Mortgage Strategy articles from February 2006

Mortgage Strategy archives from February 2006

COMMENT: Future is bright for packaging.
February 6, 2006... The demise of packagers has been predicted more than once but the sector has fought back and is sending out a message loud and clear that it has a vital role to play in the mortgage market. Packagers have adopted their business models and...

HBOS denies sales revamp.
February 6, 2006... HBOS has denied accusations that it plans to combine the broker sales forces of its five brands. It had been rumoured that the lending giant was planning a mass rationalisation of its sales staff, with business development managers...

Industry slates HIP plan as disaster waiting to happen.
February 6, 2006... The mortgage industry has condemned government plans for Home Information Packs, slating them as a disaster waiting to happen. The Council of Mortgage Lenders has expressed serious concerns over whether the packs will be implemented on...

Knight quits PMN as BBB dumps mortgage offering.
February 6, 2006... Dale Knight has confirmed he is leaving his position as head of mortgages at Berkeley Berry Birch. This follows the decision by the board of its IFA network Berkeley Independent Advisers to ditch its mortgage network offering, the...

IN BRIEF: Let's be clear about self-cert.
February 6, 2006... Defining self-cert has caused the industry some confusion in the past, but Mortgage Strategy has teamed up with some of the top names in the sector to provide you with the answers to all the questions about this sector. Log on to...

IN BRIEF: AMPD seeks general manager.
February 6, 2006... The Association of Mortgage Packagers and Distributors is seeking a general manager. Formed in January, AMPD is made up of 12 packagers who together completed #2bn of mortgage business in 2005. Copyright: Centaur Communications Ltd....

IN BRIEF: Accord enhances fixed rate criteria.
February 6, 2006... Accord Mortgages has enhanced its criteria for prime fixed rate mortgages where the rate is fixed for five years or more. All prime borrowers will now benefit from increased income multiples of up to 5 x on long-term fixed rates. ...

IN BRIEF: FMO unveils overseas service.
February 6, 2006... First Mortgage Options has launched an overseas property and mortgage service providing access to properties and mortgages throughout Europe, North America, Dubai and the Far East. The service is accessed via the FMO website and commission...

IN BRIEF: 10-Year fix from The Woolwich.
February 6, 2006... The Woolwich is offering a flexible 10-year fixed rate mortgage at a rate of 4.67%. It gives consumers a range of flexible features including the ability to make overpayments of up to 5% per year without any additional charge. The deal is...

IN BRIEF: Easier access to Assureweb.
February 6, 2006... Access to Assureweb will be made easier using Unipass digital certificates from Origo.This move will enable users to log on to Assureweb without entering their usernames and passwords. The first time the Unipass certificate is used, it is...

Legislative changes led to more bankruptcies in 2005.
February 6, 2006... Changes to bankruptcy legislation have encouraged consumers to see bankruptcy as an easy way out, resulting in the highest number of insolvencies last year since the 1990s recession. Figures from the Department of Trade and Industry show...

Most brokers are relaxed about impact of HIPs.
February 6, 2006... Just 31% of Mortgage Strategy Online readers think Home Information Packs will wreck their businesses. The overwhelming majority are confident that the implementation of HIPs will leave their businesses unscathed. This week Mortgage...

EU move stalls FSA reform plan.
February 6, 2006... The Financial Services Authority has stalled in its campaign to simplify its regime due to the impact of European legislation. The regulator has experienced some backlash over plans to ditch its approved persons regime despite industry...

Beacon and Halifax give brokers more choice.
February 6, 2006... Beacon Homeloans and Halifax have both launched fixed products that offer intermediaries the choice of a low fee or a lower rate of interest. Beacon Homeloans' two-year fixed rate product range offers intermediaries the choice of no...

National Guarantee to restructure its business.
February 6, 2006... GMAC-RFC subsidiary National Guarantee is to undergo a restructure which could result in the closure of its packaging and underwriting arms. One source tells Mortgage Strategy that as a result of the company's acquisition by GMAC-RFC, the...

Packagers lose out in Pink poll.
February 6, 2006... Intermediaries are not expecting to make much use of packagers in 2006, research published by Pink Home Loans reveals. The results of Pink's ninth 1000 Index survey show that 75% of intermediaries anticipate they will put less than 25% of...

