Mortgage Strategy articles from February 2005

Mortgage Strategy archives from February 2005

Packagers still play a key role.(Brief Article)
February 7, 2005... Hardly a day goes by that packaging and packagers don't find themselves under fire and now some pundits are beginning to question their usefulness in the process of selling mortgages altogether. Mortgage Strategy is the first to admit...

Online decision.(technology application by Mortgage Express)(Brief Article)
February 7, 2005... Mortgage Express has turned to xit2 to provide it with an online system to manage external valuations. The Valuation Exchange streamlines the instruction process. Copyright: Centaur Communications Ltd. and licensors

TMO shuts down network.(Facility closures of The Mortgage Operation)(Brief Article)
February 7, 2005... The Mortgage Operation has closed down its network to focus on packaging, and predicts other networks will be forced to close their doors too. TMO managing director Mark Charlesworth claims he never had any aspirations to set up a network...

Platform denies plan to cut out packagers.(technology application)(Brief Article)
February 7, 2005... Platform has denied rumours it is to launch a 100% online processing system that would exclude packagers. There have been industry rumours that the Britannia intermediary subsidiary lender is planning to deal directly with brokers and...

BMS launches Premier Unit to enhance service.(BM Solutions)
February 7, 2005... BM Solutions has launched a Premier Unit at its Cardiff-based processing centre, designed to provide a higher level of service to its key accounts. The pilot scheme has been launched exclusively with its five key London accounts - Savills...

Platform joins onsite panel.(Brief Article)
February 7, 2005... Platform has joined Network Data's panel of onsite lenders. Platform applications will be processed as they arrive at Network Data's head office by onsite underwriters, making the process simpler and reducing the risk of delays. ...

NU leads the field in lifetime deals.(Norwich Union)(Brief Article)
February 7, 2005... Figures from Safe Home Income Plans show Norwich Union to be the UK's leading provider of lifetime mortgages with a 2004 market share of over 40%. NU reported record sales of lifetime mortgages in the fourth quarter of 2004, totalling...

Key accounts appointment.(Mortgage Promotions)(Brief Article)
February 7, 2005... Mortgage Promotions has appointed John Hague as key account manager. Until last month Hague was intermediary sales manager with Coventry and brings to Mortgage Promotions long experience in both the lending and the intermediary fields. ...

SPML moves to larger offices.(Southern Pacific Mortgage Limited)(Brief Article)
February 7, 2005... Southern Pacific Mortgage Limited is to move to the City of London headquarters of its owner, Lehman Brothers, where there will be space for its planned expansion. SPML, a top 20 lender, employs over 400 staff and in 2003/04 achieved a...

FSA launches credit self-assessment tool.(Financial Services Authority)(Brief Article)
February 7, 2005... The Financial Services Authority is to launch a credit self-assessment tool to try to alert people about the dangers of debt. It is hoped the scheme will be in place by July or September this year. Robin Gordon-Walker, spokesman for the...

Broker claims BMS cross-sold insurance to his clients.(BM Solutions)(beliefs of Andrew Bartlett of AB Financial Services)(Brief Article)
February 7, 2005... A broker has hit out at BM Solutions for cross-selling insurance to his clients without his permission. Andrew Bartlett, principal of AB Financial Services, says he was outraged to discover BMS was offering his mortgage clients general...

On the road.(Mortgage Times Group)(Brief Article)
February 7, 2005... The Mortgage Times Group has launched a series of roadshows aimed at introducers, appointed representatives and directly authorised intermediaries. This follows the success of the company's 2004 roadshows. Copyright: Centaur...

Specialist range.(Brief Article)
February 7, 2005... Mortgage Trust has launched a mortgage range accessible only via a specialist packager panel. The range encompasses buy-to-let products with competitive rates, low arrangement fees and simplified criteria. Copyright: Centaur Communications...

Exweb additions.(Brief Article)
February 7, 2005... The Exchange has added GE Life, National Counties, Portman and Scottish Widows Bank to the equity release trading platform on its Exweb portal. These latest additions take the number of lenders on the service to eight. Copyright:...

