BILL WARREN, director of compliance, Complete Mortgage & Loan...

INSIGHT: Internet insite.
August 1, 2005... Mortgage Strategy's weekly guide to what's hot and what's not on the web. Kevin Paterson, sales director at Park Row Associates, takes a look at lender websites, working his way from A to Z KEVIN PATERSON, national sales director, Park...

COMMENT: Data link needed in the buying chain.
August 1, 2005... The mortgage market must make sure it can exchange data easily with the legal and estate agency markets, where open data standards are already in place, says Frank Eve FRANK EVE, managing director, Frank Eve Consulting The number of...

COMMENT: Lenders waste too much of our time.
August 1, 2005... Lenders should remember that it's intermediaries who have to check the accuracy of their KFIs when they keep us hanging on the phone or make us wait for our money, says Sue Read SUE READ, consultant, Marshall James & Co It's been an...

This week 01.08.05: SIMON WHITE.(Brief Article)
August 1, 2005... SIMON WHITE, director, Ashdown Lyons Former education secretary Charles Clarke said in August last year that the government had stemmed the tide of playing field sales. In October Tessa Jowell stressed the importance of providing suitable...

This week 01.08.05: JOHN WRIGLESWORTH.(Brief Article)
August 1, 2005... JOHN WRIGLESWORTH, economist Less than a month after the Olympic decision, investors are in a flurry of excitement over London 2012. The Property Investor Show in September will have a special area focussing on Olympic opportunities and...

Curriculum Vitae: Roger Morris.(managing director of em-financial)(Interview)
August 1, 2005... Name: Roger Morris Age: 40 Company: em-financial Job title: Managing director Where do you live? Bishopton, near Darlington Describe your current job: I pride myself on being a hands-on managing director. I am...

Taylor's Tour.(Henry Taylor)(mortgage broker)
August 1, 2005... Henry Taylor's day job is running a mortgage broking business in Eastbourne on the south coast of England, when not taking part in the Seat Cupra Championship "What does it take to become a racing driver?" I am often asked during my...

Kindest cut for the housing market.(market research)(Brief Article)
August 8, 2005... Things could be on the up for mortgage brokers and lenders, with last week's cut in the Bank of England base rate to 4.50% set to boost the slowing housing market. The decision by the Monetary Policy Committee to make the 0.25% cut, the...

Trigold looks into possible glitch in 'total to pay' filter.(Brief Article)
August 8, 2005... Trigold may be suffering from a technical glitch with its 'total to pay' filter which could mean its 23,000 users cannot rely on it to source the best deals for clients. Last week, a broker contacted Mortgage Strategy to say he had...

Kensington launches branded initiative.(Brief Article)
August 8, 2005... Kensington Mortgages has launched its first branded lending initiative, initially involving seven packagers. The seven are Advantage, em-financial, Praxis, Solent Mortgage Services, The Finance Centre, Complete Mortgage & Loan Services and...

MS deputy editor to go back to her roots.(Brief Article)
August 8, 2005... Mortgage Strategy deputy editor Rosemary Gallagher has decided to return to her roots in Scotland next month after seven years in London. Gallagher has been deputy editor for almost two years and is leaving MS on Friday August 26 to join...

Base rate cut prompts Opus to reprice deals.(Brief Article)
August 8, 2005... Opus has revealed that following the Bank of England's decision to cut the base rate by 0.25%, it will lower rates across its product range. This will mean immediate benefits to brokers, with enhancements to its exclusive base rate...

IN BRIEF: Insolvencies hit record high.(Brief Article)
August 8, 2005... The second quarter of 2005 has seen the highest ever number of personal insolvencies in England and Wales at 15,394. And corporate insolvencies are also on the rise. The latest increase is 12.5% higher than the previous quarter and 6%...

IN BRIEF: PISCES chairman.(Property Information Systems Common Exchange Standard)(Brief Article)
August 8, 2005... Mark Riddick is the new chairman of Property Information Systems Common Exchange Standard. Riddick, CEO of Searchflow, takes over from Adam Ward of the Royal Institution of Chartered Surveyors, who remains on the board. Copyright:...

IN BRIEF: Interest grows in standalone MTE.(Mortgage Trading Exchange)(Brief Article)
August 8, 2005... Mortgage Brain has revealed that its standalone version of the Mortgage Trading Exchange, available to the entire intermediary market, has received substantial interest on the back of Mortgage Strategy's MTE for All campaign. Since its...

IN BRIEF: Autumn boom predicted.(Brief Article)
August 8, 2005... Propertyfinder.com says mortgage transactions could hit their highest level since May 2004 by November this year. Jim Buckle, managing director of propertyfinder.com, says: "Now that interest rates have been cut we expect transactions to...

Second charge cover shock.(First Plus)
August 8, 2005... Second charge lenders have come under fire from brokers for not fully explaining the cost of payment protection they offer with loans. In a recent case involving second charge lender First Plus, brought to light by Debbie Boyes at...

Brokers back specialist graduate products.(Brief Article)
August 8, 2005... More than half of intermediaries who voted in our straw poll last week believe graduate mortgages are a worthwhile niche product. Of those who participated, 57% say they fill a role while 43% disagree, given the other products that are...

Owners unaware of rate changes.(Brief Article)
August 8, 2005... First Active says two-thirds of home owners don't know what rate they will have to pay when their initial deal period ends, and only 33% will bother to find out. Research shows older people are the worst, with 71% of over-55s not knowing...

Warning on conflict of interest in borrowing.(Brief Article)
August 8, 2005... Borrowers who work in the mortgage industry should think twice about taking out a mortgage with the company they work for. The warning comes in this week's Mortgage Strategy cover feature, which asks lenders and brokers about their own...

Security in some Indian call centres better than UK.
August 8, 2005... Security in some Indian call centres is better than in the UK, says the Financial Services Authority. The FSA visited 10 offshore operations in India that provide services to banks and insurance companies to investigate risk management...

Cautious welcome for lender table.(Brief Article)
August 8, 2005... Intermediaries and lenders have welcomed Openwork's decision to produce a league table of lenders, but warn it must be a fair representation. Openwork revealed last week that it is to produce a quarterly league table that ranks lenders...