Mortgage Strategy articles from July 2005

Mortgage Strategy archives from July 2005

COMMENT: UK market shows Europe the way.(market research of financial services)
July 4, 2005... With Prime Minister Tony Blair taking over the presidency of the EU and with the G8 summit having taken place in Edinburgh over the weekend, the UK rests on a European knife edge. Recent headlines have been dominated by the #3bn rebate...

Brokers call for separate AMI figurehead.(Association of Mortgage Intermediaries)(Brief Article)
July 4, 2005... Brokers are calling for the Association of Mortgage Intermediaries to appoint a separate director to act exclusively for the trade body. But current director Chris Cummings, who has also taken on the role of director-general of AMI's...

Trigold says MTE move is first step.(Mortgage Trading Exchange)(Brief Article)
July 4, 2005... Trigold, which owns the Electronic Trading Centre platform, says it welcomes the move by Mortgage Brain to make the Mortgage Trading Exchange available to the whole market, describing it as a good first step. Last week Mortgage Strategy...

MPLC thought to have lost millions on Wow! and Genesis investments.(Mortgages PLC, Wow! Mortgages)(Brief Article)
July 4, 2005... Mortgages PLC is thought to have sunk millions into both Genesis and Wow! but recouped a mere fraction of its investment. Industry sources say the failure of the lender's former strategy has spurred new owner Merrill Lynch to put the...

BREAKING NEWS: Most borrowers favour fixed rate mortgages.(consumer surveys)(Brief Article)
July 4, 2005... Research by national mortgage intermediary Cartel reveals that a whopping 55% of borrowers favour fixed rate mortgages above all other mortgage products. The second most popular type are tracker mortgages at 17% and then discounted...

IN BRIEF: Loans for house purchase.(reports of Bank of England of United Kingdom)(Brief Article)
July 4, 2005... Bank of England figures show the number of loans approved for house purchase in May 2005 was 96,000, a figure little changed from the 95,000 seen in April. The number of mortgage approvals has been steadily picking up since last November's...

IN BRIEF: Network Data AR workshops.(appointed representative)(Brief Article)
July 4, 2005... Network Data has released details of its second series of appointed representative workshops that will run across the country from July to September this year. Training will be provided at the workshops based on recent research conducted...

Baldwin says case has failed.(Keith Baldwin)(Openwork's case against Richard Coulson)(Brief Article)
July 4, 2005... Keith Baldwin, CEO at Home of Choice, says Openwork's initial case against managing director Richard Coulson has failed. Openwork had started legal action against Coulson, former Zurich Mortgage Advice Network director, accusing him of...

Most brokers favour dedicated head for AMI.(Association of Mortgage Intermediaries)(readership surveys)(Brief Article)
July 4, 2005... A whopping 70% of intermediaries say the Association of Mortgage Intermediaries should have its own dedicated figurehead. Just 30% of the 2,937 readers who voted on Mortgage Strategy's website felt having Chris Cummings as joint...

Betting on house price variations.(service launch by Betfair)(Brief Article)
July 4, 2005... A revolutionary betting exchange based on house prices has been launched by betting exchange firm Betfair to allow home owners to hedge against price falls. The exchange allows borrowers to bet on national house prices based on the...

John Charcol admits it offered fee-free deals.(Brief Article)
July 4, 2005... John Charcol has admitted it sent letters to the clients of departed employees, offering to do their next mortgages free. Following a story in Mortgage Strategy, the broker revealed it had contacted the client list of employees who had...

POSD system accused of blighting client files.(information management of GMAC Residential Funding Corp.)(Brief Article)
July 4, 2005... GMAC-RFC's POSD decisioning system has been accused of leaving unnecessary footprints on clients' files and of inefficiency that means responses have had to be sent through the post. GMAC-RFC says the system can create #6,000 of new...

Spain is ripe for lifetime deals.(beliefs of Chris Tanner)(Brief Article)
July 4, 2005... The Spanish mortgage market is calling out for lifetime mortgages to be introduced, a leading broker operating in Continental Europe has revealed. The gap is identified by Chris Tanner, sales and marketing director at Blevins Franks, as...

