Mortgage Strategy articles from March 2005

Mortgage Strategy archives from March 2005

COMMENT: Packagers must be open on fees.(Brief Article)(Editorial)
March 7, 2005... Make no mistake, Mortgage Strategy has highlighted the high - and even higher - proc and packaging fees paid by some sub-prime lenders. What's more, one packager that advertises in this publication has had the gall to question our stance....

In the dark on how many rent out homes.
March 7, 2005... Halifax last week held its hands up and admitted for the first time it has no idea how many mortgage borrowers let their properties out without informing the lender. The implications for Halifax and other lenders, particularly those that...

Book now for the industry's premier event in 2005.(Mortgage Summit )
March 7, 2005... Mortgage Strategy's Mortgage Summit in Jerez, Spain, is now just a little over six months away. The Mortgage Summit will be the industry's premier event for mortgage strategists, combining a day and a half of top quality, editorially...

IN BRIEF: Dunfermline lends record #519m.(achievements of Dunfermline Building Society)(Brief Article)
March 7, 2005... Dunfermline Building Society achieved record lending of #519m, increasing the society's asset value to over #2bn. Revealing the society's results for last year, chief executive Graeme Dalziel attributed Dunfermline's success to maintaining...

IN BRIEF: Ipswich two-year fixes unveiled.(fixed rate home loans)(Brief Article)
March 7, 2005... Building society, Ipswich, has unveiled a range of two-year fixed rate home loans. The range comprises a mortgage at 4.99% and a fee free remortgage at 5.25%. Copyright: Centaur Communications Ltd. and licensors

IN BRIEF: Regulation fact file available.(Chartered Insurance Institute)(Society of Mortgage Professionals)(Brief Article)
March 7, 2005... The Chartered Insurance Institute, in association with the Society of Mortgage Professionals, has launched a 'regulation of mortgage business fact file' to dispel myths about the FSA regime. Written by SMP chief executive Richard Fox, the...

IN BRIEF: Coventry deals.(Brief Article)
March 7, 2005... Coventry has launched three capped-rate mortgages for customers buying properties in England, Wales and mainland Scotland. The society's combined mortgage and unsecured personal loan gives buyers the ability to not only purchase their home...

IN BRIEF: European market strength.(Royal Institute of Chartered Surveyors)(Brief Article)
March 7, 2005... The Royal Institute of Chartered Surveyors' European Housing Review 2005, published today, shows housing markets across Europe continuing to strenghten. Copyright: Centaur Communications Ltd. and licensors

Countrywide revisits UK plans.(Countrywide Financial Corp.)(Brief Article)
March 7, 2005... Countrywide Financial, the US-owned mortgage giant, confirmed to Mortgage Strategy last week that it does plan to enter the UK market after all. The on-off plans of Countrywide have now apparently been given the green light. In an...

CML urges reform of 'unfair' tax.(Council of Mortgage Lenders )
March 7, 2005... The Council of Mortgage Lenders' Budget submission urges the chancellor to reduce the burden of Stamp Duty on homebuyers. The CML calls on the government to commit to reforming what it describes as a lazy and unfair tax over the life of...

L&G network denies its members are unhappy.(Legal & General Partnership)(Brief Article)
March 7, 2005... Legal & General Partnership has denied rumours its members are unhappy with the service it has provided since Mortgage Day. Sources tell Mortgage Strategy that some if its largest appointed representatives are considering going directly...

75% of packagers could be wiped out in a year.(Brief Article)
March 7, 2005... More than 75% of the packager market could be wiped out within the next 12 to 18 months as sub-prime lenders say they will only deal with 50 big packagers. Jon O'Brien, operations director at the Professional Mortgage Packagers...

Network Data denies sale plan.(Brief Article)
March 7, 2005... Network Data has denied speculation that it is looking to sell to a lender. Richard Griffiths, managing director of Network Data, says although he is raising capital to invest in other networks he has absolutely no plans to sell to a...

