Mortgage Strategy articles from December 2005

Mortgage Strategy archives from December 2005

HIP choice is to be an estate agent.
December 5, 2005... The mortgage broking community is reeling from the shock news that research conducted by UCB Home Loans indicates people in the 16-21 age bracket are not particularly keen on becoming mortgage brokers. And there is even worse news for...

Close Brothers considers setting up a UK lender.
December 5, 2005... Close Brothers, owner of network Mortgage Intelligence, is considering setting up a lender at the end of 2006, with a decision due early next year. The news has created concern as to whether the group would be creating a conflict of...

Shock as BM Solutions embraces sourcing systems.
December 5, 2005... BM Solutions made a complete U-turn on its historically negative view of sourcing systems last week. First it confirmed industry rumours, exclusively revealed by Mortgage Strategy Online, that it had joined Trigold's Enhanced Non...

Concerns over FSA's principled approach.
December 5, 2005... Brokers have expressed concern that Financial Services Authority plans for a principle-based approach to regulation could leave firms and consumers confused. The current approach to regulation is a hybrid of high level principles and...

IN BRIEF: TMDC in dispute with Bear Stearns.
December 5, 2005... The Mortgage Distribution Cooperative is thought to have issued a writ against Bear Stearns, saying the company has gone back on its original agreement. A source tells Mortgage Strategy TMDC has issued a writ against Bear Stearns...

IN BRIEF: A&L expects to exceed forecast.
December 5, 2005... Alliance & Leicester says its performance in 2005 is expected to see it finishing ahead of forecasts of #506m operating profit. This year, A&L has continued to focus on the prime core residential mortgage market and during the first nine...

IN BRIEF: FOS might drop case fees.
December 5, 2005... The Financial Ombudsman Service is looking to increase the general levy - at present only #25 per approved person - and do away with the #360 case fee altogether. At a dinner for the Association of Independent Financial Advisers last week...

IN BRIEF: GMAC-RFC completes sale.
December 5, 2005... GMAC-RFC has completed its seventh portfolio sale to West Bromwich Mortgage Company. The #155m deal comprises a pool of prime, buy-to-let and self-cert products. The deal was completed on November 30. Copyright: Centaur Communications...

IN BRIEF: Home transactions are poised to rise.
December 5, 2005... Research carried out by Propertyfinder.com provides evidence that the number of homes being bought and sold will grow strongly in the new year. This seems to be in line with optimism that prices are set to rise moderately during 2006. ...

Young shun broking optionin favour of estate agency.
December 5, 2005... Research from UCB Home Loans shows that two-thirds of 16 to 21 year olds would rather become estate agents than mortgage brokers. New blood is vital for any industry and the survey shows becoming a mortgage broker is far from the top of...

71% Say web won't speed home buying.
December 5, 2005... Brokers have little faith in the wonders of modern technology, with 71% saying they doubt the home buying process can be completed in three days online. Just 28% of Mortgage Strategy online readers believe the internet will cut...

MGM axes BDS in service dispute.
December 5, 2005... Mortgage Strategy has learned that MGM has terminated its contract with BDS for allegedly being in breach of a service agreement. In a letter sent to agents dated November 30, MGM writes: "Many of you will have received a letter from BDS...

NR increases proc fee to boost online business.
December 5, 2005... Northern Rock had offered a #150 bonus fee for cases submitted online through the Mortgage Trading Exchange and Trigold, but has extended its offer until December 31 this year, following positive feedback from brokers. Ron Stout,...

Blair backs Brown's pledge to cut through FSA red tape.
December 5, 2005... Prime Minister Tony Blair has come out in support of Gordon Brown's pledge to cut back on regulation by the Financial Services Authority. Speaking at the Confederation of British Industry conference last week, Brown told delegates he...

CML criticises the Turner Report.
December 5, 2005... The Council of Mortgage Lenders has criticised the Turner Report for not giving enough attention to equity release as a possible solution to the pension crisis. CML brands the report a "wasted opportunity" as it fails to make...

IN BRIEF: Advisers must master reversions.
December 5, 2005... Sovereign Reversion has released its half-year results, saying financial advisers must learn about home reversions. It says once regulation is introduced, advisers will need an understanding of the benefits of reversions to fulfil their...

