Mortgage Strategy articles from July 2006

Mortgage Strategy archives from July 2006

COMMENT: Why you should swot up on swaps.
July 3, 2006... It's official - the mortgage market is booming. Mortgage debt hit the #1trillion mark for the first time last week after the amount of money lent to home buyers rose by #9.3bn last month. Britons collectively owe a whopping...

Woodberry bridges gap to relaunch as Link Lending.(Company overview)
July 3, 2006... Woodberry Securities, the bridging loan provider backed by industry guru David Johnson, is to undergo a massive shake-up and relaunch as Link Lending in September. Founded by former igroup chief executive David Johnson and Paul Gower in...

L&G faces exodus as ARs change tack.
July 3, 2006... An exodus is set to hit Legal & General after two of its main umbrella appointed representative firms confirmed they are to become directly authorised. L&G has smaller brokers designated under five umbrella firms that are larger agents...

Ocean Finance thought to have found a buyer.
July 3, 2006... Ocean Finance is rumoured to have finally found a buyer. Industry sources say the brokerage, which is believed to spend around #25m annually on advertising, has been for sale for some time and may have secured a potential buyer. One...

10 More 'chickens' to join Bolton's flock.
July 3, 2006... A further 10 names were last week added to the ranks of Michael Bolton's still yet-to-be-named lender. It has now appointed seven business development managers. These include BM Solutions' top BDM for 2005, Scott Thomson who joins fellow...

IN BRIEF: Guy Garrard quits em-.(Brief article)
July 3, 2006... Guy Garrard quit as director of business development at North-West- based packager em-financial last week. He cited personal reasons for his departure. Garrard has been at em- for three and a half years. But the commute from his family home in...

IN BRIEF: NU to unveil cash reserve option.(Brief article)
July 3, 2006... Norwich Union is to launch its Equity Release Cash Reserve Option on July 10. The lifetime mortgage allows customers to unlock some of the value in their homes by releasing an initial amount of money and keeping a reserve fund available that...

IN BRIEF: Lib Dems plan Stamp Duty reform.(Brief article)
July 3, 2006... The Stamp Duty system could be completely reformed if the Liberal Democrats are elected to power at the next general election. Vincent Cable, Lib Dem shadow chancellor of the exchequer, says his party not only hopes to raise the thresholds but...

IN BRIEF: FSA raises size of fines by 23%.(Brief article)
July 3, 2006... The Financial Services Authority has cranked up its enforcement role by raising the average size of its fines by 23% this year. It levied #17.43m in penalties during the past year, #13.9m of which was paid by Citigroup Global Markets and...

AVMs could spell doom for packagers, say experts.
July 3, 2006... The rise of automated valuation models could spell the end for some packagers unless they adapt to the changing market, industry experts are warning. Last week the Council of Mortgage Lenders predicted that five years after the...

Brokers split on understanding swap rate moves.
July 3, 2006... It was an even split last week between those of you who do and don't understand the impact of swap rate movements on the products you advise your clients to take out. Fortunately, help is at hand. Mortgage Strategy's cover feature this...

Only 232 HIP home inspectors trained.
July 3, 2006... The Department for Communities and Local Government says it is still on target to have up to 7,000 home inspectors trained by June 2007, despite only 232 having completed their training so far. Government figures show that as of May this...

Rooftop denies fee cut is linked to downgrade.
July 3, 2006... Rooftop has denied that its decision to cut proc fees on some products has to do with its recent securitisation downgrading by a credit rating agency. The lender sent out correspondence last week informing packaging partners of...

GMAC hits back as critics call HIP report unrealistic.
July 3, 2006... GMAC-RFC has defended research it commissioned into the economic impact of Home Information Packs, despite the research being slated as "unsubstantiated, unrealistic and totally irresponsible". The study, carried out by Oxford Economic...

FSA probe does not mean downturn.
July 3, 2006... Industry experts say an economic downturn is not on the cards despite the Financial Services Authority's decision to investigate the sub- prime market later this year. Reports in the press last week suggested the regulator has labelled...

IN BRIEF: Tony Jones joins AMI board.(Brief article)
July 3, 2006... The Association of Mortgage Intermediaries has appointed Tony Jones, managing director of Pink Home Loans, to its board of directors. Jones has over 25 years' experience in the financial services industry. Copyright: Centaur...

IN BRIEF: Bankhall improves contact system.(Brief article)
July 3, 2006... Bankhall has unveiled a new telephone system and member contact team to improve the service it offers members. A single contact number, 0845 003 0400, will now feed all incoming calls into a five-option menu, allowing members to select...