IN BRIEF: GMAC-RFC closes #757 deal.(Brief Article)
March 7, 2005... GMAC-RFC has closed its first securitisation for 2005, valued at #757.5m through its RMAC programme. This is GMAC-RFC's 18th transaction in the UK RMBS market. Total issuance since 1998 now exceeds #9.8bn. Copyright: Centaur...

IN BRIEF: C&G premium products on way.(Cheltenham and Gloucester)(Brief Article)
March 7, 2005... Cheltenham & Gloucester is launching two new premium mortgage products, a premium tracker and a premium discount. The two-year premium tracker is 0.14% above the Bank base rate until April 30 2007, giving a current rate of 4.89%. ...

IN BRIEF: First Title buys Live Organisation.(Brief Article)
March 7, 2005... First Title has bought The Live Organisation, provider of legal services in the conveyancing sector. The Live Organisation was formed in 1996 and launched Conveyancing Live, its first no move, no fee service. It has since completed over 100,000...

Long KFIs can put brokers off.(Key Facts Illustrations)(Brief Article)
March 7, 2005... Lenders with lengthy Key Facts Illustrations could be paying the price as brokers favour those offering shorter ones. One source tells Mortgage Strategy that lenders who offer brokers shorter KFIs could have a competitive advantage over...

Hamptons expands, launching Hong Kong office.(Hamptons International Mortgages)(Brief Article)
March 7, 2005... Hamptons International Mortgages this week officially launches into South East Asia to capitalise on the growing expatriate market. Hamptons Hong Kong office launches on Thursday this week. The company also has offices in Tokyo and...

Broker says AfI is in meltdown.(Abbey for Intermediaries)(Brief Article)
March 7, 2005... A broker has accused Abbey for Intermediaries of being in meltdown following job cuts since the takeover by Banco Santander. The broker, who does not wish to be named, claims that he is experiencing severe difficulties trying to contact the...

IN BRIEF: Study assesses costs of regulation.(Brief Article)
March 7, 2005... The Financial Services Authority has revealed further details of the project it is undertaking in partnership with the Financial Services Practitioner Panel into the costs of regulation. Jonathan Bloomer, chairman of the panel, says: ...

Home for a stately #70m.(Brief Article)
March 7, 2005... The most expensive country property ever to go on sale in the UK went on the market last week. Priced at over #70m, Updown Court is being heralded as the first 21st century stately home in Britain with grounds larger in area than either...

Chase de Vere's rewarding idea.(Brief Article)
March 7, 2005... Chase De Vere Mortgage Management is offering what it believes to be the industry's most generous commission package for introducers. It will pay introducing firms or individuals a percentage of the loan amount for any client they...

INTERVIEW: TMB to offer online GI and conveyancing.(technology application of TMB)
March 7, 2005... The Mortgage Business is looking to offer online general insurance and conveyancing platforms by the end of this year. As part of its system it intends to offer Halifax home insurance electronically. The firm also wants to launch a...

IN BRIEF: KFIs give too much information.(influence of Information overload )(Key Facts Illustrations)(Brief Article)
March 7, 2005... Information overload rather than length is the main problem with Key Facts Illustrations, research by Beachcroft Wansbroughs Consulting shows. The independent analysis of KFIs provided by 22 mortgage firms followed complaints about excessively...

IN BRIEF: Prices rose in February.(Brief Article)
March 7, 2005... House prices rose slightly in February, showing an 0.5% increase over January, says Nationwide. Its latest figures show the price of an average property is #152,879 - 10.2% higher than a year ago. Copyright: Centaur Communications...

IN BRIEF: Norton helped to prepare for GI.(Compliancy Services Ltd.)(Norton Finance Group )(Brief Article)
March 7, 2005... Compliancy Services has assisted Norton Finance Group in preparing its business for general insurance regulation which came into force in January. Copyright: Centaur Communications Ltd. and licensors

IN BRIEF: Strong Universal.(Brief Article)
March 7, 2005... Building society, Universal had a strong 2004 with its annual results showing an increase in assets of 6.2% to #534m, and gross mortgage lending of #121m. The Newcastle-based society also surpassed its targets for net mortgage lending and...

