Mortgage Strategy articles from June 2007

Mortgage Strategy archives from June 2007

Merrill in frame to back Prust's new lender.
June 4, 2007... Rumours are rife that Merrill Lynch will back the new lender headed by the ex-Southern Pacific Mortgage Limited dream team of John Prust, Bill Cherry and Stuart Aitken. Prust left SPML in February and the rumour at the time was that he...

DB to launch direct-to-broker offering.
June 4, 2007... DB Mortgages is to launch a direct-to-broker online proposition but has assured packagers that it is not turning its back on them. The proposition will be piloted by an as-yet unnamed network and mortgage club. The products will be similar...

Mortgage Strategy comes out top in reader survey.
June 4, 2007... Mortgage Strategy was crowned the top UK mortgage trade title in a poll of brokers by the Mortgage Support Network last week. Some 1,000 industry professionals responded to the questionnaire from MSN, 53% of which are practising mortgage...

IN BRIEF: Paterson boldly goes to Enterprise.(Brief article)
June 4, 2007... Kevin Paterson has quit his position as national sales director at Park Row Associates to take up the position of group marketing director at Enterprise Group. He will start his new position at the beginning of July, following six years with...

IN BRIEF: Abbey dips toe into high LTV.(Brief article)
June 4, 2007... Abbey is tipped to launch a high LTV product later this month, but industry experts are divided over whether it will offer 125% partsecured loans or 100% high value products. Abbey declined to comment but says it will launch the product...

IN BRIEF: MP calls for better bank checks.(Brief article)
June 4, 2007... Labour MP Jim Cousins, who sits on the Treasury select committee, has called for banks to introduce a code of practice and carry out regular checks to ensure there are no errors in customer repayments. Copyright: Centaur Communications...

IN BRIEF: Broomstick Ball.(Brief article)
June 4, 2007... Mortgage Strategy paid over #3,000 for a table at this year's Broomstick Ball at a charity auction in Epsom last Friday. The Broomstick Ball is organised by Deirdre McManus, head of sales at Bristol & West. Copyright: Centaur...

IN BRIEF: Taxman denies B2L crackdown.(Brief article)
June 4, 2007... Revenue & Customs has refuted claims made in The Times that it is planning a tax crackdown on buy-to-let landlords who have been claiming too much tax relief on their mortgages. It says where tax is owed it will use the "lightest possible...

IN BRIEF: GHL quits PMPA to join RAMP.(Brief article)
June 4, 2007... GHL Group has left the Professional Mortgage Packager Alliance to join the Regulatory Association of Mortgage Packagers. But it denies that its move is a result of the resignation of Jon O'Brien, former operations director at PMPA. KGB...

IN BRIEF: InterBay launches online calculator.(Brief article)
June 4, 2007... InterBay Commercial has launched an online calculator that allows brokers to compare prices on loan repayment options for commercial mortgages. Brokers can input client and property details to calculate monthly repayments, interest rates and...

Merger threat to surveyors.
June 4, 2007... Small surveyor firms could be forced to consolidate if rumours that e.surv is looking to incorporate Barclays' surveying and valuation firm Ekins and Cheltenham & Gloucester's valuations arm prove to be true. Last week, sources close to...

83% Of brokers think HIPs should be scrapped.
June 4, 2007... The government says it will press ahead with Home Information Packs, but most Mortgage Strategy Online readers think they'd be better consigned to the dustbin. A massive 83% say HIPs should be scrapped while just 17% say they should come into...

S&S brand to keep brokers informed.
June 4, 2007... Stroud & Swindon is planning to launch a specialist subsidiary brand later this year targeting brokers with the promise to keep them in the loop over their clients' financial situations. S&S, which distributes more than half its mortgages...

Ex-brokers launch online specialist sourcing system.
June 4, 2007... An online sourcing system for the specialist lending market that combines real-time credit searches and a multi-lender cascade has been launched. Lenders Online has been developed over the past two years to allow brokers to source...

Investec offer buoys Kensington.
June 4, 2007... The fortunes of Kensington Group improved last week after it revealed that an acquisition offer from Investec could provide the capital needed for it to expand into new markets, including commercial mortgages. The Investec offer values...

IN BRIEF: Housing market slowed in May.(Brief article)
June 4, 2007... Nationwide has revealed that the UK housing market continued to slow in May. House prices rose by 0.5% in May, a slowdown from April's 0.9% rise. The average price rose from #180,314 to #181,584. Copyright: Centaur Communications Ltd....