IN BRIEF: Portman to head down M&A trail.
February 6, 2006... Portman will be pursuing merger and acquisition opportunities in the coming year after reporting an 18% increase in new mortgage lending to #4.3bn. The society's annual report shows a 15% total asset growth to #17.8bn. Residential lending...

IN BRIEF: UK and US rates are level.
February 6, 2006... Halifax says official interest rates in the UK and the US are level for the first time in five years, with both the Bank of England base rate and the Federal Funds rate standing at 4.5%. The last time rates were level was in January 2001,...

MEX plans direct approach.
February 6, 2006... Mortgage Express aims to broaden its distribution model in the next year with a direct to consumer proposition. Speaking exclusively to Mortgage Strategy Bradford & Bingley's lending director Chris Gillespie, who now heads MEX after...

GM car division stalls while mortgage arm roars ahead.
February 6, 2006... While US auto giant General Motors continues to struggle, its mortgage division ripped the cover off the ball in 2005, posting record earnings. According to financial statements released late last week, GM's mortgage operations earned...

Freehold says UPA may go same way as PMPA.
February 6, 2006... The newly formed United Packagers Association could go the way of the Professional Mortgage Packagers Alliance, rival association Freehold claims. Last week Mortgage Strategy exclusively revealed that The Mortgage Times Group is setting...

Worry over property sites.
February 6, 2006... Guidelines issued by the Office of Fair Trading have raised concerns that property websites will need to be classed as estate agencies, meaning extra costs to the seller. The OFT has published guidance on what constitutes estate agency...

Rooftop reaches #1bn completions.
February 6, 2006... Rooftop Mortgages has hit the #1bn mark with the number of mortgages completed since its launch in 2003. Since the specialist lender made its first advance in October 2003 with only a handful of introducing packagers, it has completed two...

Landlords look forward to a good year for B2L.
February 6, 2006... A survey by Mortgage Express has found that landlords are anticipating a good year for buy-to-let with increased rents and plans to invest into more properties. Some 89% of landlords expect rents to increase or stay the same and 86%...

IN BRIEF: Amber relaunch.
February 6, 2006... Amber Homeloans has relaunched its product range which now offers increased discounts up to 95% LTV and reduced three-year fixed rates up to 90% LTV. Many ranges offer several LTV tiers. Highlights include the selection of feather adverse...

IN BRIEF: Threesixty unveils conveyancing link.
February 6, 2006... Threesixty, the fee-based IFA support services provider, has linked up with eConveyancer to allow threesixty's clients to appoint conveyancers on behalf of their clients, assess the costs of cases, then monitor their progress online. Brokers...

IN BRIEF: More immigrant tenants expected.
February 6, 2006... Paragon Mortgages' latest buy-to-let trends survey indicates almost half of landlords expect rental demand from immigrants to increase over the next few years. Copyright: Centaur Communications Ltd. and licensors

IN BRIEF: Package deal.
February 6, 2006... Residential 1 and Just Mortgage Packaging have reached a deal that will see the south London-based broker package secured loans and commercial mortgages on behalf of JMP's members, providing access to specialist expertise in these two areas....

Site causes MPPI confusion.
February 6, 2006... Scaremongering consumer websites have been accused of putting borrowers at risk by disparaging mortgage payment protection insurance. Consumer finance website The Motley Fool, which promises to "tell people the truth about finance", has...

Lloyds TSB denies merger rumours.
February 6, 2006... Lloyds TSB has declined to comment on rumours that it is in merger talks with Banco Bilbao Vizcaya Argentina of Spain. Lloyds TSB, which owns Cheltenham & Gloucester and Scottish Widows and is the UK's fifth biggest bank, saw its shares...

IN BRIEF: SimplyBiz unveils club brand.
February 6, 2006... Financial services company SimplyBiz has launched its mortgage club facility called SimplyBiz Mortgages. Over the past 18 months, Mortgage Support Direct has provided mortgage club facilities to SimplyBiz and now the two companies are...

IN BRIEF: SMS roadshow dates announced.
February 6, 2006... Solent Mortgage Services, the national branded mortgage arranger, has released dates for the first of its 2006 mortgage roadshows. The dates confirmed so far are for Bristol on February 10 and Birmingham on February 28. Copyright:...

IN BRIEF: HIP service launched.
February 6, 2006... Easier2move has launched a Home Information Pack service called Easierhips. This independent offering allows companies to provide clients with a comprehensive HIP including all necessary searches and a Home Condition Report. Copyright:...

