Mortgage Strategy articles from May 2005

Mortgage Strategy archives from May 2005

COMMENT: Vote Tory for sake of the industry.(political aspects on the regulation of financial services)
May 2, 2005... If you were choosing a partner, whether a spouse or a business partner, you would put trust high on the list of desirable qualities. So it should be with politicians. Increasing National Insurance contributions after promising not to hike...

Venturion's UK lender to distribute through MDC.(Mortgage Distributor's Co-operative )(Brief Article)
May 2, 2005... The Mortgage Operation's US parent company, Venturion Capital, is to launch a UK lender called Victoria Mortgages on May 9, which will initially focus on the sub to near-prime market. The lender will distribute exclusively through the...

Lehman might buy another lender.(Lehman Brothers )(Brief Article)
May 2, 2005... Investment bank Lehman Brothers is believed to be planning to make a further acquisition before the end of next year - possibly a smaller lender - having acquired Preferred Mortgages and Southern Pacific Mortgages Limited. The news...

Top journalist joins the Strategy team.(Mira Butterworth )(Brief Article)
May 2, 2005... Mira Butterworth has joined Mortgage Strategy as features and supplements editor. For the past year Mira was features editor on rival weekly Mortgage Solutions where she was responsible for the magazine's feature content. In her new...

RBS dismisses merger claims as 'nonsense'.(Royal Bank of Scotland)(Brief Article)
May 2, 2005... The Royal Bank of Scotland has dismissed as "utter nonsense" claims that it is planning to merge its two subsidiary brands First Active and The One account. A spokesman for RBS branded the claim, which appeared in the press last week,...

IN BRIEF: Leading lights' achievements acknowledged.(Brief Article)
May 2, 2005... Leading industry figures had their achievements acknowledged at the Headline Money Awards last week. Ray Boulger, senior technical manager at Charcol, walked off with the Guru of the Year award for his contribution to the industry. ...

IN BRIEF: Southern Pacific Mortgage - Appointment.(Brief Article)
May 2, 2005... Southern Pacific Mortgage Limited has appointed Roger Smith to the newly-created post of credit strategy manager, reporting to director of credit, Stuart Aitken. Copyright: Centaur Communications Ltd. and licensors

IN BRIEF: MTE success.(Mortgage Trading Exchange)(Brief Article)
May 2, 2005... Mortgage Brain says transaction volumes through the Mortgage Trading Exchange are now exceeding #15bn per year. Thousands of introducers use the MTE on a daily basis to electronically submit mortgage applications and AIPs direct to lenders,...

AfI to broaden product scope.(Abbey for Intermediaries')(Brief Article)
May 2, 2005... Ricky Okey, Abbey for Intermediaries' recently appointed director - mortgages and protection, says the lender will be moving into new product areas alongside its core business. Speaking to Mortgage Strategy, former Charcol managing...

Coulson to launch network with former Zurich staff.(Richard Coulson )(Brief Article)
May 2, 2005... Richard Coulson is to launch his own network in June with two former Zurich employees. Former Zurich Mortgage Network director Coulson will head the Wiltshire- based Home of Choice as managing director, while Keith Baldwin will take the...

Sesame still seeks product manager.(Brief Article)
May 2, 2005... Sesame is still on the hunt for a replacement for Andy Young, who is quitting his role as mortgage product manager to join The Business Mortgage Company as managing director at the end of this month. In an interview with Mortgage Strategy,...

IN BRIEF: Next exclusive.(Brief Article)
May 2, 2005... Mortgage Next has launched an exclusive three-year discounted buy-to- let mortgage funded by West Bromwich. The product, which has an initial pay rate of 5.79%, comes with a package of benefits including free valuation and either a #300...

IN BRIEF: Platform partner.(Brief Article)
May 2, 2005... Platform has revealed The Finance Centre is its latest branded partner. This takes Platform's branded partner relationships to 10, with more planned. Copyright: Centaur Communications Ltd. and licensors

IN BRIEF: MPPI agreement.(mortgage and payment protection insurance)(Brief Article)
May 2, 2005... D&D Homecare is to provide Positive Solutions' partners with mortgage and payment protection insurance. Positive will be one of the first IFA organisations to provide partners with D&D's e-commerce solution, Distinctive Disk, which allows...