IN BRIEF: Unity cuts rental cover on B2L deals.(Brief article)
June 4, 2007... Unity Homeloans has reduced rental cover to 75% on all prime buy-to-let cases packaged through BDS Packaging. Rates start from 5.75% for a two- year fixed deal with no higher lending charge. Copyright: Centaur Communications Ltd. and...

IN BRIEF: Exclusive deal on secured loans.(Brief article)
June 4, 2007... Enterprise Finance has launched an exclusive range of loans in partnership with Kensington Secured Loans. The deals include features such as self-cert for employed and self-employed customers, maximum loans of #150,000, no higher lending...

#1,000 Per HIP to survive.
June 4, 2007... An out-of-work home inspector predicts he would have to charge #1,000 for each Home Information Pack to make a living after August 1. Jason Cross is a fully accredited home inspector who had a job lined up with energyassessors.com. ...

Tomorrow brand could soon be yesterday's news.
June 4, 2007... The recently rebranded Tomorrow could be yesterday's news if LV= exercises its option to acquire the business from Swiss Re later this year. Tomorrow is the new name for GE Life, which was acquired by Swiss Re last October for #465m....

FSA cuts fees for mortgage firms.
June 4, 2007... The Financial Services Authority has cut the annual fees mortgage firms have to pay. The minimum fee for mortgage firms has been reduced to #650 for 2007/ 08 from #699 in 2006/07. The fee for the Financial Ombudsman Service will be #50....

IN BRIEF: Advantage sales appointment.(Brief article)
June 4, 2007... Advantage has appointed Steve Mason as sales project manager, responsible for overseeing the delivery of major projects and ensuring lending targets are met. Mason previously spent 18 months as operations manager for sub-prime lending at Accord...

IN BRIEF: Help signs up to courier service.(Brief article)
June 4, 2007... Help Personal Finance has signed a deal with Your Case Signed in a bid to slash application-to-completion times. Your Case Signed will offer a courier service, which will collect signed documents from clients and drop them off with the firm....

Mortgage Plus revamped.
June 4, 2007... BM Solutions has upped its game in the 125% LTV sector with criteria changes and a proc fee promotion. Since last November when it launched Mortgage Plus, a 125% LTV product that combines a standard mortgage with an unsecured loan, BM...

Friends reunited as BM Solutions' BDM joins edeus.
June 4, 2007... Former BM Solutions business development manager Vicky Jackson has joined edeus. Jackson was top BDM at BM Solutions for three out of four years, and was previously the HBOS lender's top mortgage consultant. She says: "I'm excited to...

HIP change will hit downsizers.
June 4, 2007... Sellers looking to downsize from four-bedroom properties could be left hundreds of pounds out of pocket following the government's decision to alter Home Information Packs' criteria. After August 1 and for the foreseeable future, HIPs...

IN BRIEF: Website calls for family homes.(Brief article)
June 4, 2007... Smartnewhomes.com has renewed its call for more family homes as flats continue to dominate the newbuild market. David Bexon, managing director of smartnewhomes. com, says: "The lack of suitable family homes is a serious issue and cannot be...

IN BRIEF: Em-financial picks prize winners.(Brief article)
June 4, 2007... Em-financial has revealed the winners of its May roadshow competitions. They were Lee Mynard from Mortgages 360 and Chris Banks from A C Finance. Copyright: Centaur Communications Ltd. and licensors

IN BRIEF: Lib Dems demand social housing.(Brief article)
June 4, 2007... The Liberal Democrats have called on the government to boost Britain's social housing. The call follows a report by Aberdeen and Loughborough universities, which warned that the housing supply crisis is threatening the younger generation's...

CML's fees stance slammed.
June 4, 2007... A broker has branded the Council of Mortgage Lenders "duplicitous" for changing its stance on exit fees. In January, the CML endorsed the Financial Services Authority's good practice on exit fees policy, under which the FSA gave lenders...

Towergate sale could net founder #2bn.
June 4, 2007... Towergate founder Peter Cullum could pocket up to #2bn if he takes up one of several acquisition bids made by private equity firms last week. Cullum, who last month bagged third place in Mortgage Strategy's Rich List of industry players,...

Charcol.co.uk to offer free sub-prime advice.
June 4, 2007... Charcol.co.uk is offering free advice to borrowers with poor credit histories in a bid to grow its presence in the sub-prime market. John Charcol's online brokerage says sub-prime is a growing market and has estimated that annual lending...

IN BRIEF: AVM use will spread, says N4.(Brief article)
June 4, 2007... N4 Solutions predicts that automated valuation model technology will be used for a broad range of services, not just mortgage valuations. It says AVMs will allow brokers to manage clients' property portfolios just like investment advisers....

