Mortgage Strategy articles from August 2006

Mortgage Strategy archives from August 2006

COMMENT: Let brokers halt the MPPI slump.
August 7, 2006... Dubious selling practices and overpriced products have triggered a collapse of consumer confidence in income protection. Some pundits suggest that although mortgage payment protection insurance has had a relatively clean bill of health...

Nationwide to build platform.
August 7, 2006... Nationwide is setting up its own online platform because it says the Mortgage Trading Exchange can no longer offer the society the service it requires. This was revealed by Peter Saint-Ruth, product manager at Nationwide, at the Lending...

Rate hike could hit housing market.
August 7, 2006... The first hike in interest rates for 12 months has sparked fears of a slowdown in the housing market. The Bank of England's Monetary Policy Committee increased interest rates to 4.75% last Thursday, having previously held them at 4.5%...

Edeus' circle of trust packagers revealed.
August 7, 2006... Edeus says it will not rule out talking to any packagers that want to join its 'circle of trust' panel, as it reveals the names of the first 15 firms and associations to join. The packagers on the panel are AMPD Packager Network, BDS...

IN BRIEF: RBS interest in brokers cools.(Brief article)
August 7, 2006... The Royal Bank of Scotland has admitted that it stepped back from the broker market in the first half of 2006. In its half-year results it says: "Intermediaries are an important distribution channel for mortgage products in the UK and we are...

IN BRIEF: Job uncertainty.(Brief article)
August 7, 2006... Research from Prudential shows that one in 10 UK workers fear their jobs are in imminent danger. Yet over one-third of people say they have few or no savings in place should they lose their jobs or be unable to work. Copyright: Centaur...

IN BRIEF: Consumer guide to equity release.(Brief article)
August 7, 2006... GE Life has launched a guide to equity release aimed at consumers, their families and financial advisers. It is intended to help families and older relatives explore ways of releasing equity and increasing income in retirement. GE Life also...

IN BRIEF: Legal package for employees.(Brief article)
August 7, 2006... Lawyer4Life has launched an employee package that adapts the L4L formula of lifetime legal advice to help employers offer a legal service for employees to assist with the recruitment, retention and rewarding of staff. Copyright: Centaur...

IN BRIEF: HIP commitment.(Brief article)
August 7, 2006... Home Information Pack provider MDA Advantage says despite the U-turn by the government, it is committed to the development and provision of a HIP service. Copyright: Centaur Communications Ltd. and licensors

IN BRIEF: Lenders slammed.(Brief article)
August 7, 2006... Lenders slammed Liberal Democrat shadow chancellor Vince Cable has criticised lenders for "irresponsible behaviour" following Lloyds TSB's move to increase provisions to cover bad debts. Copyright: Centaur Communications Ltd. and licensors

Two-hour completions predicted for next year.
August 7, 2006... The industry could see two-hour mortgage completions as early as next year, says the director of Close Mortgages, Bob Golden. Golden says that with automated valuation models, credit scoring systems and title insurance, processing...

65% Say home inspectors should be compensated.
August 7, 2006... An overwhelming 65% of Mortgage Strategy Online readers think the government should compensate the would-be home inspectors who coughed up for the training and now have no jobs to go to. Following the government's decision to make the Home...

Morale remains high at Platform.
August 7, 2006... Platform says morale is high among its staff despite the revelation last week that Guy Batchelor has resigned as sales and marketing director to join Lehman Brothers. Batchelor will join Lehman next January to take responsibility for...

Broker promotions will remain in FSA spotlight.
August 7, 2006... The Financial Services Authority will continue to monitor mortgage brokers' financial promotions, having found little improvement in the number of promotions meeting regulatory standards. While sectors such as investment have upped their...

Pitt and Aitken join Kensington.
August 7, 2006... Brian Pitt and Stuart Aitken were welcomed back into the mortgage market last week as they joined Kensington Group to investigate opportunities in the specialist lending sector. Pitt resigned as director of sales and operations at Beacon...

IN BRIEF: Network strikes package deal.(Brief article)
August 7, 2006... Exclusive Connections and network Classic Network Solutions have signed an agreement whereby the former will be the sole provider of packaging services to 84 registered individuals at Classic. Copyright: Centaur Communications Ltd. and...

