Mortgage Strategy articles from December 2006

Mortgage Strategy archives from December 2006

COMMENT: Keep the talent coming through.
December 4, 2006... Can you remember what you wanted to be when you grew up? A fireman, a pop star? Either way, the chances are that it wasn't a mortgage broker. Financial services has always had a dull image among the young, meaning many school leavers...

Haresnape joins Connells.
December 4, 2006... Charles Haresnape has quit Bank of Scotland for an equity stake in estate agency Connells' new broking service Mortgages by Phone. Haresnape has quit after just one year as managing director of BoS Mortgages and will head the new venture...

London brokers in perfect harmony.
December 4, 2006... Andy Pratt, chief executive of Alexander Hall, and Kevin Duffy, managing director of Hamptons Mortgages, celebrate the launch of Concordia in the City last week. Chaired by Pratt, Concordia - which is Latin for 'harmony' and a word that...

Pink advert targets supermarket shoppers.
December 4, 2006... Pink Home Loans is to advertise direct to consumers in a bid to generate free leads for the appointed representatives of its network. The network will be placing an advert in the January edition of Tesco Magazine. It will be aimed...

IN BRIEF: Chance to invest in a prison cell.(Brief article)
December 4, 2006... The government plans to allow people to invest in prison Real Estate Investment Trusts, in effect buying prison cells in an attempt to pay for new prisons. Home secretary John Reid has asked the Home Office to come up with innovative...

IN BRIEF: Ikea to launch timber homes.(Brief article)
December 4, 2006... Ikea is set to launch a range of low-cost timber-framed homes in the UK in an attempt to help first-time buyers find affordable homes. With a starting price of #100,000 for an apartment and #150,000 for a three- bedroom house, 500 properties...

IN BRIEF: Callcredit uploads data.(Brief article)
December 4, 2006... Callcredit says much 2006 electoral roll data, which councils have only begun releasing recently, has already been uploaded to its online database. Callcredit says it will have processed most of the information by Christmas. Copyright:...

IN BRIEF: Future unveils Auto ID system.(Brief article)
December 4, 2006... Future Mortgages has launched its Automated Identification system for first charge loans, putting an end to time-intensive identification methods. Auto ID will cut application processing times by eliminating the need for customers to submit...

IN BRIEF: UCB makes B2L changes.(Brief article)
December 4, 2006... UCB Homeloans has made several changes to its buy-to-let products. It will now consider houses of multiple occupancy on a single assured shorthold tenancy agreement, provided they are let to four tenants or less. It will also allow...

OFT urged to bolster MPPI.
December 4, 2006... OmniCheK has urged the Office of Fair Trading to re-engage with intermediaries to restore consumer confidence in mortgage payment protection insurance. In an open letter in response to the OFT's proposal to refer PPI to the Competition...

76% Of brokers think house prices will not fall.
December 4, 2006... A whopping three-quarters of Mortgage Strategy Online readers don't think UK house prices will fall in the next two years. Some 76% say no, compared to just 24% who say yes. Only time will tell who is right. Copyright: Centaur...

Brokers fail to address the recruitment crisis.
December 4, 2006... Despite brokerages finding themselves at the centre of a recruitment drought, many are failing to do anything about it, research conducted by Mortgage Strategy reveals. Mortgage Strategy, posing as a school leaver, wrote to 12 brokerages...

Concordia could polish off traditional mortgage clubs.
December 4, 2006... The emergence of Concordia could reshape the mortgage market and sound the death knell for mortgage clubs such as Premier Mortgage Service and Legal & General Mortgage Club. Last week, five top London mortgage brokers, Alexander Hall,...

IN BRIEF: Delayed reaction.(Brief article)
December 4, 2006... Moneyfacts.co.uk says it's still waiting for 39% of mortgage lenders to raise their rates following the Bank of England base rate rise. Lisa Taylor, analyst at moneyfacts. co.uk, says: "To date, 61% of lenders have increased their...

IN BRIEF: RICS to regulate HCR inspectors.(Brief article)
December 4, 2006... The Department for Communities and Local Government has approved the Royal Institution of Chartered Surveyors to regulate members who wish to carry out Home Condition Reports as part of Home Information Packs. Copyright: Centaur...

Concern over retention deals transparency.
December 4, 2006... concerns have been raised over lenders' practices surrounding retention and whether current guidelines are transparent enough for existing customers. According to Treating Customers Fairly principles, customers must always be made aware...