Wet Brom presents petition.(West Bromwich)(stamp duty rates to be revised)(Brief Article)
March 7, 2005... West Bromwich presented a petition of 22,000 signatures to 11 Downing Street last week as part of a bid to force Gordon Brown to reform Stamp Duty. The petition was put together by several building societies and the move is backed by the...

HBOS profits soar to record #4.7bn.(Brief Article)
March 7, 2005... HBOS, the country's biggest mortgage lender, last week revealed record profits of #4.77bn. The figure, calculated before tax and exceptional charges, is a 23% increase on the #3.88bn it made in 2003. At the same time, the company...

Sourcing systems warning.(Brief Article)
March 7, 2005... Brokers have been warned by Kensington Mortgages that in focussing on rates, sourcing systems do not always offer the best products. Though Kensington backs sourcing systems and has just joined forces with Trigold on its Enhanced...

Small brokers fear reporting pressure.(Brief Article)
March 7, 2005... Brokers that run their own firms and smaller organisations are complaining the reporting requirements of the Financial Services Authority will place unnecessary pressure on them. The FSA last week underlined its mandate for electronic...

IN BRIEF: Conveyancing.(Vesta Packaging)(Brief Article)
March 7, 2005... Vesta Packaging is to launch an inhouse conveyancing division. Operated in partnership with conveyancer Goldsmith Williams, it should speed transactions by providing seven-day trading, online tracking, a direct link to the Land Registry and...

IN BRIEF: Barclays service for expat owners.(Brief Article)
March 7, 2005... Barclays has launched an English language online banking service in France to make it easier for the thousands of British owners of French properties to manage their finances. Copyright: Centaur Communications Ltd. and licensors

IN BRIEF: Knight Funding panel enhanced.(Brief Article)
March 7, 2005... Packager Knight Funding has added Leeds & Holbeck to its lender panel, enabling it to offer a wider range of prime niche products to its brokers. Copyright: Centaur Communications Ltd. and licensors

IN BRIEF: House prices fell again in February.(Brief Article)
March 7, 2005... Hometrack's February survey of the national housing market shows a price fall of 0.2% - the eighth consecutive month that house prices have fallen. Copyright: Centaur Communications Ltd. and licensors

Direct option for Kensington.(Brief Article)
March 7, 2005... Kensington Mortgages has launched a direct submission channel for brokers. The lender's products had previously been available only via packagers or networks but the new system allows intermediaries to deal directly with it without...

FSA website redesigned for speed and efficiency.(Financial Services Authority )(Brief Article)
March 7, 2005... The Financial Services Authority has restructured and redesigned its website with the aim of helping firms cut the time they spend on regulation. It claims improved navigation and an intuitive search facility will make it quicker and...

Let's scrap DIPs, says GMAC-RFC.(Decisions in Principle)(Brief Article)
March 7, 2005... GMAC-RFC has called on lenders to stop wasting intermediaries' time with old-fashioned decisions in principle. The firm says its online binding decision system has been a success with brokers and has resulted in it achieving a 90%...

Women call mortgage shots.(Brief Article)
March 7, 2005... When it comes to mortgage decisions twice as many women as men take on the responsibility, says GMAC-RFC. The lender has produced research showing that one in four women with partners make the financial decisions in their relationships,...

Lenders and borrowers linked directly.(Zopa)(Brief Article)
March 7, 2005... An online marketplace called Zopa has been launched to connect borrowers and lenders directly. Zopa puts people who want to lend in touch with creditworthy borrowers and cuts out the banks. The borrower pays a 1% exchange fee to Zopa up...

Accord to halve its service calls.(Brief Article)
March 7, 2005... Accord Mortgages is looking to halve the number of calls made to its service centres by the end of 2005. Rather than brokers chasing cases and having to telephone to find out what stage their applications have reached, the firm intends to...