Payslip firm's claim refuted.(Blue Cheque Company)(Brief Article)
May 2, 2005... Trading Standards has refuted a claim that it gave the go-ahead to a firm offering replacement payslips for mortgages. The Blue Cheque Company, based in Maidenhead, Berkshire, was condemned by industry pundits in the April 11 issue of...

Ayliff joins Paymentshield in development role.(Jane Ayliff )(Brief Article)
May 2, 2005... Jane Ayliff has joined Paymentshield as mortgage development manager, a position similar to her previous role at Mortgage Intelligence. Ayliff left her position as head of business relations at Mortgage Intelligence earlier this month and...

Lenders rely on inhouse controls.(Bankruptcy Restriction Orders)(Brief Article)
May 2, 2005... Lenders say their underwriting procedures are safeguarding them against borrowers with bad debts, as bankruptcy laws are a soft touch. New personal solvency laws were introduced in April 2004 by the Department of Trade and Industry, which...

MCCB in the firing line again.(Mortgage Code Compliance Board )(Brief Article)
May 2, 2005... The Mortgage Code Compliance Board has been accused of not consulting its members over its decision to distribute funds. Colin Harris, chairman of the MCCB, announced at last month's Council of Mortgage Lenders lunch that its estimated...

m2i conveyancing panel launched.(Brief Article)
May 2, 2005... The mortgage support service from M2000, m2i, has launched a conveyancing panel for its members. The service gives them access to three leading providers of conveyancing - United Legal Services, PSM Online and LMS. United Legal...

IN BRIEF: Direct action.(Mortgages Direct)(Brief Article)
May 2, 2005... Mortgages Direct, the subsidiary of estate agency Spicerhaart, is offering to shoulder the burden for first-time buyers. Throughout May, Spicerhaart is running a series of events for first-time buyers, helping those struggling to get deposit...

IN BRIEF: BuildLoan sales rise 41%.( )(Brief Article)
May 2, 2005... Self-build and renovations firm BuildStore reports sales of its intermediary product, BuildLoan, have increased 41% in the past 12 months. The firm says this shows brokers are embracing the opportunities of the self-build and renovations...

Call for bad ads clampdown.(Financial Services Authority)(Brief Article)
May 2, 2005... The Financial Services Authority has been urged to crack down on misleading financial services adverts. Mortgage provider MD Nationwide, which ensures its adverts meet industry standards, wants the FSA to act on its promise to stop ads...

Blackmore fights FTBs' corner.(Rachel Blackmore)(First time buyer)(Brief Article)
May 2, 2005... Rachel Blackmore, spokeswoman for the Building Societies Association, is pounding the streets in the run-up to this week's election as she stands for a seat in Stratford-Upon-Avon. Representing Labour/Co-operative, she says the plight of...

IN BRIEF: FSA enforcer.(Financial Services Authority)(Brief Article)
May 2, 2005... The Financial Services Authority has appointed Margaret Cole, partner in the London office of the international law firm White & Case, as director of enforcement. Copyright: Centaur Communications Ltd. and licensors

IN BRIEF: Repossessions up by 25%.(Brief Article)
May 2, 2005... Repossessions have shot up by almost a quarter in a year, figures from the Department of Constitutional Affairs reveal. In Q1, 2005, 25,869 mortgage possession actions were entered and 14,048 orders were made, 7,917 of which were suspended....

Euro-mortgage plan slated.(Brief Article)
May 2, 2005... Plans to integrate the European mortgage market have been slammed as "dangerously vague" by Professor David Miles. In a report entitled European Mortgage Markets: The danger of forcing integration, Miles, chief UK economist at Morgan...

Platform signs up to Trigold's ENC.(Enhanced Non-Conforming )(Brief Article)
May 2, 2005... Platform is the latest lender to join Trigold's Enhanced Non-Conforming sourcing module. Trigold says the addition of Platform means ENC is now supported by over 80% of the sub-prime market. For brokers sourcing sub-prime mortgages,...