IN BRIEF: Shared ownership deal welcomed.
December 5, 2005... Solent Mortgage Services says its had a positive response from brokers to its shared ownership product through Trafalgar Homeloans, SMS's partnership with Preferred. The product, which allows up to 100% LTV borrowing if the client's share is...

IN BRIEF: CEO for Homebank.
December 5, 2005... Homebank Mortgages, the Northampton-based national broker, has appointed Rupert Atkinson as chief executive officer. Homebank recently completed a review of its strategy and working practices in the wake of regulatory changes. ...

Mainstream market is compliant in parts.
December 5, 2005... Following its research into the self-cert and sub-prime markets, the Financial Services Authority has looked into the practices of brokers in the mainstream mortgage market, in particular the quality and suitability of advice given to...

IN BRIEF: Boat tenure change proposed.
December 5, 2005... The government is consulting on security of tenure for up to 15,000 residential boats on the canals. It is proposed to establish similar protection as for owners of park homes in the Housing Act 2004. Housing minister Baroness Andrews...

IN BRIEF: Tested to destruction.
December 5, 2005... The financial sector last week took part in the largest ever test of its preparedness to respond to a crisis such as a terrorist attack or widespread infrastructural damage. The test, designed to be as realistic as possible, involved a...

IHT to net government as much as beer duty.
December 5, 2005... The Government will make the same amount from Inheritance Tax revenue as it will from beer and cider duties in 2005 and 2006, research from Halifax reveals. Both levies are expected to net the government in 2005/06 a whopping #3.4bn....

Countrywide's UK plans still up in air.
December 5, 2005... The head of US lending giant Countrywide has again thrown into doubt whether it will set up shop in the UK. Two weeks ago it bought out the remaining 30% stake in UK processing house Global Home Loans. This was a joint venture with...

Platform launches its B2L self-cert product.
December 5, 2005... Platform has launched House Plus, a buy-to-let mortgage product which uses self-certified income rather than rental income to assess a borrower's ability to repay. The product enables borrowers to enter into the buy-to-let market without...

Cover deal prompts network expansion.
December 5, 2005... Mortgage Match plans to boost its network size from 25 to 40 in the next 12 months after signing a deal with Legal & General. The deal means Mortgage Match's appointed representatives will be able to sell the insurer's life and protection...

Network said to be too demanding.
December 5, 2005... Prestbury has been accused of imposing impossible standards on its network of advisers by demanding each brings in #60,000 of income per year. An industry source describes this amount as "extraordinarily high" and adds: "How ironic....

Bananas Inc unveils B2L self-cert mortgage.
December 5, 2005... National packager and branded lender Bananas Inc has launched a buy-to- let tracker that doesn't require proof of rental income. Funded by The Mortgage Business, the House 2 House mortgage is aimed at those whose rental income is not...

IN BRIEF: Pension crisis bolsters B2L.
December 5, 2005... The pensions crisis is bolstering the buy-to-let market as investors choose to hold on to properties, says the Royal Institution of Chartered Surveyors. Its quarterly lettings survey shows demand for rental property is the strongest...

IN BRIEF: Boosting choice.
December 5, 2005... A consortium of 15 local authorities and housing associations has been given #1.6m to help set up sub-regional choice based lettings schemes as part of a government drive to offer more choice and better services for home seekers. The...

IN BRIEF: Callcredit updates database.
December 5, 2005... Callcredit is updating its databases with 2005 electoral roll information and expects to have completed the process by the end of January. It seems about one-third of councils are embracing the standard format for submissions known as...

IN BRIEF: Pink adds to lender panel.
December 5, 2005... Pink Home Loans has added Stroud & Swindon and its subsidiary Stroud & Swindon Mortgage Company to its direct submission lender panel. Stroud & Swindon is an independent building society and has made its prime products and its evolve...

Brunig sets up HIP provider for the independent market.
December 5, 2005... Peter Bruning, who resigned as chairman of SecureMove in June, has revealed to Mortgage Strategy he is launching an alternative Home Information Pack provider to cater for the independent market. Describing himself as a gamekeeper turned...

Portman unveils fix as rumours fly.
December 5, 2005... Portman has launched a two-year fixed rate mortgage amid speculation the brand may soon become branch-only. One source tells Mortgage Strategy Portman is looking to become a branch-only network, making The Mortgage Works the sole...

