Mortgage Strategy articles from December 2007

Mortgage Strategy archives from December 2007

COMMENT: We'll help brokers through tough times.
December 3, 2007... At first glance, it was hard to find any good news last week. Bank of England governor Mervyn King predicted that market uncertainty would lead to the months ahead being "rather uncomfortable". And his putting a sharp drop in mortgage...

B&B links with mortgageforce.
December 3, 2007... Bradford & Bingley has joined forces with mortgageforce in a bid to maximise service in its 339 outlets. The move comes as lenders and brokers face increasing pressure to offer clients a more holistic service to offset pressure on...

Stay calm on RDR rollout, says AMI.
December 3, 2007... AMI has counselled brokers to not take out of context comments made by the FSA last week about a potential rollout of the Retail Distribution Review to the mortgage market, Stephen Bland, director of the Financial Services Authority's...

Blackandwhite slams FSA raid.
December 3, 2007... Blackandwhite.co.uk has hit out at the Financial Services Authority's "heavy-handed" approach after an impromptu visit by the regulator and police officers last week. FSA enforcement officers used police back-up when they visited the...

IN BRIEF: NR shareholders await ruling on bid process.(Brief article)
December 3, 2007... Shareholders are in limbo as they await Northern Rock's decision on whether to hold an extraordinary general meeting about its bidding process. NR's two largest shareholders, hedge funds SRM Global and RAB Capital, and stakeholders with...

IN BRIEF: Nationwide hire joins from NR.(Brief article)
December 3, 2007... Nationwide has appointed Ian Andrew as head of sales for prime intermediary lending. He will lead a revamp of Nationwide's mainstream broker business from his first day on January 2. He joins from Northern Rock, where he was assistant...

IN BRIEF: 290,000 Homes empty in England.(Brief article)
December 3, 2007... There are nearly 290,000 homes sitting empty in England, research by Halifax reveals. Its study shows there were 288,763 empty private homes in England in April 2006. Copyright: Centaur Communications Ltd. and licensors

IN BRIEF: HIP delays hit Network Data.(Brief article)
December 3, 2007... Network Data expects its full year financial results to be worse than originally expected. It says delays in the rollout of Home Information Packs and the cost of launching Homeowners Mortgages, a lender covering all classes of mortgages,...

Brokers fail FSA standards.
December 3, 2007... The Financial Services Authority has revealed that more than a fifth of mortgage brokerages it reviewed earlier this year failed to meet its standards for mortgage advice. In the findings published last week, the regulator said that of...

Yorkshire takes on HomeBuy rivals.
December 3, 2007... The Yorkshire's increase of the equity loan in its Open Market HomeBuy product to 32.5% could render other lenders' products redundant. The lender is increasing its contribution to the interest-free equity loan element of the scheme to...

Stock Picker: 03.12.07.
December 3, 2007... Shares in Alliance & Leicester and Bradford & Bingley were boosted by positive news about their funding last week. Both societies believe they now have sufficient funding in place to see them through to the second half of 2008, and their...

IN BRIEF: CAB to publish report on arrears.(Brief article)
December 3, 2007... Citizens Advice Bureau is to publish a report on its clients' experiences of dealing with mortgage and secured loans firms regarding arrears on December 12. Copyright: Centaur Communications Ltd. and licensors

Nationwide to target brokers with 45 BDMs.
December 3, 2007... Nationwide has revealed plans to upgrade its mainstream broker lending service, including the appointment of 45 BDMs. Speaking exclusively to Mortgage Strategy, Peter Leydon, divisional director of prime intermediary lending at Nationwide,...

Izard quits GMAC to join Checkmate.
December 3, 2007... Peter Izard will quit his role as senior manager of corporate accounts at GMAC-RFC to join Stephen Knight's new venture Checkmate Mortgages. Knight, formerly executive chairman of GMAC-RFC, has confirmed that Izard will take up the...

Packagers set to consolidate.
December 3, 2007... The packager market is tipped for consolidation as firms strive to reduce costs and pool resources. A report from consultancy firm NMG, entitled A strategic perspective on the packager market, says uncertainty surrounding the severity of...

SPML bucks market by cutting sub-prime rates.
December 3, 2007... Southern Pacific Mortgage Limited is bucking the trend of sub-prime rate hikes by slashing rates by up to 70 basis points across its range today. It is also launching a product called Almost Prime+, which it claims is priced for risk...

Garrard falls in Rooftop job cull.
December 3, 2007... Rooftop Mortgages sales director Guy Garrard was one of 53 casualties at the specialist lender last week as it suffered the effects of a world cull of staff by its US parent Bear Stearns. Rooftop says it will attempt to relocate staff...

