Mortgage Strategy articles from January 2006

Mortgage Strategy archives from January 2006

COMMENT: Stocks surge likely to affect buy-to-let.
January 9, 2006... 2006 had barely got underway before the usual crop of crystal ball gazers were making their predictions for the new year. Top prediction for the financial services industry in 2006 is the stock market making a triumphal comeback. This has...

Bolton looks to Oakwood consultancy role.
January 9, 2006... Michael Bolton is poised to begin consultancy work with The Oakwood Group after his three-month gardening leave with HBOS came to an end last week. Due to contractual obligations he cannot begin working full-time for Oakwood for another...

Hornby to take over as CEO of HBOS.
January 9, 2006... HBOS HAS GOT ITSELF one of the youngest CEOs in the FTSE 100 last week as 38 year old Andy Hornby, the group's chief operating officer, was crowned head of the UK's biggest lender. He will replace 49 year old James Crosby, taking over as...

Portman adds broker deals to core range.
January 9, 2006... Portman is adding two intermediary mortgages to its core mortgage range from today. Its two-year fixed rate at 4.30% will now be available to intermediaries, fixed until January 31 2008. As well as a new fixed with tracker product...

IN BRIEF: FSA bars IFA.
January 9, 2006... The Financial Services Authority has barred independent financial adviser Theophilus Folagbade Sonaike, trading as FT Insurance Services, from being authorised to carry out regulated activities. The FSA has taken action after being informed in...

IN BRIEF: Clydesdale deals.
January 9, 2006... Clydesdale Bank has launched an offset product range which includes a 4.90% offset tracker mortgage for professionals with an annual income of at least #60,000, available via its broker partners. The products include a residential...

IN BRIEF: B&W changes.
January 9, 2006... Bristol & West Mortgages has made several changes to its self-cert range, cutting rates on all 75% and 85% LTV fixed and discounted products. It is offering a number of three-year fixed rates from 4.99% up to 75% LTV, and three-year...

IN BRIEF: KMC denies commercial move.
January 9, 2006... Kensington Mortgages has rebuffed rumours that it is looking to support a big move into commercial mortgages by lifting a management team from one of its competitors. Mortgage Strategy has heard from an industry insider that a move into...

IN BRIEF: GMAC-RFC completes buyout.
January 9, 2006... GMAC-RFC has acquired the remaining 60% of National Guarantee for an undisclosed sum. GMAC-RFC now owns 100% of the company. GMAC RFC's acquisition of this remaining stake will enable National Guarantee to fulfil its ambition to...

Scarborough widens range with light adverse and B2L.
January 9, 2006... Scarborough is expanding into new lending territory and entering the light adverse and student buy-to-let markets. From this month, the society will be looking at adding fresh products to its mortgage range aimed at potential applicants...

4% Rise is about right, say brokers.
January 9, 2006... The vast majority, 69%, of Mortgage Strategy Online readers think the Royal Institution of Chartered Surveyors' prediction that house prices will rise by 4% in 2006 is not an underestimate. Just 31% believe it is an underestimate and that...

A Knight's tale serialised in MS.
January 9, 2006... GMAC-RFC executive chairman Stephen Knight has admitted he thought the US lending giant's name sounded "like a bad hand at Scrabble" when he first heard it. Knight makes the revelation in his book Creator and Trader: A vision for growth...

GE unveils promotional offer on three-year deal.
January 9, 2006... GE Money Home Lending is launching a promotional offer on its First National three-year fixed rate near-prime product from January 12 to February 10. The product has an initial rate of 5.49% fixed until 2009 up to 85% LTV and is designed...

NU hits back after Which? brands ads irresponsible.
January 9, 2006... Norwich Union has hit back at claims that the advertising of its equity release products is irresponsible, and reiterated its call for regulation. A report by consumer watchdog Which? slammed equity release products as expensive and...

Network Data sets up HIP provider.
January 9, 2006... Network Data Holdings Group has set up a Home Information Pack provider named Hipstar. Chief executive Stephen Maskens is heading the provider and says it plans to use Network Data as a distribution channel. Maskens, who is a former...

IN BRIEF: More Than issues flood warning.
January 9, 2006... One year on from the Carlisle floods, More Than is warning action is needed to prevent similar incidents. The floods in Carlisle in January 2005 were the worst for over 100 years. Five million people are at risk of flooding in the UK, of...