IN BRIEF: Real estate fund.(Brief Article)
May 2, 2005... AXA Investment Managers has unveiled the first UK-listed European and UK real estate fund, the AXA Property Trust. AXA IM is aiming to raise up to #150m. Forecast yield is around 5% after costs in the first year. Copyright: Centaur...

IN BRIEF: International code.(National Association of Estate Agents)(Brief Article)
May 2, 2005... The National Association of Estate Agents' international division and the Federation of Overseas Property Developers Agents and Consultants have agreed a common code of practice and charter. Copyright: Centaur Communications Ltd. and...

IN BRIEF: B2L two-year fix.(Business Mortgage Company)(Brief Article)
May 2, 2005... The Business Mortgage Company has launched a buy-to-let mortgage in conjunction with Paragon. It is fixed for two-years at 4.99% until August 31 2007. Copyright: Centaur Communications Ltd. and licensors

IN BRIEF: Platform people.(appointments)(Brief Article)
May 2, 2005... Platform has appointed Emily Bosley as marketing communications manager and promoted Nick Allen to product marketing manager. Bosley joins from Network Data where she was a marketing executive. Allen has been with Platform for two years as...

Affordability debate growing.(First National Mortgage Corp)(Pink Home Loans)(Brief Article)
May 2, 2005... GE-owned First National and igroup along with Pink Home Loans have reopened the debate over affordability versus income multiples. The firms say the standard use of income multiples is over-simplistic and misleading, and hinders first-time...

Coventry supports Rover employees.(Coventry Building Society)(Brief Article)
May 2, 2005... Coventry is offering support to 300 of its borrowers who have been affected by the closure of car maker Rover. Martin Ritchley, chief executive of Coventry, has written to customers who are believed to be former Rover employees, asking...

State interference slammed.(Housing development)(Brief Article)
May 2, 2005... The Government has been accused of interfering too much in the building of private developments and of forcing "social engineering". Speaking at a Mortgage Strategy round table last week, several leading industry figures said they feared...

CML accused of lacking teeth on HIPs.(Council of Mortgage Lenders )(Home Information Packs)(Brief Article)
May 2, 2005... The Council of Mortgage Lenders has been accused of lacking teeth on the issue of Home Information Packs. Michael Bolton, managing director of BM Solutions, says: "There is the danger the intermediary market will suffer from the arrival...

FTB definitions cause confusion in market.(first-time buyers)(Brief Article)
May 2, 2005... Defining first-time buyers and sellers is causing problems in the mortgage market, industry pundits warned at the Mortgage Strategy round table last week. Ray Boulger, senior technical manager at Charcol, says: "The problem with Council...

Interest-only could be next mis-selling scandal.(interest-only mortgages )(Brief Article)
May 2, 2005... The industry is split on the issue of whether interest-only mortgages are a mis-selling time bomb. The Financial Services Authority has highlighted interest-only deals as a potential risk area. Michael Bolton, managing director of BM...

IN BRIEF: Standard KFI call.(Key Facts Illustrations)(Brief Article)
May 2, 2005... Alliance & Leicester has called for standardisation of Key Facts Illustrations. Mehrdad Yousefi, head of intermediary mortgages at A&L, says: "Six months on from Mortgage Day, KFIs are still not right. The intermediary market needs total...

IN BRIEF: SHIP-shape.(Safe Home Income Plans)(Brief Article)
May 2, 2005... The 18 members of equity release industry body, Safe Home Income Plans have reported robust quarterly new business figures for the three months to March 31. The value of new business written was #251.4m, 3.3% ahead of Q1 2004, at #243.3m. On...

IN BRIEF: Time to streamline.(Brief Article)
May 2, 2005... Three-quarters of lenders saw their compliance costs spiral by an average of 59% in the run-up to M-Day, and 83% of lenders expected their ongoing compliance costs to rise by an average 26%. Six months on, Huntswood, a compliance specialist and...