IN BRIEF: 'Tis the season to snap up leads.(Brief article)
December 3, 2007... Christmas and the new year is the ideal time to buy leads, says LeadPoint UK. It says prices for certain lead types will fall as fewer brokers buy leads over the festive period. Copyright: Centaur Communications Ltd. and licensors

IN BRIEF: Sub-prime deals disappearing.(Brief article)
December 3, 2007... Two-thirds of sub-prime products have vanished in the past six months, according to Moneyfacts.co.uk. It says the number of prime residential products has risen 10% since October. Copyright: Centaur Communications Ltd. and licensors

IN BRIEF: TMB withdraws several products.(Brief article)
December 3, 2007... The Mortgage Business will withdraw a number of products tomorrow, including its 6.79% and 7.04% House 2 House products and a range of its two-year trackers. Copyright: Centaur Communications Ltd. and licensors

IN BRIEF: Packager unveils lender panel.(Brief article)
December 3, 2007... Buy-to-let packager Investment Mortgage Processing has created a five- lender panel comprising BM Solutions, Mortgage Trust, The Mortgage Business, Wave and CHL Mortgages. Copyright: Centaur Communications Ltd. and licensors

IN BRIEF: Credit woes for third of borrowers.(Brief article)
December 3, 2007... A third of borrowers could face serious worries from the credit squeeze, says Mintel. It claims that of the 16.5 million UK mortgage holders, a total of 33% are considered high risk. Copyright: Centaur Communications Ltd. and licensors

Shareholders may drive wreck onto rocks.
December 3, 2007... Northern Rock's shareholders risk driving the ailing bank into administration if they resist cut-price bids. A source close to one of the bidders for NR fears major shareholders could effectively hold the government to ransom, tipping NR...

IN BRIEF: ME appoints lifetime head.(Brief article)
December 3, 2007... Mortgage Express has made Kirsty Jackson head of lifetime mortgages. She was previously product development manager for residential lending at MEX. Copyright: Centaur Communications Ltd. and licensors

IN BRIEF: Accord makes LTV changes.(Brief article)
December 3, 2007... Accord Mortgages has cut LTVs and made criteria changes to its credit repair range. It has reduced the top LTV for medium adverse self-cert and all heavy adverse products from 85% to 75%. Copyright: Centaur Communications Ltd. and...

Stockton gets broader role.
December 3, 2007... HBOS has bolstered the remit of Nigel Stockton, managing director of BM Solutions and HBOS Intermediary Mortgages, by assigning him responsibility for Intelligent Finance. It means Stockton, who was appointed head of HBOS Intermediary...

BoE warns of ongoing threat to balance sheets.
December 3, 2007... Bank of England governor Mervyn King has pledged to monitor the impact of low market confidence on credit conditions and inflation. King told the Treasury Select Committee last week that he acknowledges the fear that further falls in...

Franchise chain gets go-ahead.
December 3, 2007... Mortgage Options has been given the stamp of approval for its franchised mortgage shops from the British Franchise Association, which will allow it to expand its franchise network. The Grantham-based brokerage has nine shops in the Midlands...

IN BRIEF: Approvals fell to 92,000 in October.(Brief article)
December 3, 2007... Mortgage approvals slumped to 92,000 in October from 96,000 in September - their lowest level since 2005, although the October fall was not as severe as expected, says the Council of Mortgage Lenders. Copyright: Centaur Communications Ltd....

IN BRIEF: Edeus withdraws buy-to-let deals.(Brief article)
December 3, 2007... Edeus has withdrawn its sub-prime and income-based buy-to-let products to make way for a new range. It also plans to withdraw its self-cert 85% LTV products at 6.59% and 6.79%. Copyright: Centaur Communications Ltd. and licensors

IN BRIEF: Tories to quiz Darling on NR loan.(Brief article)
December 3, 2007... The Conservative Party has pledged to keep pressing chancellor Alistair Darling to reveal details of the Bank of England's reported #23bn loan to Northern Rock, including the assets it is secured against and the repayment timescale. ...

Upfront commission pledge.
December 3, 2007... Paymentshield's new commission framework is expected to be a success with brokers because of its upfront payment promise. Colin Jackson, director at Baronworth Investment Services, believes brokers will look favourably on the insurance...

GMAC staff recharge.
December 3, 2007... Staff at GMAC-RFC got the opportunity to recharge their batteries in the office last week as they tested two Energypods. The pods have been designed by US firm Metronaps, which claims they combat fatigue and boost creativity and...