FOS says offset complaints are on the rise.(Financial Ombudsman Service)(Brief Article)
July 4, 2005... Complaints about offset mortgages are on the rise, says the Financial Ombudsman Service in its latest annual review. It warns these mortgages are difficult for borrowers to understand and for lenders to administer. Brain Ewing, head...

Pink ponders link-up to enter the overseas market.(Pink Home Loans restructures)(Brief Article)
July 4, 2005... Pink Home Loans is considering linking up with a specialist firm to branch out into the overseas mortgage market. The company is researching the market with the aim of launching into in the next few months. However, the watchword for the...

BA slams 'insubstantial' networks.(beliefs of Mike Hughes of Burns-Anderson Group PLC)(Brief Article)
July 4, 2005... Burns Anderson has attacked recently established mortgage networks for lacking substance. Speaking at the Burns Anderson annual conference, Mike Hughes, chief executive of Burns Anderson, told delegates poorly resourced and managed...

Leads firm thought to be no longer trading.(Property Finder Worldwide dissolved)(Brief Article)
July 4, 2005... It is feared that lead generation firm Property Finder Worldwide is no longer trading and is in the process of being dissolved, leaving brokers with no leads and no refunds. Propertfinderworldwide.com is based in Surrey and listed at...

IN BRIEF: AIFA says FSA must focus.(beliefs of Burns Anderson of Association of Independent Financial Advisers)(Financial Services Authority)(Brief Article)
July 4, 2005... AIFA has urged the FSA to focus on areas of failure rather than create new initiatives. Speaking at the Burns Anderson annual conference, AIFA director-general Chris Cummings, told delegates that the FSA has realised most intermediaries can...

IN BRIEF: Landlords pay more.(Brief Article)
July 4, 2005... The June edition of Paragon Mortgages' buy-to-let index shows a significant rise in the prices that landlords paid for their investments as property values increased by 2.8% or #4,265 last month. Average property value is now #156,887 compared...

Lender denies discrimination.(reports of Northern Rock PLC)(Brief Article)
July 4, 2005... Northern Rock has denied its lending policy of offering a maximum LTV of 75% to non-European Economic Area nationals is discriminatory. Steven Humphreys, mortgage adviser at The Mortgage Shop, says that when he applied for a decision in...

CHL unveils three-year B2L fixed deal.(Capital Home Loans )(Brief Article)
July 4, 2005... Capital Home Loans has launched a 5.25% three-year fixed rate buy-to- let mortgage which reverts to Bank base rate plus 0.75% for the remaining term of the deal. The product, which is also available from CHL's Irish Permanent brand, is...

MPPI alternative is launched by Alchemy.(Mortgage payment protection insurance)(Brief Article)
July 4, 2005... A protection product has been designed and launched by consultancy firm Alchemy in response to criticisms of accident, sickness and unemployment or mortgage payment protection products currently available. Bob Perks, director of Alchemy,...

Brokers want e-statements.(financial services surveyed)(Brief Article)
July 4, 2005... Brokers want more lenders to provide them with electronic commission statements so they can receive proc fees quickly and efficiently, says research from the Financial Technology Research Centre. The e-Excellence Mortgage Research 2005...

Errors cause Amber to return business.(Brief Article)
July 4, 2005... Amber Homeloans says it has to send about #1m of business a day back to intermediaries because of gaps in information or errors on application forms. Amber sales and marketing director Mike Perry warns that lenders should not think it...

Number of regulated firms soars to 24,400.(Brief Article)
July 4, 2005... The Financial Services Authority's annual report for 2004/05 reveals there are now 24,423 regulated firms. The figure has soared from 14,479 last year, largely as the result of the introduction of mortgage and general insurance...

The Cheshire denies takeover rumours.(The Derbyshire)(Brief Article)
July 4, 2005... The Cheshire has denied press speculation it is in danger of being taking over by a larger player, saying it is pursuing its independent strategy. Press reports claim the society is dogged by falling profits and has set up a defence...