OFT refuses to grant CCL to thug broker.(Office of Fair Trading)(consumer credit licence )(Brief Article)
February 7, 2005... A violent thug has been banned from holding a consumer credit licence after the Office of Fair Trading found he had form. Hitchen-based mortgage broker Richard Hardy had his application for a CCL refused after the OFT got wind of his...

Valentine's Day launch for Platform products.(Brief Article)
February 7, 2005... Platform is to launch a range of products on Valentine's Day - February 14. No details are available at the moment but Platform says the range will see it drop its margins and introduce cashbacks, while keeping proc fees at the same...

FSSC consultation.(Financial Services Skills Council)(Brief Article)
February 7, 2005... The Financial Services Skills Council is to launch a month-long consultation on February 9 to seek the views of the industry on its revised draft industry performance standards for retail financial services. Copyright: Centaur...

Inflation slows.(Brief Article)
February 7, 2005... The latest Halifax House Price Index shows prices increased by 0.8% in January. Despite this, prices have increased by only 1.4% over the past six months. The annual rate of house price inflation has fallen from a peak of 22.1% last July to...

Property service.(Brief Article)
February 7, 2005... Moneynet, an online financial data comparison service, has launched a monthly survey showing average property values and mortgage borrowing patterns nationwide. As of the end of January 2005, the average property value was #202,990, says...

Bolton outlines plans for growth in 2005.(Michael Bolton of BM Solutions)
February 7, 2005... Michael Bolton is in an upbeat mood as he arrives for our meeting at the RAC club on London's Pall Mall. It's the first time I've seen him since before Christmas and the conversation immediately turns to business now he's been promoted to...

AtoM joins B-A packager panel.(contract with Burns-Anderson Independent Network PLC)(Brief Article)
February 7, 2005... All Types of Mortgages has been added to the Burns-Anderson network's panel of packagers. Dale Jannels, sales and marketing director at AToM, says: "We are extremely pleased to be appointed." Copyright: Centaur Communications Ltd. and...

Pink branded deal with First National.(Brief Article)
February 7, 2005... Pink Home Loans has launched a branded lending agreement with GE company, First National. The tailor-made portfolio provides a set of products designed specifically for borrowers with histories of adverse credit. Copyright: Centaur...

Portman on acquisition trail.(Brief Article)
February 7, 2005... The Portman Group says it is on the lookout for acquisitions after making record profits of #78.1m in 2004. Although Portman is ranked as the fourth largest UK building society, it is confident it will overtake Yorkshire when its 2004...

BDM's question time.(business development manager)(competitions of Tracy Kavanagh and Anne Robinson of Zebra Homeloans)(Brief Article)
February 7, 2005... A newly appointed business development manager at Zebra Homeloans went head to head with Anne Robinson on the Weakest Link last week. Tracy Kavanagh managed to reach the final but was then beaten. Asked by Robinson how much she'd charge...

Potential B2L investors lost.(buy-to-let)(market research of mortgage banks)(Brief Article)
February 7, 2005... Research from Landlord Mortgages shows that 33% of potential investors have been put off buy-to-let as they were unable to find a suitable investment property. However, the recent slowdown in the housing market, means buy-to-let is a strong...

No housing crash predicted this year.(Brief Article)
February 7, 2005... UK Housing Economics has released its debut housing paper, explaining why there will not be a house price collapse in 2005. The paper predicts that house prices as measured by the Halifax House Price Index will rise by 4% in 2005 and by 6%...

Net deal.(Brief Article)
February 7, 2005... Yorkshire has launched a fixed rate mortgage that is only available via its website. The mortgage offers a three-year fixed rate of 4.64% and is available for loans up to 95% of the property value. Copyright: Centaur Communications Ltd....

Affordability worse in 2004.(Brief Article)
February 7, 2005... Housing affordability continued to worsen in 2004 in all four national markets of the UK, the Council of Mortgage Lenders' annual review of market developments in England, Scotland, Wales and Northern Ireland shows. Copyright: Centaur...