IN BRIEF: More confidence in B2L stability.(Brief Article)
March 7, 2005... Mortgage Express' buy-to-let report for January reveals increasing confidence in the stability of the market and a decrease in void periods as compared with the previous quarter. Copyright: Centaur Communications Ltd. and licensors

IN BRIEF: Bananas launches tracker deals.(Bananas Inc)(Brief Article)
March 7, 2005... Bananas Inc, the branded lender and packager, has launched two three- year discount cashback trackers for buy-to-let and self-certification borrowers. Copyright: Centaur Communications Ltd. and licensors

Should ARs also get two free complaints?(Financial Ombudsman Service )
March 7, 2005... Mortgage Strategy revealed last week that while the Financial Ombudsman Service allows two free complaints for each directly authorised broker, it permits only two per network rather than per appointed representative. Many networks have...

IN BRIEF: M2i exclusive with Webline.(Brief Article)
March 7, 2005... M2i has negotiated an exclusive discount deal with Webline, which offers a range of easy-to-use web-based quotation and fulfilment services for protection, PMI, investments, pensions, annuities and traded endowments. Copyright: Centaur...

IN BRIEF: HSBC profits up by 37%.(Brief Article)
March 7, 2005... HSBC has revealed profits of #9.2bn for 2004. This is a 37% rise over the previous year, with much of the profit coming from operations in Europe, Asia and the Americas. Copyright: Centaur Communications Ltd. and licensors

ANALYSIS: Market watch.
March 7, 2005... With swap rates surging, last week was hectic for rate pulls and I reckon coming weeks will be just as busy. * One-year money is up 0.07% at 5.22% * Two-year money is up 0.08% at 5.18% * Three-year money is up 0.09% at 5.17% *...

Has FSA been too slow off the mark in policing financial promotions?(United Kingdom. Financial Services Authority)
March 7, 2005... The watchdog has been doing the groundwork and firms not complying with its rules on promotions will soon feel its bite, say our experts TIM STURLEY is head of business development at Mortgage Express The FSA's primary concern for the...

MONTY BURN: Justice must be done on FOS complaints.(Financial Ombudsman Service)
March 7, 2005... We all like to complain and therefore must expect people to make complaints against us. You can't please all the people all the time - and sometimes it feels as though you can't please any of the people any of the time. Yes, there will...

ANALYSIS: On the beat.(Financial Services Act)
March 7, 2005... Many things make me see red, both inside and outside the industry. Outside the industry they are too numerous to mention and I won't bore you with the list. But within the industry I get pretty steamed up about so-called intermediaries selling...

ANALYSIS: Nick's Notes.(Avon Cosmetics Inc. plans selling life and household insurance)
March 7, 2005... Avon recently announced that it is considering selling life and household insurance through its door-to-door sales channel. At first this might seem like bad news - added competition for intermediaries. But when you look at it in more detail...

ANALYSIS: Financial health matters.(bankruptcy)
March 7, 2005... Bankruptcy can be seen as the most extreme example of financial ill health, with the patient about to take their last breath having exhausted all ways of getting back on their feet. On the other hand - unlike sickness of the body - bankruptcy...

Letter: We must protect ourselves when dealing with B2L clients.(Letter to the Editor)
March 7, 2005... From Paul Ormerod I am a fan of Trigold so was delighted to see it produced a Key Facts Illustration not regulated by the Financial Services Authority for issue to buy-to-let clients. Why bother issuing a KFI at all, you ask, and...

Letter: Small businesses are being fleeced by FSA fees structure.(Letter to the Editor)
March 7, 2005... From Brian Bates Looking at the Association of Mortgage Intermediaries' review of FSA charges, it's clear that small businesses are paying over the odds in fees. AMI gives three examples. Business A earns #70,000 a year, business B...

Letter: Regulation is putting brokers off non-conforming business.(Letter to the Editor)
March 7, 2005... From Matthew Cowan Lending decreased by 18% in January and while most commentators attribute this to a general slowdown of the market, I believe there is an additional factor involved. As a packager operating principally in the niche...

Letter: Sell conveyancing services to boost dwindling fee incomes.(Letter to the Editor)
March 7, 2005... From Mark Bailey Reading Mortgage Strategy every week I have spotted a theme - since regulation, mortgage intermediaries are struggling to live up to their pre-regulation fee income levels. With all the extra red tape cases are taking...

