Mortgage Strategy articles from March 2006

Mortgage Strategy archives from March 2006

COMMENT: Multi-channel is the way ahead.
March 6, 2006... Welcome to this special edition of Mortgage Strategy, edited by Drew Wotherspoon of John Charcol fame. Ensconced in one of the most powerful chairs in the mortgage industry, the view is nothing short of magnificent. I refer not to the...

Network targeted by spies.
March 6, 2006... Home of Choice has fallen victim to what police describe as an espionage attack after a break-in at its office in Chippenham. The network, which is celebrating its 1,000th recruitment application, suffered a break-in at the end of last...

EU should follow our model, says AMI.
March 6, 2006... The Association of Mortgage Intermediaries says it will call on the European Union to follow the UK's regulatory model if it decides on integration of member state markets. A Green Paper looking at proposed integration is due out soon. ...

Wotherspoon throws weight around at MS.
March 6, 2006... Mortgage Strategy was last week under the control of John Charcol's very own head of communications Drew Wotherspoon. John Garfield, John Charcol's enigmatic chief executive, bid #9,000 at the Broomstick Ball in October to edit the...

Walton welcomes chance to rejoin John Charcol.
March 6, 2006... Ron Walton, the top business writing consultant at John Charcol throughout the 1990s and a previous managing director, has returned to the company, joining John Charcol Associates. JCA is the recently created self-employed division of John...

IN BRIEF: Jowell could have known about deal.
March 6, 2006... MP Tessa Jowell is likely to have been aware that the #625,000 mortgage on her home had been paid off, despite her claims to the contrary, says Mortgage Express. Jowell denies any knowledge of the #344,000 allegedly paid to her husband David...

IN BRIEF: Near prime options.
March 6, 2006... UK investors' appetite for overseas property is undimmed despite it not being able to be included in self invested personal pensions, says Conti Financial Services. Copyright: Centaur Communications Ltd. and licensors

IN BRIEF: Grasp the equity opportunity.
March 6, 2006... Dean Mirfin, business development director at Key Retirement Solutions, has warned that demand for equity release will wane unless advisers take hold of the market now. He was speaking at the Mortgage Business Expo in Scotland last week....

IN BRIEF: Warning on HIPs.
March 6, 2006... Brokers have been warned that the introduction of Home Information Packs in the UK and Property Information Packs in Scotland could lead them to having to supply information in a similar way to estate agents. Speaking at the Mortgage Business...

Lehman could be funding A&L's move into sub-prime.
March 6, 2006... Alliance & Leicester's intention to move into the near prime, sub- prime, self-cert and buy-to-let markets is believed to be financially backed by American investment bank Lehman Brothers Sally Lauder, spokeswoman for A&L, refused to...

Brokers agree that SPASU should be stamped out.
March 6, 2006... A whopping 65% of Mortgage Strategy Online readers last week endorsed Mortgage Strategy's Stamp out SPASU campaign, wholeheartedly agreeing that the product should be banned. Just 35% disagreed with this. This week Mortgage Strategy...

BM and TMB see falls in lending.
March 6, 2006... BM Solutions and The Mortgage Business saw gross mortgage lending drop, HBOS' results for 2005 have revealed. BM Solutions saw a drop in gross mortgage lending from #13.3bn in 2004 to #12.4bn in 2005. Sources say while this was in line...

The Derbyshire reveals record results for 2005.
March 6, 2006... The Derbyshire has revealed record results for 2005, with a 29% rise in gross mortgage lending to #1,390m. The society reports asset growth of 15.7% to #5.09bn, and an 18% growth in retail savings balances to #2.95bn. The group's pre-tax...

FSA accused of being soft on rogue adverts.
March 6, 2006... The Financial Services Authority has been accused of dragging its feet by failing to take enforcement action against firms that fail to comply in their consumer advertising. Speaking at the London Mortgage Business Expo last November,...

McCarthy to head ODPM HIP team.
March 6, 2006... Richard McCarthy is to replace Cathy Cant as product leader after the Office of the Deputy Prime Minister reshuffled its Home Information Pack team. Fears that the June 2007 implementation deadline for the introduction of HIPs will not...

IN BRIEF: Land tax could stifle development.
March 6, 2006... A land tax proposed by the government may stifle housing development and is based on a misunderstanding of how the property market operates, says the Royal Institution of Chartered Surveyors. The Planning Gain Supplement would be paid by...