IN BRIEF: Make money from currency link-up.
January 9, 2006... Mortgage brokers are being offered the opportunity to team up with foreign currency specialist Moneycorp to earn generous commissions on client referrals and add value to their existing product portfolio. Any mortgage clients referred to...

IN BRIEF: Terraced homes more popular.
January 9, 2006... Although most home buyers prefer a detached property, the popularity of terraced homes grew throughout 2005, says Norwich and Peterborough. The number of loans taken out by N&P customers on terraced homes increased by nearly 2% during...

GMAC-RFC falls victim to #207,000 bogus ID fraud.
January 9, 2006... GMAC-RFC has fallen victim to fraud after bogus identification documents allowed a man to borrow #207,000 from it. After moving into a rented house in Brighton the fraudster, calling himself Andrew Manning, used a falsified driving licence...

Prescott homes plan lacks support.
January 9, 2006... Deputy prime minister John Prescott's plans to build one million affordable houses in England suffered a blow last week after a report showed the houses may fail to attract buyers. The report by The Institute of Public Policy Research...

Gross mortgage lending rose by 5% in November.
January 9, 2006... Gross mortgage lending rose by 5% to an estimated #28.5bn in November, figures from the Council of Mortgage Lenders show. This was the second highest monthly lending figure on record, 1% lower than the #28.9bn of lending in July 2004 but...

Mortgage tips on TV.
January 9, 2006... Ever dreamt of paying off your mortgage in two years? A programme on BBC 2 aims to show viewers how to do exactly that. Pay Off Your Mortgage in Two Years follows eight households and aims to offer tips on money-making and money-saving...

BBC warned about FTB show.
January 9, 2006... Industry experts are warning the BBC to be cautious after it announced it is producing a programme which is a cross between Blind Date and Big Brother with the added twist that contestants will be buying a house. The programme, named...

Commercial marketing tool is a hit.
January 9, 2006... Commercial First reached a milestone last week with its marketing tool box having produced 350 campaigns and 1,000 bespoke marketing items for brokers. The marketing tool box, launched in May 2005, is designed for commercial mortgage...

Industry bodies address B2L valuation concerns.
January 9, 2006... The Council of Mortgage Lenders says it is in talks with the Royal Institute of Chartered Surveyors to address concerns over bogus new- build buy-to-let valuations, as industry confidence in new-build continues to falter. It follows...

IN BRIEF: 2005 Saw largest rise in approvals since 1982.
January 9, 2006... 2005 saw the largest annual increase in mortgage approvals since 1982. Data from the Bank of England shows mortgage approvals in November were 115,000, a 53.3% increase from 75,000 in November 2004. This is the largest annual rise the market...

IN BRIEF: GMAC-RFC promotions.
January 9, 2006... GMAC-RFC has promoted Rob Green to director of sales, Roger Brown to director of its packager division and Jeff Knight to director of marketing. Copyright: Centaur Communications Ltd. and licensors

Regulation back on agenda.
January 9, 2006... The action last year against directors at estate agency Countrywide North by the Office of Fair Trading has reignited debate over the need for statuary regulation of the industry. The OFT took action against Mairi Eckford, managing...

Standard Life denies SIPPs fix.
January 9, 2006... Standard Life has denied press allegations that it used inflated figures to test the Treasury's resolve on self invested personal pensions. The national press reported that the mutual told the Treasury it estimated as much as #3bn a year...

IN BRIEF: Banks are the cheapest lenders.
January 9, 2006... A survey shows banks held on to the top spots as the cheapest mortgage lenders in 2005, with HSBC and Intelligent Finance offering the cheapest SVR mortgages. But the top five is completed by building societies, with Nationwide, Skipton and...

Brokers can help their clients avoid bankruptcy.
January 9, 2006... With as many as 20,000 personal insolvencies expected in the first three months of 2006, brokers are being urged to help clients with unmanageable finances find a way out of debt. Figures from personal insolvency practice Grant Thornton and...

CHL says niche lenders advancing.
January 9, 2006... Capital Home Loans says its 11% increase in sales in 2005 shows niche lenders are winning market share at the expense of volume operators. Bob Young, managing director of CHL, says: "If you take into account the fact that the overall...

Muslims will have more options as market grows.
January 9, 2006... Muslims will have access to more financial products that are compliant with Islamic law as the market grows, says Bank of Ireland UK Financial Services. A number of lenders already offer a variety of home finance and current account...

NAEA in talks about HIP insurance.
January 9, 2006... The National Association of Estate Agents is in discussions with several undisclosed insurance companies about the provision of insurance products for the Home Information Packs market. Peter Bolton King, chief executive of the NAEA, says:...