Equity release experts warn of flaws in pension plan.
December 4, 2006... Equity release experts have predicted that flaws in the government's new pensions bill will make equity release essential for female retirees. The bill proposed by pensions minister John Hutton MP outlines the personal account system...

Miles strikes back at critics.
December 4, 2006... Morgan Stanley's housing guru Professor David Miles has hit back at industry pundits for slating his doomsday report on the housing market. Last week, it was reported in Mortgage Strategy that the top economist was being criticised for...

Call for clarity on the definition of commission.
December 4, 2006... The Association of British Insurers is calling for more clarity among insurance providers and brokers when it comes to what commission payments are for. This comes at a time when the industry is split over whether commission payments...

EC offers online DIPs to brokers.
December 4, 2006... Exclusive Connections is offering online decisions in principle to speed up service times. Working in conjunction with Phoenix CPU, the packaging association can offer the facility to all brokers, regardless of what sourcing software...

IN BRIEF: Kensington joins m2i panel.(Brief article)
December 4, 2006... M2i has added Kensington Insurance to its distribution panel, allowing its members access to its protection products. The deals now available to m2i members include cover for self-employed workers if they have no income for two months due to...

IN BRIEF: Information security.(Brief article)
December 4, 2006... Newcastle, via its subsidiary Newton Facilities Management, is to provide Shepshed with computer systems including an information security facility. Copyright: Centaur Communications Ltd. and licensors

IN BRIEF: LMC revamps specialist deals.(Brief article)
December 4, 2006... London Mortgage Company has launched a number of sub-prime and buy-to- let deals. LMC is now looking at County Court judgements based on number rather than value, as well as offering just two LTV bandings with the aim of simplifying its...

IN BRIEF: Rates predicted to stablilise.(Brief article)
December 4, 2006... Smartnewhomes. com predicts that interest rates will stabilise after a rise next spring, meaning overall house prices will increase by between 6% and 8%. It also predicts that average new home prices will rise by between 2.5% and 4%, and...

IN BRIEF: B&B's green efforts recognised.(Brief article)
December 4, 2006... Bradford & Bingley is to be awarded the Carbon Neutral branded standard from January. B&B will be one of the first FTSE-100 companies to receive the brand, for which a company undergoes an assessment by the Edinburgh Centre for Carbon...

Nationwide hits back after differential pricing charge.
December 4, 2006... Nationwide has been accused of not treating its customers fairly over its decision to offer different rates for purchases and remortgages. But the lender has denied it has gone back on its promise to offer the same rates to both new and...

MEX pulls controversial Max 130 deal.
December 4, 2006... Mortgage Express has finally pulled the plug on its higher lending Max 130 product. The Max 130 deal faced a barrage of criticism on its launch in January 2005. One Labour MP called for an investigation into high LTV loans before...

Money Partners adopts Unipass for web portal.
December 4, 2006... Money Partners has become the first lender to adopt the Unipass password system for its intermediary web portal MoneyPort. Unipass allows brokers to access participating lender websites without the need to retrieve and re-key login details...

System links lenders with AVM providers.
December 4, 2006... Xit2 has launched a service that allows lenders and packagers to link to automated valuation model providers such as Hometrack and UKValuation. It has already connected to UKValuation and Hometrack and is in the process of connecting to...

IN BRIEF: AVM service from Kensington.(Brief article)
December 4, 2006... Kensington Personal Loans has introduced an automated valuation model service along with improved offers for sub-prime lenders. Kensington is providing its packaging partners with the ability to produce AVM applications. Earlier this...

IN BRIEF: BeatThatQuote appointments.(Brief article)
December 4, 2006... BeatThatQuote.com has appointed two international marketers. They are Nick Tsimbidaros who joins as head of internet marketing, and Nadya Wawengkang who will take the role of product manager for credit card, loans and bank accounts. ...

Quickie bankruptcy concern.
December 4, 2006... Government proposals for borrowers in trouble to get quickie bankruptcies have caused concern among some sub-prime lenders. Proposals being put before parliament under the Tribunals, Courts and Enforcement Bill mean that for a person to...

DCLG says more family homes should be built.
December 4, 2006... The department for Communities and Local Government has called for more family homes to be built in an attempt to help people trying to get on the property ladder. The DCLG has released a revised planning policy statement to urge local...

Paying too much for protection.
December 4, 2006... Consumers are paying up to #225 over the odds for mortgage payment protection insurance, a mystery shopping exercise by Britishinsurance.com has revealed. For unsecured loans, this figure more than doubles to a whopping #605 being wasted...