IN BRIEF: AToM rethinks its terminology.(Brief article)
August 7, 2006... All Types of Mortgages is to stop using the term packaging and adopt a new industry classification, the catchy 'wholesale mortgage design and distribution'. Copyright: Centaur Communications Ltd. and licensors

Hamptons joins KRS equity release mortgage club.
August 7, 2006... Hamptons Mortgages has signed up to Key Retirement Solutions' equity release mortgage club, Lifetime Advisory Services. Following in the footsteps of Chase de Vere, which was LAS' first subscriber, Hamptons' qualified advisers will have...

CML admits it doesn't have niche data.
August 7, 2006... The Council of Mortgage Lenders has admitted it does not have data on niche markets including self-cert and sub-prime, following its prediction that repossessions will rise 46% in 2006. Last week executive committee papers written by Sue...

Halifax denies wanting to kill off remortgaging.
August 7, 2006... Halifax has denied that its reason for offering a retention fee is to kill off the remortgaging market. Alan Cleary, managing director of edeus, is warning brokers not to be fooled by the offer of a short-term fix but instead to...

Commercial First spells it out for borrowers.
August 7, 2006... Commercial First has launched an illustration facility to give clients a summary of the costs and charges of commercial mortgage contracts. The Commercial First Illustration, which is the first of its kind, contains details of the terms...

Networks branded immoral.
August 7, 2006... Richard Coulson, chief executive of Home of Choice, has attacked what he calls the immoral behaviour of some networks. Speaking on the first anniversary of Home of Choice, Coulson says appointed representatives are sometimes held back from...

Labour's house building incentives slammed.
August 7, 2006... Ruth Kelly, head of the Department of Communities and Local Government, came under fire last week over her plans to offer town halls housing incentives. The grants are aimed at local authorities with housing needs and will be given to...

Warning on perils of outsourcing.
August 7, 2006... Companies should be wary of outsourcing processes that distinguish them from the rest of the industry, says Kensington Mortgages. Ian Giles, director of marketing at Kensington, warns companies to be wary of outsourcing any processes that...

IN BRIEF: Four join edeus' financial team.(Brief article)
August 7, 2006... Edeus last week made four appointments to complete its senior financial team which will work under chief financial officer Ian Lonergan. The four come from Gerrard Investment Management, HBOS, mortgageforce and the Cauldwell Group, parent of...

Lenders rubbish idea of transferable exit fees.
August 7, 2006... Hamptons Mortgages' call for lenders to take on borrowers' exit fees from their previous lenders has been criticised by lenders. The London brokerage made the suggestion following the Financial Services Authority's call for lenders to...

HBOS market share rises to 22%.
August 7, 2006... HBOS' gross market share in the mortgage market increased to 22% in the first half of 2006 - a 1% increase on last year's figures, its interim results reveal. The results also show gross mortgage lending was #35.2bn as of June 30 this...

$8.4 trillion mortgage debt is no problem.
August 7, 2006... I was reading my favourite European mortgage magazine (Mortgage Strategy of course) recently when I saw the editorial about UK mortgage debt surpassing the #1trillion mark. I laughed. #1trillion? Folks, you have nothing on your former colonies....

IN BRIEF: MPPI withdrawal clause scrapped.(Brief article)
August 7, 2006... Bestinsurance.co.uk has scrapped a clause which allowed it to withdraw cover at 30 days' notice from its mortgage payment protection insurance products. Copyright: Centaur Communications Ltd. and licensors

Government takes rap for boom in ID checks.
August 7, 2006... The government has been blamed for home buyers' frustration at the high number of identity checks carried out as part of the buying process. Research carried out by Manchester Business School on behalf of fraud prevention specialist GB...

Dubai firm buys Hamptons for #82m.
August 7, 2006... Hamptons International - parent group of Hamptons Mortgages - was sold last week for #82m to Dubai-based Emaar Properties by owner Wheelock Properties. The group says the news will be a boost for the entire Hamptons UK operation...

Would you be more cautious when buying property abroad?
August 7, 2006... It has been estimated that more than a quarter of the properties in Marbella have been built illegally and it could cost up to #4.5bn to compensate those caught up in property scams. But will this scandal put people off buying property abroad...

IN BRIEF: GMAC-RFC portfolio sale.(Brief article)
August 7, 2006... GMAC-RFC has completed its second portfolio sale to Oakwood Homeloans. The #330m deal comprised a pool of prime, buy-to-let and self-cert deals. Copyright: Centaur Communications Ltd. and licensors

ANALYSIS: Marketwatch - 07.08.06.
August 7, 2006... Swaps initially fell last week with one-year money edging below 5%, before rising above the previous week's levels. They are now at pretty much the levels they were three months ago. * One-year money is up 0.05% at 5.05% * Two-year...