COMMENT: Bright future for buy-to-let sector.
March 7, 2005... With a continuing housing shortfall and lenders giving property investors an attractive choice of mortgage products the future certainly looks rosy for the sector, says Tony Capon TONY CAPON, head of intermediary support and development,...

COMMENT: A VIEW FROM THE FLOOR.(new Banking Code )(Brief Article)
March 7, 2005... Adrian Coles, director-general at the BSA, says the revised Banking Code is a good thing in that customers will be able to access clear and understandable information Two weeks ago the revised Banking Code came into force, providing bank...

COMMENT: Just a series of unfortunate events.(Association of Mortgage Intermediaries)
March 7, 2005... AMI members have reported a series of strange happenings recently, all of which represent isolated malfunctions in an otherwise smoothly functioning market, says Chris Cummings CHRIS CUMMINGS, director, AMI Anyone with young children...

I SHOULD KNOW BUT I DON'T.(assessing competency of advisers)(Brief Article)
March 7, 2005... Q: What are the FSA's requirements for assessing competence? A: Firms must not allow an employee to engage in an activity unless the employee has been assessed as competent to perform that duty without supervision and has passed each...

COMMENT: Straight through to depolarisation.(mortgage regulations, processing systems)(Column)
March 7, 2005... Depolarisation will mean a different landscape for lenders and a straight through processing capability will be important in making the best of the opportunities, says Phil Heaton-Jones PHIL HEATON-JONES, director of product development,...

COMMENT: Millions in Cash from Conning Brokers.(Mortgage Code Compliance Board)(Column)
March 7, 2005... Mortgage brokers' MCCB fees should be returned to them as it would be a shame if the Board's final act - and enduring epitaph - was to bite the hand that fed it, says Richard Griffiths RICHARD GRIFFITHS, managing director, Network Data...

COMMENT: Be sensitive to cultural factors.(Excerpt)
March 7, 2005... Richard Howells, head of Bankhall Mortgages, says being aware of cultural differences is important when negotiating business deals with people from different countries The writer makes sound points about the skills needed to be a...

DEAR DELIA: Client purchashing delapidated house.(Ashdown Lyons )
March 7, 2005... I have a client who is considering purchasing a dilapidated house in need of complete repair and refurbishment. What specific defects should he be looking for and how can he pinpoint any more serious problems that may arise in the future....

Run with the pack.(Home Information Packs)
March 7, 2005... Whatever your opinion of Home Information Packs, they're on their way and mortgage brokers can take certain steps to ensure they embrace this radical development as an opportunity rather than a threat, says Harvey Jones The turbulence...

There will be more purchases - and mortgages.
March 7, 2005... John Rattigan, director of compliance, Cartel In a society that places great emphasis on home ownership it is ludicrous that we currently have a system that is fundamentally flawed when it comes to buying or selling a property. The...

Danger of estate agents taking business from mortgage intermediaries.
March 7, 2005... Justin Parkinson, marketing and development director, LMS Home Information Packs are coming. So what? What have HIPs got to do with selling mortgages? The answer is, a great deal more than many brokers suspect. With the arrival of HIPs the...

THIS WEEK 07.03.05: SIMON WHITE.(on fund spending)(Brief Article)
March 7, 2005... SIMON WHITE, director, Ashdown Lyons This week has at last seen the appointment of a panel of expert companies to ensure that money collected in the Heritage Lottery Fund is spent wisely. When you choose your six numbers on a Saturday night...

THIS WEEK 07.03.05: JOHN WRIGLESWORTH.(on acquisition of properties)(Brief Article)
March 7, 2005... JOHN WRIGLESWORTH, economist Despite the Council of Mortgage Lenders reporting a slowdown in new lending, buy-to-let investors are staying the distance. Paragon Mortgages' first-quarter survey shows landlords are continuing to acquire...

INSIGHT: A rough guide to FSA compliance.(Financial Services Authority)(Column)
March 7, 2005... ARs can use an FSA visit to ensure the service they signed up for is on track, while there are certain things directly authorised firms must check in advance of this test of their systems, says Neal Smith NEAL SMITH, compliance manager,...