VOX POP: What challenges face the industry in 2006?
January 9, 2006... The new year is traditionally a time to throw off the old and welcome in the new with a bottle of bubbly. But what does 2006 have to offer and what challenges can the mortgage industry expect in the months ahead? With a host of new...

ANALYSIS: Market Watch.
January 9, 2006... Swap rates plunged over the Christmas break. I'm sure this will lead to lenders cutting their fixed rates. Hopefully we will also soon see the January sales in the mortgage market as lenders fight to start the new year with a bang. *...

ANALYSIS: Would brokers be better off being directly authorised?
January 9, 2006... With the FSA cracking down on networks, would brokers be better off being directly authorised? If brokers wish to be appointed representatives they must ensure they are in networks with good compliance systems, say our experts STEPHEN...

ANALYSIS: New deals hark back to bad old days.
January 9, 2006... In trying to avoid the usual look ahead to what 2006 will bring I will focus more on what the market is doing right now. Unfortunately I'm going to begin on a negative note and take a look at some deals that reflect what should be a...

ANALYSIS: Us mortgage pests will rule in 2006.
January 9, 2006... Mortgage buyers will be at their most irritating in 2006 as they fight for better value. As half of possibly the most demanding mortgage customer couple in the country I am in the front line of this battle for a better deal. Ours is the...

ANALYSIS: We can look forward with confidence.
January 9, 2006... Without wanting to sound like a football pundit, 2005 was a year of two halves for the mortgage market. A year that began with a degree of anxiety ended with a sense of confidence. The turning point, at least for me, came halfway through the...

ANALYSIS: It was Scotland's year for house prices.
January 9, 2006... It's no longer grim up North, not in terms of house prices and buy-to- let anyway. When I say it's been Scotland's year, obviously I'm not talking football, but house prices. While north of the border is still far more affordable than most...

ANALYSIS: Continue working on continuity plans.
January 9, 2006... Just before Christmas, the Financial Services Authority published the Tripartite Authorities' assessment of how the UK's financial services sector could cope with major disruptions such as a terrorist attack or a natural disaster. Two...

ANALYSIS: Non-status lenders make their mark.
January 9, 2006... Most commercial lenders place great emphasis on the financial strengths or weaknesses of a client when making lending decisions on commercial mortgage proposals. But over the past couple of years, the commercial mortgage market has seen a...

ANALYSIS: Time for a real debate on affordability.
January 9, 2006... Here we go again, another year arrives offering new horizons and expectations. But will 2006 be a case of deja vu or will it really throw down fresh challenges? I find idle speculation rather irritating in much of what I read, especially...

ANALYSIS: Think how HIPs will benefit consumers.
January 9, 2006... Whenever a piece of legislation is introduced most people focus on the potential pitfalls. That has certainly been the case with Home Information Packs. There have been more column inches devoted to the reasons why HIPs will cause problems for...

ANALYSIS: Flexible must not mean complicated.
January 9, 2006... 2005 provided us all with great opportunities and challenges and, though the numbers are still being counted, it should have been good year for the equity release business. The year should have produced the best results for some time for...

ANALYSIS: A big year for the protection market.
January 9, 2006... Now we have said goodbye to 2005 let's look back at what the year meant for the protection market and consider what 2006 has in store. It was an interesting year, what with regulation and the review of critical illness insurance. And we saw...

Outlook: A-Z guide to 2006.
January 9, 2006... A is for Abbey which defied cynics such as I and really turned things around in 2005. More of the same please. A is also for affordability models - clearly the way forward in a market with contracting elasticity. But why can't the sourcing...

LETTER: Don't focus only on income aspects of self-cert selling.(Letter to the Editor)
January 9, 2006... From Michael Norwood So, still more hysteria about self-cert mortgages. I thought I'd add a few provocative observations of my own. Firstly, does anyone know how many convictions have actually happened as a result of an applicant...

LETTER: When it comes to HIPs and estate agents, all's fair.(Letter to the Editor)
January 9, 2006... From Tom Gardiner I read with interest some of the views on Home Information Packs in the December 12 issue of Mortgage Strategy, especially those from Colin Baily and his comment on "nasty estate agents". As I write mortgage ...

LETTER: MS should steer clear of party political comment.(Letter to the Editor)
January 9, 2006... From Craig Douglas I read with concern the editorial in Mortgage Strategy December 12 entitled 'SIPPs fiasco shows incompetence'. While I agree with the general sentiment of the article, I do not think it is the place of Mortgage Strategy...