Can single premium MPPI policies ever be in clients' best interests?
August 7, 2006... The single premium option provides certainty and is appropriate for some borrowers but the product is under threat, say our experts Aidan Plumridge is marketing and business development manager at Cassidy Davis The mortgage payment...

ANALYSIS: Customers like brands that deliver.
August 7, 2006... The Sunday Times recently published a supplement entitled Superbrands to rank the strongest brands in Britain. An initial short list was narrowed down before a consumer survey was used to hone it to the top 500 brands. The podium positions...

ANALYSIS: Lenders must see things differently.
August 7, 2006... I am a supporter of the management theories of Tom Peters. He was at the height of his management guru status in the late 1980s and early 1990s but his thoughts still ring true. More lenders should review his works and start to look at the way...

ANALYSIS: Brokers must wake up to EU threat.
August 7, 2006... The mortgage industry has had more than its fair share of government intervention over the past few years. Mortgage regulation cost a lot and produced lots of paper but there's no evidence that it has led to consumers shopping around more or...

ANALYSIS: Retention fees could tempt lazy brokers.
August 7, 2006... The thorny issue of proc fees is becoming even more prickly. Until recently my main concern was that some brokers were happy to churn their clients just to pocket the proc fees. When the time swung around for a mortgage review, a fresh home...

ANALYSIS: Home owners get hot under the collar.
August 7, 2006... Last month was the hottest July since 1659, according to climate historian Philip Eden. The average temperature in England was 19.85 degrees C, with individual highs recorded at 36.5 degrees C, which is decidedly warm. Train tracks buckled,...

ANALYSIS: Some dreams aren't stolen but given away.
August 7, 2006... People can be so stupid sometimes. I was tuning into one of the hundreds of property programmes on the telly recently when I came across some people claiming to have been ripped off by evil property developers. At first I thought these...

ANALYSIS: Servicing is crucial for new lenders.
August 7, 2006... Much has been written about the new entrants in the sub-prime market with a focus on the front-end activities of these lenders. Products, technology and distribution channels have been covered in detail but little attention has been paid to...

ANALYSIS: Sense and bravery - I love Sue Clarke.
August 7, 2006... This week I'd like to salute Sue Clarke, head of marketing at edeus - the mortgage lender created by former HBOS duo Michael Bolton and Alan Cleary - for her rip-roaring response to criticism of its advertising campaign. One ad features...

ANALYSIS: Don't rely on systems to source B2L deals.
August 7, 2006... The intermediary mortgage market is becoming more reliant on technology by the day and the future is likely to see this trend continue. I presume that everyone in our market uses one computer programme or another during their working week....

ANALYSIS: Warning - more warnings on the way.
August 7, 2006... I have a list of crazy warnings that I find amusing. Some of my favourites are the sleeping pills that carry the warning 'May cause drowsiness' and the matches that have 'Caution - contents may catch fire' printed on the box. We live in a...

ANALYSIS: Use summer time to make living easy.
August 7, 2006... Recent weeks have seen not only the weather hot up but also the Financial Services Authority's attitude to the mortgage market. We have seen action taken against an individual and heard about the famous four networks. So this is a good...

ANALYSIS: You can choose to be a HIP loser or winner.
August 7, 2006... Now that we have had a couple of weeks to consider the government's decision to make the Home Condition Report element of Home Information Packs voluntary rather than compulsory, it is a good time to consider who are the winners and losers....

ANALYSIS: Timescales are important to clients.
August 7, 2006... Interest rate, drawdown flexibility, LTVs and early repayment charges are the big ticket items for product selection in the equity release market. But thought must also be given to service standards. This market can be fickle and time is...

ANALYSIS: Kylie is exception who proves the rule.
August 7, 2006... About a year ago one of the most successful and recognisable stars of the past decade was diagnosed with a disease that strikes over 1.2 million people every year. In May 2005, along with an estimated 3,500 women in the UK, Kylie Minogue was...

LETTER: Banks can't shy away from responsibility for bad debts.(Letter to the editor)
August 7, 2006... From Ian Nelson HSBC should clean up its own act before blaming others. HSBC CEO Michael Geoghegan's comments regarding bad debts, bankruptcies and IVAs are remarkable. It seems to be his view that it's everybody's faults but his. ...