Picture plans broker offering.
June 4, 2007... Picture Financial is preparing to re-enter the intermediary sector after stepping up its knowledge of the broker market. The prime secured loans lender pulled out of the broker market in April last year due to lack of profitability....

Specialist desk for TMA club members.
June 4, 2007... The Mortgage Alliance has launched a mortgage desk dedicated to dealing with specialist cases. The service offers TMA club members a variety of pre-application services including support with placing mortgages and information on lenders'...

Website points brokers towards top proc fees.
June 4, 2007... A website is offering brokers the chance to source packagers that offer the best proc fees. ProcFee.com compares packagers across the residential mortgage, secured loans, bridging finance and overseas sectors, allowing brokers to see...

IN BRIEF: Rule change boost for equity release.(Brief article)
June 4, 2007... The government's plan to scrap the need to get planning permission for minor home improvements could boost the equity release market, says In Retirement Services. It estimates 47% of its clients use equity release to fund home improvements....

IN BRIEF: NAEA to move after 30 years.(Brief article)
June 4, 2007... The National Association of Estate Agents is to move after nearly 30 years in its present Warwick offices. It will move to larger offices on the Tournament Fields business park in Warwick. Copyright: Centaur Communications Ltd. and...

IN BRIEF: UCB extends free valuations offer.(Brief article)
June 4, 2007... UCB Home Loans has extended its free valuations offer across its range. It is now available on sub-prime and full-status ranges as well as on self-cert and buy-to-let deals. The lender has also slashed rates on its trackers. Copyright:...

IN BRIEF: The Yorkshire plans expansion.(Brief article)
June 4, 2007... The Yorkshire says it will open 15 branches in the next three years, taking the society's network of branches to 134. Managers for the branches have already been hired and the society is considering further appointments. Copyright:...

IN BRIEF: Prices up, says Land Registry.(Brief article)
June 4, 2007... Land Registry data reveals the average house price for England and Wales rose by 0.6% in April to #179,935, while average London house prices hit #333,785. The annual change was 9.1%. Copyright: Centaur Communications Ltd. and licensors

IN BRIEF: RBS sales appointment.(Brief article)
June 4, 2007... Graham Felstead has been appointed head of corporate sales at the Royal Bank of Scotland Intermediary Partners. He was previously regional sales manager at the lender and has worked for RBS for nearly six years. Copyright: Centaur...

IN BRIEF: Estate agents make a killing.(Brief article)
June 4, 2007... Estate agency Wow estimates that the UK spends #3.5bn on estate agency fees every year. When the financial advice offered by many estate agents is factored in, the sum rises to about #5bn a year. Copyright: Centaur Communications Ltd. and...

Cheval offers same-day deal.
June 4, 2007... Cheval has unveiled a same-day closed bridging product designed to minimise bridging loan costs for borrowers. The same-day closed bridge means bridging loans are redeemed the day they are taken out, doing away with the need for consumers...

Satellite packager could go it alone.
June 4, 2007... Lighthouse Group has launched a satellite packager in partnership with The Mortgages Times Group that it says has the potential to become a rival packager in its own right. The new packager, Lighthouse Packing, will offer inhouse...

Debt consolidation via mortgages is dangerous.
June 4, 2007... Moneynet.co.uk has warned that home owners could slip further into the red by consolidating debts through their mortgages. Recent research from Credit Action shows the UK's debt mountain grows by #1m every four minutes. Moneynet.co.uk...

Rental demand is slowing.
June 4, 2007... Figures from the Royal Institution of Chartered Surveyors reveal that rental demand is slowing as rising rents and falling unemployment encourage an increase in the number of house sales. Its research shows that only 16% more chartered...

C2 and MPLC link up to launch two-year fixed deal.
June 4, 2007... C2-financial has teamed up with Mortgages PLC to launch a two-year fixed rate mortgage at 5.98%. The product has a maximum LTV of 90%, no higher lending charge, no extended tie-in and free valuations for adverse borrowers. It can be used...

Brokers unclear on secured loans.
June 4, 2007... Lack of understanding of the secured loan market is deterring brokers from entering the sector, research from Promise Finance reveals. Its survey of brokers found that most want to keep control of the sales process when sourcing loans...

IN BRIEF: Mortgage demand moderating.(Brief article)
June 4, 2007... April lending figures from the British Bankers' Association show mortgage demand is moderating in the face of rising rates. April's gross mortgage lending of #17.3bn was 12% up on April 2006, reflecting a 10% annual growth in house prices...

