Mortgage Strategy articles from June 2005

Mortgage Strategy archives from June 2005

Learning from the industry's stars.(Brief Article)
June 6, 2005... They say it's a small world and the chances are several of your colleagues will pop up again unexpectedly, later in your career. You might be asking one of them for a job - or perhaps your current boss will be reporting to you. Examine...

Cummings takes over from Severn at AIFA.(Promoted Chris Cummings )(Brief Article)
June 6, 2005... Severn had only been in the role since February, after joining from the Financial Services Authority where he was head of retail investment policy. Chris Cummings , director of the Association of Mortgage Intermediaries, will take over...

Knight Frank planning to set up financial services division.(Brief Article)
June 6, 2005... Knight Frank, one of the country's leading high net worth estate agency chains, is looking to set up financial advisory services and is on the hunt for a head of mortgages. Sources say Knight Frank has seen the success achieved by the...

Coulson says network on track for July 1 launch.(Brief Article)
June 6, 2005... Richard Coulson has named July 1 as the official date for the unveiling of his network, Home of Choice, and says despite "gagging" attempts by Zurich, everything is on track for a successful launch. Coulson says Zurich has tried to gag...

IN BRIEF: High-tech Clover.(Brief Article)
June 6, 2005... Midlands-based brokerage Clover Financial has adopted the MortgageStream system to process its mortgage, life and general insurance policies. MortgageStream's built-in text messaging service means clients can be kept up-to-date while...

IN BRIEF: FSA fees.(Financial Services Authority)(Brief Article)
June 6, 2005... The publication of FSA Policy Statement 05/6 Regulatory Fees and Levies 2005/06 provides the industry with final details of the amounts due from authorised firms. The Association of Mortgage Intermediaries has welcomed the establishment of...

IN BRIEF: B&B tracker.(Bradford & Bingley )(Brief Article)
June 6, 2005... Bradford & Bingley is offering an exclusive three-year stepped tracker mortgage with #500 cashback, funded by The Woolwich. The product has an initial rate of 5.19%, Bank base rate plus 0.44% for the first year, base rate plus 0.54% for year...

IN BRIEF: Discount deals.(Stroud & Swindon)(Stroud & Swindon Mortgage Company)(Brief Article)
June 6, 2005... Stroud & Swindon is launching two sub-prime discounted products through its subsidiary, Stroud & Swindon Mortgage Company. The Evolve range has been complemented with two variable rates. Copyright: Centaur Communications Ltd. and...

IN BRIEF: Victoria does its first deal.(Brief Article)
June 6, 2005... Victoria Mortgages has completed its first mortgage deal just weeks after its launch. The lender is part of US firm Venturion Capital, which also owns The Mortgage Operation. Victoria will soon be launching two and three-year discounts on top...

IN BRIEF: 10-Year fix.(Brief Article)
June 6, 2005... Britannia is launching a 10-year fixed rate mortgage via its branch network, contact centre and website. The 10-year fixed rate has dropped to 4.99% up to 95% LTV, a decrease of 0.20 basis points. Copyright: Centaur Communications Ltd. and...

IN BRIEF: Name change countdown.(Leeds Building Society)(Brief Article)
June 6, 2005... There's only 100 days to go before Leeds & Holbeck changes its names to Leeds Building Society. Gary Brook, PR manager at Leeds & Holbeck, says: "As a Leeds lad it's fantastic to be changing our name to Leeds Building Society, which better...

MI remains confident of growth.(Mortgage Intelligence )(Brief Article)
June 6, 2005... Mortgage Intelligence is confident its growth plans have been unaffected by more brokers than predicted becoming directly authorised. It says it is focussing on quality rather than quantity and intends to expand further, either through the...

Thumbs-down for fees-free model.(Brief Article)
June 6, 2005... The majority of the industry believes last month's U-turn by Purely Mortgages, switching from no fee to low fee, is a clear sign the fee- free business model does not work. Of the 3,701 respondents who answered the question on whether...