Interest-only is no problem.
December 4, 2006... The Council of Mortgage Lenders says there is no evidence interest-only mortgages are being used as a short cut around affordability barriers. Its research reveals that interest-only borrowers take out loans with similar or slightly...

100% Fixed rate deal is unveiled.
December 4, 2006... C2-Financial has launched a fixed rate First National mortgage at 100% LTV with free valuation and no application fee. The product is fixed at 6.74% for three years following completion, and allows borrowers to have a combination of...

Brown urged to raise Stamp Duty threshold.
December 4, 2006... This would take the threshold up to #202,000 from #125,000. Mortgage Strategy has run its Step Up Stamp Duty campaign since November 2004 and has been deluged with responses from readers calling for a rise in the threshold. With...

IN BRIEF: CAB backs Treasury on debt.(Brief article)
December 4, 2006... Citizens Advice Bureau has backed the Treasury Select Committee's findings concerning the UK's debt problems and its pledge to fund debt advice services. Teresa Perchard, director of policy at Citizens Advice, says: "The committee has...

IN BRIEF: Unity revamps product range.(Brief article)
December 4, 2006... Unity Homeloans is to offer #1.5m loans up to 80% LTV and 5 x single and 3.75 x joint income multiples for residential applications. It is also offering 15% builders' deposits on prime buy-to-let deals, extended to three properties. ...

IN BRIEF: Select exclusive with DB Mortgages.(Brief article)
December 4, 2006... The Select Partnership is launching a shared exclusive product limited to four packagers with DB Mortgages. Select can now offer a 0.1% reduction on all DB's two-year fixed rates. Copyright: Centaur Communications Ltd. and licensors

Owners move out to move on.
December 4, 2006... Research from Pink Home Loans reveals that 82% of home owners would move out of their property while selling it to ensure they don't lose the sale. The National Association of Estate Agents estimates that 30% of people experience a...

Brokers welcome lenders to market.
December 4, 2006... Research conducted for Mortgage Strategy by Alliance & Leicester shows most brokers do not think there are too many lenders in the market. Only 24% of brokers feel there are too many lenders in the mortgage market while 74% believe there...

Revaluation claim called nonsense.
December 4, 2006... Britishinsurance.com has slated research claiming that blue chip companies are worse than home owners at estimating the value of their property and possessions. Research by insurance valuation provider Rushton International shows that...

IN BRIEF: More property millionaires.(Brief article)
December 4, 2006... Portman has revealed that in Q3 of this year the number of property millionaires in the UK rose by nearly 32% compared with the same quarter in 2005, reaching nearly 80,000. The figures, based on the latest Land Registry sales data and figures...

IN BRIEF: Ecclesiastical to sell equity arm.(Brief article)
December 4, 2006... Ecclesiastical Life is to sell independent equity release adviser Hinton & Wild as part of a refocussing of its financial services strategy. From now on, Ecclesiastical's focus will be on developing a multi-tie proposition and providing a...

Put lenders in the spotlight.
December 4, 2006... The Association of Mortgage Intermediaries has called on the Financial Services Authority to publish its findings regarding sub-prime lenders' financial promotions. Last week, the FSA ordered more than 200 sub-prime brokers to withdraw...

Embrace IT to stay ahead in 2007.
December 4, 2006... The only way brokers can coax consumers away from retail-only lenders is by embracing technology, says GMAC-RFC. Recent estimates put the proportion of the mortgage market that is controlled by brokers at almost three-quarters, as...

Silver surfers want to talk.
December 4, 2006... Silver surfers are ditching the internet in preference to face-to-face financial advice, research from Prudential reveals. The lifetime mortgage provider says despite the reported popularity of internet use among pensioners and the...

Coventry launches security probe.
December 4, 2006... Coventry has launched an in-quiry into how an armed robber managed to get a job as a labourer at its headquarters. Michael Breen was jailed for 10 years in 2001 for his part in a #20,000 Royal Mail van heist. Following his release on...

Politicians prepare to do a balancing act.
December 4, 2006... It's been almost a month since the Democrats unsurprisingly beat the stuffing out of the Republicans in the mid-term elections here, sending the ruling party to the showers. If you're looking for a simple answer as to why the Grand Old...

IN BRIEF: MPLC deals for self-builders.(Brief article)
December 4, 2006... Mortgages PLC is allowing self-build borrowers to access most of its sub-prime products. MPLC's range is also available to self-builders on a self-cert basis up to 85% LTV, and on a full status basis up to 95% LTV. Pete Thomson,...