IN BRIEF: AMI web page on equity release.
March 6, 2006... The Association of Mortgage Intermediaries has launched a web page providing information on equity release products plus a good practice factsheet. AMI believes standards of advice given to equity release consumers should be raised. ...

Lenders defend Origo costs.
March 6, 2006... Lenders have dismissed concerns that the cost of creating open standards in the mortgage industry will be passed on to consumers. Origo, the financial services industry standards body, has gained significant financial backing from 13...

US firm to offer commercial loans via brokers.
March 6, 2006... Miami-based financial firm Bayview Financial is opening a UK branch of its commercial loans arm InterBay Funding in May. Mortgage Strategy exclusively revealed last November that the US mortgage finance and real estate investment company...

Rate challenges can be misleading.
March 6, 2006... Mortgage deals that challenge consumers to save money on their repayments have been slammed as sending out the wrong message to consumers. NatWest is offering customers of Halifax, Abbey, Lloyds TSB and Cheltenham and Gloucester #1,000 if...

IN BRIEF: BBB to go into administration.
March 6, 2006... Berkeley Berry Birch is to go into administration following the proposed sale of network Berkeley Independent Advisors to Tenet Group. The Financial Services Authority gave BBB until February 27 to prove it was able to plug the #11m capital...

IN BRIEF: Website assistance.
March 6, 2006... IFA Promotions has rebranded its website, as it encourages brokers to set up their own websites. Karen Barrett, marketing director at IFA Promotions, says brokers could lose a substantial amount of business as consumers will prefer to seek...

Property clubs off the hook.
March 6, 2006... The Financial Services Authority has decided against tightening the regulations involving property investment clubs. Last year the regulator considered expanding its remit to include property investment clubs after calls to protect...

Win Guinness in TMP St Patrick's Day competition.
March 6, 2006... The Mortgage Partnership has launched a 'Spot the Leprechaun' competition as part of the run-up to St Patrick's Day celebrations. In association with Irish-owned Capital Home Loans, TMP is inviting brokers to visit its website...

Details could be left out of HIPs.
March 6, 2006... A loophole in the Home Information Pack regulations means a property could be marketed with an incomplete HIP 14 days after the provider has started to gather information for the pack. This news comes at a time when the mortgage industry has...

HIP consolidation predicted.
March 6, 2006... e.surv predicts a major consolidation of providers will accompany the implementation of Home Information Packs in 2007. Richard Sexton, business development director at e.surv, says: "Pack providers have overestimated the market and there...

Kensington launches range to offer brokers choice.
March 6, 2006... Kensington Mortgages has launched a broad product range called Kensington Choices. Rates have been rates reduced by up to 1.60% in certain categories and there are two product sets - Simple Choices and Extra Choices. Simple Choices,...

Societies keen on white label plan.
March 6, 2006... TML Financial Solutions says it has been approached by a large number of societies enquiring about its affinity programme that offers firms a white label solution for sub-prime business. The move by TML, part of the Kensington Group, to...

IN BRIEF: Treat retention fees with care.
March 6, 2006... Mortgage Next is recommending that brokers carefully consider the implications of lender retention strategies before taking up offers of fees in return for advising borrowers to stay with their existing lenders. Copyright: Centaur...

IN BRIEF: Rents rise.
March 6, 2006... Rents are rising as tenants return to the lettings market, says the Royal Institution of Chartered Surveyors in its lettings survey. Chartered surveyors report the biggest increase in tenant demand for four and a half years, with 27% more...

IN BRIEF: Banks are top choice for advice.
March 6, 2006... Banks and building societies are top choice for financial advice, with more than 26.4 million adults using them to get help with their finances, research from MoneyExpert.com and Defaqto reveals. Copyright: Centaur Communications Ltd. and...

IN BRIEF: GMAC-RFC appointment.
March 6, 2006... GMAC-RFC has appointed Helen Mason as corporate accounts manager. Mason joins from BM Solutions and will be responsible for developing the company's corporate accounts across the country. Copyright: Centaur Communications Ltd. and...

GMAC considers instant offer.
March 6, 2006... GMAC-RFC is rumoured to be launching an instant offer by the end of this year. This comes on the back of the company confirming that it is looking at automatic valuations. GMAC-RFC was one of the first companies to introduce automated...

Hamptons unveils expansion plans.
March 6, 2006... Hamptons International Mortgages has unveiled details of its growth plans for 2006. The parent company - Hamptons Estates - plans to relocate to prestigious premises in London's Grosvenor Square, across from the American embassy. It has...