LMC appoints Opus as only Scottish packager.
December 5, 2005... The London Mortgage Company has appointed Opus Mortgages as its only Scotland-based packager, in a move to expand its lending in Scotland. Commenting on the appointment, Mark Wilson, director of sales at LMC, says: "The decision to...

Cheval expects bridging loans rush before A-Day.
December 5, 2005... In the run-up to A-Day, April 5 2006, bridging finance lender Cheval says it expects a rush of borrowers looking to take advantage of the old pension rules for self invested pension plans. Under the current rules, only commercial property...

UK gives sceptical response to EC plan.
December 5, 2005... The Treasury and the Financial Services Authority have responded to the European Commission's proposals on mortgage credit in the EU. They say the UK is "sceptical" about EC intervention in mortgage regulation. In their response, the two...

Broker says FTBs are returning to market.
December 5, 2005... Brokerage My Mortgage Direct says stagnant property prices and stable interest rates are encouraging first-time buyers back into the mortgage market. The company says the housing market shares many features with how it was in the late...

IN BRIEF: E.surv wins Openwork deal.
December 5, 2005... Openwork, the authorised multi-tie network, has awarded e.surv a panel management contract after its existing contract expires in January. Richard Sexton, business development director at e.surv, says: "We have already begun to discuss...

IN BRIEF: Huntswood appointment.
December 5, 2005... Huntswood has appointed Dan Thomas as sales director. Huntswood provides consulting and customer services solutions, specialising in regulation and risk, performance consulting, training and business process outsourcing. Thomas will...

IN BRIEF: Two join GE marketing team.
December 5, 2005... GE Money Home Lending has made two senior appointments to its marketing team. Mark Tiley is taking on the role of marketing manager and Jo McMenemy has been appointed new product initiatives manager. Copyright: Centaur Communications...

IN BRIEF: QDL gets broking service manager.
December 5, 2005... Quick Decision Loans, the Farnborough-based sub-prime loan packager, now has Jackie French as broking service manager. This role was created to coordinate the service brokers can expect when they deal with QDL. In her work with Royal...

Second homes spend booms.
December 5, 2005... Britons are now spending a whopping #6bn on second homes, #4bn more than two years ago, according to a report from the Office of National Statistics. In 2002, each of the country's 24 million households was spending #1.50 on second homes,...

GE Life slashes its lifetime rate.
December 5, 2005... GE Life has slashed its lifetime mortgage rate from 6.25% to 5.89%. This is the third cut in this rate since May when GE Life dropped its rate from 7.19% to 6.69%. Since then a number of providers have followed suit, boosting value...

VOXPOP: When is it OK to pull deals?
December 5, 2005... Last week Mortgage Strategy revealed that Future Mortgages was suspending its 100% LTV product range. Its excuse was that overwhelming demand for the product meant service was unable to keep pace. But prior to this, Future had denied...

ANALYSIS: Market Watch.
December 5, 2005... For most of last week, swaps continued to fall from their recent highs but towards the end of the week they edged back up a bit. * One-year money is up 0.01% at 4.64% * Two-year money is up 0.02% at 4.64% * Three-year money is up...

Do you expect number of networks to reduce drastically over next year?
December 5, 2005... There will be a further reduction in the number of mortgage networks because some simply won't achieve critical mass, say our experts Dale Knight is director of mortgages at Berkeley Berry Birch There won't be a massive reduction but...

ANALYSIS: Let's learn the American lesson on standardisation.
December 5, 2005... As Brits, we tend to resist admitting we can learn much from the Americans, particularly at the moment. But when it comes to the mortgage world, we have to acknowledge that they are ahead of us in many areas. Realising the important role...

ANALYSIS: Questions of choice and clarity in cover products.
December 5, 2005... With the festive season fast approaching, two of the items on brokers' Christmas wish lists must be a thorough cleaning up of the payment protection insurance market and more of accident, sickness and unemployment products. While most...

ANALYSIS: Branch culls are inevitable but ironic.
December 5, 2005... An interesting card from the branch closure hand has been played by Portman. Under the same financial juggling pressures faced by all branch network providers they've come up with a neat trick of deflecting the blame when they eventually pull...

ANALYSIS: Act while pension rules still relaxed.
December 5, 2005... There has been much publicity about the relaxation of pension rules to allow residential property to be held as an investment in pension plans, which should provide a much needed boost to the buy-to-let sector. There is no doubt that the...