IN BRIEF: Darlington IT.(Brief Article)
July 4, 2005... Darlington has installed the final phase of Summit, AttentiV Systems' retail banking system. Summit manages the society's full mortgage application processing and post-completion administration, together with all aspects of savings account...

IN BRIEF: Em extends opening hours.(em-financial)(Brief Article)
July 4, 2005... em-financial is extending its opening hours due to increasing levels of business coming into its Chester processing department. Now available from 8am to 7pm Monday to Thursday and 8am to 5.30pm on Fridays, the processing department, which...

IN BRIEF: Scarborough sees strong results.(Brief Article)
July 4, 2005... Scarborough has revealed strong results across all areas for the year ended April 30 2005. Group total assets are up 12% to a record #1.6bn and pre-tax profits are up 8.5% to #5.1m. Mortgage balances are up 12% to #1.2bn. Copyright:...

IN BRIEF: 10-Year fixed deal proves popular.(Brief Article)
July 4, 2005... Nationwide says its 10-year fixed rate mortgage is proving popular. The society has received double the number of applicants it expected when it was launched in April. Copyright: Centaur Communications Ltd. and licensors

IN BRIEF: Yorkshire's charity give-away.(Brief Article)
July 4, 2005... Yorkshire's Charitable Foundation is looking for local good causes to share in its annual charity give-away. Members of the public can call into any branch or agency to request a donation to a charity or community group. More than #50,000 is...

Deal launched to help people breaking up.(Brief Article)
July 4, 2005... Yorkshire is today launching a mortgage proposition called Fresh Start, designed to help divorcees or those going through a relationship break- up. Following extensive research among recently separated individuals the society designed a...

RCH offers firms corporate booze-up with a difference.(RCH Communications)(Brief Article)
July 4, 2005... RCH Communications is offering firms including lenders and brokers the chance to design, name and brand their own beer. Working in partnership with the award-winning Banks and Taylor brewery in Bedfordshire, firms can create their own...

With good systems, data security is no problem.
July 4, 2005... Identity fraud is a big issue so it is inevitable that the sensationalism surrounding offshore processing should hit a nerve. The article in The Sun two weeks ago detailing one offshore worker selling UK customers' financial details was a...

IN BRIEF: Advisers' exam.(Brief Article)
July 4, 2005... Lloyds TSB is to adopt the IFS' revised Certificate for Financial Advisers as the exam all employees in its retail network looking to become financial advisers must pass. Copyright: Centaur Communications Ltd. and licensors

FTB confidence is still flat.(First Time Buyer)(Brief Article)
July 4, 2005... Despite the increase in the Stamp Duty threshold, confidence among first-time buyers is not improving, says Abbey. Its latest quarterly first-time buyers report reveals that in the past three months, the number of people confident about...

Two lenders issue revenue warnings.
July 4, 2005... Lloyds TSB and Alliance & Leicester are both warning revenue growth will be lower this year as a result of bad debt provisions. Lloyds TSB says profits for this year will be 8% lower as people struggle to keep up interest payments on...

IN BRIEF: Mortgage Next offers exclusives via Freedom.(Brief Article)
July 4, 2005... Mortgage Next has launched two exclusive products funded by Freedom Lending. They are a two-year discounted self-cert mortgage and a two- year discounted buy-to-let mortgage. The self-cert mortgage has a two- year 1.34% discount off Bank base...

Egg heads lender survey.(Brief Article)
July 4, 2005... Egg has come out on top of Moneyfacts' latest top 35 Mortgage Lender Survey. The survey looked at the total interest paid out on a standard variable rate mortgage of #100,000 between July 1 2004 and June 30 2005. Egg took top...

Accord sub-prime deals given selective launch.(Brief Article)
July 4, 2005... Accord is to pilot its sub-prime mortgages with the Legal & General Partnership, John Charcol and Pink from July 11. The launch will comprise two products - one discount and one tracker - in the categories of near prime, light adverse,...