Build-to-sell deals unveiled.
March 6, 2006... BuildLoan, the intermediary arm of self-build specialist BuildStore, is starting to lend on self-build properties for selling on. John Hay, head of product development at BuildStore, says the products have been designed to fill a gap in...

Oryen to pilot generic applications.
March 6, 2006... Packager Oryen is to pilot an online generic application later this month. Subject fields on the form will automatically pre-populate with information, meaning brokers have to only key in information once when they complete the initial...

Bolton charges #10,000 per day for consultancy.
March 6, 2006... Celebrity Big Brother's Chantelle is #5,000 cheaper than Michael Bolton, who is offering his services for #10,000 per day as chief executive at MBAC Consulting, it emerged last week. The consultancy firm's website has now been launched at...

IN BRIEF: Bird flu cover.
March 6, 2006... Britishinsurance. com is advising consumers that with the threat of bird flu, they must ensure they are covered by their payment protection policies. Simon Burgess, managing director of Britishinsurance. com, says: "We'll have enough to worry...

IN BRIEF: Fast-track legal service launched.
March 6, 2006... Irish Title and London & European have launched a fast-track legal process to speed remortgages. The process controls and manages transactions through a central point, halving the time from offer to completion. Copyright: Centaur...

IN BRIEF: SPML extends end dates on deals.
March 6, 2006... Southern Pacific Mortgages Limited has extended the end dates on its fixed and discounted rates. SPML's two-year discounted rate has been raised from 0.85% to 1.00% and the end date on its 1.00% discounted rate secured loan product has...

Would you shop for your mortgage on the internet?
March 6, 2006... Consumers are increasingly doing their shopping online so it's no surprise that mortgage companies have also got in on the act. Internet applications save lenders money and represent a large market share for brokers. But are consumers as...

ANALYSIS: Market Watch.
March 6, 2006... Swaps rose fairly substantially last week. * One-year money is up 0.03% at 4.66% * Two-year money is up 0.08% at 4.68% * Three-year money is up 0.09% at 4.70% * Five-year money is up 0.08% at 4.65% Despite this, it was an...

When justifiable for brokers to recommend single premium ASU cover?
March 6, 2006... SPASU should be sold in accordance with FSA guidance and on a yearly basis, otherwise it is unlikely to have a future, say our experts Has there ever been a product more maligned and yet still on sale to consumers? Single premium...

ANALYSIS: All change on the lending front in 2006.
March 6, 2006... The specialist mortgage markets are all the rage for new entrants and hardly a week goes by without talk of another new lender. The sub-prime and buy-to-let markets have been the areas arousing the most interest in the past couple of years....

ANALYSIS: Some politicians are financially literate.
March 6, 2006... Every so often a news story renews your faith in mortgage advisers and lenders. You find out that someone has been benefiting from regular advice and have been able to remortgage quickly and without fuss. Presumably the charges were...

ANALYSIS: Loose talk costs clients dear in the longer term.
March 6, 2006... Loose accusations of irresponsible lending are a pet hate of mine. They appear frequently in the media, yet are hardly ever supported by evidence. Whether they come from ill-informed journalists or competitors looking to score PR points,...

ANALYSIS: This industry needs more girl power.
March 6, 2006... If you're reading this the chances are you're over 45 and male. Nothing wrong with that you may think, but it's worrying for the future of the intermediary market. Anyone who goes to a financial conference or a mortgage do will know...

ANALYSIS: Help your clients ask all the right questions.
March 6, 2006... AMI and Mortgage Strategy have developed the Release it Right campaign to enable firms to approach this area of business in a more professional manner. But it is not only firms that have a duty to behave properly - there is also the...

ANALYSIS: Flirting is natural but crudity demeans us all.
March 6, 2006... The Apprentice is back on TV, and Sir Alan Sugar is madder and badder than ever. The new series has caused controversy already, with Sir Alan growling that the women in the boardroom have misused their feminine wiles. In case you have...

ANALYSIS: Keep communications clear and simple.
March 6, 2006... Companies are increasingly recognising the value-adding potential of effective communications. Favourably received external communications can positively influence customer opinion. Internally, information can motivate employees. Happy staff...

ANALYSIS: This will be another good year for B2L.
March 6, 2006... This year has started with a strong buy-to-let market. I have read numerous industry articles by lenders and letting agents and most agree that buying a home to let out is still an attractive commercial proposition. Last year, Council of...