HBOS strives to be FTBs' saviour.
December 3, 2007... HBOS plans to brainstorm with fellow lenders on mortgage design to tackle the problems of aspiring first-time buyers. The banking giant wants to become the leading lender for first-time buyers next year, while championing criteria changes...

Law change could encourage extensions.
December 3, 2007... A relaxation in planning laws for lofts may encourage home owners to extend their properties, rather than move and pay the cost of a Home Information Pack. Under new regulation unveiled in the Planning Reform Bill last week and set to...

IN BRIEF: PTFS launches quote engine.(Brief article)
December 3, 2007... Personal Touch Financial Services has launched a buildings and contents insurance quote engine for directly authorised brokers. It has been developed into a standalone form for the DA market. Copyright: Centaur Communications Ltd. and...

IN BRIEF: Brits would pay to dodge chores.(Brief article)
December 3, 2007... Britons would pay up to #615 a year for help with household chores, a survey by Instant Access Living has shown. Almost a quarter of respondents say concierges will be commonplace in apartments by 2012. Copyright: Centaur Communications...

IN BRIEF: Net advances rise by a quarter.(Brief article)
December 3, 2007... Kent Reliance has reported net mortgage advances of #526m, an increase of 25% over last year to the end of September. Mortgage balances rose by #270m. Copyright: Centaur Communications Ltd. and licensors

Do you trust the chancellor after the NR and data discs debacles?
December 3, 2007... Alistair Darling has had anything but a honeymoon period during his time as chancellor, having had to explain the liquidity crisis which resulted in the first run on a British bank for around 130 years and the recent loss of Revenue & Customs'...

Good times ahead for bridging sector, says lender.
December 3, 2007... The commercial bridging loans sector has been tipped to remain buoyant until 2010, despite the negative impact of the liquidity crisis on other sectors of the mortgage market. Asset-based lender Mathon has adopted a positive stance on the...

IN BRIEF: CGT proposals due this month.(Brief article)
December 3, 2007... Chancellor Alistair Darling has confirmed he will finalise his Capital Gains Tax proposals within three weeks. Speaking at the Confederation of British Industry's annual conference last week, he reaffirmed his commitment to simplifying the...

IN BRIEF: Debt has doubled this century.(Brief article)
December 3, 2007... The average Brit is #33,000 in debt - nearly double the level at the start of the century, according to a survey by PricewaterhouseCoopers. The firm also says that consumers who are currently benefiting from fixed rate mortgages could see...

IN BRIEF: AToM chooses Gravity system.(Brief article)
December 3, 2007... All Types of Mortgages will use the Gravity sourcing system. The software will be provided by Oppono and the system will be rolled out to AToM's satellite packagers, franchises and key accounts next year. Copyright: Centaur Communications...

IN BRIEF: Spanish section on Halifax website.(Website overview)(Brief article)
December 3, 2007... Halifax Intermediaries has unveiled a Spanish property section on its website, providing access to products and services from Banco Halifax Hispania, the bank's Spanish arm. Copyright: Centaur Communications Ltd. and licensors

ANALYSIS: Marketwatch - 03.12.07.
December 3, 2007... Swaps had a mixed week with longer term swaps continuing to drift down, but one-year swaps edged up a bit. However, lenders don't seem to be taking much notice of them with regard to pricing. Swaps have plunged of late but rates have barely...

Will rollout of HIPs to all properties cure housing market of troubles?
December 3, 2007... Our experts are sharply divided, with one insisting that HIPs are improving the buying process and the other saying they are causing problems The government's decision to launch Home Information Packs for one and two-bedroom properties on...

ANALYSIS: Obese borrowers carry a heavy risk.
December 3, 2007... Treating Customers Fairly is a scary phrase. It has the ring of the Red Guards about it and that Maoist idea that you can justify anything, including public executions, because it's the will of the people. Perhaps I exaggerate but TCF can...

ANALYSIS: Lenders are wise to become leaner.
December 3, 2007... Amber Homeloans has announced that it is dumping 70 packagers from its panel at the end of the year because the volume of business they were providing was insufficient to justify maintaining the relationships. Should this be something...

ANALYSIS: Take That can be good role models for brokers.
December 3, 2007... This year, it seems that not a day has gone by without an old band deciding to reform. The jury is still out on whether this is a good thing. Well, in the Spice Girls' case it is anyway - give me Take That any day. One thing these...

ANALYSIS: Regulate rent-back to protect elderly.
December 3, 2007... I have argued for many months that sell-and-rent back schemes should be regulated. Sell-and-rent-back firms usually buy homes for around 70% to 80% of their market value, pay most of the associated fees and costs and then rent the property...