Warning of tougher times ahead as borrowing slows.(Brief Article)
May 2, 2005... Ernst & Young has warned of tough times ahead for the mortgage market as consumers slam on the borrowing brakes. The borrowing slowdown comes in the face of record levels of debt, with a decrease in the demand for credit products and high...

Exchange adds MEX to Exweb portal.(Mortgage Express )(Brief Article)
May 2, 2005... The Exchange has added Mortgage Express to its equity release trading platform on the Exweb portal. Using the equity release trading platform, financial intermediaries can now research, quote and source equity release products from 11...

Loving neighbours are a turn-off for buyers.(Brief Article)
May 2, 2005... Noisy sex was cited by one fifth of respondents in a survey by website propertyfinder.com as the most hated noise made by neighbours. Noise is the most important factor separating the wheat from the chaff. Respondents were also...

AMI launches Mortgage Intermediary Census.(Association of Mortgage Intermediaries )(Brief Article)
May 2, 2005... The Association of Mortgage Intermediaries has launched its Mortgage Intermediary Census. The monthly study will focus on finding out the opinions and intentions of AMI members, who account for 70% of the industry. Each month AMI...

IN BRIEF: Impartiality is vital.(Brief Article)
May 2, 2005... Moneyfacts says it is vital consumers are given accurate and impartial information on financial products. It says that if consumers opt for a financial product having carried out research on a website, they need to know they can rely on the...

IN BRIEF: ABI site upgraded.(Association of British Insurers)(Brief Article)
May 2, 2005... The Association of British insurers has launched a new section of its website dedicated to the debate over paying for financial advice and the role of commission. The website enables any individual or organisation to access all the relevant...

IN BRIEF: Return of the FTBs.(first-time buyers; My Mortgage Direct shows increased applications)(Brief Article)
May 2, 2005... First-time buyers are making their presence felt in the market once again despite prevailing uncertainty in the wider economy, says broker My Mortgage Direct. The telephone and online mortgage specialist has recorded a 16% rise in applications...

VOX-POP: Could interest-only be the next scandal?(interest-only mortgages )(Brief Article)
May 2, 2005... An increasing number of first-time buyers are turning to interest-only mortgages in an attempt to get on the property ladder. However, the Financial Services Authority is believed to have targeted the products as a potential area of...

IN BRIEF: MI exclusives.(Mortgage Intelligence; Derbyshire)(Brief Article)
May 2, 2005... The Derbyshire has joined with Mortgage Intelligence to launch two three-year fixed rate buy-to-let deals. Both will be available exclusively through MI. Copyright: Centaur Communications Ltd. and licensors

IN BRIEF: B&W deals via MT.(Bristol & West; Mortgage Times Group)(Brief Article)
May 2, 2005... The Mortgage Times Group has three exclusives from Bristol & West. Products come with pay rates of either 5.59% up to 75% LTV with free valuation, 5.89% up to 85% LTV, 5.99% up to 90% LTV, with all rates fixed until June 30, 2008, without a...

ANALYSIS: Market Watch.(Fixed rate mortgages)
May 2, 2005... Swaps edged back down after an initial increase last week. * One-year money is down 0.06% at 4.99% * Two-year money is down 0.05% at 4.91% * Three-year money is down 0.05% at 4.90% * Five-year money is down 0.05% at 4.89% ...

Should estates agents be regulated by the financial services authority?
May 2, 2005... Estate agents, professional bodies, the media and the public all want regulation yet the government says there is no need for it, say our experts SHAUN GODFREY is commercial development director at Bankhall It's surprising estate...

MONTY BURN: Site insurance could open the door to more.(Self Build Zone)
May 2, 2005... If you constantly find it difficult to get a foot in the door, this week's article might just provide an idea that suits your personality. It can't be stressed enough that no matter what method you employ to get a foot in the door you must...

ANALYSIS: On The Beat.(Customer loyalty)
May 2, 2005... As the saying goes, loyalty is a two-way street. But in the current business climate this seems to be becoming less apt. Loyalty is being stretched on both sides of the equation. As always, consumers are information-hungry and, armed with a...

ANALYSIS: Nicks Notes.
May 2, 2005... A couple of weeks ago the Tonight with Trevor McDonald programme was dedicated to financial protection. It painted a clear picture of why people need financial protection but unfortunately the focus was on disputed claims. Often the...