Mortgage Brain defends MTE.(Mortgage Trading Exchange)(Brief Article)
February 7, 2005... Mortgage Brain has refuted suggestions that the Mortgage Trading Exchange platform was not built on sound technology and that only smaller intermediaries will continue to use it. At a round table discussion on the topic of 100 days of...

FSA urged not to push for new laws.(United Kingdom. Financial Services Authority)(Brief Article)
February 7, 2005... Lenders urged the Financial Services Authority not to bring in any rigid regulation on Treating Customers Fairly at Mortgage Strategy's round table last week. Tony Jones, managing director at Pink, says: "The next big initiative from the...

Student rental deposit scheme is launched.(Tenancy Deposit Scheme)(Brief Article)
February 7, 2005... A scheme has been launched to persuade university students to protect their rental deposits and thus avoid contractual disputes. The Tenancy Deposit Scheme has joined with the National Union of Students to convey the message that losing...

Infinity deals.(Infinity Mortgages enhances its product range)(Brief Article)
February 7, 2005... Infinity Mortgages has enhanced its product range. Deals include one- year discounts from 4.85%; two-year fixed and three-year stepped discounts with no overhanging redemption penalties; three-year stepped discounts from 5.1% and two-year fixed...

Smart move.
February 7, 2005... SmartNewHomes.com is offering a year's mortgage paid in full for one person who registers on the site and buys a property between February and September 2005. Entrants will have to complete a tie-breaker on why SmartNewHomes.com is the best...

Rooftop joins M2-d&p panel.(Brief Article)
February 7, 2005... m2-d&p, the packaging arm of Mortgage 2000, has added Rooftop to its panel of lenders, bringing the number on the panel to 21. Rooftop offers adverse credit mortgages for clients with impaired credit histories. Copyright: Centaur...

Call for more action on financial education.(economic policy of United Kingdom. Financial Services Authority)(Panel Discussion)
February 7, 2005... The Financial Services Authority was criticised at Mortgage Strategy's regulation round table last week for not educating society enough on financial matters. Tony Jones, managing director at Pink, says: "Much more must be done....

Prescott says Labour is the pro-FTB party.(John Prescott)(first-time buyer)(Brief Article)
February 7, 2005... Deputy prime minister John Prescott claims only Labour will offer more people the opportunity to get onto the housing ladder and warns Tory cuts would mean fewer affordable homes. Speaking at the Sustainable Communities Summit last week,...

Property protals get it together.(Internet Property Finder Ltd. merges with Asserta Home Ltd.)(Brief Article)
February 7, 2005... Two of the largest property portals propertyfinder.com and assertahome. com are merging to create a single portal for independent agents. The site will retain the propertyfinder. com name and at its relaunch, planned for March, will list...

Muslim model.(Metropolitan Home Ownership's new service)(Brief Article)
February 7, 2005... Metropolitan Home Ownership is pioneering a homebuying model to help Muslims access key worker schemes and other forms of affordable home ownership. Copyright: Centaur Communications Ltd. and licensors

Call for clarity on ad rules.(beliefs of Chris Cummings of Association of Mortgage Intermediaries)(Brief Article)
February 7, 2005... The Association of Mortgage Intermediaries says more clarification is still needed on the rules surrounding financial promotions. At the end of 2004 the Financial Services Authority indicated that advertising and marketing would be prime...

Opening goal scorer.(Secure Mortgages)(new branch)(Brief Article)
February 7, 2005... Legendary ex-Wolverhampton Wanderers player Steve Bull was on hand to open the latest branch of Secure Mortgages, last week. Bull, who scored 306 goals for the Molineux outfit, met dozens of fans and signed autographs as the company...

Optoma to announce NI franchise operation soon.(Northern Ireland)(Brief Article)
February 7, 2005... Optoma is to reveal its second franchise over the next few weeks, an operation based in Northern Ireland. Its first franchise was launched in October last year in Nottinghamshire and had written #135,000 business by the end of last month,...