VOX POP: Will clients prefer mutuals for sub-prime borrowing?
July 4, 2005... The Derbyshire last week played down fears that increasing numbers of societies moving into sub-prime would muscle out specialist lenders. As clients opt for a lender with a recognised brand, it is feared that the result could be a...

ANALYSIS: Market Watch.
July 4, 2005... This week's villain of the week is Bank of Scotland for having such a misleading rates guide. * One-year money is down 0.04% at 4.58% * Two-year money is down 0.02% at 4.44% * Three-year money is down 0.01% at 4.44% *...

ANALYSIS: Do lead generation services play valuable role.
July 4, 2005... Do lead generation services play a valuable role and how do you choose the right one? While many remain sceptical about internet lead generation it can pay off if you ask potential providers the right questions, say our experts ...

ANALYSIS: Base rate could stay low for some time.
July 4, 2005... "You put your left leg in, your left leg out." Home owners might be forgiven for feeling a bit like they are in the middle of some kind of elaborate hokey cokey when it comes to predictions about base rates. Until last July there was a slow...

ANALYSIS: Soften the blow of paying your fees.
July 4, 2005... Be warned - the thunder and lightning which illuminated much of the country last week could strike many thousands of mortgage broker offices in the days ahead. This latest tempest can be attributed to the arrival of Financial Services...

ANALYSIS: John Charcol effect still intrigues us.
July 4, 2005... February 2000 is a landmark in the eyes of some in our industry. This is when the sale of John Charcol for a reported #100m to Bradford & Bingley triggered an idea that still affects the mortgage industry. That idea is to build up a...

ANALYSIS: Don't make the FSA take on more work.
July 4, 2005... The pain surrounding the regulation of mortgages has subsided with time. Memories are fading about the agonising first few weeks and months and I have no wish to stir up nightmarish recollections of incomplete or unavailable Key Facts...

ANALYSIS: Future-proofing CI definitions is crucial.(critical illness)
July 4, 2005... The Association of British Insurers' critical illness working party review has been making good progress over recent months. Though the proposals are not yet ready to go to consultation they are beginning to take shape. The objective of...

ANALYSIS: Power of the FSA is disproportionate.
July 4, 2005... Treating Customers Fairly will be the next big corporate growth area. Arguably, it already is. Having bulked up their staffing establishment to cope with Financial Services Authority regulation and compliance, companies now require even more...

ANALYSIS: Good time to consider equity release.(Brief Article)
July 4, 2005... The market was moving along steadily for the first quarter of the year but this has been followed by a brisk rate war bubbling under, which should be sending out a message that there has never been a better time for consumers to consider...

Letter: Problem with internet lead firms is low barrier to entry.(Letter to the Editor)
July 4, 2005... From Simon Baker I was saddened to read in a recent issue of Mortgage Strategy (June 20) about several brokers who had been ripped off by lead generation firm Premier Leads. The lead generation industry has for a long time been...

Letter: Our regulator is a descendant of Dick Turpin - a robber.(Letter to the Editor)
July 4, 2005... From Lee Martin I am disgusted with the powers that be in our industry, most specifically the statutory regulator. I am a hard working sole trader seeking to earn a living in this forest- killing industry where back stabbing and...

Letter: Unpain renewals should help Network Data pay its fees.(Letter to the Editor)
July 4, 2005... From Kevin Thornton I read Richard Griffiths' article on FSA fees (Mortgage Strategy June 27) with interest as a broker who introduced building and contents insurance through Network Data under the previous legislation. Since January...

Continental drift.
July 4, 2005... The UK mortgage market is more advanced than the European one - something which is beneficial to lenders, brokers and borrowers looking for a good deal on the Continent, says Harvey Jones The British may be sceptical about many aspects of...

Historical roots of today's European Union.
July 4, 2005... The European Union is a family of democratic European countries committed to working together for peace and prosperity. The EU's member states have set up common institutions to which they delegate some of their sovereignty so that decisions...