ANALYSIS: Sub-prime warning signs for lenders.
December 3, 2007... Kensington Mortgages, the pioneer of sub-prime lending in the UK, has pulled out of the sector. If ever the adverse mortgage market needed a reminder of the dire straits it's in, this is it. Kensington's announcement that it is to stop...

ANALYSIS: Door opens for lenders to raise SVRs.
December 3, 2007... The repercussions of the liquidity crisis continue to rumble on and not a week goes by without more tidings to further rock the boat. With job losses in the mortgage industry rocketing here and in the US, volatility in share prices of...

ANALYSIS: Specialist arrears management needed.
December 3, 2007... In these changing times for the mortgage industry, the only certainties tend to be unpalatable ones. One is that arrears will increase over the next 12 months. Rates have risen consistently and the impact is now being felt, just as house...

ANALYSIS: Diversify to help clients through crisis.
December 3, 2007... With lender criteria continuing to tighten on a weekly basis, an increasing amount of industry talk reveals just how apprehensive many are about the future. Most brokers are placing around 22% less business now than they were a couple of...

ANALYSIS: 2007'S lessons have made us stronger.
December 3, 2007... With the end of the year fast approaching, it seems a good idea to look back on 2007 - not just to dwell on what was and what could have been, but to assess what lessons we can learn and the challenges we now face going into 2008, the...

ANALYSIS: Brokers can control their own destiny.
December 3, 2007... The prediction season is upon us and various organisations are offering their views on house prices in 2008. The Council of Mortgage Lenders has suggested a 1% increase, which strikes me as the lowest positive figure it could think of. Other...

ANALYSIS: Brokers deserve praise, not criticism.
December 3, 2007... Last week the Financial Services Authority announced that some 70 broker firms had been found to be operating below standard in respect of its Treating Customers Fairly initiative. Senior management teams at many of the companies in...

ANALYSIS: HMO scheme has teething problems.
December 3, 2007... A recent survey by Heritable Bank revealed some worrying facts about the licensing of houses in multiple occupation and the effect its introduction has had on landlords, but it comes as no surprise that the scheme has experienced teething...

ANALYSIS: Others can learn from NR's problems.
December 3, 2007... In the words of the old song, what a difference a day makes. So which day made the difference to Northern Rock? Was it the day it failed to anticipate the potential downside attached to this strategy? Perhaps it was the day on which...

ANALYSIS: A different take on home reversions.
December 3, 2007... The latest figures from Safe Home Income Plans show an improvement in home reversion sales volumes, so I thought over the next few weeks it would be useful to take a look at some of the reversion products available. Retirement Plus is...

LETTER: Re-registering with lenders is like a bushtucker trial.(Letter to the editor)
December 3, 2007... From Brian Humphreys My company has just changed its regulatory status from appointed representative to directly authorised, but trying to re-register with lenders is proving to be nothing short of a bushtucker trial. Some lenders have...

LETTER: Loan Company's fine won't stop companies breaking the rules.(Letter to the editor)
December 3, 2007... From Bob Adams In the hope that Margaret Cole, director of enforcement at the Financial Services Authority, and her colleagues read the letters pages of Mortgage Strategy, I would like to pronounce the fine recently imposed on The Loan...

LETTER: TCF initiative is an abuse of power and a waste of time.(Letter to the editor)
December 3, 2007... From Norman Masdik Peter Mounty should be congratulated for his brave and insightful comments on the subject of Treating Customers Fairly (Mortgage Strategy November 19). His remarks are in stark contrast to the article in the same...

LETTER: Secured loans offer choice and value to consumers.(Letter to the editor)
December 3, 2007... From John Webster While reading the November 12 issue of Mortgage Strategy I was disappointed to come across Guy Anker's article entitled 'Secured loans spell trouble for clients', in which he questions the need for secured loans. ...

LETTER: Brokers should sell cover on a drip commission basis.(Letter to the editor)
December 3, 2007... From Dale Knight In my extensive experience of working for large mortgage networks, I have noted a distinct reluctance by brokers to sell protection, and I've often wondered why. It seems to me that the only way to treat customers...

MPC: Shadow MPC.
December 3, 2007... Balancing the continuing effects of the liquidity squeeze against the risk of inflation due to rising fuel and food prices, the Mortgage Strategy GE Money Home Lending Shadow Monetary Policy Committee has voted to cut the base rate by 0.25% in...