IN BRIEF: Residential 1 deals on Trigold.(Brief article)
July 3, 2006... Residential 1's range of self-cert, adverse credit, buy-to-let and Right to Buy mortgages are now live and verified on Trigold's Prospector AAA mortgage sourcing system. Copyright: Centaur Communications Ltd. and licensors

AToM slashes lender panel.
July 3, 2006... All Types of Mortgages is slashing its lender panel to only include lenders that provide onsite underwriters. Dale Jannels, sales and marketing director at AToM, says cutting the panel is part of its strategy to retain control over the...

'Computer says no' stance slammed.
July 3, 2006... Halifax has come under fire for having a 'computer says no' mentality. Brokers have hit out at the bank for changing a client's credit score after the agreement in principle, resulting in the customer losing out. Steve Bates,...

Barclays shows greater commitment to brokers.
July 3, 2006... Barclays says its decision to axe The Woolwich brand from the high street is a sign of a greater commitment to the mortgage market and intermediary business. The Woolwich name is due to disappear from high street branches next February,...

Network Data unveils UCB self-cert tracker.
July 3, 2006... Network Data has launched a two-year self-cert tracker from UCB Home Loans. The deal is available at base rate plus 0.49% for two years up to 85% LTV and 4 x income. It is portable and has no product reservation fee, a #495 arrangement...

Errors in small firms' KFIs.
July 3, 2006... The Financial Services Authority last week revealed that over 25% of small and medium firms' Key Facts Illustrations are not up to scratch and contain errors relating to fees and charges. Although large lenders, which account for...

Accord increases retention proc fee.
July 3, 2006... Following heated debate on retention fees at the recent Mortgage Summit in Jerez, Accord Mortgages says it is increasing its retention proc fee from 0.2% to 0.325%. Linda Will, managing director of Accord, says feedback from brokers at...

IN BRIEF: FSA advises on education.(Brief article)
July 3, 2006... The Financial Services Authority has launched a scheme to provide teachers with advice about instructing children on personal finance. Up to 1.8 million school children should be educated on the subject over the next five years. Copyright:...

IN BRIEF: #250M GMAC portfolio sale.(Brief article)
July 3, 2006... GMAC-RFC has made its seventh portfolio sale to Amber Home Loans. The #250m deal comprises a blended pool of prime, buy-to-let and self-cert products. Copyright: Centaur Communications Ltd. and licensors

IN BRIEF: Base rate split.(Brief article)
July 3, 2006... Some 53% of brokers expect no change in the base rate at the next Monetary Policy Committee meeting while 47% expect a rise, says Mortgage Express. Copyright: Centaur Communications Ltd. and licensors

Call to protect buyers abroad.
July 3, 2006... Simon Conn, managing director of Conti Financial Services, is calling for borrowers buying properties abroad to be given a 14-day cooling off period to help prevent potential scams. Conn, who has worked in the overseas property market for...

FSA fine for inadequate controls could be just the start.
July 3, 2006... The Financial Services Authority last week fined a mortgage firm #35,000 for failing to have adequate systems and controls in place, and industry sources say this is just the tip of the iceberg. Brokerage Rainbow Homeloans was fined by the...

Mortgage Intelligence unveils exclusive deals.
July 3, 2006... Mortgage Intelligence has negotiated three exclusive deals with Bank of Scotland, including a buy-to-let product and two self-cert deals. The buy-to-let product offers 5.49% - base rate plus 0.99% - and has a #599 arrangement fee which...

Concern over older renters.
July 3, 2006... Brokers have been alarmed by research showing nearly a quarter of people in their 50s rent or live with their parents as they cannot afford to buy a home. The research by Alliance & Leicester's Movingimproving Index shows 23% of people in...

Homeloan riders raise #35,000.
July 3, 2006... Homeloan Management has raised more than #35,000 for charity after 20 members of staff completed a gruelling 610km sponsored bike ride. Led by Tony Moore and Billy Hutchinson, they cycled from Northern Ireland to Skipton via Scotland and...

Industry must highlight the importance of MPPI.
July 3, 2006... Four million Brits have a misconception that the state will pay their mortgages if they lose their jobs, and pundits say it's the responsibility of the whole industry to remedy this. Around one in 12 people surveyed by Lincoln Financial...