Mortgage Clinic to generate leads.(advertising)
February 7, 2005... Llewellyn-Slade PR is launching a scheme called Mortgage Clinic which will run campaigns in the national media to help lenders and intermediaries generate leads. LSPR says Mortgage Clinic offers advertorial and online opportunities for...

Connells and Sequence merge corporate divisions.(Brief Article)
February 7, 2005... Connells and Sequence have merged their two corporate business divisions to create what they say is the UK's largest asset manager. It will oversee the disposal of repossessed properties on behalf of major lenders. After Connells bought...

Record business for SHIP members.(Safe Home Income Plans)(Brief Article)
February 7, 2005... The 17 members of equity release trade body Safe Home Income Plans have reported record quarterly new business figures for the three months to December 31 2004. The trade body, whose members represent over 90% of the equity release...

Insurance at the crossroads.(Brief Article)
February 7, 2005... Moody's investors say the life insurance industry is at a crossroads with big brands likely to come out on top after a period of upheaval. Moody's says the overall rating outlook for the industry remains negative. Copyright: Centaur...

Confidence boost.(Brief Article)
February 7, 2005... Research from property website propertyfinder.com shows a sharp upturn in confidence in the housing market with 52% of househunters expecting house prices to rise, compared with 30% in December. Copyright: Centaur Communications Ltd. and...

Do high buy-to-let LTVs benefit clients?(loan to value ratio)
February 7, 2005... GMAC-RFC last week launched a buy-to-let product at 89% LTV - the highest in the market. Some brokers believe lenders are entering a buy- to-let war which should be good for consumers as it will lead to better deals. GMAC-RFC's move raises...

Market Watch.(mortgage banks' prices and rates)
February 7, 2005... It was a dull week for swaps, inching up and down before closing at exactly the same levels they started. One-year money is unchanged at 4.95% Two-year money is unchanged at 4.87% Three-year money is unchanged at 4.87% ...

Analysis: Scarborough's incentive offer.(Scarborough Building Society)
February 7, 2005... Would it be better for clients if Scarborough offered lower rates rather than a TV? Stuart Johnstone is head of mortgages at M2 Financial Before advising a client, it's important to determine whether the mortgage is suitable for their...

Monty Burn: CII is scamming mortgage brokers on fees.(Chartered Insurance Institute's membership fees)(Brief Article)(Column)
February 7, 2005... The word 'scam' has often been applied to the mortgage and financial services industry, but this should be about to change. The news last week that GMAC-RFC was blacklisting certain brokers will have the effect of cleaning up the industry...

On the beat.(lenders)
February 7, 2005... In our professional lives we have to adapt to change but the volume of change thrust upon us can be bewildering. Technology, regulation and products and lending criteria are the usual suspects. But some things are slower to change. Can you...

House price inflation.(Brief Article)
February 7, 2005... I'm pleased that the UK's residency at the top of the European league of house price inflation ended last year, according to the Royal Institute of Chartered Surveyors. Why so pleased? Well, inflation is inflation - and it's not a good thing....

Nick's notes.(consumer credit)
February 7, 2005... In my first column I mentioned the #27bn savings gap in this country. Another piece of research I've seen recently emphasises the balancing act consumers are indulging in with their finances - there are now more credit cards than people in...

Financial health matters.
February 7, 2005... This first article in a three-part series examines the changes proposed to the Consumer Credit Act 1974 to create a fairer and more competitive credit market. The government has blown the dust off the CCA which originally came into force...

Letter: Platform decision shows quality packagers will thrive.(Letter to the Editor)
February 7, 2005... From John Rice Platform's decision to pay more to packagers who submit quality business is welcomed by RAMP's 11 members (Mortgage Strategy, January 31). Such an initiative rewards the hard work we at RAMP have put in to raise...

Letter: Ideas and predictions for the next phase of market change.(Letter to the Editor)
February 7, 2005... From Maurice Edgington I have a few ideas and predictions that may be of interest to readers: Ask the MCCB to return surplus fees to us so we can pass them on to the FSA. Someone on the consumer side will spot the length of the...