IN BRIEF: GMAC-RFC raises multiples.
February 6, 2006... GMAC-RFC has raised the income multiples on its sub-prime range from 3.75 x to 4.25 x. Income multiples are now 4.25 x first income and 1 x second income or 3.5 x joint income. Copyright: Centaur Communications Ltd. and licensors

MS staffers aim to raise money in the long run.
February 6, 2006... Two members of the Mortgage Strategy team have signed up to run the London Marathon and are looking for sponsorship. Features editor Mira Butterworth and deputy features editor Barney McCarthy are already warming up to take part in the...

Web conveyancing service launched.
February 6, 2006... A web-based service called Conveyancing Alliance Limited has been launched. Designed by John Philips, operations director at CAL, the system is designed to be fast and easy for brokers to use. CAL says that using its system, the...

Estate agent and broker alliance aims for the top.
February 6, 2006... Jackson-Stops & Staff Private Finance, an alliance between estate agent Jackson-Stops & Staff and mortgage broker Private Finance, will launch on February 7 to provide specialised service and customised products to the upper end of the...

Rent proposal could hit those on benefits.
February 6, 2006... Controversial plans by the government to introduce a local housing allowance have sparked fears that the move could deter private landlords from renting to those on benefits. As it stands, housing benefits can be paid direct to the...

Council Tax fears hold back FTBs.
February 6, 2006... Potential first-time buyers are being deterred because of predicted Council Tax hikes. Yorkshire Bank's House Buyers Report reveals 23% of first-time buyers are delaying getting on the property ladder until local councils announce their...

IN BRIEF: Changes at the top for Egg.
February 6, 2006... Online bank Egg's chief executive Paul Gratton has stepped down from his post and will leave the bank on February 20 following Egg's delisting from the London Stock Exchange. Mark Nancarrow has been appointed CEO and Kieran Coleman has...

IN BRIEF: Wolton appoints senior surveyors.
February 6, 2006... Wolton Commercial, a division of Wolton Chartered Surveyors, has made three appointments. Anthony Bellis, Una Heywood and Stephen Reed have been recruited as senior commercial surveyors. Copyright: Centaur Communications Ltd. and...

IN BRIEF: Building boom.
February 6, 2006... Home building on previously developed land has hit a record high of 72%. The proportion of new homes built on brownfield sites has rise from 56% in 1997. Meanwhile, the average density of new homes remains at 40 dwellings per hectare, up from...

IN BRIEF: FSA in the spotlight.
February 6, 2006... The Financial Services Practitioner Panel is about to launch the first stage of its 2006 survey of regulated firms to assess the performance of the FSA. The survey is aimed at gathering industry views on the FSA and establishing a record of...

PMS completions hit #30.5bn.
February 6, 2006... Premier Mortgage Services says the total value of its mortgage completions rose from #26.8bn in 2004 to #30.5bn in 2005. The mortgage club, which successfully integrated with Norwich Union Mortgage Club, increased its applications from...

Brad Baker starts consultancy firm.
February 6, 2006... Brad Baker , former director of communications and marketing at the Mortgage Code Compliance Board, has launched a consultancy business. Repucare has been established to provide PR and media communications services to mortgage firms. ...

Low affordability could affect house price rises.
February 6, 2006... A report by Nationwide says that while house prices are likely to continue rising, low affordability will make them unsustainable. The Housing Market Data Response report, produced on behalf of Nationwide by Capital Economics, finds that...

CHL Sub-Prime in buy-to-let assault.
February 6, 2006... Capital Home Loans Sub-Prime has launched a range of sub-prime buy-to- let products with the aim of netting a bigger slice of the specialist market. Funded by Mortgages PLC, the rates and criteria are available exclusively from CHL...

IN BRIEF: L&E gets new CEO.
February 6, 2006... London & European Title Insurance has appointed Christopher Taylor as chief executive officer. Taylor joined L&E in 2000 and has helped in the repositioning of the company and the diversification of its products . Copyright: Centaur...

IN BRIEF: Search facility.
February 6, 2006... Propertyfinder.com is to supply Tiscali with a property search capability. Users searching the property channel on www.tiscali.co.uk can view over 270,000 properties for sale or rent, powered by propertyfinder.com. They will also be able to...

IN BRIEF: Thinc Destini appointments.
February 6, 2006... Thinc Destini has appointed Howard Flight as non-executive director and Nick Kelly as group commercial director. Simon Chamberlain, chief executive of Thinc Destini, says: "They both have experience that will enhance our senior team as we...