IN BRIEF: BBA backs education drive.(Brief article)
December 4, 2006... The British Bankers' Association has joined with the Treasury Select Committee in identifying improved financial education in schools as one of the key ways to boost financial inclusion. Copyright: Centaur Communications Ltd. and...

IN BRIEF: 25-Year fix from Kent Reliance.(Brief article)
December 4, 2006... Kent Reliance has launched a 25-year fixed rate product. The mortgage is portable, available to first-time buyers up to 95% LTV, home movers and those wishing to remortgage. Copyright: Centaur Communications Ltd. and licensors

IN BRIEF: TMG says Expo was best ever.(Brief article)
December 4, 2006... The Mortgage Times Group says this year's Mortgage Business Expo in London was its most successful Expo to date. The group had a spacious two-tier stand at the two-day exhibition at Earls Court with sales business development managers,...

IN BRIEF: FTBs may look overseas.(Brief article)
December 4, 2006... Property Secrets says it believes first-time buyers will start to consider purchasing their first properties abroad rather than this country. It says that with super-charged growth, European property markets such as Poland, Czech and Romania...

Landlords remortgage in expectation of price slump.
December 4, 2006... Research from Landlord Mortgages reveals that 25% of landlords have remortgaged their properties over the past year in anticipation of a slump in house prices. The brokerage says that the latest house price figures, coupled with the...

Clamour over high exit fees grows.
December 4, 2006... Price comparison website mform.co.uk has added its voice to industry criticism of the dramatic rise of lenders' mortgage application and exit fees over the past three years. It says that an analysis of industry data shows that three years...

GMAC-RFC joins lender panel of Bananas Inc.
December 4, 2006... GMAC-RFC has become the 25th company to join Bananas Inc's panel of lenders. Earlier this month the packager added Freedom Finance Group to its panel. Sue Cox, business manager at Bananas Inc, says: "Launching with GMAC- RFC Partners...

CII gives CPD status to GI firm's workshop.
December 4, 2006... The Chartered Insurance Institute has awarded continuing professional development status to a workshop run by general insurance compliance firm UKGI. UKGI is the first organisation in its field to achieve CPD accreditation. Jill...

Who would you trust more - an estate agent or a mortgage broker?
December 4, 2006... When it comes to being trustworthy estate agents don't have the best reputation. Exposes of the unscrupulous behaviour of some have seen their public image go from bad to worse. But does the public think any better of mortgage brokers? ...

IN BRIEF: Skipton in fixed rates relaunch.(Brief article)
December 4, 2006... Skipton has relaunched its range of two-year, three-year, five-year, seven-year and 10-year fixed rate mortgages on which borrowers could make initial monthly payments of #592 on #100,000 repayment mortgages. Copyright: Centaur...

IN BRIEF: Newcastle adds fix to range.(Brief article)
December 4, 2006... Newcastle has added to its mortgage range with the launch of a five- year fixed rate product at a rate of 5.05% until January 31, 2012. The mortgage offers 95% LTV and a free standard valuation for remortgages worth up to #410 or a #250...

IN BRIEF: GMAC-RFC seals portfolio deal.(Brief article)
December 4, 2006... GMAC-RFC has completed its fourth portfolio sale of 2006 to Bradford & Bingley. The #670m deal comprised a blended pool of prime, buy-to-let and self-cert products. The company completed the transaction on November 24. Copyright: Centaur...

IN BRIEF: Portman offers 100% LTV deals.(Brief article)
December 4, 2006... Portman is offering 100% LTV on purchase and remortgage products and has also changed the rates on its 100% fixes. The two-year 100% fix now stands at 5.69%, with the three-year fix at 5.63% and the five-year fix at 5.59%. Copyright:...

ANALYSIS: Marketwatch - 04.12.06.
December 4, 2006... Swaps had another wobbly week, edging up and then back down. At least most lenders have stopped repricing their rates upwards and we have a period of relative rate stability. When every lender is repricing and some are repricing once a week...

ANALYSIS: Should high income multiple variable rate products be banned?
December 4, 2006... Our experts are divided on this question but agree that brokers and lenders should not allow clients to become overcommitted Jonathan Burridge is director of Quantum Mortgages Affordability models have changed significantly over the...

ANALYSIS: This is not such a U-turn as it seems.
December 4, 2006... Another surprise announcement from Nationwide, and although it's not as big as the merger with Portman it's bound to spark discussion and perhaps even rumour. Nationwide's mortgage range has been restructured with different products...