How would membership of the single currency affect UK mortgages?
July 4, 2005... Mehrdad Yousefi, head of intermediary mortgages, Alliance & Leicester Joining the euro has always evoked a lot of emotion among us Brits. When it comes to the love affair of our nation with property I think that joining the European single...

FEATURE: Value for money.
July 4, 2005... Finding the right people to work for you is key and it is only when you have found them that you will know how best to remunerate them, says Kevin Friend Remuneration drives people and business. It is payment for services rendered and is...

FEATURE: You get out what you put in.
July 4, 2005... Amita Patel, director of Enigma Resourcing, says staff of all levels are paid based on what they bring to a company We all get to certain points in our careers when we wonder if we're paid enough. It may be that we see an advertisement,...

COMMENT: Fair shares of the MPPI cake at last.
July 4, 2005... Ethically-run brokerages should relax in the knowledge that Treating Customers Fairly should result in them finally getting their fair share of the MPPI cake, says Simon Burgess The financial services industry has become so paranoid about...

COMMENT: Don't jump to conclusions.
July 4, 2005... Sally Laker, managing director of Mortgage Intelligence, says business relationships are not decided in the first seconds of a meeting but are slowly built up over a period to time Everyone in business can agree on one thing - we need...

COMMENT: All quiet on the western front.
July 4, 2005... There has been a slowdown in new mortgage lending, largely due to the faltering economy and the continuing malaise in the first-time buyer market, says Richard Griffiths I admit to not being an expert on the statistics and trends that...

COMMENT: MCCB rebate: Adding #70 worth of insult to injury.
July 4, 2005... My article last week tailed off by saying that we at Network Data were having difficulty reconciling the amount shown on our annual Financial Services Authority invoice. The combined brainpower of two mathematicians and a phone call to...

COMMENT: Understanding FTB trends.(Brief Article)
July 4, 2005... * To what extent have lifestyle changes permanently reduced the number of first-time buyers in the market? * As a result, will the previous percentage trend levels ever be recovered? * To what extent does this all matter if buy-to-let...

INSIGHT: Be prepared to send in your RMAR.
July 4, 2005... Firms must put in place robust procedures and ensure they know when their RMAR is due to be sent in to the FSA as there will be penalties for late submission, says Bill Warren The key reporting document to be submitted by intermediaries...

INSIGHT: E-commerce could benefit industry.
July 4, 2005... When data standards are linked with common process definitions, a powerful industry asset is created and this could be of great benefit to the mortgage industry, says Frank Eve Recent articles in this column have covered the mortgage...

INSIGHT: Internetsite.
July 4, 2005... Mortgage Strategy's weekly guide to what's hot and what's not on the web. Kevin Paterson, sales director at Park Row Associates, takes a look at lender websites, working his way from A to Z Bath www.bathbuildingsociety.co.uk...

CurriculumVitae: Emma Paine.
July 4, 2005... Name: Emma Paine Age: 28 Company: Mortgage Express Job Title: Product development manager Where do you live? Barnet Describe your current job: I am responsible for managing and developing our self-cert product. This...

COMMENT: Good news the capital needs.(influence of Olympics 2012 on london)(Brief Article)
July 11, 2005... The past week has been one of mixed emotions - from the elation generated by the Olympic Games decision to the shock of the bombings in London. The news that London is to host the Olympics in 2012 will have a huge positive impact on the...

Olympic bid success hailed by industry.
July 11, 2005... THE SUCCESS of London's 2012 Olympic bid has been welcomed by the mortgage industry and could boost house prices in the capital by up to 66%. The International Olympic Committee revealed in Singapore last Wednesday that London is to be...

Business as usual for London brokers after bombings.(London Terrorist Bombings, 2005)
July 11, 2005... Though business was slow on the day of the attacks with few clients visiting or calling advisers, staff made it safely to and from work. John Charcol senior technical manager Ray Boulger says: "By the time the attacks happened most people...