VOX POP: How do you guard against identity theft?
February 6, 2006... Last week, Mortgage Strategy reported on the growing number of identity theft cases involving deceased people's information. With identity theft being the fastest growing crime in Britain the Office of National Statistics is warning that...

Determination drives gay success.
February 6, 2006... determination and drive have made the 'pink pound' strong and are the reasons gay men are paid #10,000 more than straight men, says Quantum Mortgage Brokers. A survey of readers of DIVA and Gay Times has found that the average gay man...

ANALYSIS: Market Watch.
February 6, 2006... Swaps continue to edge upward but we have seen one major lender reprice down to win more business and increase its market share. * One-year money is up 0.04% at 4.70% * Two-year money is up 0.07% at 4.72% * Three-year money is up 0.07%...

Are deals with low rates and overhangs in keeping with TCF principles?
February 6, 2006... These deals can be useful for certain clients but the important thing is that customers understand what they are getting into, say our experts Tony Jones is managing director of Pink Home Loans I don't favour short-term fixed rate...

ANALYSIS: Foreign rate products can be risky.
February 6, 2006... The mortgage market has always been one to innovate and fill niche areas. Competition has driven down the price of mortgages and increased the spread of product type. Lenders always strive to find a product to capture the imagination of...

ANALYSIS: Wait for the auction bubble to burst.
February 6, 2006... What a fantastic idea Mortgagebundles.com is. Its founders should be congratulated for capturing the mood of the moment - an ebay for mortgages no less. Goodbye to long, boring interviews with advisers and the interminable filling in of...

ANALYSIS: Packagers should adapt, not lend.
February 6, 2006... Packagers are finding their role in the mortgage market coming under pressure. At present, they are involved in a significant proportion of mortgage originations, particularly in the sub-prime sector, but this may change. The arrival of...

ANALYSIS: Tell your clients to remain cautious.
February 6, 2006... Despite the housing market staging something of a renaissance in recent months, it's still best for your clients to be cautious rather than imagine their property is going to pay off all their debts. While there's more than a glimmer of...

ANALYSIS: A qualification doesn't make you competent.
February 6, 2006... I am always deeply impressed by those willing chaps Walter Avrili and Kevin Duffy, who dash around doing marathons. And well done to the other brave souls who have pledged to compete with them. Having run in half marathons before, I have never...

ANALYSIS: Find out what gives the FSA sleepless nights.
February 6, 2006... The Financial Services Authority's Financial Risk Outlook gives a good insight into its regulatory planning, so what is in store for 2006? The risks to macroeconomic stability and growth are considered by the regulator to be "more...

ANALYSIS: Displace brokers? Oh no you won't.
February 6, 2006... With the pantomime season still in full flow I reckon the recent launch of website mortgagebundles.com had a touch of the theatrical about it, not least due to its declared intent to 'drive the middlemen out of the market'. You can almost...

ANALYSIS: Consider all the options when buying premises.
February 6, 2006... When a business is buying new premises it is faced with a number of decisions regarding who should actually own the property. There are no right or wrong answers but it is worth briefly considering the merits of some of the options. If the...

ANALYSIS: Product design must avoid payment shock.
February 6, 2006... Some things never change. Those at the sharp end of the market have to compete and often that competition is intense. That has always been the case in the mortgage industry and there are clear signs of competition intensifying. ...

ANALYSIS: How HIPs could restrict clients' choice.
February 6, 2006... In last week's Mortgage Strategy I outlined some of the concerns the Association of Mortgage Intermediaries has raised about Home Information Packs. High among these is that some organisations may inappropriately use HIPs to entice...

ANALYSIS: When clients want their money fast.
February 6, 2006... Having reviewed the equity release market for 2005 and looked ahead to 2006, now is a good time to look at which providers are impressing our clients most. Service standards never fall far from the top spot in the list of consumer gripes...

ANALYSIS: Medical advances mean more survivors.
February 6, 2006... It seems that every week of the year so far has seen media coverage concerning medical breakthroughs - what a fantastic start to 2006. The strides that are being made to combat critical illness are ensuring that survival rates are...

Letter: We don't use non-disclosure as an excuse to reject claims.(Letter to the Editor)
February 6, 2006... From Sue Wilksinson In response to Jim Gillespie's letter in Mortgage Strategy January 23, I agree negative press coverage of declined critical illness claims can be damaging and stop some people taking out a policy despite it being in...