INSIGHT: Purely is simply a good broker option.(Purely Mortgages)(Column)
March 7, 2005... Purely Mortgages' end-to-end mortgage processing system can provide smaller brokers and packagers with a quick and cost-effective solution to their IT needs, says Frank Eve FRANK EVE, managing director, Frank Eve Consulting One of...

INSIGHT: Internetinsite.(mortgage brokers)
March 7, 2005... Mortgage Strategy's weekly guide to what's hot and what's not on the web. Jeff Sutherland-Kay checks out the websites of brokers, product providers, clubs, networks and packagers JEFF SUTHERLAND-KAY Too many companies create problems...

RECRUITMENT: Assessment centres can be good for both parties.
March 7, 2005... Mark Witcomb is senior consultant at Venatus Business Intelligence Some companies may put you through an assessment centre rather than conduct a conventional interview. This process can last from a few hours to few days. The typical...

RECRUITMENT: Channel your ambition to your own advantage.
March 7, 2005... Colin Lloyd is head of operations at Reed Insurance Ask most young entrants to a profession what constitutes an ideal first job and they'll probably stress the importance of benefits, career progression and money. It's fair to say...

Curriculum Vitae: Mark Leaper.(Vesta Money)
March 7, 2005... Name: Mark Leaper Age: 37 Company: Vesta Money Job Title: Managing director Where do you live? Blandford Forum, Dorset Describe your current job: Heading up direct-to-consumer lender Vesta Money and its sister company...

COMMENT: Proc fee debate turns into a row.(processing fees, Gordon Brown stamp duty regulations)(Brief Article)(Column)
March 14, 2005... The debate over whether proc and packaging fees paid by lenders are too high reached fever pitch last week with a surprise move from BM Solutions, which hiked its proc fee by 0.25% to 1%. BMS has been criticised by some for being...

Revolt in the air as brokers criticise Abbey over service.(Brief Article)
March 14, 2005... Brokers are hitting out at Abbey about its poor service over the past few months and its failure to keep them informed of progress on cases. Things have now reached the point that some intermediaries are avoiding doing business with the...

Knight returns to GMAC-RFC in UK.(Brief Article)
March 14, 2005... Simon Knight is returning to GMAC-RFC's UK business as managing director strategy and investments, and taking a seat on the lender's board. He replaces Neil Sinden who is moving to Australia to spearhead the lender's launch into that...

BMS proc fee hike sparks backlash from its rivals.
March 14, 2005... BM Solutions faced an industry backlash last week over its decision to increase its proc fee by 0.25% to 1%, which was seen as a U-turn given its stance that rival lenders are paying too much. The lender has been vociferous in recent...

IN BRIEF: Market insight.(Brief Article)
March 14, 2005... Mortgages PLC and Mortgage Promotions have launched an initiative to give an insight into trends in the mortgage industry. MarketView is a monthly email survey that will be sent to introducers to gauge their thoughts on the market. ...

IN BRIEF: Bankhall closes network division.(Brief Article)
March 14, 2005... Support services group Bankhall has closed its network division, Investment Strategies, in a move to cut costs. It says this is another sign that it is right in its view that direct authorisation is best for most advisers. Copyright:...

IN BRIEF: No change in rates.(Brief Article)
March 14, 2005... The Bank of England Monetary Policy Committee last week held interest rates at 4.75%. John Goodfellow, chief executive of Skipton, says: "This is no surprise despite the minutes of last month's meeting showing the MPC in a hawkish mood." ...

IN BRIEF: Extra costs.(Brief Article)
March 14, 2005... First-time buyers are finding it harder than ever to get a start with average property prices now topping #165,000 across the UK. But homefast property lawyers warns it's not just the cost of the property that can be expensive - the costs...

IN BRIEF: Amber website relaunched.(Brief Article)
March 14, 2005... Amber Homeloans has relaunched its website as a one-stop solution for brokers. In addition to the online broker pack including product information, forms and contact details, the site provides a web-based KFI. Copyright: Centaur...