LETTER: Comments from the pro-HIP lobbyists make me laugh.(Letter to the editor)
August 7, 2006... From Peter Sowerby In the week following the glimmer of common sense from the government in its withdrawal of Home Condition Reports from Home Information Packs I couldn't help but laugh at the comments from the pro-HIP lobby trying to...

LETTER: Is this a cunning plot or has Labour just cocked up again?(Letter to the editor)
August 7, 2006... From Danny Lovey So HCRs are dead - at least for the time being. But they can be obtained on a voluntary basis. Who will do this? Nobody. However, the Energy Performance Certificate, another European idea, is alive and well. And was...

LETTER: Better way to include energy reports in buying process.(Letter to the editor)
August 7, 2006... Name and address supplied This is a copy of a letter I have sent to housing minister Yvette Cooper. I thought it might prompt some interesting debate in your publication. I have been reflecting on the decision regarding HIPs and feel...

LETTER: Who can trust this corrupt and hypocritical government?(Letter to the editor)
August 7, 2006... From Jim Gillespie This inept government thinks it can ride roughshod over the industry and the public without any comeback. First Gordon Brown tinkers with tax relief on company pension schemes which results in large companies...

LETTER: There is a professional body for compliance consultants.(Letter to the editor)
August 7, 2006... From Byron Greenhow In Bill Warren's article headlined 'Choose compliance help with care' (Mortgage Strategy July 17) he made a recommendation that I consider to be poor advice and technically incorrect. Warren suggested firms...

LETTER: Stop publishing releases that don't give all fact and figures.(Letter to the editor)
August 7, 2006... From Payam Azadi Please can we stem the flow of press releases being published revealing supposed growth figures? I am forever reading that a certain firm has increased its turnover by a certain percentage. But if financial figures are...

FEATURE: Give us a break.
August 7, 2006... There must be a level playing field in distribution if brokers are to play their part in restoring consumer confidence in MPPI, says consumer champion Iain MacQueen-Sims The government is keen to see more mortgage borrowers with some...

The MPPI market is like a crumbling empire.
August 7, 2006... Simon Burgess is managing director of Britishinsurance.com Uptake of mortgage payment protection insurance continues to slide and nobody seems to be doing much about it. In 2003 one-third of all new mortgages were covered by MPPI and this fell...

FEATURE: Competition time.
August 7, 2006... Sub-prime borrowers are benefiting from intense and growing competition among lenders in the marketplace, says James Cotton Intense competition has been a defining characteristic of the mortgage market in recent years. The number of...

COMMENT: Income protection at the crossroads.
August 7, 2006... Income protection could become extinct unless providers and intermediaries find a way to make the sales process more transparent for clients, says Richard Coulson Alarming figures from Swiss Re show sales of term plans have plummeted 26%...

COMMENT: Get friendly with an estate agent.
August 7, 2006... The most significant effect of Home Information Packs so far has been to force estate agents to take a hard look at their sales processes. This may involve some agents calling it a day and some doing the opposite - expanding through mergers....

COMMENT: Check out a way to improve advice.
August 7, 2006... SHIP is calling on financial organisations to promote the use of its equity release checklist in the sales process to address some of the concerns in the FSA's latest report, says Jon King The first round of lifetime mortgages mystery...

Dear Delia: Client wants to remortgage to expand.
August 7, 2006... My client Steve is a professional landlord with a portfolio of 14 buy- to-let properties with a total value of #1.75m. He has an aggregate mortgage balance of #900,000. Steve wants to remortgage and expand his portfolio and is considering...

COMMENT: Listening to the consumer's voice.
August 7, 2006... Brokers should pay attention to what the Financial Services Consumer Panel has to say as it could help ensure they are delivering on the FSA's principles, says Bill Warren Last week I explained in brief the role of the Financial Services...

COMMENT: Marketing Brief.
August 7, 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 National Counties www.ncbs.co.uk Scope: 2/5...

COMMENT: Halifax system makes retention easy.
August 7, 2006... Halifax has put brokers at the heart of its client retention strategy, which is backed up by technology that will make the process quick and straightforward, says Frank Eve I'm surprised that Halifax's retention strategy has not caused...

COMMENT: Talk about a good way to get clients.
August 7, 2006... Talking is a big part of a broker's job and dropping the fact that you are a mortgage adviser into everyday conversations can sometimes be a good way to pick up potential clients, says Sue Read It's good to talk, so they say. Wasn't that...

