Mortgage Strategy articles from November 2006

Mortgage Strategy archives from November 2006

COMMENT: Base rate decision hangs in balance.
November 6, 2006... In the face of mounting media speculation, Bank of England governor Mervyn King last week claimed that the outcome of this Thursday's Monetary Policy Committee meeting is not a done deal. Try telling the pundits that. Most seem positive...

Portman branded a Judas.
November 6, 2006... A protest group set up to mobilise Portman's members against its proposed merger with Nationwide has branded the society a Judas for agreeing to the sale. Calling themselves Members Against The Takeover, the group recently placed an...

PPI claims firms face scrutiny in 2007.
November 6, 2006... Claims companies cashing in on the mis-selling of payment protection insurance have been warned they are on the radar screen of the Claims Standards Council. Damning reports have been issued recently by the Office of Fair Trading and...

Network Data looks to sell mortgageLink.
November 6, 2006... Network Data has admitted it is looking to sell its mortgageLink sourcing system and is in talks with several companies. Following its flotation on the Alternative Investment Market earlier this year, the network is taking a fresh look at...

BREAKING NEWS: Badger chosen as new name for Townends Group.
November 6, 2006... The Townends Group has rebranded as Badger Holdings after an employee competition to find a new name. The Townends Group, parent company to Townends & Regents estate agents, Dot Financial Services and Tyser Greewood, adopted the name after a...

IN BRIEF: PMPA exclusive deals from TMB.(Brief article)
November 6, 2006... The Professional Mortgage Packagers Alliance has launched four exclusive products and one semiexclusive product from The Mortgage Business. The first two deals are options in TMB's Self 85 range that allows self-cert to a maximum LTV of 85%....

IN BRIEF: Heatwave boosts subsidence fears.(Brief article)
November 6, 2006... The British Insurance Brokers' Association has warned that the number of properties that suffer from subsidence may dramatically increase this year thanks to the recording-breaking temperatures experienced in the summer. Copyright:...

IN BRIEF: Parents live with parents.(Brief article)
November 6, 2006... Alliance & Leicester has revealed that nearly a quarter of parents in the UK can't afford to buy their own properties and instead rely on renting or living with their own parents. Copyright: Centaur Communications Ltd. and licensors

Paymentshield could face legal action on commission.
November 6, 2006... Paymentshield has been threatened with legal action over its decision to stop paying renewal commission to brokers who are no longer regulated to sell general insurance. Sue Lambert-Hope, a retired mortgages adviser, says she will be...

90% Of brokers say Labour should scrap HIP plan.
November 6, 2006... A whopping 90% of brokers think the government should hammer the final nail into the coffin of Home Information Packs. Just 10% think the packs should be implemented next year. Copyright: Centaur Communications Ltd. and licensors

Nationwide plans online system.
November 6, 2006... Nationwide says it will have its own trading system in place for brokers who don't want to use the Mortgage Trading Exchange by early 2007. Mortgage Strategy revealed in August that Nationwide was looking at introducing an online platform...

Paaleads offers leads from more sources.
November 6, 2006... Paaleads.com has teamed up with moneyweb.co.uk and dealdirect.co.uk to widen the sources of leads on its new eBay-style bidding system. Following the launch of its bidding system, paaleads.com said the source of its leads would no longer...

Industry defends Abbey's 5 x income mortgage.
November 6, 2006... Brokers and lenders have defended Abbey's 5 x income product following the lashing the deal received in the national media last week. The product, which offers potential borrowers a loan up to 5 x their income, was announced in the face...

BM defends product transfer policy.
November 6, 2006... Despite criticism of its retention policy from rivals, BM Solutions says it is set to complete over #500m worth of product transfers by the end of 2006. BM Solutions has come under attack in recent weeks for encouraging brokers to be lazy...

BREAKING NEWS: Branding agreement.
November 6, 2006... Oryen Mortgage Packaging has signed a branded lending agreement with Kensington Mortgages, allowing it to offer the full range of Kensington products under the Oryen Mortgage Finance brand. This means Oryen's clients can deal with a...

FSA to slash rulebook in half.
November 6, 2006... The Financial Services Authority has pledged to cut its rulebook in half to make rules easier to understand in line with its principles- based approach. The FSA will remove around half the content of the Conduct of Business rulebook and...

Evaluate users have the Advantage on binding decisions.
November 6, 2006... Brokers using Primrose's Evaluate system will be the first to obtain binding decisions for Advantage's specialist lending product range. Jeremy Duncombe, business development director of Advantage, says: "Primrose and Advantage have...