IN BRIEF: Nationwide raises rates on deals.(Brief article)
June 4, 2007... Nationwide has increased the rates on its fixed rate and tracker mortgages. Its range now includes a two-year fixed rate with a #499 fee from 5.68%, a two-year fixed rate with no fee from 6.08% and a two-year tracker with a #599 fee from 5.28%....

IN BRIEF: Commercial securitisation.(Brief article)
June 4, 2007... Commercial First has completed its sixth securitisation, known as BMF 6. Consisting of #500m of first charge mortgages, BMF 6 is the lender's largest securitisation to date. Copyright: Centaur Communications Ltd. and licensors

IN BRIEF: Advantage appointments.(Brief article)
June 4, 2007... Advantage has made three appointments to its business development team. Emma Burt joins from The Mortgage Works, Jonathan Stinton has account handling experience and spent two years at BT Retail and Paul White was formerly the Oxfordshire...

IN BRIEF: Limited free legals offer from Pink.(Brief article)
June 4, 2007... Pink Home Loans is offering free legals on five of the most popular lenders on its packaged submission panel. The offer is open until August 31 2007 for all properties in England and Wales. Copyright: Centaur Communications Ltd. and...

IN BRIEF: Numbers up at Manchester Expo.(Brief article)
June 4, 2007... Mortgage Business Expo Manchester has reported a 10% increase in visitors in 2007 compared with the 2006 show. It estimates that 2,670 people visited the show this year. Copyright: Centaur Communications Ltd. and licensors

Do you expect your parents to help you get on the property ladder?
June 4, 2007... The Council of Mortgage Lenders recently blamed parental financial help for contributing to house price inflation and locking out first-time buyers. It says nearly one-third of potential first-timers anticipate getting parental help but...

MEX revises criteria for experienced landlords.
June 4, 2007... Mortgage Express has extended its buy-to-let lending criteria to offer enhanced LTVs to landlords with one year's experience In addition to MEX's core criteria of up to 85% LTV with 125% rental cover, landlords who have been in the market...

ANALYSIS: Marketwatch - 04.06.07.
June 4, 2007... Swaps raced up again last week. I am shortly going to have to increase the scale of the Y axis on the graph for the second time since I've been writing it. Two-year swaps have gone up by 1.75% in just under two years. At 6.07% they are more...

ANALYSIS: What impact will base rate rise have on buy-to-let market?
June 4, 2007... The latest base rate rise may be a reality check for investors but most still see capital appreciation as their main source of profit, say our experts Mark Graves is managing director of Linear Mortgage Network Interest rates are on...

ANALYSIS: Signs show rate rises are starting to bite.
June 4, 2007... Interest rates have continued to increase and are widely expected to rise again. Although the minutes of last month's Monetary Policy Committee meeting point to a unanimous decision to increase the base rate by 0.25%, there were...

ANALYSIS: Kensington needs an IT boost from Investec.
June 4, 2007... Buyers have been sniffing around Kensington Group for some time so it was no surprise when the news of a formal offer finally broke. But the identity of the buyer is interesting. Investec is one of several investment banks with a presence...

ANALYSIS: Get together to help owners and FTBs.
June 4, 2007... There is a growing fear in the industry that the Bank of England will raise the base rate again this Thursday, as it emerged that year-on- year mortgage approvals edged up only slightly in April. Financial markets are betting that rates...

ANALYSIS: Another index to add to our confusion.
June 4, 2007... It's difficult to see why we need another property price index. We've already got data coming out our ears from numerous respected - and sometimes not so respected - organisations and financial institutions which should be giving us as much...

ANALYSIS: Get on the right side of the IT divide.
June 4, 2007... Imagine a client coming into a broker's office with their financial and social history gathered on a microchip that also provides access to their banking arrangements. The chip would be implanted in the client's arm and by using wireless...

ANALYSIS: Brokers should offer the full service.
June 4, 2007... Recent research by the Post Office has shown that UK home owners could be losing about #40m every year by taking insurance from their mortgage providers and not shopping around. The research went on to show that about 63% of customers...

ANALYSIS: Time to put HIPs out of their misery.
June 4, 2007... In my day job as a communication and management consultant, I'm often asked to evaluate the effectiveness of corporate communications and then deliver or refine internal and external strategies. I find that to support my recommendations, it...

ANALYSIS: Let brokers judge packagers' service.
June 4, 2007... Everywhere you look these days there is competition, and various sectors highlight this with the use of tables. Schools, football teams and even the NHS measure their results by publishing tables. These tables indicate measurements of...