C2 to withdraw free valuation offer.
July 3, 2006... c2-financial is to withdraw the free valuation offer across its sub- prime range from July 8. All applications must be received before this date to qualify for the free valuation and free application fee offer. The company says this...

Singles head home to mum.
July 3, 2006... One-third of Britain's singles between the ages of 25 and 50 have moved back in with their parents, a study has revealed. The European Singles and Lifestyle Study by dating website Parship.com finds that four out of 10 of Britain's 15...

MI gala will celebrate 10 years in the business.
July 3, 2006... Mortgage Intelligence is to host a gala in November to celebrate 10 years in the business and thank brokers who have helped it achieve this. The company started in 1996 with just 10 lenders and half a dozen exclusive products. Some 300...

IN BRIEF: Millfield sold to The Money Portal.(Brief article)
July 3, 2006... Struggling IFA group Millfield has been sold to financial services group The Money Portal for #10.6m. At least #3.4m of this is payable over the 12 months following completion, dependent on performance milestones being reached. ...

IN BRIEF: CMS signs up to PMPA.(Brief article)
July 3, 2006... Creative Mortgage Solutions is the Professional Mortgage Packagers Alliance's latest member. Chester-based CMS originates its business from directly authorised brokers and is on the panels of four mortgage networks. Copyright: Centaur...

IN BRIEF: Call for FSCS costs rethink.(Brief article)
July 3, 2006... Chris Cummings, director-general of the Association of Mortgage Intermediaries, says the Financial Services Compensation Scheme is a vital safety net but the costs must be divided more fairly to maintain the industry's confidence in it. ...

Untested HIPs could harm the UK economy.
July 3, 2006... There are lots of advantages to Home Information Packs. Energy certification is one. All the legal work in one packet upfront is another. Access to the database of Home Condition Reports is a third, allowing lenders to speed up the mortgage...

IN BRIEF: Brokers reconsider MPPI relationships.(Brief article)
July 3, 2006... Huge price differentials in the mortgage payment protection Insurance market are forcing brokers to examine their third party relationships to ensure they are getting the best value for their clients, says Britishinsurance.com. ...

IN BRIEF: #1.45M backing for Connect.(Brief article)
July 3, 2006... MMC Ventures, which invests in early growth stage companies, has invested #1.45m in Connect Mortgages Group, a mortgage processing company based near Lewes in East Sussex. Copyright: Centaur Communications Ltd. and licensors

ANALYSIS: Market Watch.
July 3, 2006... Swaps continued to increase last week and are now at 15-month highs. Who knows whether they will continue to rise or if they'll start to fall soon. If you would like to know more about swap rates I recommend you read this week's cover story...

Should sub-prime lenders do more to help over-indebted borrowers?
July 3, 2006... Lenders' responsibility is limited and it's more help when brokers, lenders and other professionals work together, say our experts Alison Armstrong is business development manager at Grant Thornton UK Sub-prime lenders have an...

ANALYSIS: Summit themes point to partnership.
July 3, 2006... The second Mortgage Summit in Jerez was always going to throw up some interesting points. It didn't disappoint and proved to be another successful event with a number of lively debates and varied viewpoints. A number of common threads...

ANALYSIS: Moving is costly enough without HIPs.
July 3, 2006... Home Information Packs are coming our way and they will devastate the economy or be a welcome protection for consumers depending on who you believe. GMAC-RFC is worried that the planned dry run will not be robust enough. And the top 10...

ANALYSIS: Competition is hot and borrowers are winning.
July 3, 2006... Competition in the mortgage market has never been more fierce. The number of lenders and the intensity of their fight for borrowers have both increased dramatically in the past decade. This has pushed lenders to innovate in a number of...

ANALYSIS: Government must get behind HIPs.
July 3, 2006... Home Information Packs have seldom been out of the headlines in the past few months but while the debate has intensified there's been no evidence of what their impact will be. Until now. GMAC-RFC commissioned the independent Oxford...

ANALYSIS: Brown bombshell has desired effect.
July 3, 2006... The chancellor's Mansion House speech usually attracts the attention of the City pages but little beyond that. But this year was different. This year it got blanket coverage. Not since his decision to wear a lounge suit to the...

ANALYSIS: Interest-only will be the next scandal.
July 3, 2006... In the brave new world of historic misdemeanours and retrospective recrimination that is the financial services industry today there's one thing of which we can be certain - the next mis-selling scandal is but a heartbeat away. Having...