BMS poised to launch into lifetime market.(BM Solutions )(Brief Article)
June 6, 2005... BM Solutions is to launch into the lifetime mortgage market later this year. Tim Hague, head of products and marketing at the HBOS subsidiary, says it's a sector that the UK's largest lender has been looking at for some time. He...

B&W plans switch to email for rate alerts.(Bristol & West Mortgages )(Brief Article)
June 6, 2005... Bristol & West Mortgages will use email as the sole way to tell brokers about product changes from the end of the month. The lender currently keeps intermediaries informed of launches, withdrawals and adjustments by post and email, but...

MS reveals nepotism is alive and well in industry.(Mortgage Strategy)(Brief Article)
June 6, 2005... Nepotism is alive and well in the mortgage industry, research carried out by Mortgage Strategy has revealed. The study - outlined in this week's cover story starting on page 42 - examines the careers of the most successful industry...

MTE hits back at Purely fees claim.(Mortgage Trading Exchange )(Brief Article)
June 6, 2005... The Mortgage Trading Exchange has hit back at Purely Mortgages' chief executive Mark Chilton, who criticised the trading platform's technology for being partly responsible for the broker having to start charging fees. In a sudden U-turn...

IN BRIEF: TMB fixed and tracker options.(The Mortgage Business )(Brief Article)
June 6, 2005... The Mortgage Business has added fixed rates and tracker rate options to its produce range. The Self 85 now features a two and three-year fix at 5.45%, the Flexi 85 and Next Move now feature 5.84% trackers and the House 2 House now...

IN BRIEF: Higher proc fees.(Rooftop Mortgages )(Brief Article)
June 6, 2005... Mortgage Choice has concluded negotiations with Rooftop Mortgages increasing proc fees to 1.30% of the advance. The increase applies to business received by Mortgage Choice after May 30 2005. Copyright: Centaur Communications Ltd. and...

IN BRIEF: Branded agreement.(The Mortgage Times Group )(Brief Article)
June 6, 2005... First National and The Mortgage Times Group have entered into a branded lending arrangement. The relationship will enable FN to offer high- quality products, tailored to the individual needs of both TMTG and its customers. Copyright:...

Brokers attract Charcol staff.(Brief Article)
June 6, 2005... Hamptons International Mortgages and Savills Private Finance are attracting staff from John Charcol and say few intermediaries are joining the revamped brokerage's "revolution". John Charcol recently launched a major recruitment drive as...

Rumours are rife that BM Solutions head of sales Alan Cleary is to be promoted to director of sales at Halifax Intermediaries and BM Solutions.(Promotions)(Brief Article)
June 6, 2005... Rumours are rife that BM Solutions head of sales Alan Cleary is to be promoted to director of sales at Halifax Intermediaries and BM Solutions. If true, it would be a significant boost for Cleary, who has shown enthusiastic loyalty to the...

Abbey agrees to refund intermediary at last.(Brief Article)
June 6, 2005... Abbey has agreed to refund costs incurred by a client of Square Mile Mortgage Finance and make an ex-gratia payment for loss of proc fee to the broker after a client lost out on a Right to Buy property. Square Mile mortgage consultant...

Lifequote protects brokers against mis-selling claims.(Brief Article)
June 6, 2005... Lifequote has issued an adviser guarantee to protect users of its online insurance Express Underwriting service from any non-disclosure claims, in an effort to defuse a potential mis-selling time-bomb. The guarantee is available to all...

IF makes offsets more attractive.(Brief Article)
June 6, 2005... Intelligent Finance has slashed its arrangement fee, cut rates and removed all early repayment charges on most of its offset mortgage range. It has also reduced the rates on its non-offset fixed rate mortgages, and removed early repayment...

IN BRIEF: Flexible fixes.(Brief Article)
June 6, 2005... Northern Rock has launched a range of flexible fixed deals with rates reduced by 0.10%. Two and three-year deals with no extended early repayment charges are available at 4.79% up to 85% LTV or 5.09% up to 95% LTV. Copyright: Centaur...