Consumers could pay price for COB changes.
November 6, 2006... KPMG is warning that financial services firms and ultimately consumers will pick up the bill for proposed changes to the regulator's Conduct of Business rules. KPMG believes the Financial Services Authority has underestimated how much...

Decorators refuse to leave.
November 6, 2006... The Association of Residential Letting Agents has dismissed a case of decorators refusing to leave a property as uncommon and says this is not an issue that should concern landlords. Buy-to-let landlord Nita Bowers bought a #215,000 flat...

Major new MS event for secured lending sector.
November 6, 2006... Mortgage Strategy is launching a major new event aimed at the secured lending sector. Following the success of the Mortgage Summit and the Mortgage Packager Summit, the Secured Lending Summit will take place at the luxurious Palais de...

Brokers warned on loan options.
November 6, 2006... Brokers have been warned that if they don't advise on second charge loans they could be running the risk of breaking the Financial Services Authority's rules on best advice. John Webster, chief executive of Swift Group, says that although...

IN BRIEF: LMS remortgage service is a hit.(Brief article)
November 6, 2006... LMS says its remortgaging service for packagers is a hit, with 13 firms already signed up. Packagers signed up include All Types of Mortgages, Clear Mortgage Administration, Just Mortgage Packaging, KGB Packaging, Mortgage 1, Mortgage...

IN BRIEF: Insomniac pays off mortgage.(Brief article)
November 6, 2006... An insomniac has paid off her mortgage after she scooped #150,000 on late-night TV quiz shows. Financial expert Jo Richardson won #150,000 over the past year. She says: "I don't sleep much which is perfect for entering competitions in which...

ERCs are OK, say lenders.
November 6, 2006... Lenders have defended extended early repayment charges following criticism from Hamptons Mortgages. The brokerage has denounced lenders that offer low initial rates accompanied by heavy ERCs for borrowers who apply for an extended period...

Alexander unveils charity initiative.
November 6, 2006... Alexander Finance Services is launching an initiative that allows brokers to donate 1% of their proc fees to charity. The packager has set up the Red & Black Club through which it will donate 1% of its commission and brokers donate 1% of...

Age Concern hits back at high valuation fee claim.
November 6, 2006... Age Concern has hit back at claims that it charges the highest valuation fee in the market. MoneyExpert.com last week named and shamed lenders charging the highest product valuation fees. Top of the list was Age Concern, which uses...

Lenders warned to invest in IT.
November 6, 2006... Lenders risk becoming industry dinosaurs unless they invest in technology, warns edeus. Alan Cleary, managing director of edeus, says that for the next generation of borrowers, using online technology will be the norm and young consumers...

Countrywide eyes overseas opportunities.
November 6, 2006... A few weeks ago, in preparation for a special issue of National Mortgage News that was to be shipped to the annual Mortgage Bankers Association convention, I sought interviews with the CEOs of America's two largest lenders - Countrywide Home...

IN BRIEF: Complete offers POS-O facility.(Brief article)
November 6, 2006... Complete Mortgage & Loan Services has become the latest GMAC-RFC packager partner to offer the lender's point-of-sale offer facility to its brokers. Copyright: Centaur Communications Ltd. and licensors

IN BRIEF: Free valuations from TMP.(Brief article)
November 6, 2006... The Mortgage Partnership has launched free valuations in association with GMAC-RFC. The packager is now providing brokers with free valuations and instant offers on selected packaged products from the Partners range. Copyright: Centaur...

IN BRIEF: LMS service offered via M2000.(Brief article)
November 6, 2006... LMS' remortgaging service for packagers is now accessible through Mortgage 2000 and can be used via M2000's m2-d and Casemaster. The system offers clients a number of features including the provision of automated documentation. It also gives...

IN BRIEF: Reassurance on energy inspectors.(Brief article)
November 6, 2006... The Association of Home Information Pack Providers is reassuring the industry that there will be enough energy assessors to provide homes with Energy Performance Certificates by June 2007. Copyright: Centaur Communications Ltd. and...

Brokers think commercial.
November 6, 2006... Commercial mortgages are high on brokers' agenda as they fear they could lose out on residential business if they are unable to offer them. As a result of this Andy Young, managing director of The Business Mortgage Company, predicts that...