ANALYSIS: B2L innovation benefits landlords.
July 3, 2006... Towards the end of last year, predictions from market experts on the likely size of the buy-to-let market in 2006 varied greatly, with some claiming it was about to collapse and others predicting continued fast growth. But it was clear...

ANALYSIS: Exit fees should be judged case by case.
July 3, 2006... Some issues come back to haunt the industry and exit fees on redemption still stalk the consumer financial press. Radio 4's flagship financial programme Money Box recently ran a piece on exit fees. This was nothing to do with early...

ANALYSIS: How Labour policy keeps prices high.
July 3, 2006... One of the more unusual ways to avoid high property prices is to build your own home. But with government policy meaning land prices are soaring, even this route to affordable home ownership is being cut off. As house prices continue to...

ANALYSIS: The bickering over HIPs must stop.
July 3, 2006... Home Information Packs have become a political hot topic, with government ministers and members of the Opposition exchanging harsh words with all the ferocity of a Federer vs Nadal tennis match. Tory leader David Cameron has vowed to scrap...

ANALYSIS: Think twice about home reversions.
July 3, 2006... Home reversions have long been promoted as a viable alternative to lifetime mortgages but consistently fail to hit the spot with advisers. This isn't helped by the fact that many brokers limit their advice to lifetime products. The rules...

ANALYSIS: Be on your guard when trading online.
July 3, 2006... Technology has revolutionised modern life. You can buy food, holidays and theatre tickets on the internet and you can even apply for your customers' protection online, resulting in instant decisions in many cases. As we become more...

LETTER: Lenders will do the maths when fixing their exit fees.(Letter to the editor)
July 3, 2006... From Colin Snowdon I see that a number of lenders including Alliance & Leicester and Northern Rock are to fix maximum exit fees at the start of mortgage contracts. In following the virtuous example of such lenders, would it be in...

LETTER: Survey shows I'm not alone in not understanding HIPs.(Letter to the editor)
July 3, 2006... From Maurice Edgington I'm sorry to bring up Home Information Packs again but I thought you may be interested in a mini-survey carried out by my firm over three months to assess the level of understanding of the proposed change to the...

LETTER: There's no justification for a product that burdens the poor.(Letter to the editor)
July 3, 2006... From Simon Burgess I was interested to read Bill Armstrong's letter in Mortgage Strategy (June 26),and pleased to see his words: "I would write such policies for 20% of the premium available." Excellent - so why isn't he? Instead, he...

LETTER: Unlike Kassam, I do something positive to make my living.(Letter to the editor)
July 3, 2006... From Michael McKee Just a note about the cynical analysis piece by Isabelle Kassam headlined 'Mortgage brokers are not living saints' (Mortgage Strategy June 19). I find it hard to stomach such comments from someone who, by pushing a...

LETTER: Banish fickle regulators and scribes who bare their claws.(Letter to the editor)
July 3, 2006... From Bill Armstrong If Isabelle Kassam is intent on tarring all brokers with the greed brush, I suggest that she needs to get her brain in gear with the 21st century and stop getting her research material from advertisements on London...

LETTER: Trigold's software changes don't make much difference.(Letter to the editor)
July 3, 2006... From Chris Nicholson We've been using Trigold for about six years and in that time have only seen two or three notable changes to the software. We always have error messages and see data being automatically removed when saved....

LETTER: Firms that don't take systems and controls seriously.(Letter to the editor)
July 3, 2006... From Richard Angliss The #35,000 fine recently imposed by the Financial Services Authority on Rainbow Home Loans (Mortgage Strategy Online June 27) is an indication that the regulator has now given mortgage firms sufficient time to...

The ripple effect.
July 3, 2006... Brokers should seek to understand the factors that influence UK swap rates as this will enhance their ability to offer clients the best mortgages, says Barney McCarthyBrokers should seek to understand the factors that influence UK swap rates...

Tracker deals are likely to be the best option.
July 3, 2006... Gerry Bell is head of mortgage marketing at GE Money Home Lending The recent increase in swap rates has been caused by the rise in expectations in the money markets that the Bank of England will raise the base rate this year from its current...

Swap rates: Beyond the financial jargon.
July 3, 2006... Lenders constantly have to balance their supply of funds against the demands of borrowers. In simple terms that means managing retail savings inflows, raising capital on the wholesale markets or releasing capital by either selling mortgage...

Brokers play a vital role when rates change.
July 3, 2006... Steve Sandiford is head of specialist lending at HBOS Over the past few weeks we have seen several lenders put up rates on their fixed rate mortgages. Some of the blame for this must fall on swap rates - the money markets that determine fixed...