ANALYSIS: Weighing up the options on lending calculations.
December 5, 2005... Income calculations are hardly the stuff that columnists' dreams are made of but stick with me on this one, as I reckon there is a real need to blow away some of the hype surrounding the treatment of income. Some important points about...

ANALYSIS: CI reinsurance market is banking on Swiss Re.
December 5, 2005... On November 18, Swiss Re said it would acquire GE Insurance Solutions, the global reinsurance division of GE. The acquisition, expected to be completed by the middle of 2006, will make Swiss Re the largest reinsurance firm in the world. ...

ANALYSIS: Brokers must have the option of buying leads.
December 5, 2005... Ask the average person their views on loyalty and they'll probably pooh- pooh the very notion. So it is with mixed feelings that I am being disloyal in some respects to my fellow columnist, Peter Mounty. I'd like to say that I have...

ANALYSIS: Tell clients the full story on flexibility.
December 5, 2005... Developments in the equity release market in 2005 offer a fresh perspective for advisers. The biggest development has been the introduction of considerably more flexible drawdown products offering like-for-like interest rates for drawdown and...

LETTER: Cashing in on HIPs.(Letter to the Editor)
December 5, 2005... From Tom Parker I read with interest the Vox Pop section in Mortgage Strategy November 14, which published a number of views on what will happen when Home Information Packs are introduced in 2007. After exhibiting at the recent...

LETTER: Advisers left out in the cold.(Letter to the Editor)
December 5, 2005... From Michael Norwood Richard Griffiths' recent comments on the state of independence in the mortgage market are interesting. The public is confused on independence which is no great surprise as some prominent organisations that...

LETTER: Inaccurate online decision.(Letter to the Editor)
December 5, 2005... From Nigel Pamment I am concerned about Northern Rock's online decision system's accuracy. It has been its policy for two weeks now that if the extra proc fee of #150 per application is to be received, the application must be done...

LETTER: DA firms are being penalised.(Letter to the Editor)
December 5, 2005... From Tom Cleary Why do directly authorized firms receive significantly less on proc fees that appointed representatives? I know all the arguments but it still doesn't make sense to me. Large firms like Sesame, Legal & General and...

Braced for merger-mania.(Company Profile)
December 5, 2005... Mergers and acquisitions are already a feature of the mortgage lending market, especially in the sub-prime sector, and this trend will accelerate next year, says Harvey Jones Activity in the specialist mortgage market is getting more...

Specialist sector faces a turbulent year.
December 5, 2005... Colin Sanders is chief executive of Money Partners In its relatively short history, one characteristic has marked the specialist lending sector out from its more pedestrian mainstream cousin - its capacity for generating and embracing rapid...

Mergers can create problems among staff.
December 5, 2005... Mark Witcomb is divisional sales manager for financial services at Venatus Business Intelligence The financial services sector has always been rife with mergers and acquisitions and the mortgage industry is no exception. With the UK mortgage...

FEATURE: Keep it in check.(Company Profile)
December 5, 2005... Technology is important in the mortgage process but it must not undermine the human relationships on which the industry is founded, says Alison Hutchinson Technology is a vital part of the modern mortgage industry and plays a role that...

INTERVIEW: High hopes.
December 5, 2005... Intelligent Finance is growing fast but mountaineering managing director Nick Robinson intends to take it to new heights, says Barney McCarthy Intelligent Finance last week celebrated its fifth anniversary and the specialist lender...

COMMENT: Affordability figures must add up.
December 5, 2005... Proper affordability assessments are the way forward for calculating loan amounts, but we have to be aware of the potential for these systems to be abused, says Keith Butler Do mortgage packagers and lenders pay too much for their...

COMMENT: Who laughs last, laughs loudest.
December 5, 2005... There's no evidence to back up HoC's claim to have processed 500 AR applications and it will be interesting to see the network league table in June next year, says Richard Griffiths What an amazing vitriolic and emotive diatribe from...

COMMENT: Lead generation.
December 5, 2005... Mortgage Strategy's monthly guide to the lead generation companies brokers could be doing business with. Justine Tomlinson looks at the options available to intermediaries Crystal Clear Global Solutions provides a web-based lead...

COMMENT: Keep your people up to scratch.
December 5, 2005... Approved persons may have been deemed fit and proper for their jobs at the time of authorisation but firms must verify this remains the case, says Bill Warren Now we have passed the first anniversary of M-Day it's time to turn the...