Packager launched.
November 6, 2006... Packager Trafalgar Square Solutions celebrated its official launch party last week at a gala event sponsored by edeus. Based in Wandsworth, south London, joint managing director Michael Franklyn, formerly worked at BM Solutions and The...

Personal Touch to launch forums.
November 6, 2006... Personal Touch Financial Services is to embark on a series of mortgage and protection forums which will take place every four months. The events will be aimed at discussing the latest developments from lenders and protection companies,...

Over-50s don't save enough.
November 6, 2006... A worrying 23% of people over 50 have not started saving to fund their retirement, research from Mortgage Express reveals. MEX's Lifetime Report polled the financial attitudes of 358 equity release and 630 non-equity release customers...

Five years before serious industry nasties are exposed.
November 6, 2006... Edeus has predicted it will be five years before what it calls the "real nasties" in the market are exposed. Alan Cleary, managing director of edeus, warns that the Financial Services Authority's recent spate of fines was just the tip of...

Let your fingers do the driving.
November 6, 2006... Brokers will get the chance to show off their racing skills on the stands of Lehman Brothers' UK mortgage businesses at the Mortgage Business Expo in London next week. The three brands - London Mortgage Company, Preferred and Southern...

IN BRIEF: Flats become more popular.(Brief article)
November 6, 2006... Research by Halifax shows that the traditional image of British life is changing, with home owners preferring to live in flats rather than terraced or semi-detached housing. Copyright: Centaur Communications Ltd. and licensors

IN BRIEF: Brokers look to gain an Edge.(Brief article)
November 6, 2006... Enterprise Group reports an increase in the numbers of brokers using its Edge system. It says there are now 2,000 registered users of Edge, with over 100 enquiries going through the system each day. Copyright: Centaur Communications Ltd....

Investors may leave homes.
November 6, 2006... Nationwide is warning that buoyancy in the equity markets could attract investors' attention and contribute to a slowdown in the property market. The society's latest house price index shows prices were up by 0.7% in October, with the...

Assureweb in cover tie-up with HLP.
November 6, 2006... Assureweb has linked up with HomeLoan Partnership to offer its members access to exclusive life protection products. Assureweb will provide a protection panel for HLP's chosen provider partners, AXA, Bright Grey, BUPA, Friends Provident,...

N&P launches into B2L market in Gibraltar.
November 6, 2006... Norwich and Peterborough has launched into the buy-to-let market in Gibraltar and also improved the rates on its Spanish mortgages. Richard Barker, product manager at N&P, says: "We have been helping UK residents and ex-pats to buy or...

IN BRIEF: Politicians set to talk business.(Brief article)
November 6, 2006... Gordon Brown and David Cameron will present their pro-business credentials at the Confederation of British Industry annual conference next month. With the relationship with business at the top of both men's agenda, each will be keen to respond...

IN BRIEF: Partnership extended.(Brief article)
November 6, 2006... Kensington Group has increased its shareholding in Money Partners Holdings Limited from 20% to 57.5% following a successful first two years' partnership. Kensington will pay an initial consideration of #13.1m for its extra stake and may pay a...

IN BRIEF: Cost of living up.(Brief article)
November 6, 2006... The cost of living has gone up 16% in the past decade, according to Barclays Life Insurance. Over that period, life insurance has been one of the few products to fall in price. Copyright: Centaur Communications Ltd. and licensors

Protection tools for Charcol.
November 6, 2006... Lifequote is providing John Charcol with individual protection systems for the brokerage's four businesses. This is the first time Lifequote's protection tools have been rolled out across online, telephone and face-to-face systems in a...

IFAs are best when planning for IHT.
November 6, 2006... Poor Inheritance Tax planning will cost UK adults #1.3bn this year, research by unbiased.co.uk reveals. Although the research also finds people are improving the way they plan when it comes to IHT liabilities, it warns that because house...

Owners undervalue the contents of their homes.
November 6, 2006... When it comes to insuring their home contents home owners undervalue their possessions by a shocking 150%, says Legal & General. L&G research shows that on average consumers estimate the value of the contents of a living room, kitchen,...

IN BRIEF: Next unveils free legals promotion.(Brief article)
November 6, 2006... Mortgage Next is running a free legal and valuation fees incentive available on packaged cases over #100,000. The scheme includes Mortgages PLC, Advantage, Kensington Mortgages and DB Mortgages. Copyright: Centaur Communications Ltd. and...

IN BRIEF: Optoma boosts processing.(Brief article)
November 6, 2006... Optoma Broker Solutions has changed its processing procedures in response to high business volumes and to improve its service to brokers. An administrator will be allocated to each underwriting team to assist in updating cases and responding to...