TAKING STOCK: Charting a course for success.
December 3, 2007... Running a steady ship and helping brokers navigate a stormy market are Nigel Stockton's priorities as managing director of HBOS Intermediaries, he tells Clare Bettelley It's a grave day when the UK's biggest mortgage lender is more...

FEATURE: Offsets on the up.
December 3, 2007... Offset mortgages are increasingly popular because they give borrowers the flexibility and control they desire to manage their finances, says Simon Ring Offset mortgages have been around for more than a decade and sales are growing...

COMMENT: Labour fuels the flames of failure.
December 3, 2007... Kevin Paterson takes a weekly look at the latest developments in the market and brings you what's hot and what's not in the world of mortgages It seems that some recent major events will have a negative impact on the economy. For...

COMMENT: Sub-prime feels the pressure.
December 3, 2007... The embattled sub-prime sector took another hit recently as the Financial Services Authority fined two firms and banned a third for a variety of failings in this vulnerable sector. Key areas of failure involved poor record-keeping,...

COMMENT: Specialist sector faces bumpy ride.
December 3, 2007... Lenders and borrowers in specialist areas face a tough year as the effects of the liquidity crisis continue to grip the market, although housing fundamentals remain sound, says Andy McQueen A question always asked towards the end of a year...

COMMENT: On the horns of a payment dilemma.
December 3, 2007... Recommending that clients stay with their existing lenders means brokers have to go through a full review process so lenders should pay them for this, says Sue Read The firm I work for is the baby sister of a much larger IFA practice. We...

COMMENT: Take a look in the business mirror.
December 3, 2007... This time of year is usually set aside for thinking about business strategy for the year ahead but brokers can also use it to plan ways to boost their own effectiveness, says Martin Wade To get ahead in any business, it is necessary to set...

COMMENT: HomeBuy information must be clearer.
December 3, 2007... A website that should be a simple and reliable source of information for consumers thinking of using the government's HomeBuy schemes is in fact confusing and unhelpful, says Sally Laker I can't claim this is the norm, but when I logged...

COMMENT: Go for a better trading environment.
December 3, 2007... Market woes may have sapped lenders' enthusiasm for investing in technology, but adopting Origo standards would create a safe, competitive trading arena that would benefit everyone Will technological developments in the mortgage industry...

DEAR DELIA: Client wants Victorian property to convert.
December 3, 2007... My client is a buy-to-let investor looking to buy a large Victorian property that he wants to convert into a house in multiple occupation. He has been offered a #50,000 discount off the original #450,000 asking price if he can complete within...

COMMENT: Approach lifetime deals with care.
December 3, 2007... Lifetime mortgages are poised to become big business and the FSA has demonstrated that it will be focussing on firms giving advice in this high risk area, says Nick Battersby Financial Services Authority enforcements alert the industry to...

CurriculumVitae: Simon Cocker.
December 3, 2007... Name: Simon Cocker Age: 42 Company: Dunfermline Job title: Head of business development Where do you live? Edinburgh Describe your current job: I am responsible for business-to-business development in the...

COMMENT: Base rate cut good, Darling's record bad.
December 10, 2007... Everyone from Tesco to the National Association of Estate Agents was clamouring for an interest rate cut before the Bank of England's Monetary Policy Committee met last week. Thankfully, the BoE finally listened. The 0.25% cut in the base...

Bush to beef up US regulation.
December 10, 2007... President George Bush last week pledged to beef up regulation of the US mortgage industry, aping the regulation of the UK market three years ago. Bush announced regulations similar to the Financial Services Authority's Treating Customers...

Tories plan to speed up house buying.
December 10, 2007... Conservative Shadow housing minister Grant Shapps has slammed solicitors for their old-fashioned attitude, which he says is slowing down the house buying process. Shapps made the comments as he launched a review of the house buying...

NR shareholders and board clash over bids.
December 10, 2007... A source close to one of Northern Rock's suitors claims that a stalemate in the bidding process is pushing the lender closer to nationalisation. The JC Flowers insider warns that NR's shareholders and board are locked in a dispute over...

Cobalt adds Cavendish to list of acquisitions.
December 10, 2007... Cobalt Capital has struck a deal to acquire Cavendish Mortgage Brokers as part of its ongoing expansion plans. This follows the completion of its acquisition of Square Mile Mortgage Finance in February. Tim Anderson, currently...

IN BRIEF: Sub-prime threatens market.(Brief article)
December 10, 2007... The UK housing market remains vulnerable because of sub-prime, a Paris- based think tank has warned. The Organisation for Economic Co-operation and Development also says the Bank of England should make further base rate cuts to stop a...