Letter: JSK misses the main point of mortgage brokers' websites.(Letter to the Editor)
February 7, 2005... From Peter Parsons I agree with most of what Jeff Sutherland-Kay said when he reviewed my website (Mortgage Strategy January 24) but I think he may be missing the main point of websites - to attract mortgage or loan enquires. It's...

Letter: Stay on the right side of the FSA and you'll have no trouble.(Letter to the Editor)
February 7, 2005... From James Rodea When I arrived at work on January 3 my first job was to open the post. We had only one letter. It was from the FSA letting me know that Cluttons Private Finance was to receive its first visit. My initial thought was one...

Politicians must look at the facts.
February 7, 2005... As the Budget approaches, increasingly heated political comment regarding the mortgage market should be informed by robust research such as the CML's annual review, says Rachel Blackmore As the Budget approaches, comment on the plight of...

A View From The floor.(residential construction for workers)(Brief Article)
February 7, 2005... John Goodellow, chief executive of Skipton, says his society is supporting a housing initiative intended to preserve working communities in the Yorkshire Dales Communities in the Yorkshire Dales are in line for a #10m cash injection to...

Proc fees are too low, not too high.(procuration)
February 7, 2005... Mortgage intermediaries are doing more work than ever for less reward than usual and yet they are still expected to accept lenders' justifications for proc fee reductions, says Ben Stafford Once in a while a sense of bravado, mischief or...

Ensure you have an effective brand.
February 7, 2005... Even for the smallest mortgage brokerages, effective brand-building is important in a financial services sector that is becoming more crowded and competitive, says Richard Farr Think of memorable brands in the financial services industry...

AMI, AIFA, PFS, CII - Acronyms R Us.(business associations)
February 7, 2005... Though the subtelty of the lonely hearts ad and the jargon of the macro- economist might elude us, we should at least understand the acronyms in our own industry, says Richard Griffiths RIP - MCCB, GISC, LIA, SOFA not to mention PIA,...

Proactive FSA supervision will weed out the charlatans and pretenders.(Financial Services Authority)
February 7, 2005... Along with other directly authorised firms and networks, Network Data has now been informed by the FSA of supervisory arrangements, requests for action and the name of our relationship supervisor. So what, you may ask. Well, it does show...

Our sector can boost its profile.
February 7, 2005... Paul Griffin, managing director of Smart Move, says the mortgage sector must use its imagination to move up to the next level in terms of consumer awareness and perception The authors are right. It's difficult to get noticed in a world...

Dear Delia: Right to buy.(Loan To Value)
February 7, 2005... Dave and Mandy have rented their council house in Suffolk for the past two years and now want to exercise their Right to Buy, plus raise some extra capital. Dave earns #25,000 a year and the house is valued (before the RTB discount) at...

100 days under the FSA regime.(Charcol)(Financial Services Authority)
February 7, 2005... The industry is just 100 days into regulation but has the dust started to settle? Mortgage Strategy asked a panel of experts some searching questions to get to the heart of the matter. Rachel Bancroft, Natalie Martin and Barney McCarthy sift...

This Week - 7.02.2005: John Wrigglesworth.(Brief Article)
February 7, 2005... JOHN WRIGLESWORTH, economist Advisers ought to be suggesting people take out long-term mortgages if they want the best for their clients. Short-term fixed rates offer little more financial certainty than discount rates and at present far...

When cold calling is just not cool.
February 7, 2005... Brokers remain confused about how they can deal with customers for whom they have previously arranged a mortgage without breaking the FSA's cold calling rules, says Neal Smith Unsolicited real time financial promotions (that's cold...

IT's just the thing for smaller firms.(Mortgage Software Limited)(Information Technology)
February 7, 2005... Mortgage Consultant Manager provides a much needed low-cost IT solution for smaller brokers and packagers as they battle to compete in a highly competitive market, says Frank Eve The number of technology companies that have identified the...