ANALYSIS: Arithmetic favours the secured loan option.
March 6, 2006... All markets evolve and the secured loan sector is no exception. Often seen in the past as the Cinderella market compared with first charges, this is certainly not the case any more. The secured loan industry has delivered growth with,...

ANALYSIS: Identify your HIP opportunities now.
March 6, 2006... I came across an interesting statistic recently but can't remember where I read it so sorry, unvalidated data is about to be quoted. The gist of the research was that approximately 30% of home owners move house within three years of...

ANALYSIS: Lenders will enter a buoyant sector.
March 6, 2006... Last week brought more great news for the equity release market with New Life Mortgages announcing a rate cut on its high LTV product. This followed hot on the heels of news regarding the adjustment in Mortgage Express' rate for its...

ANALYSIS: IQ could be the next challenge for CII.
March 6, 2006... In the words of David Bowie, things are ch-ch-changing in the world of critical illness insurance. What with the Association of British Insurance's guidance on clarity and its review of CII, there is no doubting the product's positive push...

ANALYSIS: Give FTBs a break from confusion.
March 6, 2006... A number of recent surveys point to the same thing - consumers find mortgages completely confusing. Mortgages are the hardest banking product to understand according to a study commissioned by comparison website Moneyexpert.com and market...

LETTER: We do not intend to sell cover through the back door.(Letter to the Editor)
March 6, 2006... From Jeff Knight I wish to reply to Nigel Pamment's letter in the February 27 issue. First, I would like to stress that GMAC-RFC has no intention of selling ASU and buildings and contents cover to intermediaries' clients through the...

LETTER: High street lenders are the worst PPI culprits.(Letter to the Editor)
March 6, 2006... From Michael Nicholls I'd like to comment on Isabelle Kassam's column that seems to point an accusatory finger at brokers selling PPI cover (Mortgage Strategy February 20) She completely ignores the biggest kids on the block - the good...

LETTER: Richard Griffiths' being so wrong damages everyone in industry.(Letter to the Editor)
March 6, 2006... From Richard Coulson At Home of Choice we are not journalists but if we were, we'd want to get our facts right. We do have a compliance director, one of the best in the industry, and he thinks getting the facts right is pretty important...

LETTER: Commission does not justify selling single premium MPPI.(Letter to the Editor)
March 6, 2006... From Chris Shelton I have been an avid reader of Mortgage Strategy's letters pages of late, some fantastic topics of debate being on the agenda. First came Home Information Packs, which are causing widespread concern, and now we have...

LETTER: Get the facts straight about the Abbey charges incident.(Letter to the Editor)
March 6, 2006... From Jayne Reynolds In the interests of accuracy I would like to point out that Peter Mounty's column in the February 20 edition contained a number of incorrect statements. In particular, Mounty refers to "Abbey's recent courtroom...

LETTER: Talk to us about free range HIP opportunities for brokers.(Letter to the Editor)
March 6, 2006... From Alan Dring I'd like to thank Tom Gardiner for what I interpret as a complimentary assessment of the articles I am doing in Mortgage Strategy in the February 20 issue on the letters page. It would be good to catch up and chew the...

LETTER: Lenders and providers that dismiss Wales will lose out.(Letter to the Editor)
March 6, 2006... From Julia DeBattista On a holiday in Las Vegas, my husband did a bungee jump and the event was videotaped. On watching the recording I was amused when, just as he was about to jump, my husband shouted: "This one's for Wales!" to which...

LETTER: FSA should help raise the profile of equity release.(Letter to the Editor)
March 6, 2006... From Andrea Rozario I have been in the mortgage industry on and off for 13 years and last year took the plunge and decided to work in equity release and specialise in this area, as you need to concentrate your efforts in keeping abreast...

LETTER: I should have the option of recommending equity release.(Letter to the Editor)
March 6, 2006... From George Chappell As an IFA and mortgage adviser I can see the benefits of equity release. While it may not be right for every client, it will be for some. This is why I am an adviser - to advise clients on the options and their pros...

LETTER: Sourcing systems should have a total cost column.(Letter to the Editor)
March 6, 2006... From Paul Ormerod I read with interest Brian Evans' letter in Mortgage Strategy (February 20) and agree with his comments, but what can one do? They say accountants who find accountancy too exciting become actuaries. And that's...

LETTER: A note of despair in Culhane's thoughts on packaging.(Letter to the Editor)
March 6, 2006... From Paul Brett Mike Culhane's analysis piece in Mortgage Strategy's February 6 issue throws up some interesting pointers about how the Oakwood lender might seek to distribute its products when it launches later this year. But in...