Lenders split on transfer fees.(Brief Article)
June 6, 2005... Accord has hit back at lenders who claim it is impossible to offer a proc fee for an existing borrower transfer. The Yorkshire subsidiary, which pays intermediaries a 0.2% proc fee on existing borrower transfers, says there is no reason...

White label AAA system for TMO.(Brief Article)
June 6, 2005... The Mortgage Operation has launched a white label version of Trigold's Prospector AAA sourcing system. The packager had previously operated its own sourcing system, TMOS, which was used by members of its now defunct network. Brokers that...

Government scheme will be ineffective in London.(Brief Article)
June 6, 2005... THE GOVERNMENT'S shared ownership scheme to help first-time buyers onto the property ladder will be of limited use to Londoners, research by Hometrack reveals. The salary required to buy 75% of a property and rent the other 25% is over...

Pink reshuffles directors.(Brief Article)
June 6, 2005... Pink Home Loans has reshuffled its board of directors and made Dev Malle sales director. Malle was previously head of operations at the aggregator and his move to become sales director is intended to free up the services of sales and...

Brokers offered GI sales facility.(general insurance)(Brief Article)
June 6, 2005... Select & Protect has launched an introducer status facility for brokers who are not regulated for general insurance, but don't want to lose the extra business. The company says since GI-Day a significant number of brokers have not...

IN BRIEF: B2L exclusive.(buy-to-let )(Brief Article)
June 6, 2005... Network Data's buy-to-let tracker exclusive, funded by Capital Home Loans, will be 0.84% above Bank base rate until May 31 2007, then 1.24% above base for the term. It is available up to 85% LTV and has no extended early repayment charge. ...

IN BRIEF: Online tracking.(Brief Article)
June 6, 2005... The Business Mortgage Company is to launch an online case tracking facility. Andy Young, managing director of TBMC, says: "This will allow brokers to cut out the cost and time of telephoning." Copyright: Centaur Communications Ltd. and...

IN BRIEF: Tax guide.(Brief Article)
June 6, 2005... Mortgage Trust has produced a guide that answers tax questions investors may have when buying property and managing buy-to-let portfolios. It is produced in partnership with Perrys Chartered Accountants. Copyright: Centaur Communications...

IN BRIEF: Skipton cut.(Brief Article)
June 6, 2005... Skipton is reducing the rate on its three-year fixed rate mortgage from 5.29% to 5.14%. The reduction is equivalent to initial monthly payments of #593 for a #100,000 repayment mortgage over a 25-year term. Copyright: Centaur...

FTBs have unrealistic view.(Brief Article)
June 6, 2005... First-time buyers' expectations of house prices are way out of line with reality, with most only expect to pay to #120,000, says Alliance & Leicester. A&L's latest quarterly Moving and Improving Index shows 60% of prospective buyers who...

Brits looking to buy property in Florida offered fast-track mortgages.(Charles Cameron & Associates)(Brief Article)
June 6, 2005... Brits looking to buy property in Florida can now arrange a fast-track mortgage via a division set up by City broker Charles Cameron & Associates. CC&A has established relationships with several US banks and estate agents to assist...

B2L index shows regional variation.(buy-to-let index )(Brief Article)
June 6, 2005... Paragon Mortgages' May buy-to-let index highlights regional variations in returns for landlords. Investors located in the northern regions of the country continue to benefit from higher average returns than those in southern areas, with...

Lending rule changes will help clients shop around.(Brief Article)
June 6, 2005... New rules on lending have come into force to provide upfront information to consumers to help them shop around for deals. Lenders now have to provide pre-contractual information for borrowers, setting out the main facts of the loan such as...

Scarborough launches fixed deals.(Brief Article)
June 6, 2005... Scarborough has launched a portfolio of fixed rate mortgages from two to 10 years, with rates starting at 3.99%. The range includes a flexible two-year fixed mortgage at 3.99%, which is followed by a rate guarantee to track 0.99% above...

Fact file published on the regulation of brokers.(Chartered Insurance Institute and the Society of Mortgage Professionals )(Brief Article)
June 6, 2005... The Chartered Insurance Institute and the Society of Mortgage Professionals have teamed up to publish a fact file on the regulation of mortgage, insurance and investment brokers. Intended to complement the recently published fact file on...