LETTER: Clarifying some points on Preferred website review.(Letter to the Editor)
January 9, 2006... From Sam Hallet I was pleased to see the review of the Preferred website in your Internet Insite column on December 12 . Unfortunately the review featured two incorrect statements, which could prove misleading: 1) 'As Preferred...

LETTER: Keypoint will follow up case highlighted in letter to MS.(Letter to the Editor)
January 9, 2006... From Miles Bentley I am writing in response to the letter that you published in your December 12 issue from Peter French. Keypoint Endowment Claims run a marketing campaign to inform people who may have been mis-sold an endowment...

LETTER: Good lender BDMs really are worth their weight in gold.(Letter to the Editor)
January 9, 2006... From Alfie Cooper In light of the continuing tales of poor service from lenders which air on your letters pages, I want to express my thanks to my BDM at Alliance & Leicester, Phil Convery. As a sole trader, I appreciate his support and...

LETTER: Comments please on my dispute with network.(Letter to the Editor)
January 9, 2006... From William Watt I would welcome comments on the following case which remains unresolved between me and a network which shall remain nameless. Prior to regulation I was an appointed agent for a network as a mortgage adviser. I am now...

BOOKS: Creative thinking.
January 9, 2006... In the first of four extracts from his book, Creator and Trader: A Vision for Growth in the UK Mortgage Market, Stephen Knight reflects on the strategy behind the growth of GMAC-RFC In the five years between 2000 and 2004, our company: ...

FEATURE: Bargain hunting.
January 9, 2006... It's not only high street shops that are having sales at this time of year, there are mortgage bargains to be found too, says Mira Butterworth You only have to step out of your front door at this time of the year to see some amazing...

FEATURE: FTBs need brokers' advice more than ever.
January 9, 2006... Mehrdad Yousefi is head of intermediary mortgages at Alliance & Leicester In 2005, we saw an increasing number of products launched targeting first-time buyers and this seems sure to continue in 2006. The chancellor recognised in his pre-Budget...

FEATURE: Self-cert rates no longer expensive option they used to be.
January 9, 2006... Emma Paine is product development manager of Mortgage Express While we do not expect to see any significant growth in the self-cert market during 2006, we should see developments in lenders' approaches to the market in terms of market...

FEATURE: Buy-to-let will continue to be a major sector.
January 9, 2006... Mark Howell is head of marketing at Bristol & West Mortgages Buy-to-let will continue to be an important sector for financial intermediaries in 2006 as economic and industry factors look set to continue providing favourable conditions...

FEATURE: Clients are more willing to switch mortgages.
January 9, 2006... Consumers are more likely to switch their mortgage than any other financial product, according to an index published by the National Consumer Council. The switching of mortgages has risen 158% since 2000 compared with an average of 52% for all...

FEATURE: MPPI opportunity.
January 9, 2006... Mortgage payment protection insurance is becoming ever more important to home buyers and brokers are well placed to sell it, says Graham Boulger Payment protection insurance has been given a rough ride recently with nightmare scenarios...

INTERVIEW: Fresh approach.
January 9, 2006... Moneyquest chairman Angus McSween is an industry outsider looking to take a fresh approach to the broking business, says Barney McCarthy When Glasgow-based broker Money- quest revealed the appointment of its first chairman at the...

COMMENT: 29% Increase in AR firms in 2005.
January 9, 2006... Merger propels Pink into third place in the network league table while Home of Choice enters the top 10, despite there being no sign of the 500 ARs it claims have joined, says Richard Griffiths The table in the hard copy shows the number...

COMMENT: Clear advantages of title insurance.
January 9, 2006... Title insurance policies can help specialist lenders demonstrate the robustness of their business model in a cooler economic climate if their clarity is improved, says Alan Smith The growth of mortgage providers operating residential...

Dear Delia: Environmentally friendly home.
January 9, 2006... Dear Delia One of my clients, who lives in Norfolk, would like to build an environmentally friendly home and use a green mortgage deal for finance. They would like to know whether this is possible and if so what assistance is available and...

COMMENT: A useful plan for action from the FSA.
January 9, 2006... Reading the FSA's Better Regulation Action Plan could help those planning to improve their compliance systems to focus more clearly on what the watchdog requires, says Bill Warren When it comes to making some good resolutions for our...