ANALYSIS: Financial Health Matters.(Child Trust Funds )(Brief Article)
May 2, 2005... Child Trust Funds went live in April. Most of the media noise around CTFs has so far been about where recipients should invest the initial cash voucher, but it's the bigger picture that has more interesting implications for the mortgage...

ANALYSIS: Rates Ladders.(Financial Services Authority)
May 2, 2005... It used to be said the only certain things in life were death and taxes. We can now add a couple more to the list - regulation and compliance. The whole fabric of our lives is now irrevocably interwoven with the red tape and bureaucracy that...

ANALYSIS: Liquid assets.( Safe Home Income Plans)
May 2, 2005... There are now more than 40 equity release schemes on the market, the majority of which are available through Safe Home Income Plans. Seven years ago, with only a handful of providers, researching this market did not present the challenge it...

Letter: Standardised proc fees should not be an issue.(Letter to the Editor)
May 2, 2005... From Paul Griffin Why is the issue of standardising proc fees even being debated? Standardise the fees paid to brokers for recommending one product over another - surely someone is having a laugh at our expense. Are building societies...

Letter: Conservative government would bring sanity to market.(Letter to the Editor)
May 2, 2005... By Danny Lovey The general election will be crucial to the future of many small mortgage consultants. Most are feeling frustrated and worried about the future and the weight of the compliance burden. A small broker is not like Halifax...

Letter: Packaging takes experience, skill and market knowledge.(Letter to the Editor)
May 2, 2005... From Julia Jenkins My response to Wayne Smethurst's 'Letter of the Week' (Mortgage Strategy April 25) is: 'Well said, sir.' I agree with all his comments and thank him for highlighting the need to retain packagers in the...

COMMENT: Sharing can pay off for home buyers.
May 2, 2005... Shared ownership is no longer for the socially disadvantaged and a wide range of buyers can now snap up properties that represent unbeatable value for money, says Paul Winter PAUL WINTER, sales and marketing director, Ipswich The...

A VIEW FROM THE FLOOR.(Key Facts Illustrations)(Brief Article)
May 2, 2005... Alison Rolls, head of communications at Norwich and Peterborough, says lender websites should be designed to make life easier for mortgage intermediaries Six months after Mortgage Day, the standard of service provided by electronic...

COMMENT: What worries FSA should worry you.(Financial Services Authority)(Column)
May 2, 2005... With mortgage disclosure documents and payment protection insurance high on the FSA's list of retail risks, brokers should pay particular attention to these areas, says Ben Stafford BEN STAFFORD, policy officer, AMI Is your glass half...

COMMENT: Redemption fees will interest the FSA.(Financial Services Authority)
May 2, 2005... Mortgage lenders are sailing close to the regulatory wind when it comes to the redemption administration fees they impose on borrowers who want to switch, says Richard Dyson RICHARD DYSON, deputy personal finance editor, The Mail on...

COMMENT: Electronically searching for success.
May 2, 2005... Critical to the success of the government's e-conveyancing and Home Information Pack initiatives is electronic access to online local authority search information, says Mark Riddick MARK RIDDICK, CEO, Searchflow The property market is...

HIP data will be available online.(Home Information Packs )(Brief Article)
May 2, 2005... By the time the six-month dry run of Home Information Packs commences in July 2006, the contents of the pack should be readily available electronically. Efficient information flow is critical to the success of the initiative, as are...

COMMENT: Tide is turning for sourcing systems.(Key Facts Illustration)(Column)
May 2, 2005... C&G's withdrawl of the KFI production facility from its website due to lack of demand shows the superiority of sourcing systems in the selection of mortgage deals, says Richard Griffiths RICHARD GRIFFITHS, managing director, Network Data...

MCCB liquidators will get their hands on your money.(Mortgage Code Compliance Board)
May 2, 2005... Speaking at the Council of Mortgage Lenders' annual lunch on April 22, Colin Harris, chairman of the Mortgage Code Compliance Board, owned up to the fact that around #1.2m is sitting in its bank account. This represents money that was...