IN BRIEF: Scarborough appointment.(Brief article)
November 6, 2006... Scarborough has recruited John Jenkins as regional development manager to support its specialist lending brand. Covering the Midlands and South, Jenkins will build relationships between Scarborough and brokers, and raise awareness of...

IN BRIEF: Devlin joins FSCS board.(Brief article)
November 6, 2006... Ron Devlin, head of claims division at the Financial Services Compensation Scheme, has been appointed to the FSCS board as an executive director. Copyright: Centaur Communications Ltd. and licensors

IN BRIEF: Conveyancing appointment.(Brief article)
November 6, 2006... Connells Group has appointed Roger Wilson to the newly created role of conveyancing services director. He will develop the conveyancing side of the business and also head the group's activities in the Home Information Pack market. ...

IN BRIEF: Banco Halifax on Costa del Sol.(Brief article)
November 6, 2006... Banco Halifax Hispania has opened two branches on the Costa del Sol in Sotogrande and Guadalmina. They have been opened to serve the growing British ex-pat market looking to buy second homes in Spain. Copyright: Centaur Communications...

IN BRIEF: Freedom is a fast-rising star.(Brief article)
November 6, 2006... Freedom Finance has risen to a ranking of 294 among the fastest-growing European companies featured in the 2006 Europe's 500 Listing, the annual league table of high growth companies that is published by Europe's 500. Copyright: Centaur...

BM dominates Hamptons Awards short list.
November 6, 2006... Hamptons Mortgages unveiled its awards short list last week, with BM Solutions making the grade in eight out of 11 categories. The Hamptons Awards are one of London's most prestigious lender award ceremonies. This year the event takes...

Will you fund your retirement with a pension or property?
November 6, 2006... It was revealed last week that over half of the people surveyed by Lincoln Financial Group felt that their property was a safer investment than a pension. Although research shows the average person pays off their mortgage at 56, around 1.58...

C2-financial says many mortgage firms face insolvency.
November 6, 2006... c2-financial says a number of packagers and brokers are on the verge of insolvency because of a downturn in business volumes and tighter margins. The packager has been monitoring returns submitted to Companies House as part of its...

IN BRIEF: Newcastle unveils two products.(Brief article)
November 6, 2006... Newcastle has launched two mortgage products. The three-year stepped discount deal offers an annual sequential discount from 3% to 1% on SVR until January 31 2010. The two-year fixed deal with extended tie-in has a rate of 1.80%. ...

IN BRIEF: Advice system upgraded.(Brief article)
November 6, 2006... Home Buyer Systems has introduced a suite of improved features for its integrated mortgage and general insurance advice and sales system to ensure regulatory compliance. Copyright: Centaur Communications Ltd. and licensors

IN BRIEF: Texting can boost business.(Brief article)
November 6, 2006... MortgageKeeper says mobile phone texting has not only revolutionised the way people communicate socially but is also forging new opportunities in the way business is done. Texting gets straight to the customer, providing a way of updating...

IN BRIEF: Conveyancing agreement.(Brief article)
November 6, 2006... Easier2move has forged a deal with retirementhomesearch.co.uk to provide conveyancing services to its clients. The service will be white- labelled under the retirementhomesearch.co.uk corporate umbrella. Copyright: Centaur Communications...

ANALYSIS: Marketwatch - 06.11.06.
November 6, 2006... It was great to see swaps creep down for a change last week. They edged back after about four weeks of steady increases. Longer term swaps decreased sharply. * One-year money is down 0.03% at 5.42% * Two-year money is down 0.08% at...

What do you think will be role of mortgage networks in 10 years' time?
November 6, 2006... Networks will provide brokers with the chance to build sustainable profits in an increasingly regulated industry, say our experts Payam Azadi is head of marketing at The Mortgage Times Group Mortgage networks are still a relatively new...

ANALYSIS: Rising base rate won't slow housing market.
November 6, 2006... Recent weeks have seen plenty of product withdrawals from a number of lenders, predominantly on the fixed rate front. This has been precipitated by the rise in money market rates filtering through and affecting the pricing of products. ...

ANALYSIS: Intermediaries need retention strategies too.
November 6, 2006... The big debate in the lending world at the moment is about retention strategies. This is not a particularly new development as lenders have always been worried about the strategy of heavily discounting products at the front end only to...