Comment: Internetinsite.
January 9, 2006... Mortgage Strategy's weekly guide to what's hot and what's not on the web. Kevin Paterson takes a look at lender websites, working his way from A to Z Skipton www.skipton-intermediaries.co.uk Content: **** Usability: ...

COMMENT: IT is only as good as those who use it.
January 9, 2006... Technology is fine but more emphasis must be placed on training and after sales service so that brokers can make the most of the benefits it has to offer, says Payam Azadi The pre-Christmas season for people in the marketing world often...

COMMENT: Aiming for better value valuations.
January 9, 2006... While there will always be a certain amount of manual work involved, firms are now realising process efficiencies by making innovative use of IT in the valuation process, says Frank Eve Lenders, packagers and brokers are constantly...

COMMENT: Lenders' questions can be puzzling.
January 9, 2006... Some lenders ask minimal questions when brokers phone for a KFI whereas others ask so many it makes you wonder in what ways they intend to use this information, says Sue Read A new year is upon us. Decorations are down, the office party...

This week - 09.01.06: JOHN WRIGLESWORTH.
January 9, 2006... JOHN WRIGLESWORTH economist The chancellor may have pulled the plug on the property industry's predicted 2006 bonanza from self invested personal pensions investors, but he has left us with a little new year joy in the form of real...

CurriculumVitae: Frances Scanlan.
January 9, 2006... Name: Frances Scanlan Age: 44 Company: Knight Commercial Services Job title: Chief executive Where do you live? Salisbury, Wiltshire Describe your current job Heading up the senior management team, with...

RACING: Taylor's Tour.
January 9, 2006... Henry Taylor's day job is running a mortgage broking business in Eastbourne on the south coast of England. When not at the office, he loves taking part in the Seat Cupra Championship I can't believe 2006 is upon us already. January is...

Have your say in Strategy awards.
January 16, 2006... Voting for the Mortgage Strategy Awards 2006 has now begun. The biggest and glitziest event of the mortgage calendar doesn't take place until May this year but now is the time to have your say on who should scoop the Mortgage Strategy Awards...

Greed cited as reason for PMPA break-up.
January 16, 2006... Greed has been cited as the root cause of the splitting up of the Professional Mortgage Packagers Alliance which will see at least 11 members leaving to set up their own organisation, provisionally called the Association of Mortgage Packagers...

Top national finance journalist joins MS as columnist.
January 16, 2006... Isabelle Kassam, former personal finance editor of The Sun newspaper and recently voted 'national finance journalist of the year' has joined the Mortgage Strategy team. Kassam's exciting column began last week and her unrivalled...

IN BRIEF: TMW to launch into prime market.
January 16, 2006... The Mortgage Works is launching into the prime market from this summer, with Portman ceasing to trade with intermediaries. TMW will offer prime mortgages previously available to brokers via the Portman brand. From the summer, the Portman...

IN BRIEF: Interest rates on hold.
January 16, 2006... The Bank of England last week froze interest rates at 4.5%. Rates were last cut in August, when they were reduced from 4.75% to 4.5%. Tony Jones, managing director of Pink Home Loans, says: "It would seem the Monetary Policy Committee is...

IN BRIEF: First Active cuts fixed rates.
January 16, 2006... First Active is dropping its fixed rates from today. Its two-year fixed rate is now 4.55%, down from 4.73%, until March 31 2008, while its five- year fixed rate is now 4.70%, down from 4.99% until March 31 2011. It has also discounted its...

IN BRIEF: KMC and RAMP offer free legals.
January 16, 2006... Kensington Mortgages has teamed up with the Regulatory Association of Mortgage Packagers to offer members free legals on most of its sub- prime range. John Rice, managing director of RAMP, says: "This is a great deal, particularly for those...

IN BRIEF: Firmer housing market predicted.
January 16, 2006... The Council of Mortgage Lenders predicts a firmer housing market over the coming months following news of the Bank of England leaving the base rate unchanged and the rising level of mortgage approvals. The CML expects interest rates to...

FSA quizzes Northern Bank on offshore mortgage sales.
January 16, 2006... Northern Bank is believed to have been found guilty of selling unregulated mortgages and is under investigation by the Financial Services Authority. The bank is thought to have been selling UK mortgages from its office in the Isle of Man...

Brokers say HBOS will be just fine.
January 16, 2006... HBOS got a big vote of confidence from Mortgage Strategy readers last week with an overwhelming 61% saying they didn't think the recent departures from HBOS and BM Solutions would have a negative impact on its business. Just 39% thought it...