BMS launches extra sub-prime categories.(Brief Article)
June 6, 2005... BM Solutions has launched two additional categories in its sub-prime and self-cert ranges. The categories - near prime and extra light - have been introduced as part of a strategic attack on the sub-prime sector in the coming year. ...

IN BRIEF: Debt? No problem.(Brief Article)
June 6, 2005... The vast majority of Britons don't consider their debt repayments to be a problem, research by MORI reveals. It shows those struggling with debt are typically in their 20s and 30s, have children and are living in rented accommodation,...

IN BRIEF: Self-cert deal.(BuildLoan )(Brief Article)
June 6, 2005... BuildLoan and Amber Homeloans have launched a self-cert deal that tracks three-month LIBOR + 1.25%. Initial pay rate is 6.11% with a completion fee of #495. Maximum LTV is 90% and maximum loan size is #300,000. Copyright: Centaur...

Rural problems highlighted.(Sparsity Partnership for Authorities Delivering Rural Services )(Brief Article)
June 6, 2005... The Sparsity Partnership for Authorities Delivering Rural Services has called for more affordable housing and an end to Right to Buy in areas where there is pressure on social housing. SPARSE is a coalition of more than 50 of England's...

FTBs take longer to save deposits.(First-time buyers)(Brief Article)
June 6, 2005... First-time buyers now take a whopping four years and nine months to save a 5% deposit for a house, research from National Savings and Investments has revealed. It is harder than ever for first-time buyers to get on the property ladder,...

IN BRIEF: Change of image.(Wolton Chartered Surveyors)(Brief Article)
June 6, 2005... Wolton Chartered Surveyors has changed its image to reflect its expansion into markets including the north of England and Scotland. The firm has adopted a new logo, using a map of the UK to reflect the area it now serves. Copyright:...

IN BRIEF: Being compliant.(Brief Article)
June 6, 2005... Compliancy Services has created the Comply-INS system to help brokerages keep on top of training and recruitment, testing staff on their own premises. It marks tests and provides appropriate reading material. Copyright: Centaur...

Legislation cuts unruly hedge owners to size.(Brief Article)
June 6, 2005... Home owners who let their hedges grow too high could face a hefty #1,000 fine under new legislation from the government. The measures mean neighbours who cannot resolve their disputes over the height of hedges can ask local authorities to...

Barclays Spain offers B2L scheme.(Key Resorts )
June 6, 2005... Barclays Spain has entered into a partnership with Savills Private Finance and property developer Key Resorts to offer an exclusive overseas buy-to-let scheme. The scheme is aimed at investors looking to purchase a place in the sun for...

Has the B2L market come to a standstill?(Buy To Let)
June 6, 2005... Findings from the Royal Institution of Chartered Surveyors' lettings survey last week revealed that the buy-to-let market had ground to a standstill as a result of rising interest rates. The research shows new instructions from landlords...

IN BRIEF: Advantage fixes.(Advantage Home Loans)(Brief Article)
June 6, 2005... Advantage Home Loans has added a two-year and five-year fixed rate to its P100 conforming range. Both will be available on its self-cert and buy-to-let ranges. In addition, its sub-prime range with a light adverse self-cert two-year fixed...

IN BRIEF: SMS demand.(Brief Article)
June 6, 2005... Most home movers want to track conveyancing online and receive SMS texts, research from ConveyanceLink reveals. More than eight in 10 value online tracking and 89% want SMS. Copyright: Centaur Communications Ltd. and licensors

Analysis: Market Watch.
June 6, 2005... With swaps continuing to fall significantly, it is surprising that we saw so few lenders pass on the benefits in rates in the last week. * One-year money is down 0.06% at 4.71% * Two-year money is down 0.07% at 4.53% * Three-year...