ANALYSIS: Nothing to fear from another base rate rise.
November 6, 2006... It is almost certain that the Bank of England will raise interest rates this month, reaching 5% for the first time since 2001. Some are already describing this as a done deal. But the good news for the mortgage market is that it is in a...

ANALYSIS: Shabby leads the way on road to ruin.
November 6, 2006... Good old Shabby Abbey. Just when you think things are getting boring in the mortgage market Shabby comes up with another ruse to entice sleepwalking borrowers into its - since the Santander makeover - cheap and nasty high street branches. I...

ANALYSIS: Online marketing is vital for small brokers.
November 6, 2006... Online marketing is a vital tool for brokers, especially as it allows small businesses to compete on a level playing field with their larger rivals. But in talking to smaller brokers, it seems that they don't always realise that a few...

ANALYSIS: Clients need guidance in the product maze.
November 6, 2006... If it's not chancellor Gordon Brown it's the Financial Services Authority. Just when the industry thought it could predict where the next U-turn would come from, the regulator springs a surprise. It announced last Tuesday that it is...

ANALYSIS: Laggard lenders will pay the price.
November 6, 2006... There has been more aggression in the mortgage market recently, largely thanks to the entry of a wave of lenders into the specialist market. Claims and counter claims have been registered in the media about the capabilities of new systems...

ANALYSIS: When the dream overwhelms reality.
November 6, 2006... We are fast approaching the season of joy and goodwill but we can all see that what is always an expensive time of the year has all the signs of being even more so this year, as the Monetary Policy Committee plots the extent of the next Bank...

ANALYSIS: Helping the property development virgins.
November 6, 2006... It is normally a sign of a buoyant housing market that more and more people try to make a quick buck by getting involved in property development. This is the case at present, as we are seeing increasing numbers of enquiries in this field,...

ANALYSIS: Banks make life easy for identity fraudsters.
November 6, 2006... Identity fraud has become a hot issue for some of the high street banking institutions. Barely a day goes by without something being mentioned in the press about ID fraud. A typical headline followed a recent BBC investigation into high...

ANALYSIS: Brokers must work for their proc fees.
November 6, 2006... This issue is high profile as more lenders explore retention strategies. A number already offer retention fees to brokers who keep their clients with them and it looks likely that more will follow suit in the months ahead. AMI felt this...

ANALYSIS: Forget trying to talk sense into MPs.
November 6, 2006... Last week I was invited to speak about Home Information Packs in the House of Commons. I accepted the invitation but I had doubts about how worthwhile the exercise would be. These doubts were well founded. The day started badly when I...

ANALYSIS: It's make your mind up time on home reversion.
November 6, 2006... Last week provided a timely reminder for those who have been sitting on the fence that home reversion regulation is well and truly on its way. With the final rules from the Financial Services Authority published and the regulator...

ANALYSIS: We must help people see value of protection.
November 6, 2006... The truth is that the population of this country is getting worse not better when it comes to looking after their personal finances. Press articles highlighting statistics about the financial state of the nation never make pleasant...

LETTER: We should do more than refuse to use inefficient lenders.(Letter to the editor)
November 6, 2006... From Paul Brown Due to problems with BDMs who don't care and call centres that are inadequately staffed, Halifax has been blacklisted by me when it comes to purchase mortgages for the past couple of years. It has been sent the odd...

LETTER: High time regulators cracked down on the PPI rogues.(Letter to the editor)
November 6, 2006... From Sara-Ann Burgess If the payment protection insurance market has not woken up yet, then the alarm bells should be ringing so loudly that even Mr Van Winkle would struggle to get a good night's rest. In the past fortnight there...

LETTER: Call me a party pooper but I'm worried about AVMs.(Letter to the editor)
November 6, 2006... From Danny Lovey At the risk of being branded a party pooper regarding the benefits of automated valuation models which are being so wildly and arrogantly proclaimed in some quarters, I keep asking myself - what is this uncomfortable...

LETTER: HIPs are doomed and this naive government should drop them now.(Letter to the editor)
November 6, 2006... From Trevor Kent The welcome call from the Council of Mortgage Lenders - a body that both Blair and Brown take notice of - to abandon Home Information Packs is timely indeed. Only last month the Royal Institution of Chartered...

SUM TOTAL: Counting the cost.
November 6, 2006... Sourcing systems' total cost tables can be misleading for several reasons and it's time this issue was resolved, says Alan Selkirk The lowest total cost or true cost is usually believed by intermediaries to be the correct way to recommend...