COMMENT: Bridging brokers' knowledge gap.
July 3, 2006... Brokers can help clients access bridging finance to speed up property transactions by partnering with specialist lenders or outsourcing equiries to experts in this field, says Andy Moody The market for bridging finance, dominated as it is...

COMMENT: Approach equity release with care.
July 3, 2006... Although there is increasing consumer interest in equity release, the retrospective nature of some regulatory decisions means the jury must still be out on it, says Richard Coulson In the aftermath of A-Day, the benefits offered by equity...

COMMENT: Raising standards in equity sales.
July 3, 2006... Two recent initiatives from trade body SHIP should raise selling standards in equity release, boost confidence and attract more advisers to the sector, says Roger Hillier Now we're halfway through 2006, it's a good time to review...

COMMENT: SHIP's qualification requirement.
July 3, 2006... One of the aims of this is to introduce consistency in qualifications across the equity release industry by removing an anomaly in the exam requirements for mortgage advisers. Currently, any adviser joining the industry since October 31 2004...

Dear Delia: Energy efficient building.
July 3, 2006... Dear Delia My client has bought a plot of land with planning permission and intends to build an architect-designed, fully certificated detached four-bedroom house on it. He wants to make it as energy efficient as possible and is considering...

COMMENT: Tomorrow's distribution options.
July 3, 2006... Following industry concern about retail distribution models being under strain, the FSA commissioned KPMG to work up some scenarios for an evolving market, says Bill Warren Around the middle of June, the Financial Services Authority's...

COMMENT: Marketing Brief.
July 3, 2006... Support is critical in the mortgage industry. Kevin Paterson's A-Z review rates the marketing material that lenders issue to help brokers with sales and business development Leek United www.leek-united.co.uk Scope: 3/5...

COMMENT: Lenders must prepare for the worst.
July 3, 2006... Lenders should invest in automating the less glamorous end of the mortgage life cycle involving arrears litigation and repossessions in case interest rates rise, says Frank Eve With a high volume of mortgage transactions still fuelling...

COMMENT: I'm no saint but I'm no sinner either.
July 3, 2006... Most brokers are not, as Isabelle Kassam says, motivated principally by money but rather work hard and in a professional manner to help their clients, says Sue Read Isabelle Kassam is right (Mortgage Strategy June 19). Definitely,...

COMMENT: Find out more about your network.
July 3, 2006... In light of the regulator putting the spotlight on the sector once more, appointed representatives should be asking some searching questions about their networks, says Sally Laker The word on the street about the Financial Services...

COMMENT: Clarity needed on client ownership.
July 3, 2006... The question of client ownership is more complex than it seems at first sight and is an issue that should be debated more widely as clarification is needed, says Drew Wotherspoon The Mortgage Strategy Summit in Jerez proved to be another...

Launch DB Countdown.
July 3, 2006... System testing is going well, I hear about a successful Mortgage Summit, we sign off our first packagers and our widened product range makes it to the sourcing systems, says Mark Bergin Monday I start the week with my usual review of...

CurriculumVitae: Peter Izard.
July 3, 2006... Name: Peter Izard Age: 35 Company: GMAC-RFC. Job title: Senior manager corporate accounts. Where do you live? Burgess Hill. Describe your current job: I manage the corporate accounts team, taking responsibility for...

Me and My Car: Peter Mounty.
July 3, 2006... My Chrysler Crossfire might be hairdresser heaven and have a residual value that plummets by the day but it looks good and I'm shallow so I like it, says Peter Mounty The Crossfire was an impulse buy. We had originally gone to the...

Title Deed: Alliance & Leicester.
July 3, 2006... Today's Alliance & Leicester is a comparatively new company, created in 1997 when the former building society converted to a public limited company. But its heritage goes back much further, to the foundation of Leicester Permanent Benefit...

First And Last: Sue Colquhoun.
July 3, 2006... Sue Colquhoun, compliance director, Rooftop Mortgages I was a late starter to mortgages, being fortunate enough to acquire a husband complete with a flat and his own mortgage. We remained in his Victorian two-bedroom maisonette for a...

COMMENT: Bolton can fly high with new lender.
July 10, 2006... It's been nearly 300 days since Michael Bolton, Alan Cleary, John Nixon, Rob Williams and Mark Smith dramatically quit HBOS to join The Oakwood Group and form a new lender. Since that day in October, the boys have barely been out of the press,...