COMMENT: Dear Delia - Council Tax revaluation.
December 5, 2005... Dear Delia A recent issue of Mortgage Strategy highlighted the fact that there is a Council Tax revaluation looming. Can you tell me any more about this or indeed any other creative ways governments have imposed taxation on the good folk of...

COMMENT: Internetsite.
December 5, 2005... Mortgage Strategy's weekly guide to what's hot and what's not on the web. Kevin Paterson takes a look at lender websites, working his way from A to Z Nottingham www.thenottingham-intermediaries.com Content: ** Usability:...

COMMENT: Stay in contact while staying legal.
December 5, 2005... Establishing an efficient customer database is important for brokers but they must ensure they maintain it in line with the rules governing client contact, says Payam Azadi Database management is one of the most important elements of...

COMMENT: Dreaming of the perfect cascade.
December 5, 2005... Lenders' cascade systems are an advance but a better solution would be one in which all lenders in a broker's panel could be included to identify the best product, says Frank Eve The lender community is continually looking for...

COMMENT: 'Tis the season for taking stock.
December 5, 2005... If the legendary December slowdown in business really does come to pass this year, use the time to reflect and plan ways to take your business forward, says Sue Read It's December and Christmas is almost upon us. The office party looms...

This week - 5.12.05: Simon White.
December 5, 2005... Simon Shite director, Ashdown Lyons My first Christmas card is going to Cherwell District Council who last week refused to give in to the whining of a certain Professor Brading who has contravened planning law by installing a UPVC door in...

This week ? 5.12.05: JOHN WRIGLESWORTH.
December 5, 2005... JOHN WRIGLESWORTH economist Many people in the mortgage industry are bemused by the recent warning from an industry body that buy-to-let mortgages that only require 100% rental cover could lead to borrowers struggling to meet mortgage...

Curriculum Vitae: Nigel Ingram.
December 5, 2005... Name: Nigel Ingram Age: 42 Company: Preferred Job title: Director of operations Where do you live? Mannings Heath, West Sussex Describe your current job? Co-director of Preferred along with Roger Taylor who...

RACING: Taylor's Tour.
December 5, 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 For the past few weeks I have talked about the A1 Grand Prix series that...

COMMENT: SIPPs fiasco shows total incompetence.
December 12, 2005... It was an act of gross incompetence. A move that defied belief. We are of course talking about chancellor Gordon Brown's amazing U-turn on placing residential property in self-invested personal pensions. In his pre-Budget statement last...

TMW move could alienate B2L brokers.
December 12, 2005... The Mortgage Works' decision to not accept applications for buy-to-let mortgages on new-build properties has sparked fears it could alienate specialist brokers and affect the buy-to-let market. TMW's decision to only accept buy-to-let...

PMPA members plan breakaway group.
December 12, 2005... The majority of the members of the Professional Mortgage Packagers Alliance are planning to leave and set up their own group, the Association of Mortgage Packagers and Distributors. The split follows allegations that two of the four...

RBS to create a single intermediary channel.
December 12, 2005... Royal Bank of Scotland is to create a single intermediary channel for all its mortgage products under the banner RBS Intermediary Partners. The move follows consultation with brokers and reflects their desire for a single point of entry...

BREAKING NEWS: Rooftop row rumbles on.
December 12, 2005... The Mortgage and Loan Group has confirmed to Mortgage Strategy that it has filed an application to the High Court requesting information from Rooftop Mortgages. Last week, MS reported that The Mortgage Distribution Cooperative, which...

Chancellor derided for U-turn on SIPP proposal.
December 12, 2005... Chancellor Gordon Brown has been accused of gross incompetence over his U-turn on self-invested personal pension proposals. In his pre-Budget statement last week, Brown ruled tax relief would not be allowed on residential properties...

Equity scheme could hit economy.
December 12, 2005... There is growing concern that the government's shared equity scheme could have serious implications for the economy if there were to be a housing downturn. Chancellor Gordon Brown revealed in his pre-Budget statement last week that...

IN BRIEF: Survey reveals rental divide.
December 12, 2005... A survey of English housing trends shows that while private renters pay on average twice as much rent as social renters, they earn more than twice as much. London has the highest average private rents - around #189 per week - while the...