Internetinsite.(www.mortgage-quest.net)(www.optimum-mortgage. co.uk)(www.t3fs.com)
February 7, 2005... Jeff Sutherland-Kay The three most important words in website design are customer, customer and customer. Too often, brokers forget that their website should be focussed on their customers. At one end of the spectrum, large amounts of...

Recruitment: Make sure your first impression is the right one.
February 7, 2005... Mark Witcomb is senior consultant at Venatus Business Intelligence You've accepted the interview and now want to give yourself the best chance of a successful offer of employment. The next aspect of your research is knowing how to...

Recruitment: Pre-screening saves time and disappointment.
February 7, 2005... Colin Lloyd is head of operations at Reed Insurance Not too long ago the mortgage industry was bound together by a frail but shared understanding of best business practice. It was left to those in the industry to trade according to...

Currculum Vitae: Keith Dearling.(Advantage Home Loans)(Interview)
February 7, 2005... Name: Keith Dearling Age: 40 Company: Advantage Home Loans Job Title: Director Where do you live? Chester Describe your current job: I am responsible for the business strategy of Advantage and driving sales and marketing...

COMMENT: FSA must look into sub-prime murk.(procuration fees)(Brief Article)
February 14, 2005... Procuration fees paid by some sub-prime lenders are too high. Fact. There can be no justification for some of the fees paid by lenders. Proc fees of 2.75%-plus are simply deplorable when it is clients who will ultimately pay the price...

IN BRIEF: Chelsea growth.(in assets)(Brief Article)
February 14, 2005... Chelsea saw its assets grow 13% in 2004 to #8.9bn. Richard Hornbrook, who took over as chief executive in January 2005, says: "These results represent another successful year, showing Chelsea is in excellent shape with one of the best cost...

IN BRIEF: Principality results.(Brief Article)
February 14, 2005... Principality has posted its results for the 2004 financial year which show its total assets increased by #473.3m to #4bn. Gross mortgage lending increased by 11% to #1.1bn and pre-tax profit rose to #18.9m. Copyright: Centaur...

IN BRIEF: NW London tops house price league.(north-west )(Brief Article)
February 14, 2005... Halifax research shows boroughs in the north-west area of London have typically recorded the largest house price rises over the past 10 years. There has been remarkable stability in the ranking of the boroughs since 1994 with the same names...

IN BRIEF: CML welcomes Blair pledge.(Council of Mortgage Lenders)(Brief Article)
February 14, 2005... The Council of Mortgage Lenders has welcomed the government's support for home ownership, announced last week by the Prime Minister as one of his six pledges for the general election. Copyright: Centaur Communications Ltd. and licensors

RAMP dumps C2 and sparks war of words.(C2 Financial)(Regulatory Alliance of Mortgage Packagers )
February 14, 2005... A bitter war of words has broken out between RAMP and C2 Financial, the packager it kicked out of the regulatory alliance last week. C2 Financial, formerly County Mortgage Services, was thrown out of the Regulatory Alliance of Mortgage...

Concern over sub-prime proc fees.(procuration fee)(Brief Article)
February 14, 2005... Sub-prime lenders run the risk of falling foul of the Financial Services Authority's MCOB rules if they continue to pay proc fees as high as 3%. Industry experts believe that if a lender is paying too high a procuration fee it could...

Bankhall changes as Mann becomes MD.(Brief Article)
February 14, 2005... Bankhall has made senior level changes with the promotion of Peter Mann to managing director. Mann takes charge of the day-to-day running of the firm leaving joint chief executives and founders, Simon Taylor and Paul Hogarth, to focus...

IN BRIEF: McQuade joins BMS board.(appointment of Rob McQuade)(Brief Article)
February 14, 2005... Rob McQuade has joined BM Solutions as director of credit risk management. Formerly head of credit risk at GMAC-RFC, McQuade will oversee specialist credit risk management and take a seat on the BM board. Michael Bolton, managing...

Record results for Platform.(Brief Article)
February 14, 2005... Platform has announced record results, with lending jumping to #2.54bn in 2004 from #1.47bn in 2003. This represents a 72% increase for the Britannia subsidiary across its product range. Completion figures are up by 302% from #633m in...