COMMENT: Politicians could distort B2L sector.
August 7, 2006... Political moves to curb the buy-to-let sector could damage the housing market and drive people on low incomes out of some areas of our towns and cities, says Sally Laker This year marks the 10th anniversary of the introduction of...

COMMENT: Considering the renovation options.
August 7, 2006... Mortgages for property renovation will become more popular and borrowers should consider options such as offset deals when considering how to fund projects, says Drew Wotherspoon A recent conversation with a friend who is considering buying...

This week - 07.08.06: John Wriglesworth.
August 7, 2006... John Wriglesworth economist Lloyds TSB has tightened its criteria on unsecured loans in response to threatened defaults on credit cards and loans. This may seem far removed from the mortgage sector but is it the start of an industry-...

CurriculumVitae: Penny Searles.
August 7, 2006... Name: Penny Searles Age: 36 Company: TML Financial Solutions, part of Kensington Group. Job title: Chief operating officer. Where do you live? Southampton. Describe your current job: I am responsible for the everyday...

Me and my Car: Keith Dearling.
August 7, 2006... I bought my first Aston Martin four years ago and was hooked. Despite it spending plenty of time in the workshop, with my DB9 I am in the presence of greatness, says Keith Dearling I made my first mistake four years ago when I bought my...

Title Deed: Rooftop mortgages.
August 7, 2006... When you start sifting through the options for a company brand you quickly realise that the message you want to convey in one or two words is incredibly complex. So after what seemed like a lifetime of brainstorming we found ourselves with...

First And Last: Eddie Goldsmith.
August 7, 2006... Eddie Goldsmith, senior partner, Goldsmith Williams My first mortgage was with Midshires in 1980. I was working in a sleepy suburb of Liverpool and made it my business to know all the bank and building society managers in the area -...

COMMENT: Government should say sorry with cash.
August 14, 2006... The Association of Home Information Pack Providers has outlined the first stage of its regional voluntary dry run of Home Information Pack and Home Condition Reports, as more than 1,000 homes inspectors are set to take legal action against the...

RMARs may be waste of time.
August 14, 2006... Brokers may be wasting time and money completing their Retail Mediation Activities Returns because the Financial Services Authority is unable to fully use the information collected. Michael Lord, head of the Financial Services Authority...

Home inspectors to take legal action.
August 14, 2006... Over 1,000 home inspectors are to take legal action against the government following the Home Condition Report fiasco. The move comes as the government controversially revealed it is to train people as energy inspectors, which some trained...

Gammon to start Knight Frank advisory service.
August 14, 2006... Savills Private Finance has confirmed its director Simon Gammon is to join Knight Frank to set up its financial advisory service. He is on gardening leave until November, when it is understood he will join the estate agency as head of...

Equity Release Summit to take place in France.
August 14, 2006... Following our extremely successful Mortgage Summits, we are pleased to announce the launch of our Equity Release Summit. Taking place in January at the Relais de Margaux Chateau in France, the Summit will be held over two days and one...

IN BRIEF: Hipstar to stick by HIP market.(Brief article)
August 14, 2006... Hipstar, part of the Network Data Holdings Group, has confirmed its commitment to the Home Information Pack market despite the U-turn by the government. Its franchise proposition is offering home inspectors a way of securing business for Energy...

IN BRIEF: Group BDM at Cobalt Capital.(Brief article)
August 14, 2006... Cobalt Capital has appointed Chris Bevan, who previously worked at John Charcol, as group business development manager. Bevan worked at Charcol for over seven years as regional sales director. Copyright: Centaur Communications Ltd. and...

IN BRIEF: Platform online facility a hit.(Brief article)
August 14, 2006... Platform has revealed its online application facility clickapplication has resulted in over 1,000 applications in the first three weeks since going live. Platform launched the facility to enable brokers to submit a full application...

IN BRIEF: MSN continues to recruit ARs.(Brief article)
August 14, 2006... Mortgage Support Network has confirmed it is not one of the four networks recently forced by the Financial Services Authority to stop recruiting appointed representatives until they get their systems in order. MSN says it continues to recruit...

Edeus tipped to launch 650 deals on sourcing systems.
August 14, 2006... It is hotly tipped that edeus will have 650 products that will all sit on both sourcing systems when the lender launches on September 14. Mystery still surrounds the details of these products, but one source says edeus is expected to have...