MONTY BURN: FSA's review of ASU should be welcomed.(Financial Services Authority )
June 6, 2005... Talk to some people in the mortgage industry and they would have you believe statutory regulation is akin to taking a sledgehammer to crack a nut. This is a view I don't subscribe to, as a mortgage represents the single biggest financial...

ANALYSIS: On The Beat.(first-time buyers)(home buying)
June 6, 2005... Accusations of gesture politics are high on the agenda again. Only the least cynical could have been swayed by the chancellor's announcement of be help for first-time buyers with a new mortgage scheme. Many of these sort of announcements...

ANALYSIS: Nicks Notes.(house buying)
June 6, 2005... It looks like chancellor Gordon Brown has thrown first-time buyers a lifeline with his plans for part ownership of properties. The prospect of FTBs being able to buy a share of a property with a bank, a building society or the government...

ANALYSIS: Financial Health Matters.
June 6, 2005... The words "your home may be repossessed if you do not keep up repayments on your mortgage" are not an empty threat - even though numbers are currently low. The number of repossessions in 2004 was 6,230, a tiny proportion (0.03%) of the...

ANALYSIS: Rates/Ladders.(mortgage banks)
June 6, 2005... So, the Financial Services Authority has pronounced on the production of Key Facts Illustrations. It seems that a degree of disparity exists between providers and that some KFIs are excessive in detail and should be reduced in length....

ANALYSIS: Liquid Assets.(Brief Article)
June 6, 2005... In the past couple of years there has been a steady increase in the number of drawdown lifetime mortgages available. Current Safe Home Income Plans providers are Standard Life, Hodge Equity Release, National Counties and Northern Rock. The...

Letter: Home reversions must be regulated as soon as possible.(Letter to the Editor)
June 6, 2005... From Stephen Haddrill It's not often that consumer groups and the industry come together to call for tighter regulation, but in the case of equity release the market will only grow if consumers are confident it is properly supervised....

Letter: Why not use Portman's optimiser phone service?(Letter to the Editor)
June 6, 2005... From Paul Howard I must take issue with Michael Nicholls who complained about the poor telephone service from Portman (Mortgage Strategy May 23). It is true we have been receiving record levels of mortgage business which has created...

Letter: Big packagers can be change-oriented and customer-centric.(Letter to the Editor)
June 6, 2005... From Wayne Smethurst Since you published my letter describing the ideal packager on April 25, there has been a fair amount of comment from packagers of all shapes and sizes, not to mention from a few lenders. Some of the comment has...

Letter: Let us make up our own minds on product's merits.(Letter to the Editor)
June 6, 2005... From Brian Brotherton C E Sheldon rants on about how wonderful his product is (Mortgage Strategy May 23) but I suggest he looks at his marketing campaign rather than his product development. How can we discuss a product we have never...

Letter: Delia should get the story straight on Right to Buy.(Letter to the Editor)
June 6, 2005... From Richard Lowe In Dear Delia in Mortgage Strategy May 23, the person who posed the question does not understand Right to Buy and John Rattigan of Cartel does not understand Right to Buy criteria. If the valuation was #65,000 the...

Comment: Banks hate debts that hit their profits.
June 6, 2005... It is easy to see why banks are issuing bad debt warnings when an increase in mortgage arrears affects share prices but unsecured arrears hit their profits first, says Rachel Blackmore Last week high street banks issued warnings of a marked...

Comment: A View From The floor.(Brief Article)
June 6, 2005... Adrian Coles, director-general of the BSA, says female representation is rising in the boardrooms of the country's building societies and is higher than in the plc sector Figures from the BSA's annual analysis of building society board...

Comment: FTBs must flex their market muscle.(first-time buyers )
June 6, 2005... In what has become a buyers' market it is important that aspiring first- time buyers do all they can to help themselves and are aware of all the advantages they have, says Duncan Pownall The difficulties facing first-time buyers are...

Comment: Working together to get things done.(Association of Mortgage Intermediaries)
June 6, 2005... The benefits of constructive engagement with the regulator were clearly demonstrated at the Association of Mortgage Intermediaries' inaugural annual dinner, says Ben Stafford Wednesday May 11 2005 marked a small but considerable milestone...