IN BRIEF: Mortgage Times has record June.(Brief Article)
July 11, 2005... The Mortgage Times Group has had yet another record month, receiving over #220m worth of packaged applications in June. This has coincided with a substantial recruitment campaign which has seen the group take on 32 staff since May. ...

IN BRIEF: GI crackdown.(general insurance)(Brief Article)
July 11, 2005... The FSA has begun a crackdown on firms that may be breaking the law by conducting unauthorised general insurance business since regulation began this January. The FSA's perimeter team includes both supervisory and enforcement staff and...

IN BRIEF: Yorkshire link.(Brief Article)
July 11, 2005... The Yorkshire Building Society brand will adorn the famous Huddersfield Town FC shirt for the 2005/2006 season and 2006/2007. Huddersfield Town chief executive Andrew Watson says: "This steps up the fantastic relationship we already enjoy...

IN BRIEF: Bank frustrations.(Brief Article)
July 11, 2005... Over a third of people are annoyed with their bank says Which?, yet only one in 20 have switched banks in the past two years. Which? calculates people could miss out on up to #400 a year by having an overdraft, credit card, ISA and loan with a...

IN BRIEF: Sturgess quits GE Home Lending.(Brief Article)
July 11, 2005... GE Home Lending PR and communications manager Bob Sturgess has quit the company. Sturgess resigned last week and will be replaced by GE Home Lending corporate affairs manager Lis Walton. Sturgess says: "I've thoroughly enjoyed my time with...

Platform offers online system.(Brief Article)
July 11, 2005... PLATFORM has launched an online decision facility called Click Decision, giving intermediaries a binding automated decision in minutes. The Britannia subsidiary says the system has been developed following extensive research with brokers...

71% Of brokers unsettled at Cummings' dual role.(Brief Article)
July 11, 2005... AN ALARMING 71% of intermediaries say they would reconsider membership of the Association of Mortgage Intermediaries if it continues to be run in the shadow of the Association of Independent Financial Advisers. Only 29% of the 2,500...

Call for lender transparency.(Brief Article)
July 11, 2005... JOHN CHARCOL has called for a more transparent method by which brokers can ascertain how lenders will behave on individual cases without impairing customers' credit scores. An increasing number of lenders are beginning to use...

Charcol queries integrity of sourcing system KFIs.(Key facts illustration)(Charcol Ltd.)(Brief Article)
July 11, 2005... JOHN CHARCOL has expressed concern at the data integrity of KFIs from sourcing systems. The broker has recently gone live with the Pivotal system that operates as a front and back-end operation and can also be used as a sourcing system....

The Derbyshire links with Pink.(Pink Finance)(Brief Article)
July 11, 2005... THE DERBYSHIRE has launched into the sub-prime market with Pink. Tony Jones, managing director at Pink says it has worked closely with The Derbyshire to develop a 5.75% two-year tracker, and a 5.95% two- year fix. Jones says: "The...

Bridging loans firm becomes member of CML.(appointed Paul Rumbold as marketing director.)(Brief Article)
July 11, 2005... CHEVAL, the Stanmore-based bridging finance specialist lender, has become a member of the Council of Mortgage Lenders. The company, which recently appointed ex Co-Op Financial Services head of mortgages Paul Rumbold as marketing director,...

IN BRIEF: Low confidence.(Brief Article)
July 11, 2005... Firms have seen a dramatic fall in sales and profitability over the past six months and confidence is at its lowest level since December 2001, according to the Business in Britain Report from Lloyds TSB Corporate. Copyright: Centaur...

IN BRIEF: em offer.(Brief Article)
July 11, 2005... Packager em is offering free valuation and free legals on selected Platform and SPML ranges for re-mortgages in England and Wales. Offering proc fees of 1.25% these exclusives are available for a limited period Copyright: Centaur...

IN BRIEF: Range enhanced.(Brief Article)
July 11, 2005... Cardiff-based The Business Mortgage Company says its own exclusives have been enhanced with a buy-to-let product range from Platform. TBMC exclusives include a 0.70% lifetime tracker on advances up to 75%. Copyright: Centaur Communications...