COMMENT: Focus is key to brand building.
May 2, 2005... Paul Griffin, managing director of SmartMove, says that rather than expensive advertising, focussed marketing is the key to brand building in the financial services sector While Davis' comments are all well and good for larger lenders and...

DEAR DELIA: Missed mortgage payments.
May 2, 2005... Dear Delia, Mark is a director of his own interior design company and earns #155,000 a year. His wife Julia earns #30,000 a year. They are looking at properties around the #850,000 price range. They can raise #230,000 deposit from the sale...

INTERVIEW - ANDY YOUNG: Moving on.(Interview)
May 2, 2005... Andy Young is looking forward to broadening TBMC's horizons when he takes over as managing director next month, says Rosemary Gallagher Andy Young, who is quitting Sesame at the end of next month, clearly remembers his days as a...

Make your mark.
May 2, 2005... The political parties are all after your vote on Thursday so to help you make up your mind, Mortgage Strategy asked each what they would do to bolster the housing market You could be forgiven for not noticing, but this Thursday on May 5...

Long-term stability in the housing market.
May 2, 2005... Vincent Cable is Liberal Democrat shadow chancellor Over the past half decade the housing market has seen growth the like of which has not been witnessed for a generation. As this growth quickened its pace in 2002 so did concerns of a market...

Average home buyer will pay no Stamp Duty.
May 2, 2005... Oliver Letwin is Conservative shadow chancellor Despite having "no plans to increase tax at all", Mr Blair has since increased taxes 66 times by stealth. As a result, the average family saw their income fall last year for the first time in...

UK parliament protects the public and safeguards individual rights.(United Kingdom)(Brief Article)
May 2, 2005... The UK Parliament represents the people of the United Kingdom and has the power to make decisions and pass laws on a wide range of issues that affect you. It also: * debates major issues of the day * scrutinises government policy ...

Scottish Parliament has a number of devolved powers.(Brief Article)
May 2, 2005... The Scottish Parliament represents the people of Scotland and has the power to make decisions in a number of devolved matters. While the UK Parliament can make laws for Scotland it will not normally make a law on a devolved matter without...

THIS WEEK 02.05.05: SIMON WHITE.(Suit against Landlord)(Brief Article)(Editorial)
May 2, 2005... SIMON WHITE, director, Ashdown Lyons Buried away in the newspapers last week was a rather scary fact. Repossessions shot up by 35% last year and they are still rising. We'd better pray this isn't the tip of an iceberg fuelled by the buy...

THIS WEEK 02.05.05: JOHN WRIGLESWORTH.(Brief Article)
May 2, 2005... JOHN WRIGLESWORTH, economist Safe Home Income Plans last week reported robust Q1 2005 new business figures of #251.4m, 3.3% ahead of Q1 2004. The first quarter traditionally sees the lowest levels of equity release business so these...

INSIGHT: Careless talk could cost you dear.
May 2, 2005... These days, when asked by a client to venture an opinion, mortgage advisers must be careful to answer in a way that won't get them into hot water further down the line, says Neal Smith NEAL SMITH, compliance manager, The Whitechurch...

INSIGHT: More brokers should be using IT.(Information Technology)
May 2, 2005... The experience of Mosaic Mortgage shows why more mortgage intermediaries should be using technology to cut costs and boost service in the regulated environment, says Frank Eve FRANK EVE, managing director, Frank Eve Consulting ...

INSIGHT: Internet Insite.
May 2, 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 The trouble with researching...

RECRUITMENT: Accepting an offer and resigning from your job.
May 2, 2005... Mark Witcomb is senior consultant at Venatus Business Intelligence So, you have reached the exciting moment of accepting the job offer. Once your decision is made, don't sit around too long. Be efficient in your decision and ensure you...

RECRUITMENT: Your CV should be honest, clear and easy to read.(Curriculum Vitae)
May 2, 2005... Colin Lloyd is head of operations at Reed Insurance With the increase in online application forms, many people are beginning to wonder what the value is of a clear, well-written CV. But most roles still require a CV and in many cases a well...