Comment: I Should Know But I Don't.(Brief Article)
June 6, 2005... Q: What does MCOB say about APRs? A: Annual percentage rates are designed to help consumers understand the true cost of credit and borrowing. The rules are detailed in MCOB 10 but some other sections of MCOB also impose requirements...

Comment: FSA response to open letter - part II.(Financial Services Authority)
June 6, 2005... In response to the question of what the regulator will do to ensure a level playing field for packagers and consistency in KFIs, the answer appears to be nothing, says Richard Griffiths Continuing from Part I which appeared in last week's...

Comment: Create your own tipping points.(mortgage banks)
June 6, 2005... John Prust, sales and marketing director of Southern Pacific Mortgage Limited, says firms in our industry can learn some lessons and create their own tipping points The Tipping Point aims to explain how social trends mysteriously arrive...

Dear Delia: First-time buyers.
June 6, 2005... Dear Delia Jenny and John are first-time buyers and anxious to move out of rental accommodation, costing them #700 a month. They have spotted a #150,000 flat they would love to buy. Their parents have offered them #10,000 to cover their...

Friends reunited.
June 6, 2005... The careers of successful industry figures reveal a network of cross- connections often dating back decades, says Harvey Jones It's a small world, especially when it comes to working relationships in the mortgage industry. The chances...

Rising stars in the mortgage world.
June 6, 2005... Duncan Pownall is mortgage development manager at Bradford & Bingley My role with Bradford & Bingley is a fantastic blend of product development, adviser interaction, lender liaison and, of course, public relations, which all means I have...

Three routes to the top jobs in the industry.(mortgage industry)
June 6, 2005... Mark Witcomb is divisional sales manager at Venatus Business intelligence Within the mortgage industry there are a number of paths available to individuals that represent logical progressions from entry level. So how can aspirational people use...

This week - 06.06.2005: Simon White.(championing the rights of London's deprived)(Brief Article)
June 6, 2005... Simon White director, Ashdown Lyons The benefits for east London will be enormous if we get the Olympics, says Lord Sebastian Coe. The Olympic Park project alone will provide 9,000 new homes, many of which will be both affordable and...

This week - 06.06.2005: John Wriglesworth.(Brief Article)
June 6, 2005... JOHN WRIGLESWORTH economist With the average first home now 16.5% more expensive than a year ago, and the typical first-time buyer's income increasing by only 0.5% in the same period, it is harder than ever for those who want to get a...

INSIGHT: How you can avoid the portability trap.
June 6, 2005... Brokers must ensure their clients are aware of terms and conditions concerning the portability of the mortgage they recommend or they could be in for trouble later, says Neal Smith Intermediaries should be aware of the so-called portability...

INSIGHT: We must shape our own future - now.(use of e-commerce in mortgage industry)
June 6, 2005... It is in everyone's interest to reduce the paper mountain and work towards a true e-commerce solution for the mortgage industry in this country as they have in the US, says Frank Eve The concept of a trading platform for mortgages started...

INSIGHT: Sites of interest for intermediaries.(websites of mortgage brokers)
June 6, 2005... Since starting his round-Britain tour of broker websites in 2003, Jeff Sutherland-Kay has reviewed more than 200 and here he gets to nominate six entrants to his Hall of Fame Someone asked me the other day how many mortgage broker...

Insight: Internetinsite.(for mortgage banks)
June 6, 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 Kevin Paterson national sales director, Park...

Recruitment: Top five time management mistakes to avoid.
June 6, 2005... Mark Witcomb is divisional sales manager at Venatus Business Intelligence In your new career, time management can make the difference between success and failure. Time management is not necessarily about working harder, but smarter,...

Appointments: Three non-executive directors join FSCS board.(Financial Services Compensation Scheme)(Appointments)(Brief Article)
June 6, 2005... The Financial Services Authority has appointed three non-executive directors to the board of the Financial Services Compensation Scheme. Alexandra Kinney is a non-executive director and chairman of the audit committee for Skipton, as well...