LETTER: SPASU cover is geared for greed and goes against TCF.(Letter to the Editor)
March 6, 2006... From Istvan Koszegi Single premium ASU cover is a policy which is geared towards greed. In my opinion this product also goes against the Financial Services Authority's Treating Customers Fairly initiative. Copyright: Centaur...

LETTER: Single premium products never have been justifiable.(Letter to the Editor)
March 6, 2006... From Danny Christ The Mortgage Strategy campaign to Stamp Out SPASU has 100% backing from us. We have never arranged such a patently unfair product. I believe SPASU is simply not justifiable in this age of treating customers fairly...

FEATURE: Back to the future.
March 6, 2006... After several incarnations, legendary broker John Charcol is independent once more and, under the stewardship of managing director Peter Barrett and chairman Ian Darby, is poised to reach new heights, says Barney McCarthy Anyone with an...

FEATURE: A pain in the hip.
March 6, 2006... If Home Information Packs are introduced they won't work, and anyway they are yesterday's solution to yesterday's problem, says Drew Wotherspoon Back in the heady days of 1997 when Labour launched the manifesto that would see the party...

Comment: Outsourcing must benefit clients.
March 6, 2006... Lenders can cut costs and better focus their resources by outsourcing services but these benefits should not come at the expense of customer service, says Peter Brennan In case anyone needed evidence, the National Consumer Council has...

Comment: Millfield - another IFA with bird flu?
March 6, 2006... Like migrating flocks spreading bird flu, profitability for top IFA firm Millfield seems ever elusive and on the wing as it moves from one deadline to the next, says Richard Griffiths Is it bird flu or some other pestilence that is...

Comment: An update on Berkeley Berry Birch.
March 6, 2006... On February 24 the news broke that Cliff Lockyer had resigned from Berkeley Berry Birch to pursue personal interests, mainly his interest in the Synaptics software business. Lockyer was the founder and the driving force - the main man - at...

Dear Delia: Couple to raise money.
March 6, 2006... Mr and Mrs Saunderson bought their property from Manchester City Council in November 2004 under the Right to Buy scheme. The believe they house is worth #95,000 today and their mortgage balance is #55,000. The couple are looking raise #11,000...

COMMENT: Marketing Brief.
March 6, 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 Bank of Ireland www.bim.online.co.uk/broker.asp Scope: ...

INSIGHT: Useful reminders of the FSA rules.
March 6, 2006... The guides to the FSA's Handbook for small mortgage and insurance brokers will be useful when reminders of MCOB and training and competence requirements are needed, says Bill Warren As explained last week, within the Financial Services...

COMMENT: Satellite packaging can benefit all.
March 6, 2006... Satellite packaging provides an important service in the mortgage process and firms that undertake this function can gain greater control and make higher proc fees, says Payam Azadi The concept of the satellite packager has been around for...

COMMENT: Interact with your clients on the net.
March 6, 2006... Consumer-facing online interfaces from firms such as Screen Business could save brokers time and enhance the service they offer clients as well, says Frank Eve A number of IT providers provide e-commerce solutions in the life and...

COMMENT: When an adviser does not advise.
March 6, 2006... It should come as no surprise that the public don't seek the advice of intermediaries in arranging mortgages when in some cases that advice is negligible, says Sue Read What do we have to do to raise the standing of the humble broker in...

This week - 06.03.06: John Wriglesworth.
March 6, 2006... John Wriglesworth Economist Last week was rather busy and serious in the mortgage market so I thought I'd take a step back and throw the following piece of research into the mix. Did you realise that it only takes 65 seconds of 'hold'...

Curriculum Vitae: Richard Spinks.
March 6, 2006... Name: Richard Spinks Age: 34 Company: Freedom Lending Job title: Director of lending Where do you live? Dronfield, Derbyshire Describe your current job I am responsible for the development and management of Freedom...

COMMENT: Release the power of equity business.
March 13, 2006... Mortgage Strategy's cover feature this week focusses on our equity release standards campaign Release it Right. Kicked off in February in association with the Association of Mortgage Intermediaries, the campaign aims to raise the standard of...

BM could lose more staff.
March 13, 2006... Nigel Stockton, managing director of HBOS Intermediary Mortgages and Birmingham Midshires, has admitted that BM could lose up to 30 more staff after HBOS pays its annual staff bonuses. HBOS announced strong results earlier this month and...