ANALYSIS: Never say never to secured loans.
June 4, 2007... In a recent news story, when a broker was asked whether a new sourcing system for secured loans would be of value to him, he was adamant there were no circumstances under which he would recommend secured loans. Everyone is entitled to an...

ANALYSIS: Stop thinking small and start building big.
June 4, 2007... Differentials in price increases between flats and houses are at the centre of new Land Registry statistics on the housing market. These figures show the growing problems flat dwellers are facing if they wish to move to larger properties....

ANALYSIS: Offset deals can bring tax benefits.
June 4, 2007... An offset mortgage is simple in concept and does what it says on the tin - it offsets savings against mortgage debt so borrowers only pay interest on the difference. However, the additional benefits available to clients are many and...

ANALYSIS: Product ideas must start with clients.
June 4, 2007... Residential lending is heading into choppy waters. For this reason, lenders that want sensible, risk-adjusted returns should be thoughtful in their approach. In-depth analysis and discussion with brokers will support sustained growth and...

ANALYSIS: Easy steps towards energy efficiency.
June 4, 2007... Energy efficiency measures play an important role in reducing carbon dioxide emissions produced in the home. Even derelict and dilapidated properties can become energy efficient through sympathetic renovation. Unlike some lenders, we...

ANALYSIS: The numbers paint a positive picture.
June 4, 2007... Say what you like about this industry but when it comes down to it, we all play the numbers game. 'Lies, damn lies and statistics' is a catchy aphorism, but it's better to put your faith in numbers - as long as they come from reliable...

ANALYSIS: Stealthy moves into specialist areas.
June 4, 2007... Over the past few years, we have seen more change in the mortgage market than ever before. Specialist lenders are moving into the prime market but of more interest is how prime and high street lenders are moving into specialist sectors. ...

ANALYSIS: Muddled thinking on HIPs must end.
June 4, 2007... The government's humiliating U-turn over Home Information Packs followed last minute negotiations with the Royal Institution of Chartered Surveyors. To reach a compromise, communities secretary Ruth Kelly was forced to invent a new set...

ANALYSIS: A deal to help people with disabilities.
June 4, 2007... One of the criticisms levelled at the lifetime mortgage market has been the lack of flexibility in its approach towards people living with disabilities. Lifetime mortgage LTVs are typically age-linked and therefore assume an actuarial...

ANALYSIS: Hard work has won back public trust.
June 4, 2007... It can't have escaped the notice of protection professionals that the industry has been making headway when it comes to improving things for consumers. In particular, a lot of work has been done to cut the number of declined claims. Few...

LETTER: Table of all networks would not compare like with like.(Letter to the editor)
June 4, 2007... From Richard Griffiths In your letters pages in the May 28 issue, Justine Tomlinson of Mortgage Next says size doesn't matter as much as quality. Ho hum, where do I start? Of course, the headline on her letter refers to network size,...

LETTER: FSA-approved commission would be too much of risk for brokers.(Letter to the editor)
June 4, 2007... From Kevin Duffy Mortgage Strategy's cover story in the May 21 issue entitled 'Trouble with fees' informed the industry debate which is probably more fervent than any other at the moment. Even writing from the tranquillity of my...

LETTER: Lenders should clamp down on rogue brokers to cut fraud.(Letter to the editor)
June 4, 2007... From Andrew Botte I write having just read Kevin Paterson's article in which he asserts that we must all go electronic to tackle fraud (Mortgage Strategy May 21). Who is he kidding? If lenders want to tackle fraud, they should check...

LETTER: We have a good way of giving brokers data on their clients.(Letter to the editor)
June 4, 2007... From Iain Smith I read Sue Read's article in the May 14 issue of Mortgage Strategy concerning lenders sharing information with brokers with interest. While I agree with her in principle, I'm not sure her solution is easily manageable,...

LETTER: Many lenders will consider fast-track at 75% LTV.(Letter to the editor)
June 4, 2007... From Graeme Ferguson I recently got around to reading Alan Cleary's response to the Dilemma featured in the January 29 issue of Mortgage Strategy. The question came from a broker confused about how to use fast-track. He had a client...

HIPs will cause problems for people wanting to downsize.
June 4, 2007... From Kevin Mitchell After the government's latest U-turn, only houses with four bedrooms or more will require HIPs. Many pundits have latched on to the problem of defining what constitutes a four-bedroom house, but what about the owners...

MPC: Shadow MPC.
June 4, 2007... With uncertain economic times ahead, the Mortgage Strategy GE Money Home Lending Shadow Monetary Policy Committee is in favour of holding the base rate at 5.50% to see what the effects of the recent rises will be as they feed through the...