Letter: I take back what I said.(Letter to the Editor)
February 6, 2006... From Brian Rossiter I would like to apologise to Richard Griffiths in respect of my letter published in Mortgage Strategy on January 23. I would like to retract my conclusion that all Griffiths does is gather meaningless statistics,...

Letter: Warn clients that property prices can and do decline.(Letter to the Editor)
February 6, 2006... From Terry Elwick Am I the only person worried about our industry's headlong rush to find ways of 'helping' the first-time buyer get on the property ladder and the easing of criteria in the buy-to-let market? I'm sure in a few years...

Letter: IF doesn't seem to want to help first-time buyers.(Letter to the Editor)
February 6, 2006... From Steve McGill Everyone from the chancellor down recognises that first-time buyers should be afforded all the assistance possible to help them get on the first rung of the property ladder (within the realms of reasonable lending...

Letter: If they are worried, lenders should cut new-build LTVs.(Letter to the Editor)
February 6, 2006... From Paul Beard It was with great interest that I read the comments on bogus valuations and deals between developers and valuers that led to Portman withdrawing from the new-build market. Perhaps this is a further indicator that the...

Letter: Dale Knight should focus on the bigger issues at BBB.(Letter to the Editor)
February 6, 2006... Name and address supplied I wish to comment on the letter from Dale Knight in Mortgage Strategy on January 16. I am the proprietor of a member firm of Berkeley Berry Birch and was disgusted and dismayed by Knight's comments for two...

Books: Research and inform.
February 6, 2006... In this extract from Stephen Knight's Creator and Trader: A Vision for Growth in the UK Mortgage Market he discusses the use of research A major part of our public policy strategy has been the research we have undertaken to inform our...

Feature: Changing times.
February 6, 2006... Despite the break-up of the PMPA, the packaging sector has shown it can adapt to changing market conditions and packagers that find fresh ways of adding value to the mortgage chain have a secure future, says Harvey Jones And then there...

How packagers can maintain a prominent position in the industry.
February 6, 2006... Alison Hutchinson is managing director of Kensington Mortgages While the PMPA restructure won't lead to a meltdown of the packager sector it raises questions about what packagers are doing to maintain their position in the industry. If...

The sector has shown it can adapt to changing market conditions.
February 6, 2006... Roger Taylor is director of sales and marketing at Preferred I imagine many in the packaging sector are wishing they hadn't had such a dramatic start to 2006. As a result of recent events, some industry figures are once again questioning the...

A significant channel for brokers and lenders.
February 6, 2006... Bob Sturges is director of communications at Money Partners Packagers have defied widespread expectations and thrived since Mortgage Day for a number of reasons. They have adapted well to the regulatory environment and, despite the...

Dealing with lenders direct is a growing trend.
February 6, 2006... Linda Will is managing director of Accord Mortgages As a new entrant to the sub-prime sector, Accord has concentrated on building systems to support a direct to lender channel. As a previously prime-only lender Accord had no systems to...

FEATURE: Flexibility rules.
February 6, 2006... Offset mortgages form a growing proportion of the market and the flexible features they offer are now being incorporated into standard products, says John Rat Flexibility is an attractive and increasingly popular concept in this country,...

Comment: Heeding the voice of the adviser.
February 6, 2006... Openwork's Mortgage Advisory Panel initiative to ask broker members their views on its panel of lenders is working to the benefit of all parties, says Paul Shearman Openwork's Mortgage Advisory Panel was launched with the objective of...

Comment: Leadgeneration.
February 6, 2006... 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 EstateAngels.co.uk provides a free service for consumers to email...

COMMENT: The strange case of the PMN network.
February 6, 2006... The Professional Mortgage Network's statements about not retaining any commission payments from its ARs are not borne out in reality, says Richard Griffiths The Professional Mortgage Network, based in Leicester, was incorporated in...

Dear Delia: 70 year-olds want to release equity.
February 6, 2006... Dear Delia My client has 70 year old parents who want to release some equity from their home. Their main expenditure is for their interest- only endowment mortgage at #400 a month, which has three years left to run. They do not want to move...

COMMENT: Taking responsibility for regulation.
February 6, 2006... A recent case in which a firm was censured by the FSA shows that it is the responsibility of management to ensure adequate systems and controls are in place, says Bill Warren Back in December last year there was a news item about the...