ANALYSIS: Have fun but look ahead to next year.
December 4, 2006... There are only a few weeks until Christmas and many brokers will be thinking of matters others than sales, performance and profit. Once we have recovered from Christmas we will move into the new year festivities until eventually everyone...

ANALYSIS: More house building would help FTBs.
December 4, 2006... Recently, there has been a lot of talk about first-time buyers and how lenders can help them to get their feet on the housing ladder. Some lenders have come up with high-income multiples and some have introduced mortgages with 125% LTV,...

ANALYSIS: It's lonely on the moral high ground.
December 4, 2006... For my column this week I've made a rare visit to an exclusive destination. Yes, I'm sending you these words of wisdom from the dizzy heights of the moral high ground. Many of you will have never been here - I'm only an occasional visitor...

ANALYSIS: Labour plans another tax on home life.
December 4, 2006... I returned from honeymoon in the deserts of Africa (note the name change) to news that the government is to consult on water metering. This is to cope with a predicted drought in southern England. Environment minister Ian Pearson has given the...

ANALYSIS: Nationwide must want to be a bank.
December 4, 2006... Nationwide has been doing some strange things recently that might make one think it has aspirations to be a bank rather than a cosy society. First it announced the takeover of rival mutual Portman and then it wasn't as open and honest as...

ANALYSIS: Labour has let home buyers down.
December 4, 2006... This week will see Gordon Brown map out his framework for next spring's Budget. Once again we will be bombarded with figures supposedly showing just how fantastic his leadership of the economy has been. But the chancellor could and should do...

ANALYSIS: Don't get too worked up about rates.
December 4, 2006... I see the internet mortgage market-watchers have again been lobbing criticism at lenders following the latest interest rate hike. With much rubbing of hands they have been at pains to highlight not only the speed with which some lenders have...

ANALYSIS: Rule change could be good for B2L.
December 4, 2006... Soon all Department of Social Security rent will have to be paid to tenants with the option for landlords to have rent paid directly to them being taken away. The initial reaction is that DSS tenants will be even greater risk as it may...

ANALYSIS: The regulator sets out its priorities.
December 4, 2006... The dust of the Mortgage Business Expo is beginning to settle but one seismic event took place there that did not get the prominence it deserved. Clive Briault, managing director of retail markets at the Financial Services Authority, spoke at...

ANALYSIS: Beware the FSA's joined-up thinking.
December 4, 2006... While reading the Financial Services Auth-ority's latest missive on sub- prime financial promotions I was reminded of a song called Dem Bones. It goes along the lines of "the toe bone connected to the foot bone, the foot bone connected to the...

ANALYSIS: Stop fretting and get real about HIPs.
December 4, 2006... In a recent issue of Mortgage Strategy, Peter Mounty expressed his views about Home Information Packs, saying: "I feel for fellow columnist and HIPs champion Alan Dring, whose frustration at political apathy was so evident in his recent...

ANALYSIS: Standard answer to complex question.
December 4, 2006... Returning to a theme I introduced a couple of months ago, this week I would like to revisit the subject of lender analysis. One provider that seems rarely to be mentioned these days is Standard Life Bank. Following its well promoted entry...

ANALYSIS: Living longer means cover is needed.
December 4, 2006... We have known for some time that life expectancy in this country has been increasing and the Office of National Statistics has just released figures that show it has reached an all-time high. As a population we are living longer than ever....

LETTER: Industry should reconsider its attitude to gardening leave.(Letter to the editor)
December 4, 2006... From Payam Azadi and Richard Stokes Our industry has missed Peter Kouset and his charms but we were not the only ones who were horrified to see his reappearance in last week's DB Mortgages product guide. It just shows what can happen...

LETTER: Total mortgage cost figures that sourcing systems ignore.(Letter to the editor)
December 4, 2006... From Alan Selkirk At least three lenders or representatives of lenders have publicly asked that Key Facts Illustrations show the total cost over the period of a special deal. The three are Amber Homeloans, the Halifax and Kensington...

LETTER: Halifax retention scheme is not all its cracked up to be.(Letter to the editor)
December 4, 2006... From Nigel Pamment I have an elderly client who I arranged a Halifax retirement plan for nearly two years ago. It was recently due for review so as usual I contacted Halifax hoping its new retention system would make things easy. I...

LETTER: Some brokers are lagging behind the regulated times.(Letter to the editor)
December 4, 2006... From Harry Katz Going by recent reports it seems the industry still needs to be dragged screaming into the regulated era. Apparently, there is an intermediary out there who still cold calls clients and has been fined for doing so. For...